Xcel Energy 2000 Annual Report Download - page 20

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A comparison of the actuarially computed pension benefit obligation and plan assets at Dec. 31, 2000 and 1999, for all Xcel Energy plans on a combined
basis is presented in the following table.
(Thousands of dollars) 2000 1999
CHANGE IN BENEFIT OBLIGATION
Obligation at Jan. 1 $2,170,627 $2,157,255
Service cost 59,066 63,674
Interest cost 172,063 154,619
Acquisitions 52,800
Plan amendments 2,649 184,255
Actuarial (gain) loss 1,327 (225,355)
Benefit payments (204,394) (163,821)
Obligation at Dec. 31 $2,254,138 $2,170,627
CHANGE IN FAIR VALUE OF PLAN ASSETS
Fair value of plan assets at Jan. 1 $3,763,293 $3,460,740
Actual return on plan assets 91,846 466,374
Acquisitions 38,412
Benefit payments (204,394) (163,821)
Fair value of plan assets at Dec. 31 $3,689,157 $3,763,293
FUNDED STATUS AT DEC. 31
Net asset $1,435,019 $1,592,666
Unrecognized transition (asset) obligation (16,631) (23,945)
Unrecognized prior-service cost 228,436 247,632
Unrecognized (gain) loss (1,421,690) (1,680,616)
Prepaid pension asset recorded $ 225,134 $ 135,737
2000 1999
SIGNIFICANT ASSUMPTIONS
Discount rate 7.75% 7.5–8.0%
Expected long-term increase in compensation level 4.50% 4.0–4.5%
Expected average long-term rate of return on assets 8.5–10.0% 8.5–10.0%
The components of net periodic pension cost (credit) for Xcel Energy plans are:
(Thousands of dollars) 2000 1999 1998
Service cost $ 59,066 $ 63,674 $ 55,545
Interest cost 172,063 154,619 145,574
Expected return on plan assets (292,580) (259,074) (233,191)
Amortization of transition asset (7,314) (7,314) (7,314)
Amortization of prior-service cost 19,197 17,855 6,209
Amortization of net gain (60,676) (40,217) (30,607)
Net periodic pension cost (credit) under SFAS 87 $(110,244) $ (70,457) $ (63,784)
Credits not recognized due to effects of regulation 49,697 36,469 35,545
Net benefit cost (credit) recognized for financial reporting $ (60,547) $ (33,988) $ (28,239)
Additionally, Xcel Energy maintains noncontributory, defined benefit supplemental retirement income plans for certain qualifying executive personnel.
Benefits for these unfunded plans are paid out of Xcel Energy’s operating cash flows.
XCEL ENERGY INC. AND SUBSIDIARIES
49
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS