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EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended
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Dec. 31, 2019
Defined Benefit Plan [Abstract] |
Pension and postretirement benefit plans obligations and fair value of plan assets | Obligations and Funded Status - The following table sets forth our retirement and other postretirement benefit plans benefit obligations and fair value of plan assets for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | December 31, |  | December 31,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Change in benefit obligation |  | (Thousands of dollars)
Benefit obligation, beginning of period |  | $ | 466,994 |  |  | $ | 481,615 |  |  | $ | 46,840 |  |  | $ | 57,938 |
Service cost |  | 7,825 |  |  | 7,339 |  |  | 468 |  |  | 845 |
Interest cost |  | 20,528 |  |  | 17,659 |  |  | 2,038 |  |  | 2,108 |
Plan participants’ contributions |  | — |  |  | — |  |  | 1,142 |  |  | 1,050 |
Actuarial loss (gain) |  | 55,954 |  |  | (24,345 | ) |  | 5,101 |  |  | (10,233 | )
Benefits paid |  | (16,452 | ) |  | (15,274 | ) |  | (3,280 | ) |  | (4,868 | )
Benefit obligation, end of period |  | 534,849 |  |  | 466,994 |  |  | 52,309 |  |  | 46,840 |
Change in plan assets |  |  |  |  |  |  |  |  |  |
Fair value of plan assets, beginning of period |  | 290,684 |  |  | 306,008 |  |  | 30,800 |  |  | 34,133 |
Actual return on plan assets |  | 58,060 |  |  | (12,350 | ) |  | 8,087 |  |  | (998 | )
Employer contributions |  | 14,500 |  |  | 12,300 |  |  | 2,000 |  |  | 1,100 |
Plan participants’ contributions |  | — |  |  | — |  |  | 1,142 |  |  | 1,050 |
Benefits paid |  | (16,452 | ) |  | (15,274 | ) |  | (2,969 | ) |  | (4,485 | )
Fair value of plan assets, end of period |  | 346,792 |  |  | 290,684 |  |  | 39,060 |  |  | 30,800 |
Balance at December 31 |  | $ | (188,057 | ) |  | $ | (176,310 | ) |  | $ | (13,249 | ) |  | $ | (16,040 | )
Current liabilities |  | $ | (4,616 | ) |  | $ | (4,514 | ) |  | $ | — |  |  | $ | — |
Noncurrent liabilities |  | (183,441 | ) |  | (171,796 | ) |  | (13,249 | ) |  | (16,040 | )
Balance at December 31 |  | $ | (188,057 | ) |  | $ | (176,310 | ) |  | $ | (13,249 | ) |  | $ | (16,040 | )
Components of net periodic benefit cost for pension and postretirement benefit plans | Components of Net Periodic Benefit Cost - The following table sets forth the components of net periodic benefit cost for our retirement and other postretirement benefit plans for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | Years Ended December 31, |  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
|  | (Thousands of dollars)
Components of net periodic benefit cost |  |  |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 7,825 |  |  | $ | 7,339 |  |  | $ | 6,896 |  |  | $ | 468 |  |  | $ | 845 |  |  | $ | 662 |
Interest cost |  | 20,528 |  |  | 17,659 |  |  | 18,645 |  |  | 2,038 |  |  | 2,108 |  |  | 2,261 |
Expected return on plan assets |  | (23,600 | ) |  | (23,917 | ) |  | (21,376 | ) |  | (2,285 | ) |  | (2,690 | ) |  | (2,257 | )
Amortization of prior service credit |  | — |  |  | — |  |  | — |  |  | (227 | ) |  | (1,662 | ) |  | (1,662 | )
Amortization of net loss |  | 12,649 |  |  | 17,060 |  |  | 13,586 |  |  | 297 |  |  | 1,338 |  |  | 1,679 |
Net periodic benefit cost |  | $ | 17,402 |  |  | $ | 18,141 |  |  | $ | 17,751 |  |  | $ | 291 |  |  | $ | (61 | ) |  | $ | 683 |
Amounts recognized in other comprehensive income (loss) | Other Comprehensive Income (Loss) - The following table sets forth the amounts recognized in other comprehensive income (loss) related to our retirement and other postretirement benefits for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | Years Ended December 31, |  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
|  | (Thousands of dollars)
Net gain (loss) |  | $ | (25,389 | ) |  | $ | (16,351 | ) |  | $ | (16,572 | ) |  | $ | 700 |  |  | $ | 6,545 |  |  | $ | (328 | )
Prior service cost |  | (601 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of prior service credit |  | — |  |  | — |  |  | — |  |  | (227 | ) |  | (1,662 | ) |  | (1,662 | )
Amortization of net loss |  | 12,649 |  |  | 17,060 |  |  | 13,586 |  |  | 297 |  |  | 1,338 |  |  | 1,679 |
Deferred income taxes (a) |  | 3,068 |  |  | (18,928 | ) |  | (960 | ) |  | (177 | ) |  | (2,831 | ) |  | 82 |
Total recognized in other comprehensive income (loss) |  | $ | (10,273 | ) |  | $ | (18,219 | ) |  | $ | (3,946 | ) |  | $ | 593 |  |  | $ | 3,390 |  |  | $ | (229 | )
(a) - Year ended December 31, 2018, includes the impact of adopting ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.”
Amounts in accumulated other comprehensive income (loss) | The table below sets forth the amounts in accumulated other comprehensive loss that had not yet been recognized as components of net periodic benefit expense for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | December 31, |  | December 31,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
|  | (Thousands of dollars)
Prior service credit (cost) |  | $ | (601 | ) |  | $ | — |  |  | $ | — |  |  | $ | 227 |
Accumulated loss |  | (172,952 | ) |  | (160,212 | ) |  | (4,110 | ) |  | (5,108 | )
Accumulated other comprehensive loss |  | (173,553 | ) |  | (160,212 | ) |  | (4,110 | ) |  | (4,881 | )
Deferred income taxes |  | 46,354 |  |  | 43,286 |  |  | 1,389 |  |  | 1,567 |
Accumulated other comprehensive loss, net of tax |  | $ | (127,199 | ) |  | $ | (116,926 | ) |  | $ | (2,721 | ) |  | $ | (3,314 | )
Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs | Actuarial Assumptions - The following table sets forth the weighted-average assumptions used to determine benefit obligations for retirement and other postretirement benefits for the periods indicated:
|  | Retirement Benefits |  | Other Postretirement Benefits
|  | December 31, |  | December 31,
|  | 2019 |  | 2018 |  | 2019 |  | 2018
Discount rate |  | 3.50% |  | 4.50% |  | 3.50% |  | 4.50%
Compensation increase rate |  | 3.70% |  | 3.65% |  | NA |  | NA
The following table sets forth the weighted-average assumptions used to determine net periodic benefit costs for the periods indicated:
|  | Years Ended December 31,
|  | 2019 |  | 2018 |  | 2017
Discount rate - retirement plans |  | 4.50% |  | 3.75% |  | 4.50%
Discount rate - other postretirement plans |  | 4.50% |  | 3.75% |  | 4.25%
Expected long-term return on plan assets |  | 7.50% |  | 8.00% |  | 7.75%
Compensation increase rate |  | 3.65% |  | 3.00% |  | 3.10%
Assumed health care cost trend rates | Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated:
|  | 2019 |  | 2018
Health care cost-trend rate assumed for next year |  | 7.00% |  | 6.50%
Rate to which the cost-trend rate is assumed to decline (the ultimate trend rate) |  | 5.00% |  | 5.00%
Year that the rate reaches the ultimate trend rate |  | 2024 |  | 2022
Schedule of allocation of plan assets | Plan Assets - Our investment strategy is to invest plan assets in accordance with sound investment practices that emphasize long-term fundamentals. The goal of this strategy is to maximize investment returns while managing risk in order to meet the plan’s current and projected financial obligations. The investment policy for our defined benefit pension plan follows a glide path approach toward liability-driven investing that shifts a higher portfolio weighting to fixed income as the plan’s funded status increases. The purpose of liability-driven investing is to structure the asset portfolio to more closely resemble the pension liability and thereby more effectively hedge against changes in the liability. The plan’s current investments include a diverse blend of various domestic and international equities, investments in various classes of debt securities, real estate and hedge funds. The target allocation for the assets of our retirement plan as of December 31, 2019, is as follows:
Domestic and international equities |  | 42 | %
Long duration fixed income |  | 30 | %
Return-seeking credit |  | 11 | %
Hedge funds |  | 10 | %
Real estate funds |  | 7 | %
Total |  | 100 | %
As part of our risk management for the plans, minimums and maximums have been set for each of the asset classes listed above. The following tables set forth the plan assets by fair value category as of the measurement date for our defined benefit pension and other postretirement benefit plans:
|  | Pension Benefits
|  | December 31, 2019
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Subtotal |  | Measured at NAV (d) |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities (a) |  | $ | 47 |  |  | $ | — |  |  | $ | — |  |  | $ | 47 |  |  | $ | 149,985 |  |  | $ | 150,032 |
Real estate funds |  | — |  |  | — |  |  | — |  |  | — |  |  | 23,885 |  |  | 23,885 |
Government obligations |  | — |  |  | — |  |  | — |  |  | — |  |  | 50,708 |  |  | 50,708 |
Corporate obligations (b) |  | — |  |  | — |  |  | — |  |  | — |  |  | 85,898 |  |  | 85,898 |
Common/collective trusts |  | — |  |  | 3,263 |  |  | — |  |  | 3,263 |  |  | — |  |  | 3,263 |
Cash |  | 63 |  |  | — |  |  | — |  |  | 63 |  |  | — |  |  | 63 |
Other investments (c) |  | — |  |  | — |  |  | — |  |  | — |  |  | 32,943 |  |  | 32,943 |
Fair value of plan assets |  | $ | 110 |  |  | $ | 3,263 |  |  | $ | — |  |  | $ | 3,373 |  |  | $ | 343,419 |  |  | $ | 346,792 |
(a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category repre sen ts alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no u nfunded capital commitments. (d) - Plan asset investments measured at fair value using the net asset value per share.
|  | Pension Benefits
|  | December 31, 2018
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Subtotal |  | Measured at NAV (d) |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities (a) |  | $ | 58 |  |  | $ | — |  |  | $ | — |  |  | $ | 58 |  |  | $ | 116,790 |  |  | $ | 116,848 |
Real estate funds |  | — |  |  | — |  |  | — |  |  | — |  |  | 20,569 |  |  | 20,569 |
Government obligations |  | — |  |  | — |  |  | — |  |  | — |  |  | 48,913 |  |  | 48,913 |
Corporate obligations (b) |  | — |  |  | — |  |  | — |  |  | — |  |  | 69,377 |  |  | 69,377 |
Common/collective trusts |  | — |  |  | 3,961 |  |  | — |  |  | 3,961 |  |  | — |  |  | 3,961 |
Cash |  | 95 |  |  | — |  |  | — |  |  | 95 |  |  | — |  |  | 95 |
Other investments (c) |  | — |  |  | — |  |  | — |  |  | — |  |  | 30,921 |  |  | 30,921 |
Fair value of plan assets |  | $ | 153 |  |  | $ | 3,961 |  |  | $ | — |  |  | $ | 4,114 |  |  | $ | 286,570 |  |  | $ | 290,684 |
(a) - This category represents securities of the respective market sector from diverse industries. (b) - This category represents bonds from diverse industries. (c) - This category represents alternative investments in limited partnerships, which can be redeemed with a 30-day notice with no further restrictions. There are no unfunded capital commitments. (d) - Plan asset investments measured at fair value using the net asset value per share.
|  | Other Postretirement Benefits
|  | December 31, 2019
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |
Equity securities (a) |  | $ | 2,043 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,043 |
Money market funds |  | — |  |  | 2,428 |  |  | — |  |  | 2,428 |
Insurance and group annuity contracts |  | — |  |  | 34,589 |  |  | — |  |  | 34,589 |
Fair value of plan assets |  | $ | 2,043 |  |  | $ | 37,017 |  |  | $ | — |  |  | $ | 39,060 |
(a) - This category represents securities of the respective market sector from diverse industries.
|  | Other Postretirement Benefits
|  | December 31, 2018
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |
Equity securities (a) |  | $ | 1,792 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,792 |
Money market funds |  | 1 |  |  | 413 |  |  | — |  |  | 414 |
Insurance and group annuity contracts |  | — |  |  | 28,594 |  |  | — |  |  | 28,594 |
Fair value of plan assets |  | $ | 1,793 |  |  | $ | 29,007 |  |  | $ | — |  |  | $ | 30,800 |
(a) - This category represents securities of the respective market sector from diverse industries.
Pension benefits and postretirement benefit payments expected to be paid | The following table sets forth the defined benefit pension and other postretirement benefits payments expected to be paid in 2020 through 2029:
|  | Pension Benefits |  | Other Postretirement Benefits
Benefits to be paid in: |  | (Thousands of dollars)
2020 |  | $ | 18,277 |  |  | $ | 3,422 |
2021 |  | $ | 19,252 |  |  | $ | 3,399 |
2022 |  | $ | 20,202 |  |  | $ | 3,519 |
2023 |  | $ | 21,170 |  |  | $ | 3,454 |
2024 |  | $ | 22,228 |  |  | $ | 3,446 |
2025 through 2029 |  | $ | 123,959 |  |  | $ | 16,385 |

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- Definition Tabular disclosure of the major categories of plan assets of pension plans and/or other employee benefit plans. This information may include, but is not limited to, the target allocation of plan assets, the fair value of each major category of plan assets, and the level within the fair value hierarchy in which the fair value measurements fall. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(5) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 + Details
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