XCEL 12.31.2014 NMC SRP 11-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
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ý | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the year ended Dec. 31, 2014
OR
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o | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number: 1-3034
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A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
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Nuclear Management Company, LLC
NMC Savings and Retirement Plan
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B. Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:
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XCEL ENERGY INC.
414 NICOLLET MALL
MINNEAPOLIS, MINNESOTA 55401
(612) 330-5500
TABLE OF CONTENTS
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Financial Statements | |
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NMC Savings and Retirement Plan | | | |
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Supplemental Schedule: | | | |
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Exhibits | | | |
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Note: All other schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974 have been omitted because they are not applicable.
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To Xcel Energy Inc. and Participants of
Nuclear Management Company, LLC
NMC Savings and Retirement Plan
Minneapolis, Minnesota
We have audited the accompanying statements of net assets available for benefits of the Nuclear Management Company, LLC NMC Savings and Retirement Plan (the "Plan") as of December 31, 2014 and 2013, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2014 and 2013, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.
The supplemental schedule of assets (held at end of year) as of December 31, 2014, has been subjected to audit procedures performed in conjunction with the audit of the Plan's financial statements. The supplemental schedule is the responsibility of the Plan's management. Our audit procedures included determining whether the supplemental schedule reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental schedule. In forming our opinion on the supplemental schedule, we evaluated whether the supplemental schedule, including their form and content, is presented in compliance with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, such schedule is fairly stated, in all material respects, in relation to the financial statements as a whole.
/s/ DELOITTE & TOUCHE LLP
Minneapolis Minnesota
June 26, 2015
NUCLEAR MANAGEMENT COMPANY, LLC
NMC SAVINGS AND RETIREMENT PLAN
Statement of Net Assets Available for Benefits
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| | | | | | | | |
| | Dec. 31, 2014 | | Dec. 31, 2013 |
Assets: | | | | |
Investments at fair value: | | | | |
General investments (Note 6) | | $ | 140,243,619 |
| | $ | 133,236,693 |
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Value of interest in Master Trust (Note 4) | | 699,819 |
| | 522,235 |
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Total value of investments | | 140,943,438 |
| | 133,758,928 |
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| | | | |
Receivables: | | |
| | |
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Xcel Energy contributions (Note 1) | | 1,107,818 |
| | 1,021,933 |
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Notes receivable from participants (Note 2) | | 838,452 |
| | 709,289 |
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Total receivables | | 1,946,270 |
| | 1,731,222 |
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Total assets | | 142,889,708 |
| | 135,490,150 |
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Liabilities: | | |
| | |
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Payables for securities purchased | | — |
| | (245,403 | ) |
Total liabilities | | — |
| | (245,403 | ) |
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Net assets available for benefits | | $ | 142,889,708 |
| | $ | 135,244,747 |
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The accompanying notes are an integral part of the financial statements.
NUCLEAR MANAGEMENT COMPANY, LLC
NMC SAVINGS AND RETIREMENT PLAN
Statements of Changes in Net Assets Available for Benefits
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| | | | | | | | |
| | Year Ended Dec. 31 |
| | 2014 | | 2013 |
Contributions: | | | | |
Xcel Energy | | $ | 2,055,281 |
| | $ | 2,160,385 |
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Participant | | 2,645,104 |
| | 2,585,391 |
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Rollover | | 207,463 |
| | 29,428 |
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Total contributions | | 4,907,848 |
| | 4,775,204 |
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| | | | |
Investment income: | | | | |
Plan interest in income from Master Trust (Note 4) | | 181,241 |
| | 19,945 |
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Interest and dividend income | | 2,667,645 |
| | 2,017,177 |
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Net appreciation in contract value of guaranteed income contract | | — |
| | 216,974 |
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Net appreciation in fair value of interest in registered investment companies, collective trusts, and VGI Brokerage Option (Note 6) | | 7,453,793 |
| | 19,724,132 |
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Total investment income and contributions | | 15,210,527 |
| | 26,753,432 |
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| | | | |
Interest on notes receivable from participants | | 30,498 |
| | 28,560 |
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Benefits paid to participants | | 7,544,981 |
| | 15,710,669 |
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Administrative expenses (Note 1) | | 51,083 |
| | 13,809 |
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Net increase in net assets available for benefits | | 7,644,961 |
| | 11,057,514 |
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| | | | |
Net assets available for benefits at beginning of year | | 135,244,747 |
| | 124,187,233 |
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Net assets available for benefits at end of year | | $ | 142,889,708 |
| | $ | 135,244,747 |
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The accompanying notes are an integral part of the financial statements.
NUCLEAR MANAGEMENT COMPANY, LLC
NMC SAVINGS AND RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
1. DESCRIPTION OF PLAN
The following is not a comprehensive description of the Nuclear Management Company, LLC (NMC) Savings and Retirement Plan (the “Plan”) and, therefore, does not include all situations and limitations covered by the Plan. Participants should refer to the Plan document or Summary Plan Description for a more complete description of the Plan’s information.
General — The Plan is a defined contribution employee benefit plan providing benefits to former eligible employees of NMC that are now employees or retirees of a participating subsidiary of Xcel Energy Inc. (Xcel Energy or the Company).
NMC was initially formed by Xcel Energy Inc., Wisconsin Energy Corporation, and Wisconsin Public Service Corporation, with Alliant Energy Corporation becoming an equal partner in November 1999 and Consumers Energy Company becoming an equal partner in January 2001. NMC was formed to improve operational performance and sustain safety and reliability levels at its members’ six nuclear plant sites. All partners noted above, with the exception of Xcel Energy Inc., withdrew during 2005 through 2007 and are referred to as former asset owners.
The Plan is subdivided into two main sections: the Savings Plan, which includes the Company match, employee Roth, pre-tax and pre-tax catch-up contributions; and the Retirement Plan which includes the NMC Retirement Contribution and the NMC Money Purchase Pension Plan Transfer Account.
The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended.
Plan and Trust Management — The Plan was administered by The Vanguard Group, Inc. (Vanguard) and Vanguard Fiduciary Trust Company (VFTC) served as trustee for the years ended Dec. 31, 2014 and 2013. The trustee is responsible for holding the investment assets of the Plan, executing investment transactions, and making distributions to former participants.
The Plan was amended effective Jan. 1, 2013 to change its trustee from Wells Fargo Bank, N.A. (Wells Fargo) to VFTC. See Note 3 for additional discussion. The amendment also allows Plan participants the option to invest in Xcel Energy common stock and other publicly traded stocks and/or bonds. Accordingly, the Company filed Form S-8 with the Securities and Exchange Commission on Dec. 21, 2012 to register future stock issuances to the Plan. Plan assets invested in Xcel Energy common stock are held in the Xcel Energy Stock Fund within the Master Trust. See Note 4 for further discussion. The Xcel Energy Stock Fund also holds an immaterial amount of cash equivalents for operational purposes. Approximately 19,321 and 18,506 shares of Xcel Energy common stock were included in the Plan's value of interest in the Master Trust at Dec. 31, 2014 and 2013, respectively.
Eligibility — Each employee, who is part of a bargaining unit and whose collective bargaining agreement allows for participation in this plan shall be eligible for participation in the Plan on the first day of employment. This excludes temporary summer help and student employees who perform services during the summer or semester breaks or as training in connection with an approved course of study.
Former asset owner employees who elected to continue accruing benefits under the asset owner qualified defined benefit pension plan in lieu of the NMC Money Purchase Retirement Plan are not eligible to participate in the merged NMC Retirement Contribution portion of the Plan. Former asset owners are those parties in interest, detailed above.
Effective Jan. 1, 2008, the Plan was amended to no longer permit non-bargaining nuclear operations employees to contribute to the Plan. Effective Aug. 1, 2009, certain collective bargaining agreements excluded their respective bargaining nuclear operations employees from participation in the Plan.
Vesting — Participants in the Savings Plan are immediately vested in their contributions and the Company’s contribution plus actual earnings thereon. Those in the Retirement Plan are 100 percent vested in contributions made by the Company on or after attaining age 65, death, total and permanent disability, or after three years of vesting service.
Distributions — Benefits related to the Savings Plan are distributed after termination of employment, disability or death (payable to the beneficiary) in the form of a single lump sum cash payment, direct rollover, partial lump sum or periodic installments of a specific dollar amount. Distributions from the Master Trust may be made in the form of Xcel Energy common stock or cash based upon the election of the participant. The Retirement Plan offers distributions of vested amounts as a single lump sum or an annuity. The normal form of benefit for the Retirement Plan is a joint and survivor annuity for a married participant and a single life annuity for an nonmarried participant.
Contributions — For the Savings Plan, participants may elect to contribute up to 50 percent of their eligible earnings as a combination of pre-tax and Roth (after-tax) contributions, up to $17,500 in 2014 and 2013, respectively. Employees who are age 50 and older during the Plan year may make additional catch-up contributions (pre-tax and/or roth) up to $5,500 in 2014 and 2013. For both the pre-tax or Roth contributions, or a combination of the two, the Plan allows for a discretionary matching contribution equal to 100 percent of the participant’s first 3 percent of eligible compensation for the Plan year and 50 percent of such portion of the participant’s contributions that exceeds 3 percent, but does not exceed 5 percent. For the Retirement Plan, the Company made an annual discretionary contribution equal to 5 percent of the employee’s eligible earnings as of Dec. 31, 2014 in Jan. 2015 and Dec. 31, 2013 in Jan. 2014.
Participant Accounts — Each participant’s account is credited with the participant’s contribution, the Company’s matching contribution, the Company’s annual retirement contribution, and allocations of Plan earnings or losses. Allocations are based on the number of participant shares that make up participant account balances.
Forfeited Amounts — For the years ended Dec. 31, 2014 and 2013, the Company used $11,948 and $22,844, respectively, of forfeitures in the Retirement Plan to reduce employer contributions.
Plan Termination — Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to amend or terminate the Plan subject to the provisions of ERISA. In the event of the Plan’s termination, each participant is 100 percent vested and will receive the balance of his or her account.
Administrative Expenses — Xcel Energy Inc. pays certain administrative expenses of the Plan. Certain investment advisory, trustee and recordkeeping fees are paid by the Plan or by the participant, as applicable. The Vanguard Brokerage Option annual account maintenance fee, participant loan set-up fee, and annual loan maintenance fee are paid by the participant. All other fees related to operation of the Plan are paid by the Company. Effective Oct. 1, 2013, implemented an annual fixed administration fee for the Plan.
Dividends — Cash dividends paid on shares of Xcel Energy common stock within the Master Trust are automatically reinvested in Xcel Energy common stock unless the participant elects to receive them as a taxable cash distribution.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting — The Plan’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (GAAP).
Use of Estimates — The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of net assets available for benefits at the date of the financial statements and the reported amounts of changes in net assets available for benefits during the reporting period. Actual results could differ from those estimates.
Risks and Uncertainties — The Plan provides for investment in a variety of investment funds. Investments, in general, are exposed to various risks, such as interest rate, credit and overall market volatility risk. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of the investments will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements
Fair Value Measurements — The Plan’s investments are stated at fair value. Fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The fair values of money market funds are based on quoted net asset value. The fair values of mutual funds and Xcel Energy common stock are based on quoted market prices.
The VGI Brokerage Option is a fund option that allows participants to self-direct investments in a wider variety of mutual funds, equity securities, and debt securities. Within the VGI Brokerage Option, the fair value of mutual funds and equity securities are based on quoted market prices.
Common collective trusts consist of investments in the retirement target date trusts, which have been assigned as Level 2, are valued at the underlying investments' net asset values at the close of the day multiplied by the number of shares in the fund. These assets do not have any unfunded commitments at Dec. 31, 2014 and 2013, and there are no restrictions on redemption.
Notes Receivable from Participants — Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Delinquent participant loans are recorded as distributions based on the terms of the Plan document.
Investments — The Plan’s net asset investments include a money market fund, various mutual funds, collective trusts, the Master Trust, and VGI Brokerage Option. Each participant elects the percentage of his or her account balance to be invested in each investment option. Investment income includes interest and dividends. Realized gains and losses on the sale of investments and unrealized gains or losses in the fair value of investments are shown as net appreciation (depreciation) in the fair value of investments. Total investment income is allocated to each fund based on the number of units in each fund.
Security transactions are recognized on the trade date (the date the order to buy or sell is executed). Interest income is recorded on the accrual basis. Dividend income is recorded on the ex-dividend date.
Payment of Benefits — Benefit payments are recorded upon distribution.
Notes Receivable from Participants — Participants may borrow from non-Roth after-tax and pre-tax contributions and earnings in their Savings Plan fund accounts any amount greater than $1,000 up to a maximum equal to the lesser of $50,000 or 50 percent of their vested account balance. The loans are secured by the balance in the participant’s account and bear interest at rates which are based on the prime rate plus 1 percent as of the first business day of the month in which each loan is approved, and stays in effect until the loan is repaid. Interest rates at Dec. 31, 2014 and 2013 were 4.25 percent, with maturity dates through November 2023. Principal and interest are paid ratably through payroll deductions and are credited to each participant's account as paid. If a participant retires or terminates employment for any reason, the outstanding loan balance must be repaid within 90 days from the date of termination, unless the participant elects to continue making monthly installment payments in accordance with the procedures established by the Plan Administrator. General purpose loans must be repaid within a five year period, and loans for the purchase of a principal residence have a maximum repayment period of 20 years. Participants may not borrow from their Retirement Plan fund accounts.
Recently Issued Accounting Pronouncements – Fair Value Measurement – In May 2015, the Financial Accounting Standards Board (FASB) issued Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent), Topic 820 (Accounting Standards Update (ASU) No. 2015-07), which removes the requirement to categorize within the fair value hierarchy the fair values for investments measured using a net asset value per share methodology. This guidance will be effective on a retrospective basis for interim and annual reporting periods beginning after Dec. 15, 2015, and early adoption is permitted. Other than the reduced disclosure requirements, the Plan does not expect the implementation of ASU 2015-07 to have a material impact on the Plan’s financial statements.
3. PLAN AMENDMENT
Effective Jan. 1, 2013, the Plan changed its trustee from Wells Fargo to VFTC. The process of transferring plan assets held at Wells Fargo to Vanguard occurred over the period Dec. 31, 2012 through Jan. 11, 2013. On Dec. 31, 2012, the majority of the funds that were not previously managed by Vanguard were sold, resulting in a cash balance of $81,770,553. These funds were subsequently transferred to comparable funds offered by Vanguard in January 2013. Mutual funds that were already managed by Vanguard were transferred directly to the new trustee. This conversion triggered a blackout period beginning Dec. 24, 2012 and continued through Jan. 11, 2013, during which time participants were not able to transfer amounts between funds, request contribution allocations or request distributions. Contributions made during the blackout period were deposited and held in an income fund with Vanguard. At the end of the blackout period, all funds were transferred to their respective investments with the new trustee, and all earnings received during the blackout period were applied to individual participant accounts.
4. INTEREST IN MASTER TRUST
The value of the Plan's interest in the Master Trust is based on the beginning of the year value of the Plan's interest in the Master trust plus actual contributions, transfers and allocated investment income or loss less actual distributions and allocated administrative expenses. Investment income and administrative expenses related to the Master Trust are allocated to the individual plans based upon the daily valuation of the balances invested by each plan.
The net change in value from participation in the Master Trust is reported as one line item in the accompanying Statements of Changes in Net Assets Available for Benefits and the Plan’s interest in the Master Trust is reported as a single line item in the accompanying Statements of Net Assets Available for Benefits.
The Plan’s value of interest in the Master Trust was 0.16 percent and 0.15 percent at Dec. 31, 2014 and 2013, and the Plan's interest in income from the Master Trust was 0.16 percent and 0.06 percent for the year ended Dec. 31, 2014 and 2013. The Plan has an undivided interest in each security in the Master Trust.
A summary of the net assets of the Master Trust as of Dec. 31, 2014 and 2013 is summarized below:
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| | | | | | | | |
| | 2014 | | 2013 |
Investment at fair value: | | | | |
Xcel Energy Stock Fund | | $ | 429,736,039 |
| | $ | 354,077,914 |
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| | | | |
Value of interest in Master Trust | | $ | 699,819 |
| | $ | 522,235 |
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Master Trust income for the year ended Dec. 31, 2014 and 2013 is as follows:
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| | 2014 | | 2013 |
Total interest, dividend, and other income | | $ | 14,613,193 |
| | $ | 14,664,362 |
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Realized and unrealized gain in Xcel Energy Stock Fund | | 96,796,616 |
| | 17,048,387 |
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Total Master Trust net gain | | $ | 111,409,809 |
| | $ | 31,712,749 |
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| | | | |
Plan's interest in income from Master Trust | | $ | 181,241 |
| | $ | 19,945 |
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5. FEDERAL INCOME TAX STATUS
The IRS has determined that the Plan was designed in accordance with applicable IRC requirements by a letter dated Sept. 21, 2011. The Company believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the IRC and the Plan continues to be tax-exempt. Therefore, no provision for income taxes has been included in the Plan’s financial statements.
The Plan's management evaluates tax positions taken by the Plan and recognizes a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan Administrator has analyzed the tax positions taken by the Plan, including the assertion that the Plan is exempt from income tax, and has not identified any uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements as of Dec. 31, 2014 or 2013. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The statute of limitations applicable to the Plan’s 2011 federal tax return expires in October 2015.
6. FAIR VALUE MEASUREMENTS
The accounting guidance for fair value measurements and disclosures provides a single definition of fair value and requires certain disclosures about assets and liabilities measured at fair value. A hierarchal framework for disclosing the observability of the inputs utilized in measuring assets and liabilities at fair value is established by this guidance. The three levels in the hierarchy are as follows:
Level 1 — Quoted prices are available in active markets for identical assets as of the reported date. The types of assets included in Level 1 are highly liquid and actively traded instruments with quoted prices, such as listed mutual funds.
Level 2 — Pricing inputs are other than quoted prices in active markets, but are either directly or indirectly observable as of the reported date. The types of assets included in Level 2 are typically either comparable to actively traded securities or contracts, or priced with models using highly observable inputs. The collective trusts are not actively traded on an exchange.
Level 3 — Significant inputs to pricing have little or no observability as of the reporting date. The types of assets included in Level 3 are those with inputs requiring significant management judgment or estimation.
The following tables present, for each of these hierarchy levels, the Plan’s assets that are measured at fair value on a recurring basis:
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| | Dec. 31, 2014 |
| | Level 1 | | Level 2 | | Level 3 | | Total |
Mutual Funds: | | | | | | | |
|
|
U.S. Equities | | $ | 76,321,328 |
| | $ | — |
| | $ | — |
| | $ | 76,321,328 |
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International Equities | | 10,164,294 |
| | — |
| | — |
| | 10,164,294 |
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Fixed Income | | 14,599,244 |
| | — |
| | — |
| | 14,599,244 |
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Balanced Stock and Fixed Income Funds | | 2,431,723 |
| | — |
| | — |
| | 2,431,723 |
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Collective Trusts: | | | | | | | | |
Retirement Target Date Trusts | | — |
| | 21,290,441 |
| | — |
| | 21,290,441 |
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VGI Brokerage Option: | | | | | | | |
|
|
Equity Securities | | 627,451 |
| | — |
| | — |
| | 627,451 |
|
Money Market Funds | | 767,363 |
| | — |
| | — |
| | 767,363 |
|
Mutual Funds | | 359,206 |
| | — |
| | — |
| | 359,206 |
|
Money Market Funds | | 13,682,569 |
| | — |
| | — |
| | 13,682,569 |
|
Plan's Interest in Master Trust (Note 4): | | | | | | | |
|
|
Xcel Energy Stock Fund | | 699,819 |
| | — |
| | — |
| | 699,819 |
|
Total | | $ | 119,652,997 |
| | $ | 21,290,441 |
| | $ | — |
| | $ | 140,943,438 |
|
|
| | | | | | | | | | | | | | | | |
| | Dec. 31, 2013 |
| | Level 1 | | Level 2 | | Level 3 | | Total |
Mutual Funds: | | | | | | | | |
U.S. Equities | | $ | 70,578,529 |
| | $ | — |
| | $ | — |
| | $ | 70,578,529 |
|
International Equities | | 10,583,493 |
| | — |
| | — |
| | 10,583,493 |
|
Fixed Income | | 13,159,918 |
| | — |
| | — |
| | 13,159,918 |
|
Balanced Stock and Fixed Income Funds | | 1,592,423 |
| | — |
| | — |
| | 1,592,423 |
|
Collective Trusts: | |
|
| |
|
| |
|
| |
|
|
Retirement Target Date Trusts | | — |
| | 18,113,977 |
| | — |
| | 18,113,977 |
|
VGI Brokerage Option: | | | | | | | | |
Equity Securities | | 586,682 |
| | — |
| | — |
| | 586,682 |
|
Mutual Funds | | 1,245,948 |
| | — |
| | — |
| | 1,245,948 |
|
Money Market Funds | | 17,375,723 |
| | — |
| | — |
| | 17,375,723 |
|
Plan's Interest in Master Trust (Note 4): | | | | | | | | |
Xcel Energy Stock Fund | | 522,235 |
| | — |
| | — |
| | 522,235 |
|
Total | | $ | 115,644,951 |
| | $ | 18,113,977 |
| | $ | — |
| | $ | 133,758,928 |
|
For the years ended Dec. 31, 2014 and 2013, there were no transfers in or out of Levels 1 or 2.
7. EXEMPT PARTY-IN-INTEREST TRANSACTIONS
The Plan's investments include shares of Xcel Energy common stock. On the Statement of Net Assets Available for Benefits, the value of interest in Master Trust includes dividends declared and payable to the Plan of $5,796 and $5,182 at Dec. 31, 2014 and 2013, respectively.
The Plan also invests in shares of mutual funds and collective trusts managed by an affiliate of VFTC. VFTC acts as trustee for only those investments as defined by the Plan. Transactions in such investments qualify as party-in-interest transactions that are exempt from the prohibited transaction rules. The Plan incurred fees for investment management and recordkeeping services of $51,083 and $13,809 for the year ended Dec. 31, 2014 and 2013, respectively.
8. INVESTMENTS
The following investments represented 5 percent or more of the Plan’s net assets available for benefits as of Dec. 31, 2014 and 2013:
|
| | | | | | | | |
| 2014 | | 2013 | |
Vanguard Institutional Index Fund Plus Shares | $ | 47,210,067 |
| | $ | 44,554,268 |
| |
Vanguard Small-Cap Index Fund Admiral Shares | 16,945,719 |
| | — |
| * |
Vanguard Prime Money Market Fund Institutional Shares | 13,682,569 |
| | 17,375,723 |
| |
PIMCO Total Return Fund: Institutional Class | 12,172,350 |
| | 12,160,440 |
| |
Vanguard Developed Markets Index Fund Admiral Shares | 9,339,112 |
| | — |
| * |
Vanguard Mid-Cap Index Fund: Institutional Plus Shares | 7,786,339 |
| | 6,755,537 |
| |
Vanguard Small-Cap Index Fund Signal Shares | — |
| * | 16,795,932 |
| |
Vanguard Developed Markets Index Fund Admiral | — |
| * | 10,285,764 |
| |
* The market value of the fund was not in excess of 5 percent of the Plan’s net assets for the year noted.
During the years ended Dec. 31, 2014 and 2013, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value as follows:
|
| | | | | | | |
| Year Ended Dec. 31 |
| 2014 | | 2013 |
Mutual Funds: | | | |
U.S. Equities | $ | 6,990,637 |
| | $ | 16,627,000 |
|
International Equities | (970,288 | ) | | 1,398,725 |
|
Fixed Income | (8,276 | ) | | (182,269 | ) |
Balanced Stock and Fixed Income | 48,936 |
| | 35,935 |
|
VGI Brokerage Option | 30,014 |
| | (9,197 | ) |
Collective Trusts: | | | |
Retirement Target Date Trusts | 1,362,770 |
| | 2,374,538 |
|
Bond Fund | — |
| | (520,600 | ) |
Net appreciation in contract and fair value of investments | $ | 7,453,793 |
| | $ | 19,724,132 |
|
Plan's Interest in Master Trust (Note 4): | | | |
Xcel Energy Stock Fund | $ | 157,282 |
| | $ | 2,593 |
|
Guaranteed Income Contract | — |
| | 216,974 |
|
The Plan's interest in income from the Master Trust of $181,241 includes interest and dividend income of $23,959 and appreciation of $157,282 for the year ended Dec. 31, 2014. For the year ended Dec. 31, 2013, the Plan's interest in income from the Master Trust of $19,945 includes interest and dividend income of $17,352 and appreciation of $2,593.
9. RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for benefits per the financial statements to the net assets per the Form 5500 as of Dec. 31, 2014 and 2013, and a reconciliation of the increase in net assets available for benefits per the financial statements to net income per the Form 5500 for the years ended Dec. 31, 2014 and 2013:
|
| | | | | | | | |
| | Dec. 31, 2014 | | Dec. 31, 2013 |
Net assets available for benefits per the financial statements | | $ | 142,889,708 |
| | $ | 135,244,747 |
|
Deemed distributions of participant loans | | (62,175 | ) | | (62,175 | ) |
Net assets per the Form 5500 | | $ | 142,827,533 |
| | $ | 135,182,572 |
|
|
| | | | | | | | | |
| | Dec. 31, 2014 | | Dec. 31, 2013 | |
Increase in net assets available for benefits per the financial statements | | $ | 7,644,961 |
| | $ | 11,057,514 |
| |
Deemed distributions activity | | — |
| | (62,175 | ) | |
Adjustment from contract value to fair value for fully benefit-responsive investment contracts - prior year | | — |
| | (676,616 | ) | (a) |
Net income per the Form 5500 | | $ | 7,644,961 |
| | $ | 10,318,723 |
| |
| |
(a) | In 2013, the Plan had invested in a common collective trust which owned fully benefit-responsive investment contracts. The Plan had historically reflected the trust at fair value and recognized an adjustment from fair value to contract value for the fully benefit-responsive investment contract of $(676,616) as of Dec. 31, 2012. On Sept. 30, 2013, all investments in the this trust were transferred to other funds and the account was closed. |
Nuclear Management Company, LLC
NMC Savings and Retirement Plan
(EIN: 41-0448030) (Plan #012)
Form 5500, Schedule H, Part IV, Line 4i — Schedule of Assets (Held at End of Year)
As of Dec. 31, 2014
|
| | | | | | | | | |
Description | | Investment Type | | Cost | | Current Value |
| | | | | | | |
* | Vanguard Institutional Index Fund Plus Shares | | Registered Investment Company | | ** | | $ | 47,210,067 |
|
* | Vanguard Small-Cap Index Fund Admiral Shares | | Registered Investment Company | | ** | | 16,945,719 |
|
* | Vanguard Prime Money Market Fund Institutional Shares | | Registered Investment Company | | ** | | 13,682,569 |
|
* | PIMCO Total Return Fund: Institutional Class | | Registered Investment Company | | ** | | 12,172,350 |
|
* | Vanguard Developed Markets Index Fund Admiral Shares | | Registered Investment Company | | ** | | 9,339,112 |
|
* | Vanguard Mid-Cap Index Fund: Institutional Plus Shares | | Registered Investment Company | | ** | | 7,786,339 |
|
* | Vanguard Target Retirement 2020 Trust I | | Collective Trust | | ** | | 6,537,872 |
|
* | Vanguard Target Retirement 2025 Trust I | | Collective Trust | | ** | | 5,052,414 |
|
* | Vanguard PRIMECAP Fund Admiral Shares | | Registered Investment Company | | ** | | 3,511,603 |
|
* | Vanguard Target Retirement 2015 Trust I | | Collective Trust | | ** | | 2,755,707 |
|
* | Vanguard Wellington Fund Admiral Shares | | Registered Investment Company | | ** | | 2,431,723 |
|
* | VGI Brokerage Option | | Vanguard Brokerage Option | | ** | | 1,754,020 |
|
* | Vanguard Total Bond Market Index Fund: Institutional Plus Shares | | Registered Investment Company | | ** | | 1,753,212 |
|
* | Vanguard Target Retirement 2030 Trust I | | Collective Trust | | ** | | 1,447,493 |
|
* | Vanguard Target Retirement 2035 Trust I | | Collective Trust | | ** | | 1,447,010 |
|
* | Vanguard Target Retirement 2040 Trust I | | Collective Trust | | ** | | 1,288,855 |
|
* | Vanguard Target Retirement 2045 Trust I | | Collective Trust | | ** | | 998,022 |
|
* | Vanguard Value Index Fund Institutional Shares | | Registered Investment Company | | ** | | 867,600 |
|
* | Vanguard Target Retirement 2010 Trust I | | Collective Trust | | ** | | 847,013 |
|
* | Vanguard Emerging Markets Stock Index Fund: Admiral Shares | | Registered Investment Company | | ** | | 825,182 |
|
* | Plan's interest in Master Trust | | Master Trust | | ** | | 699,819 |
|
* | Vanguard Inflation-Protected Securities Fund: Admiral Shares | | Registered Investment Company | | ** | | 673,682 |
|
* | Vanguard Target Retirement Income Trust I | | Collective Trust | | ** | | 411,155 |
|
* | Vanguard Target Retirement 2050 Trust I | | Collective Trust | | ** | | 365,082 |
|
* | Vanguard Target Retirement 2055 Trust I | | Collective Trust | | ** | | 137,025 |
|
* | Vanguard Target Retirement 2060 Trust I | | Collective Trust | | ** | | 2,793 |
|
| TOTAL INVESTMENTS | | | | | | $ | 140,943,438 |
|
* | Notes receivable from participants, less deemed distributions — Interest rates at 4.25%, maturing 2015-2023 | | ** | | $ | 833,872 |
|
* | Denotes party-in-interest. | | | | | | |
** | Historical cost is not required for participant-directed funds. | | | | |
See accompanying Report of Independent Registered Public Accounting Firm
XCEL ENERGY INC.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, Xcel Energy Inc. has duly caused this annual report on Form 11-K to be signed on its behalf by the undersigned, thereunto duly authorized on June 26, 2015.
NUCLEAR MANAGEMENT COMPANY, LLC
NMC SAVINGS AND RETIREMENT PLAN
|
| | |
| By | /s/ Jeffrey S. Savage |
| | Senior Vice President, Controller |
| | Member, Pension Trust Administration Committee |