Annual report pursuant to Section 13 and 15(d)

Postretirement Benefits (Tables)

v3.22.0.1
Postretirement Benefits (Tables)
12 Months Ended
Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Schedule of Net Pension and Other Benefit Costs
Costs. Pension and other postretirement benefit costs included the following components for 2021, 2020 and 2019:
  Pension Benefits Other Postretirement Benefits
(in millions) 2021 2020 2019 2021 2020 2019
Interest cost $ 0.4  $ 0.7  $ 6.0  $   $ 0.8  $ 1.3 
Expected return on plan assets   —  (7.4)   —  — 
Amortization of prior service credits   —  —    (0.7) (0.7)
Amortization of net actuarial losses 0.8  0.6  5.8    —  — 
Settlement charges   (1.1) 292.8    —  — 
Net pension and other benefit costs $ 1.2  $ 0.2  $ 297.2  $   $ 0.1  $ 0.6 
Reconciliation of the Changes in Plans Benefit Obligations, Fair Value of Plan Assets, and Statement of Funded Status
Benefit Obligations and Funded Status. A reconciliation of the changes in the benefit obligations and fair value of assets over the two-year period ending December 31, 2021, and a statement of the funded status as of December 31 for these years for the Company's pension and other postretirement benefit plans follow:
Pension Benefits Other Postretirement Benefits
(in millions) 2021 2020 2021 2020
Reconciliation of benefit obligation:
Benefit obligation as of previous December 31 $ 27.5  $ 28.1  $ 33.2  $ 33.0 
Interest cost 0.4  0.7    0.8 
Actuarial losses   2.1  (1.8) 1.8 
Benefit payments (3.2) (3.4) (2.0) (2.4)
Benefit obligation as of December 31 24.7  27.5  29.4  33.2 
Reconciliation of fair value of plan assets:
Fair value of plan assets as of previous December 31   10.6    — 
Employer contributions 3.2  3.4  2.0  2.4 
Benefit payments (3.2) (3.4) (2.0) (2.4)
Adjustments (A)
  (10.6)    
Fair value of plan assets as of December 31   —     
Funded status as of December 31 $ (24.7) $ (27.5) $ (29.4) $ (33.2)
Funded percentage NA NA NA NA

(A) 2020 adjustment represents the over funded position of the Company's salaried bargaining plans refunded during the year.
Schedule of Amounts Recognized in Consolidated Balance Sheet
The amounts included in the Company's Consolidated Balance Sheets as of December 31, 2021 and 2020, were as follows:
Pension Benefits Other Postretirement Benefits
(in millions) 2021 2020 2021 2020
Accrued expenses $ 3.0  $ 3.0  $ 3.1  $ 3.1 
Postretirement benefit liabilities 21.7  24.5  26.3  30.1 
Liabilities recognized $ 24.7  $ 27.5  $ 29.4  $ 33.2 
Activity Recorded in Accumulated Other Comprehensive Income or Loss
Accumulated Other Comprehensive Loss. The following pretax activity related to pensions and other postretirement benefits was recorded in Accumulated other comprehensive loss as of December 31:
Pension Benefits Other Postretirement Benefits
(in millions) 2021 2020 2021 2020
Prior service credits
Beginning balance $   $ —  $ (7.4) $ (8.1)
Amount recognized as component of net benefit costs   —    0.7 
Ending balance   —  (7.4) (7.4)
Net actuarial losses
Beginning balance 13.5  12.0  0.4  (1.4)
Actuarial losses arising during the period   2.1  (2.3) 1.8 
Amount recognized as component of net benefit costs (0.8) (0.6)   — 
Ending balance 12.7  13.5  (1.9) 0.4 
Total $ 12.7  $ 13.5  $ (9.3) $ (7.0)
Schedule of Health Care Cost Trend Rates [Table Text Block] The assumed health care cost trend rate for other postretirement benefits for pre-age 65 benefits as of December 31 was as follows:
Pre-age 65 Benefits
2021 2020
Health care cost trend rate for next year 5.6  % 5.3  %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.0  % 4.5  %
Year rate reaches the ultimate trend rate 2045 2037
Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates A one percent change in the assumed health care trend rate as of December 31, 2021 would not have a material impact on the accumulated postretirement benefit obligation.
Weighted-Average Assumptions Used to Determine Benefit Obligations and Net Pension and Other Postretirement Benefit Costs Weighted average assumptions used to determine pension and other postretirement benefit obligations as of December 31 were as follows:
Pension Benefits Other Postretirement Benefits
2021 2020 2021 2020
Discount rate 2.50  % 2.00  % 2.61  % 2.13  %
Weighted average assumptions used to determine net pension and other postretirement benefit costs for the years ended December 31 were as follows:
2021 2020 2019
Discount rate for pension benefits (A) (B)
1.37% 2.55% 4.13%
Discount rate for other postretirement benefits (A) (B)
1.50% 2.65% 3.85%
Long-term rate of return on plan assets (C)
NA NA NA

(A) The Company utilizes a yield curve analysis to calculate the discount rates used to determine pension and other postretirement benefit obligations. The yield curve analysis matches the cash flows of the Company's benefit obligations. The yield curve consisted of spot interest rates at half year increments for each of the next 30 years and was developed based on pricing and yield information for high quality corporate bonds rated Aa by either Moody's or Standard & Poor's, private placement bonds that are traded in reliance with Rule 144A and are at least two years from date of issuance, bonds with make-whole provisions and bonds issued by foreign corporations that are denominated in U.S. dollars, excluding callable bonds and bonds less than a minimum size and other filtering criteria. Additionally, the Company's yield curve methodology includes bonds having a yield that is greater than the regression mean yield curve as the Company believes this methodology represents an appropriate estimate of the rates at which the Company could effectively settle its pension obligations.
(B) The Company uses a "spot rate approach" in the calculation of pension and postretirement interest costs to provide a more accurate measurement of interest costs. The spot rate approach applies separate discount rates for each projected benefit payment in the calculation of pension and postretirement interest costs.
(C) The Company evaluates its assumption regarding the estimated long-term rate of return on plan assets based on historical experience, future expectations of investment returns, asset allocations, investment strategies and views of investment professionals.
Schedule of Expected Cash Flows
Expected Cash Flows. The expected cash flows for the Company's pension and other postretirement benefit plan are presented as follows:
(in millions) Pension Benefits Other Postretirement Benefits
Company contributions expected to be made in 2022 $ 2.8  $ 2.9 
Expected benefit payments:
2022 2.8  2.9 
2023 2.8  2.8 
2024 2.4  2.6 
2025 2.3  2.5 
2026 2.1  2.3 
2026-2030 8.4  9.6