Atmos Energy 1999 Annual Report Download - page 59

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Atmos
Energy
Corporation
55
The Company records accrued pension cost in deferred credits
and other liabilities. The following table sets forth the total for the
Supplemental Plans’ funded status for 1999 and 1998:
1999 1998
(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year $ 36,770 $ 30,796
Service cost 1,151 505
Interest cost 2,488 2,246
Plan amendments — 565
Actuarial (gain) loss 331 4,389
Benefits paid (1,915) (1,731)
Benefit obligation at end of year 38,825 36,770
Change in plan assets:
Fair value of plan assets at
beginning of year — —
Employer contribution 1,915 1,731
Benefits paid (1,915) (1,731)
Fair value of plan assets at end of year — —
Funded status (38,825) (36,770)
Unrecognized transition asset 484 580
Unrecognized prior service cost 8,837 9,858
Unrecognized net loss 6,886 6,772
Accrued pension cost $ (22,618) $ (19,560)
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%
Assets for the Supplemental Plans are held in the Company’s
rabbi trusts (see Note 13) and consist primarily of investments in equi-
ty mutual funds. The market value of the rabbi trusts amounted to
$26.1 million at September 30, 1999. The assets in the rabbi trusts
are included on the Company’s balance sheet under deferred charges
and other assets and not presented above as plan assets.
The projected benefit obligation, accumulated benefit obligation,
and fair value of plan assets for the Supplemental Plans with accumulat-
ed benefit obligations in excess of plan assets were $38.8 million, $32.8
million, and none, respectively, as of September 30, 1999, and $36.8
million, $31.4 million, and none, respectively, as of September 30, 1998.
Net periodic pension cost for the Supplemental Plans for 1999,
1998 and 1997 included the following components:
1999 1998 1997
(In thousands)
Components of net
periodic pension cost:
Service cost $ 1,151 $ 505 $ 263
Interest cost 2,488 2,246 1,932
Expected return on assets — — —
Amortization of:
Transition obligation
(asset) 96 96 96
Prior service cost 1,022 810 810
Actuarial (gain) loss 216 133 390
Net periodic pension cost $ 4,973 $ 3,790 $ 3,491
Employee Stock Ownership Plan Atmos sponsors an ESOP for all
employees of the Company. Effective January 1, 1999, the ESOP was
amended to provide for deferral of a portion of a participant’s salary
of up to 21%. In addition, among other changes to the ESOP, partici-
pants are provided with automatic matching contributions of 100% of
each participant’s salary reduction up to 4% of the participant’s salary,
and are provided the option of taking out loans against their ESOP
accounts, subject to certain restrictions. Each participant enters into a