Energy Transfer 2012 Annual Report Download - page 201
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F - 56
The following table summarizes information at the dates indicated for plans with an accumulated benefit obligation in excess
of plan assets:
December 31, 2012
Pension Benefits
Other
Postretirement
Benefits
Projected benefit obligation $ 1,195 N/A
Accumulated benefit obligation 1,179 $ 225
Fair value of plan assets 906 185
Components of Net Periodic Benefit Cost
December 31, 2012
Pension Benefits
Other
Postretirement
Benefits
Net Periodic Benefit Cost:
Service cost $ 3 $ 1
Interest cost 15 3
Expected return on plan assets (21)(5)
Special termination benefits charge 2 —
Curtailment recognition (1) —(15)
(1)(16)
Regulatory adjustment (2) 9 2
Net periodic benefit cost $ 8 $ (14)
(1) Subsequent to the Southern Union Merger, Southern Union amended certain of its other postretirement employee benefit
plans, which prospectively restrict participation in the plans for the impacted active employees. The plan amendments
resulted in the plans becoming currently over-funded and, accordingly, Southern Union recorded a pre-tax curtailment
gain of $75 million. Such gain was offset by establishment of a non-current refund liability in the amount of $60
million. As such, the net curtailment gain recognition was $15 million.
(2) In its distribution operations, Southern Union recovers certain qualified pension benefit plan and other postretirement
benefit plan costs through rates charged to utility customers. Certain utility commissions require that the recovery of
these costs be based on the Employee Retirement Income Security Act of 1974, as amended, or other utility commission
specific guidelines. The difference between these regulatory-based amounts and the periodic benefit cost calculated
pursuant to GAAP is deferred as a regulatory asset or liability and amortized to expense over periods in which this
difference will be recovered in rates, as promulgated by the applicable utility commission.
Assumptions
The weighted-average assumptions used in determining benefit obligations at the dates indicated are shown in the table below:
December 31, 2012
Pension Benefits
Other
Postretirement
Benefits
Discount rate 3.41% 2.39%
Rate of compensation increase 3.17% N/A
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