Atmos Energy 1999 Annual Report Download - page 58

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Atmos
Energy
Corporation
54
The Company records the accrued pension asset in deferred
charges and other assets. The following table sets forth the total for
the Pension Account Plan’s funded status for 1999 and 1998:
1999 1998
(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year $ 218,245 $ 217,152
Service cost 4,232 5,256
Interest cost 14,696 15,655
Curtailments/special termination benefits — (2,645)
Plan amendments — (14,605)
Actuarial (gain) loss (21,390) 10,638
Benefits paid (15,318) (13,206)
Benefit obligation at end of year 200,465 218,245
Change in plan assets:
Fair value of plan assets at
beginning of year 286,708 259,851
Actual return on plan assets 11,108 40,063
Benefits paid (15,318) (13,206)
Fair value of plan assets at end of year 282,498 286,708
Funded status 82,033 68,463
Unrecognized transition asset (625) (873)
Unrecognized prior service cost (9,680) (10,382)
Unrecognized net gain (48,780) (45,616)
Accrued pension asset $ 22,948 $ 11,592
1999 1998 1997
Weighted average
assumptions for end
of year disclosure:
Discount rate 7.5% 7.0% 7.5%
Rate of compensation
increase 4.0% 4.0% 4.0%
Expected return on
plan assets 10.0% 9.0% 9.0%
The plan assets consist primarily of investments in common
stocks, interest bearing securities and interests in commingled pen-
sion trust funds.
Net periodic pension cost for the Pension Account Plan for 1999,
1998 and 1997 included the following components:
1999 1998 1997
(In thousands)
Components of net
periodic pension cost:
Service cost $ 4,232 $ 5,256 $ 6,640
Interest cost 14,696 15,655 15,301
Expected return on
assets (27,846) (23,249) (19,730)
Amortization of:
Transition obligation
(asset) (248) (241) (431)
Prior service cost (703) 851 921
Actuarial (gain) (1,487) (1,225) —
Net periodic pension
cost (11,356) (2,953) 2,701
Curtailment (gain) loss
and special termination
benefits — (1,840) 4,758
Total pension cost
accruals $ (11,356) $ (4,793) $ 7,459
Supplemental Executive Benefits Plans The Company has a non-
qualified Supplemental Executive Benefits Plan (“Supplemental Plan”)
which provides additional pension, disability and death benefits to the
officers and certain other employees of the Company. The Supplemental
Plan was amended and restated in August 1998. In addition, in August
1998, the Company adopted the Performance-Based Supplemental
Executive Benefits Plan, which will cover all employees who become offi-
cers or business unit presidents after August 12, 1998.