Consolidated Financial Statements
Assumptions used to determine net periodic postretirement benefit expense were as follows for the years ended December 31: Basin Electric and Subsidiaries Coteau 2013 2012 2013 2012
Weighted-average discount rates Expected long-term rate of return on plan assets Health care cost trend rate assumed Ultimate health care cost trend Year that the rate reaches the ultimate trend rate
3.79% N/A 8.24% 4.50% 2027
4.46% N/A 8.66% 4.50% 2027
3.05% 6.00% 7.00% 5.00% 2021
3.90% 6.50% 7.50% 5.00% 2018
The following sets forth the changes in accumulated postretirement benefit liability and plan assets during the year, and reconciles the funded status of the plans to the accrued liability which is included in Deferred credits, taxes and other liabilities on the Consolidated Balance Sheets, as of December 31: Basin Electric and Subsidiaries Coteau 2013 2012 2013 2012
Change in accumulated postretirement benefit liability: Balance at January 1 $ 37,561 $ 43,289 $ Service cost 1,665 1,946 Interest cost 1,172 1,593 Actuarial loss (gain) (5,420) (5,535) Assumption changes (2,205) (2,653) Benefit payments (4,047) (2,949) Retiree contributions 2,068 1,870 Balance at December 31 $ 30,794 $ 37,561 $ Change in plan assets: Fair value of plan assets at beginning of year $ - $ - $ Actual return on plan assets - - Employer contributions 1,979 1,079 Plan participants’ contributions 2,068 1,870 Benefit payments (4,047) (2,949) Fair value of plan assets at end of year $ - $ - $ As of December 31, the funded status of the plan was: Accumulated postretirement benefit liability $ 30,794 $ 37,561 $ Fair value of plan assets - - Funded status at end of year $ 30,794 $ 37,561 $ As of December 31, the following amounts were recognized in the balance sheets and in Accumulated other comprehensive income (loss): Current liabilities $ 1,616 $ 1,599 $ Noncurrent liabilities 29,178 35,962 Net amount recognized in balance sheet $ 30,794 $ 37,561 $ Amounts not yet reflected in net periodic postretirement benefit expense and included in Accumulated other comprehensive income (loss): Prior service credit $ 4,159 $ 5,147 $ Actuarial gain (loss) 9,228 1,952 Accumulated other comprehensive income (loss) $ 13,387 $ 7,099 $
58 | 2013 ANNUAL REPORT
13,444 $ 374 411 383 - (828) - 13,784 $
12,460 362 488 493 (359) 13,444
3,938 $ 602 - - (1,059) 3,481 $
4,253 301 (616) 3,938
13,784 $ 3,481 10,303 $
13,444 3,938 9,506
- $ 10,303 10,303 $
9,506 9,506
647 $ (4,367) (3,720) $
905 (4,842) (3,937)