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EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Dec. 31, 2021

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [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,
						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.

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,
						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

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,
						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.

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,
						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.

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,
						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%

Assumed 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

Schedule of allocation of plan assets

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 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.

						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.

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 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

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