PG&E 2012 Annual Report Download - page 101
Download and view the complete annual report
Please find page 101 of the 2012 PG&E annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91 -
92 -
93 -
94 -
95 -
96 -
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
 |
 |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued)
NOTE 12: EMPLOYEE BENEFIT PLANS (Continued)
Components of Net Periodic Benefit Cost
Net periodic benefit cost as reflected in PG&E Corporation’s Consolidated Statements of Income for 2012,
2011, and 2010 was as follows:
Pension Benefits
2012 2011 2010
(in millions)
Service cost for benefits earned ................ $ 396 $ 320 $ 279
Interest cost .............................. 658 660 645
Expected return on plan assets ................ (598) (669) (624)
Amortization of prior service cost .............. 20 34 53
Amortization of unrecognized loss .............. 123 50 44
Net periodic benefit cost ................... 599 395 397
Less: transfer to regulatory account(1) .......... (301) (139) (233)
Total ................................... $ 298 $ 256 $ 164
(1) The Utility recorded $301 million, $139 million, and $233 million for the years ended December 31, 2012, 2011, and 2010,
respectively, to a regulatory account as the amounts are probable of recovery from customers in future rates
Other Benefits
2012 2011 2010
(in millions)
Service cost for benefits earned ................ $ 49 $ 42 $ 36
Interest cost .............................. 83 91 88
Expected return on plan assets ................ (77) (82) (74)
Amortization of transition obligation ............ 24 26 26
Amortization of prior service cost .............. 25 27 25
Amortization of unrecognized loss (gain) .........643
Net periodic benefit cost ..................... $ 110 $ 108 $ 104
There was no material difference between PG&E Corporation and the Utility for the information disclosed
above.
Components of Accumulated Other Comprehensive Income
PG&E Corporation and the Utility record the net periodic benefit cost for pension benefits and other benefits
as a component of accumulated other comprehensive income, net of tax. Net periodic benefit cost is composed of
unrecognized prior service costs, unrecognized gains and losses, and unrecognized net transition obligations as
components of accumulated other comprehensive income, net of tax.
Regulatory adjustments are recorded in the Consolidated Statements of Income and Consolidated Balance
Sheets to reflect the difference between pension expense or income calculated in accordance with GAAP for
accounting purposes and pension expense or income for ratemaking, which is based on a funding approach. A
regulatory adjustment is also recorded for the amounts that would otherwise be charged to accumulated other
comprehensive income for the pension benefits related to the Utility’s defined benefit pension plan. The Utility
would record a regulatory liability for a portion of the credit balance in accumulated other comprehensive income,
should the other benefits be in an overfunded position. However, this recovery mechanism does not allow the Utility
to record a regulatory asset for an underfunded position related to other benefits. Therefore, the charge remains in
accumulated other comprehensive income (loss) for other benefits.
97