2025 Essential Annual Report

ESSENTIAL UTILITIES, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements (continued) (In thousands of dollars, except per share amounts)

The fair value of the Company’s pension plans’ assets at December 31, 2024 by asset class are as follows:

Assets measured at NAV (a)

Level 1

Level 2

Level 3

Total

Common stock

$

13,726 $

- $

- $

- $

13,726

Return seeking assets: Global equities

- - - -

- - - - -

- - - - -

8,677

8,677

Hedge / diversifying strategies

54,807 37,813 172,654

54,807 37,813 172,654

Credit

Liability hedging assets Cash and cash equivalents

5,975

-

5,975

Total pension assets

$

19,701 $

- $

- $

273,951 $

293,652

Equity securities include our common stock in the amounts of $15,351 or 5.2% and $13,726 or 4.7% of total pension plans’ assets as of December 31, 2025 and 2024, respectively.

The target allocation by asset class as of December 31, 2025, and actual asset allocation of the Company’s other post-retirement benefit plans, are as follows:

Percentage of Plan Assets at December 31,

Target Allocation

2025 68% 32% 100%

2024 65% 35% 100%

Return seeking assets Liability hedging assets

50-70% 30-50%

Total

100%

The fair value of the Company’s other post-retirement benefit plans’ assets at December 31, 2025 by asset class are as follows:

Assets measured at NAV (a)

Level 1

Level 2

Level 3

Total

Return seeking assets: Global equities Real estate securities Liability hedging assets Cash and cash equivalents

$

33,051 $

- $

- $

23,935 $

56,986 11,050 27,943

6,954

- - -

- - -

4,096

16,063

11,880

4,497

-

4,497

Total other post-retirement assets

$

60,565 $

- $

- $

39,911 $

100,476

(a) Assets that are measured at fair value using the NAV per share practical expedient have not been classified in the fair value hierarchy.

The fair value of the Company’s other post-retirement benefit plans’ assets at December 31, 2024 by asset class are as follows:

Assets measured at NAV (a)

Level 1

Level 2

Level 3

Total

Return seeking assets: Global equities Real estate securities Liability hedging assets Cash and cash equivalents

$

30,978 $

- $

- $

20,020 $

50,998 10,463 26,562

6,750

- - -

- - -

3,713

15,325

11,237

6,227

-

6,227

Total other post-retirement assets

$

59,280 $

- $

- $

34,970 $

94,250

77

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