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EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2020

Defined Benefit Plan [Abstract]

Pension and postretirement benefit plans obligations and fair value of plan assets

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,
						2020						2019						2020						2019
Change in benefit obligation						(Thousands of dollars)
Benefit obligation, beginning of period						$	534,849					$	466,994					$	52,309					$	46,840
Service cost						8,154						7,825						460						468
Interest cost						18,318						20,528						1,771						2,038
Plan participants’ contributions						—						—						1,032						1,142
Actuarial loss						37,951						55,954						2,860						5,101
Benefits paid						(16,200)						(16,452)						(3,917)						(3,280)
Benefit obligation, end of period						583,072						534,849						54,515						52,309
Change in plan assets
Fair value of plan assets, beginning of period						346,792						290,684						39,060						30,800
Actual return on plan assets (a)						36,400						58,060						(15,699)						8,087
Employer contributions						12,100						14,500						—						2,000
Plan participants’ contributions						—						—						1,032						1,142
Benefits paid						(16,200)						(16,452)						(3,519)						(2,969)
Fair value of plan assets, end of period						379,092						346,792						20,874						39,060
Balance at December 31						$	(203,980)					$	(188,057)					$	(33,641)					$	(13,249)
Current liabilities						$	(4,679)					$	(4,616)					$	—					$	—
Noncurrent liabilities						(199,301)						(183,441)						(33,641)						(13,249)
Balance at December 31						$	(203,980)					$	(188,057)					$	(33,641)					$	(13,249)

(a) - Other Postretirement Benefits for the year ended December 31, 2020, includes a $13.2 million tax loss incurred from the exit of an investment in an insurance contract.

Components of net periodic benefit cost for pension and postretirement benefit plans

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,
						2020						2019						2018						2020						2019						2018
						(Thousands of dollars)
Components of net periodic benefit cost
Service cost						$	8,154					$	7,825					$	7,339					$	460					$	468					$	845
Interest cost						18,318						20,528						17,659						1,771						2,038						2,108
Expected return on plan assets						(24,964)						(23,600)						(23,917)						(2,894)						(2,285)						(2,690)
Amortization of prior service cost (credit)						114						—						—						—						(227)						(1,662)
Amortization of net loss						18,306						12,649						17,060						5						297						1,338
Net periodic benefit cost (income)						$	19,928					$	17,402					$	18,141					$	(658)					$	291					$	(61)

Amounts recognized in 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,
						2020						2019						2018						2020						2019						2018
						(Thousands of dollars)
Net gain (loss) (a)						$	(31,016)					$	(25,389)					$	(16,351)					$	(21,453)					$	700					$	6,545
Prior service cost						—						(601)						—						—						—						—
Amortization of prior service cost (credit) (b)						114						—						—						—						(227)						(1,662)
Amortization of net loss (b)						18,306						12,649						17,060						5						297						1,338
Deferred income taxes (c)						2,897						3,068						(18,928)						4,933						(177)						(2,831)
Total recognized in other comprehensive income (loss)						$	(9,699)					$	(10,273)					$	(18,219)					$	(16,515)					$	593					$	3,390

(a) - Other Postretirement Benefits for the year ended December 31, 2020, includes a $13.2 million tax loss incurred from the exit of an investment in an insurance contract.

(b) - These components are recognized in accumulated other comprehensive loss and are reclassified to other expense in our Consolidated Statements of Income, with related income tax benefits of $4.2 million, $2.9 million and $3.8 million reclassified to income tax expense for the years ended December 31, 2020, 2019, and 2018, respectively.

(c) - 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,
						2020						2019						2020						2019
						(Thousands of dollars)
Prior service cost						$	(487)					$	(601)					$	—					$	—
Accumulated loss (a)						(185,662)						(172,952)						(25,558)						(4,110)
Accumulated other comprehensive loss						(186,149)						(173,553)						(25,558)						(4,110)
Deferred income taxes						49,251						46,354						6,322						1,389
Accumulated other comprehensive loss, net of tax						$	(136,898)					$	(127,199)					$	(19,236)					$	(2,721)

(a) - Other Postretirement Benefits for the year ended December 31, 2020, includes a $13.2 million tax loss incurred from the exit of an investment in an insurance contract.

Weighted-average assumptions used to determine benefit obligations and net periodic benefit costs

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,
						2020						2019						2020						2019
Discount rate						3.00%						3.50%						2.75%						3.50%
Compensation increase rate						3.60%						3.70%						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,
						2020						2019						2018
Discount rate - retirement plans						3.50%						4.50%						3.75%
Discount rate - other postretirement plans						3.50%						4.50%						3.75%
Expected long-term return on plan assets						7.50%						7.50%						8.00%
Compensation increase rate						3.70%						3.65%						3.00%

Assumed health care cost trend rates

The following table sets forth the assumed health care cost-trend rates for the periods indicated:

						2020						2019
Health care cost-trend rate assumed for next year						6.50%						7.00%
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						2024

Schedule of allocation of 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 allocation for our other postretirement benefit plans is to target a diversified mix of approximately 30% fixed income and 70% equity securities. The investment allocation for our defined benefit pension plan follows a glide path approach of 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, 2020, 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, 2020
Asset Category						Level 1						Level 2						Level 3						Subtotal						Measured at NAV (d)						Total
						(Thousands of dollars)
Investments:
Equity securities (a)						$	43					$	—					$	—					$	43					$	164,099					$	164,142
Real estate funds						—						—						—						—						24,134						24,134
Government obligations						—						—						—						—						45,237						45,237
Corporate obligations (b)						—						—						—						—						101,626						101,626
Common/collective trusts						—						4,890						—						4,890						—						4,890
Other investments (c)						—						—						—						—						39,063						39,063
Fair value of plan assets						$	43					$	4,890					$	—					$	4,933					$	374,159					$	379,092

(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, 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.

						Other Postretirement Benefits
						December 31, 2020
Asset Category						Level 1						Level 2						Level 3						Total
						(Thousands of dollars)
Investments:
Equity securities (a) (b)						$	15,116					$	—					$	—					$	15,116
Money market funds						—						808						—						808
Municipal obligations (b)						4,950						—						—						4,950
Fair value of plan assets						$	20,066					$	808					$	—					$	20,874

(a) - This category represents securities of the respective market sector from diverse industries.

(b) - Net proceeds of $16.2 million from the exit of an investment in an insurance contract were reinvested in various equity securities and municipal obligations.

						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.

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 2021 through 2030:

						Pension Benefits						Other Postretirement Benefits
Benefits to be paid in:						(Thousands of dollars)
2021						$	19,460					$	3,297
2022						$	20,325					$	3,408
2023						$	21,216					$	3,371
2024						$	22,234					$	3,335
2025						$	23,260					$	3,322
2026 through 2030						$	127,038					$	15,848

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