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EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

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 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.

		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 change in the benefit obligation, fair value of plan assets, and funded status of pension plans or other employee benefit plans.

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