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Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2020
Schedule of Future Payments to Participants from Defined Benefit Plans

The projected future payments to participants from defined benefit plans are as follows:

 

Years Ending December 31,

 

Amount

 

 

 

(Dollars in

millions)

 

2021

 

$

46.4

 

2022

 

 

44.4

 

2023

 

 

42.8

 

2024

 

 

41.2

 

2025

 

 

39.0

 

Next five years

 

$

166.9

 

Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefits

The accompanying tables reflect the combined funded status and net periodic pension cost and combined supporting assumptions for the defined benefit elements of our defined benefit plans.

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

 

(Dollars in millions)

 

Funded Status of Defined Benefit Retirement Plans at

   Measurement Date

 

 

 

 

 

 

 

 

Change in Projected Benefit Obligation During the Year:

 

 

 

 

 

 

 

 

Projected benefit obligation at beginning of year

 

$

547.2

 

 

$

527.4

 

Service cost

 

 

 

 

 

 

Interest cost

 

 

12.7

 

 

 

18.2

 

Actuarial loss

 

 

42.4

 

 

 

49.4

 

Benefits paid and plan expenses

 

 

(47.1

)

 

 

(47.8

)

Projected benefit obligation at end of year

 

$

555.2

 

 

$

547.2

 

Change in Fair Value of Plan Assets During the Year:

 

 

 

 

 

 

 

 

Plan assets at fair value at beginning of year

 

 

425.6

 

 

 

381.6

 

Actual return on plan assets

 

 

73.3

 

 

 

72.0

 

Employer contributions

 

 

106.9

 

 

 

19.8

 

Benefits paid and plan expenses

 

 

(47.1

)

 

 

(47.8

)

Plan assets at fair value at end of year

 

 

558.7

 

 

 

425.6

 

Funded status of plans

 

$

3.5

 

 

$

(121.6

)

 

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Dollars in millions)

 

Amounts recognized in Consolidated Balance Sheets

 

 

 

 

 

 

 

 

Noncurrent asset

 

$

15.8

 

 

$

 

Current liability

 

 

1.5

 

 

 

18.7

 

Noncurrent liability

 

 

10.8

 

 

 

102.9

 

Amounts recognized in Accumulated Other

   Comprehensive Loss

 

 

 

 

 

 

 

 

Accumulated other comprehensive loss, net of tax of

   $51.4 million and $57.8 million, respectively (a)

 

$

163.3

 

 

$

180.6

 

 

(a)

A cumulative effect adjustment of $30.8 million related to the adoption of ASC 2018-02 was recorded within accumulated other comprehensive loss, net of tax during the year ended December 31, 2019.

Schedule of Other Comprehensive (Income) Loss Related to Pension Benefit Plans and Postretirement Benefits

The other comprehensive (income) loss related to postretirement benefits was as follows:

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(Dollars in millions)

 

Net actuarial gain

 

$

 

 

$

(0.7

)

 

$

(2.1

)

Amortization of net actuarial gain

 

 

2.5

 

 

 

2.6

 

 

 

2.5

 

Tax benefit

 

 

(0.7

)

 

 

(0.5

)

 

 

 

Other comprehensive loss, net of tax

 

$

1.8

 

 

$

1.4

 

 

$

0.4

 

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(Dollars in millions)

 

Net Periodic Postretirement Benefit

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

$

0.3

 

 

$

0.5

 

 

$

0.5

 

Actuarial gain amortization

 

 

(2.2

)

 

 

(2.3

)

 

 

(2.2

)

Prior service credit amortization

 

 

(0.3

)

 

 

(0.3

)

 

 

(0.3

)

Net periodic postretirement benefit gain

 

$

(2.2

)

 

$

(2.1

)

 

$

(2.0

)

The assumed health care cost trend rate represents the rate at which health care costs are assumed to increase. The assumed health care cost trend rate used in measuring the benefit obligation in 2020 is 6.4% for pre-age 65 retirees and 7.1% for post-age 65 retirees. These rates are assumed to decrease gradually to the ultimate health care cost trend rate of 4.5% in 2028 for both groups.

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Assumptions Used in Calculations

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average discount rate used to determine net

   periodic postretirement cost (credit)

 

 

2.52

%

 

 

3.70

%

 

 

3.01

%

Weighted average discount rate used to determine

   benefit obligation at measurement date

 

 

1.42

%

 

 

2.52

%

 

 

3.70

%

 

Schedule of Fair Value of Defined Benefit Plan Assets

The fair values of our defined benefit plan’s assets by asset category were as follows:

 

 

 

December 31, 2020

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in millions)

 

Investments, at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$

83.5

 

 

$

 

 

$

 

 

$

83.5

 

Government securities

 

 

 

 

 

46.7

 

 

 

 

 

 

46.7

 

Corporate debt securities

 

 

 

 

 

322.4

 

 

 

 

 

 

322.4

 

Collective investment funds

 

 

 

 

106.1

 

 

 

 

 

 

106.1

 

Total investments, at fair value

 

$

83.5

 

 

$

475.2

 

 

$

 

 

$

558.7

 

 

 

December 31, 2019

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

 

(Dollars in millions)

 

Investments, at fair value:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-term investments

 

$

17.5

 

 

$

 

 

$

 

 

$

17.5

 

Government securities

 

 

 

 

 

137.2

 

 

 

 

 

 

137.2

 

Corporate debt securities

 

 

 

 

 

19.7

 

 

 

 

 

 

19.7

 

Collective investment funds

 

 

 

 

251.2

 

 

 

 

 

 

251.2

 

Total investments, at fair value

 

$

17.5

 

 

$

408.1

 

 

$

 

 

$

425.6

 

Schedule Of Expected Benefit Payments And Receipts Table Text Block

The projected future postretirement benefit payments and future receipts from the federal subsidy for each of the next five years and the five-year period following are as follows:

Years Ending December 31,

 

Payments

 

 

Receipts

 

 

 

(Dollars in millions)

 

2021

 

$

2.0

 

 

$

 

2022

 

 

1.7

 

 

 

 

2023

 

 

1.5

 

 

 

 

2024

 

 

1.4

 

 

 

 

2025

 

 

1.3

 

 

 

 

Next five years

 

$

4.4

 

 

$

0.1

 

 

Defined Benefit Pension Plan [Member]  
Schedule of Other Comprehensive (Income) Loss Related to Pension Benefit Plans and Postretirement Benefits

The other comprehensive (income) loss related to pension benefit plans was as follows:

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(Dollars in millions)

 

Net actuarial (gain) loss

 

$

(8.0

)

 

$

1.0

 

 

$

21.4

 

Amortization of net actuarial loss

 

 

(15.7

)

 

 

(12.7

)

 

 

(14.2

)

Tax expense

 

 

6.4

 

 

 

2.9

 

 

 

 

Other comprehensive loss (income), net of tax

 

$

(17.3

)

 

$

(8.8

)

 

$

7.2

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Assumptions Used in Calculations

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate used to determine net benefit cost

 

 

2.81

%

 

 

3.92

%

 

 

3.25

%

Expected return on plan assets

 

 

5.70

%

 

 

6.00

%

 

 

6.30

%

Discount rate used to determine benefit obligations

 

 

1.87

%

 

 

2.81

%

 

 

3.92

%

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

 

(Dollars in millions)

 

Net Periodic Pension Cost

 

 

 

 

 

 

 

 

 

 

 

 

Interest cost

 

$

12.7

 

 

$

18.2

 

 

$

16.3

 

Actuarial loss amortization

 

 

15.7

 

 

 

12.7

 

 

 

14.2

 

Less: Expected return on plan assets

 

 

(22.9

)

 

 

(23.6

)

 

 

(25.8

)

Net periodic pension cost

 

$

5.5

 

 

$

7.3

 

 

$

4.7

 

 

Other Postretirement Benefits Plan [Member]  
Schedule of Combined Funded Status and Net Periodic Pension Cost and Postretirement Benefits

The accompanying tables present the amounts and changes in the aggregate benefit obligation and the components of net periodic postretirement benefit cost for U.S. plans. We fund these costs as they become due.

 

 

 

Year Ended

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Dollars in millions)

 

Funded Status of Postretirement Health Care and Life

   Insurance Plans

 

 

 

 

 

 

 

 

Change in Benefit Obligation:

 

 

 

 

 

 

 

 

At beginning of year

 

$

15.4

 

 

$

16.8

 

Interest cost

 

 

0.3

 

 

 

0.5

 

Participant contributions

 

 

0.3

 

 

 

0.4

 

Actuarial gain

 

 

 

 

 

(0.7

)

Benefits paid

 

 

(1.9

)

 

 

(1.6

)

At end of year

 

$

14.1

 

 

$

15.4

 

Change in Plan Assets:

 

 

 

 

 

 

 

 

At beginning of year

 

$

 

 

$

 

Company contributions

 

 

1.6

 

 

 

1.2

 

Participant contributions

 

 

0.3

 

 

 

0.4

 

Benefits paid

 

 

(1.9

)

 

 

(1.6

)

At end of year

 

 

 

 

 

 

Funded Status

 

$

(14.1

)

 

$

(15.4

)

 

 

December 31,

 

 

 

2020

 

 

2019

 

 

 

(Dollars in millions)

 

Amounts recognized in Consolidated Balance Sheets

 

 

 

 

 

 

 

 

Current liability

 

$

1.9

 

 

$

2.1

 

Noncurrent liability

 

 

12.2

 

 

 

13.3

 

Amounts recognized in Accumulated Other

   Comprehensive Loss

 

 

 

 

 

 

 

 

Accumulated other comprehensive income,

    net of tax of $(5.4) million and $(6.1) million,

    respectively (a)

 

$

(8.6

)

 

$

(10.4

)

 

(a)

A cumulative effect adjustment of $3.3 million related to the adoption of ASU 2018-02 was recorded within accumulated other comprehensive income, net of tax during the year ended December 31, 2019.