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EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Notes) | 12 Months Ended
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Dec. 31, 2021
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] |
Compensation and Employee Benefit Plans | EMPLOYEE BENEFIT PLANS Retirement and Other Postretirement Benefit Plans Retirement Plans - We have a defined benefit pension plan covering certain employees and former employees, which closed to new participants in 2005. In addition, we have a supplemental executive retirement plan for the benefit of certain officers who participate in our defined benefit pension plan. Our supplemental executive retirement plan is closed to new participants. We fund our defined benefit pension plan at a level needed to maintain or exceed the minimum funding levels required by the Employee Retirement Income Security Act of 1974, as amended. All employees are eligible to make salary deferrals and receive company matching contributions under our 401(k) Plan, and employees that do not participate in our defined benefit pension plan are also eligible to receive quarterly and annual profit-sharing contributions under our 401(k) Plan. Other Postretirement Benefit Plans - We sponsor health and welfare plans that provide postretirement medical and life insurance benefits to employees hired prior to 2017 who retire with at least five years of full-time consecutive service. The postretirement medical plan for pre-Medicare participants is contributory, with retiree contributions adjusted periodically, and contains other cost-sharing features such as deductibles and coinsurance. The postretirement medical plan for Medicare-eligible participants is an account-based plan under which participants may elect to purchase private insurance policies under a private exchange and/or seek reimbursement of other eligible medical expenses. 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,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Change in benefit obligation |  | (Thousands of dollars)
Benefit obligation, beginning of period |  | $ | 583,072 |  |  | $ | 534,849 |  |  | $ | 54,515 |  |  | $ | 52,309 |
Service cost |  | 8,314 |  |  | 8,154 |  |  | 421 |  |  | 460 |
Interest cost |  | 16,900 |  |  | 18,318 |  |  | 1,454 |  |  | 1,771 |
Plan participants’ contributions |  | — |  |  | — |  |  | 1,092 |  |  | 1,032 |
Actuarial loss (gain) |  | (22,792) |  |  | 37,951 |  |  | (2,496) |  |  | 2,860 |
Benefits paid |  | (18,483) |  |  | (16,200) |  |  | (3,959) |  |  | (3,917) |
Benefit obligation, end of period (b) |  | 567,011 |  |  | 583,072 |  |  | 51,027 |  |  | 54,515 |
Change in plan assets |  |  |  |  |  |  |  |
Fair value of plan assets, beginning of period |  | 379,092 |  |  | 346,792 |  |  | 20,874 |  |  | 39,060 |
Actual return on plan assets (a) |  | 41,374 |  |  | 36,400 |  |  | 5,919 |  |  | (15,699) |
Employer contributions |  | 11,200 |  |  | 12,100 |  |  | — |  |  | — |
Plan participants’ contributions |  | — |  |  | — |  |  | 1,092 |  |  | 1,032 |
Benefits paid |  | (18,483) |  |  | (16,200) |  |  | (3,488) |  |  | (3,519) |
Fair value of plan assets, end of period (c) |  | 413,183 |  |  | 379,092 |  |  | 24,397 |  |  | 20,874 |
Balance at December 31 |  | $ | (153,828) |  |  | $ | (203,980) |  |  | $ | (26,630) |  |  | $ | (33,641) |
Current liabilities |  | $ | (5,219) |  |  | $ | (4,679) |  |  | $ | — |  |  | $ | — |
Noncurrent liabilities |  | (148,609) |  |  | (199,301) |  |  | (26,630) |  |  | (33,641) |
Balance at December 31 |  | $ | (153,828) |  |  | $ | (203,980) |  |  | $ | (26,630) |  |  | $ | (33,641) |
(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) - The benefit obligation for Retirement Benefits at December 31, 2021 and 2020, include the supplemental executive retirement plan obligation. (c) - Fair value of plan assets for Retirement Benefits exclude the assets of our supplemental executive retirement plan, which totaled $111.2 million and $116.2 million at December 31, 2021 and 2020, respectively, and are included in other assets on the Consolidated Balance Sheets. These assets are maintained in a rabbi trust and are not treated as assets of the supplemental executive retirement plan. The accumulated benefit obligation for our retirement plans was $541.8 million and $548.2 million at December 31, 2021 and 2020, respectively. The actuarial gains and losses impacting our benefit obligations for our retirement and other postretirement benefit plans are due primarily to changes in the discount rate assumptions discussed in the “Actuarial Assumptions” section below. 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,
|  | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
|  | (Thousands of dollars)
Components of net periodic benefit cost |  |  |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 8,314 |  |  | $ | 8,154 |  |  | $ | 7,825 |  |  | $ | 421 |  |  | $ | 460 |  |  | $ | 468 |
Interest cost |  | 16,900 |  |  | 18,318 |  |  | 20,528 |  |  | 1,454 |  |  | 1,771 |  |  | 2,038 |
Expected return on plan assets |  | (25,109) |  |  | (24,964) |  |  | (23,600) |  |  | (1,364) |  |  | (2,894) |  |  | (2,285) |
Amortization of prior service cost (credit) |  | 114 |  |  | 114 |  |  | — |  |  | — |  |  | — |  |  | (227) |
Amortization of net loss |  | 19,673 |  |  | 18,306 |  |  | 12,649 |  |  | 3,692 |  |  | 5 |  |  | 297 |
Net periodic benefit cost (income) |  | $ | 19,892 |  |  | $ | 19,928 |  |  | $ | 17,402 |  |  | $ | 4,203 |  |  | $ | (658) |  |  | $ | 291 |
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,
|  | 2021 |  | 2020 |  | 2019 |  | 2021 |  | 2020 |  | 2019
|  | (Thousands of dollars)
Net gain (loss) (a) |  | $ | 34,529 |  |  | $ | (31,016) |  |  | $ | (25,389) |  |  | $ | 7,052 |  |  | $ | (21,453) |  |  | $ | 700 |
Prior service cost |  | — |  |  | — |  |  | (601) |  |  | — |  |  | — |  |  | — |
Amortization of prior service cost (credit) (b) |  | 114 |  |  | 114 |  |  | — |  |  | — |  |  | — |  |  | (227) |
Amortization of net loss (b) |  | 19,673 |  |  | 18,306 |  |  | 12,649 |  |  | 3,692 |  |  | 5 |  |  | 297 |
Deferred income taxes |  | (12,493) |  |  | 2,897 |  |  | 3,068 |  |  | (2,471) |  |  | 4,933 |  |  | (177) |
Total recognized in other comprehensive income (loss) |  | $ | 41,823 |  |  | $ | (9,699) |  |  | $ | (10,273) |  |  | $ | 8,273 |  |  | $ | (16,515) |  |  | $ | 593 |
(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 $5.4 million, $4.2 million and $2.9 million reclassified to income tax expense for the years ended December 31, 2021, 2020 and 2019, respectively. 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,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
|  | (Thousands of dollars)
Prior service cost |  | $ | (374) |  |  | $ | (487) |  |  | $ | — |  |  | $ | — |
Accumulated loss (a) |  | (131,460) |  |  | (185,662) |  |  | (14,815) |  |  | (25,558) |
Accumulated other comprehensive loss |  | (131,834) |  |  | (186,149) |  |  | (14,815) |  |  | (25,558) |
Deferred income taxes |  | 36,759 |  |  | 49,251 |  |  | 3,852 |  |  | 6,322 |
Accumulated other comprehensive loss, net of tax |  | $ | (95,075) |  |  | $ | (136,898) |  |  | $ | (10,963) |  |  | $ | (19,236) |
(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. 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,
|  | 2021 |  | 2020 |  | 2021 |  | 2020
Discount rate |  | 3.25% |  | 3.00% |  | 3.00% |  | 2.75%
Compensation increase rate |  | 3.60% |  | 3.60% |  | 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,
|  | 2021 |  | 2020 |  | 2019
Discount rate - retirement plans |  | 3.00% |  | 3.50% |  | 4.50%
Discount rate - other postretirement plans |  | 2.75% |  | 3.50% |  | 4.50%
Expected long-term return on plan assets |  | 7.00% |  | 7.50% |  | 7.50%
Compensation increase rate |  | 3.60% |  | 3.70% |  | 3.65%
We determine our overall expected long-term rate of return on plan assets based on our review of historical returns and economic growth models. We determine our discount rates annually utilizing portfolios of high-quality bonds matched to the estimated benefit cash flows of our retirement and other postretirement benefit plans. Bonds selected to be included in the portfolios are only those rated by S&P or Moody’s as an AA or Aa2 rating or better and exclude callable bonds, bonds with less than a minimum issue size, yield outliers and other filtering criteria to remove unsuitable bonds. Health Care Cost Trend Rates - The following table sets forth the assumed health care cost-trend rates for the periods indicated:
|  | 2021 |  | 2020
Health care cost-trend rate assumed for next year |  | 6.50% |  | 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 |  | 2025 |  | 2024
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, 2021, 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, 2021
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Subtotal |  | Measured at NAV (d) |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  | $ | 42 |  |  | $ | — |  |  | $ | — |  |  | $ | 42 |  |  | $ | — |  |  | $ | 42 |
Common/collective trusts |  |  |  |  |  |  |  |  |  |  |  |
Equity securities (a) |  | — |  |  | — |  |  | — |  |  | — |  |  | 166,132 |  |  | 166,132 |
Real estate funds |  | — |  |  | — |  |  | — |  |  | — |  |  | 30,491 |  |  | 30,491 |
Government obligations |  | — |  |  | — |  |  | — |  |  | — |  |  | 49,444 |  |  | 49,444 |
Corporate obligations (b) |  | — |  |  | — |  |  | — |  |  | — |  |  | 120,877 |  |  | 120,877 |
Short-term investments |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,243 |  |  | 4,243 |
Other investments (c) |  | — |  |  | — |  |  | — |  |  | — |  |  | 41,954 |  |  | 41,954 |
Fair value of plan assets |  | $ | 42 |  |  | $ | — |  |  | $ | — |  |  | $ | 42 |  |  | $ | 413,141 |  |  | $ | 413,183 |
(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 unfunded capital commitments. These limited partnerships invest through multi-strategy programs in broadly diversified portfolios of private investment funds, hedge funds and/or separate accounts to seek equity-like returns with low market correlation, reduced volatility and limited risk. (d) - Plan asset investments measured at fair value using the net asset value per share.
|  | 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 |  | $ | 43 |  |  | $ | — |  |  | $ | — |  |  | $ | 43 |  |  | $ | — |  |  | $ | 43 |
Common/collective trusts |  |  |  |  |  |  |  |  |  |  |  |
Equity securities (a) |  | — |  |  | — |  |  | — |  |  | — |  |  | 164,099 |  |  | 164,099 |
Real estate funds |  | — |  |  | — |  |  | — |  |  | — |  |  | 24,134 |  |  | 24,134 |
Government obligations |  | — |  |  | — |  |  | — |  |  | — |  |  | 45,237 |  |  | 45,237 |
Corporate obligations (b) |  | — |  |  | — |  |  | — |  |  | — |  |  | 101,626 |  |  | 101,626 |
Short-term investments (e) |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,890 |  |  | 4,890 |
Other investments (c) |  | — |  |  | — |  |  | — |  |  | — |  |  | 39,063 |  |  | 39,063 |
Fair value of plan assets |  | $ | 43 |  |  | $ | — |  |  | $ | — |  |  | $ | 43 |  |  | $ | 379,049 |  |  | $ | 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. These limited partnerships invest through multi-strategy programs in broadly diversified portfolios of private investment funds, hedge funds and/or separate accounts to seek equity-like returns with low market correlation, reduced volatility and limited risk. (d) - Plan asset investments measured at fair value using the net asset value per share. (e) - The fair value of short term investments in the Bank of New York Mellon EB Temporary Investment Fund was previously reported in Level 2. We elected to consistently apply the practical expedient to all investments within common/collective trusts, and therefore, the fair value of this fund is now measured at net asset value per share and no longer classified in the fair value hierarchy.
|  | Other Postretirement Benefits
|  | December 31, 2021
Asset Category |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
|  | (Thousands of dollars)
Investments: |  |  |  |  |  |  |  |
Equity securities (a) |  | $ | 17,953 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,953 |
Money market funds |  | — |  |  | 480 |  |  | — |  |  | 480 |
Municipal obligations |  | 5,964 |  |  | — |  |  | — |  |  | 5,964 |
Fair value of plan assets |  | $ | 23,917 |  |  | $ | 480 |  |  | $ | — |  |  | $ | 24,397 |
(a) - This category represents securities of the respective market sector from diverse industries.
|  | 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. Contributions - During 2021, we made $11.2 million in contributions to our defined benefit pension plan and no contributions to our other postretirement plans. Our defined benefit pension plan elected to adopt funding relief provided by the American Rescue Plan Act of 2021 legislation. As a result of the election, our defined benefit pension plan has no minimum required contribution in 2022. Pension and Other Postretirement Benefit Payments - Benefit payments for our defined benefit pension and other postretirement benefit plans for the period ending December 31, 2021, were $18.5 million and $4.0 million, respectively. The following table sets forth the defined benefit pension and other postretirement benefits payments expected to be paid in 2022 through 2031:
|  | Pension Benefits |  | Other Postretirement Benefits
Benefits to be paid in: |  | (Thousands of dollars)
2022 |  | $ | 25,962 |  |  | $ | 3,387 |
2023 |  | $ | 26,756 |  |  | $ | 3,363 |
2024 |  | $ | 27,769 |  |  | $ | 3,302 |
2025 |  | $ | 28,759 |  |  | $ | 3,293 |
2026 |  | $ | 29,651 |  |  | $ | 3,220 |
2027 through 2031 |  | $ | 156,041 |  |  | $ | 15,339 |
The expected benefits to be paid are based on the same assumptions used to measure our benefit obligation at December 31, 2021, and include estimated future employee service. Other Employee Benefit Plans 401(k) Plan - We have a 401(k) Plan covering all employees, and employee contributions are discretionary. We match 100% of employee 401(k) Plan contributions up to 6% of each participant’s eligible compensation each payroll period, subject to certain limits. We also make profit-sharing contributions under our 401(k) Plan for employees who do not participate in our defined benefit pension plan. We generally make a quarterly profit sharing contribution equal to 1% of each profit-sharing participant’s eligible compensation during the quarter and an annual discretionary profit-sharing contribution equal to a percentage of each profit-sharing participant’s eligible compensation. Our contributions made to the plan, including profit-sharing contributions, were $32.7 million, $27.1 million and $30.4 million in 2021, 2020 and 2019, respectively. Nonqualified Deferred Compensation Plan - The 2020 Nonqualified Deferred Compensation Plan and its predecessor nonqualified deferred compensation plans (collectively, the NQDC Plan) provide a select group of management and highly compensated employees, as approved by our Chief Executive Officer, with the option to defer portions of their compensation and receive notional employer contributions that generally are not available due to limitations on employer and employee contributions to qualified defined contribution plans under federal tax laws. We have investments included in other assets on the Consolidated Balance Sheets related to the NQDC Plan, which totaled $36.1 million and $32.4 million at December 31, 2021 and 2020, respectively. These investments are maintained in a rabbi trust. Our contributions to the plan were not material in 2021, 2020 and 2019.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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