QEP Resources, Inc.

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SEC Filings

10-Q
QEP RESOURCES, INC. filed this Form 10-Q on 11/07/2018
Entire Document
 


The Company recognizes service costs related to SERP and Medical Plan benefits on the Condensed Consolidated Statements of Operations within "General and administrative" expense. All other expenses related to the Pension Plan, SERP and Medical Plan are recognized on the Condensed Consolidated Statements of Operations within "Interest and other income (expense)".

The following table sets forth the Company's net periodic benefit costs related to its Pension Plan, SERP and Medical Plan:
 
Three Months Ended
 
Nine Months Ended
 
September 30,
 
September 30,
 
2018
 
2017
 
2018
 
2017
Pension Plan and SERP benefits
(in millions)
Service cost
$
0.2

 
$
0.2

 
$
0.6

 
$
0.6

Interest cost
1.2

 
1.2

 
3.4

 
3.6

Expected return on plan assets
(1.4
)
 
(1.3
)
 
(4.3
)
 
(4.0
)
Amortization of prior service costs(1)
0.2

 
0.3

 
0.6

 
0.9

Amortization of actuarial losses(1)

 
0.1

 
0.6

 
0.3

Curtailment loss(2)
0.3

 
0.7

 
0.3

 
0.7

Periodic expense
$
0.5

 
$
1.2

 
$
1.2

 
$
2.1

 
 
 
 
 
 
 
 
Medical Plan benefits
 
 
 
 
 
 
 
Interest cost
$

 
$

 
$
0.1

 
$
0.1

Amortization of prior service costs(1)
(0.1
)
 
(0.1
)
 
(0.2
)
 
(0.2
)
Periodic expense
$
(0.1
)
 
$
(0.1
)
 
$
(0.1
)
 
$
(0.1
)
____________________________
(1) 
Amortization of prior service costs and actuarial losses out of accumulated other comprehensive income are recognized on the Condensed Consolidated Statements of Operations within "Interest and other income (expense)".
(2) 
A curtailment is recognized when there is a significant reduction in, or an elimination of, defined benefit accruals for current employees' future services. These expenses relate to the Uinta Basin Divestiture for the three and nine months ended September 30, 2018 and the Pinedale Divestiture for the three and nine months ended September 30, 2017. The Uinta Basin Divestiture curtailment is recognized on the Condensed Consolidated Statements of Operations within "Interest and other income (expense)" for the three and nine months ended September 30, 2018. The Pinedale Divestiture curtailment is recognized on the Condensed Consolidated Statements of Operations within "Net gain (loss) from asset sales, inclusive of severance costs" for the three and nine months ended September 30, 2017.

Employee Investment Plan
QEP employees may participate in the QEP Employee Investment Plan, a defined-contribution plan (the 401(k) Plan). The 401(k) Plan allows eligible employees to make investments, including purchasing shares of QEP common stock, through payroll deduction at the current fair market value on the transaction date. Both employees and QEP make contributions to the 401(k) Plan. During the nine months ended September 30, 2018, the Company made contributions of $4.9 million to the 401(k) Plan and expects to contribute an additional $1.1 million to the 401(k) Plan during the remainder of 2018. Due to the Company's Strategic Initiatives, the amount expected to be contributed to the 401(k) Plan is subject to change (refer to Note 8 – Restructuring for more information).

As a result of freezing benefits under the Pension Plan, the 401(k) Plan and a nonqualified, unfunded deferred compensation plan (the Wrap Plan), were amended to allow the Company to make discretionary contributions in the form of Company Transition Credits to eligible participants. Eligible participants are certain highly and non-highly compensated employees who were active participants in the Pension Plan on December 31, 2015. During the nine months ended September 30, 2018, the Company has not yet made a discretionary contribution to active participants of the Pension Plan but expects to contribute $0.3 million to eligible participants in the fourth quarter of 2018.


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