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Postretirement Health Care and Life Insurance Benefits | 12 Months Ended
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Dec. 31, 2016
Postretirement Health Care and LIfe Insurance Benefits [Abstract] |
Postretirement Health Care and Life Insurance Benefits | Postretirement Health Care and Life Insurance Benefits The Company currently provides health care and life insurance benefits to qualifying salaried and hourly retirees of its current and certain former subsidiaries and their dependents from benefit plans established by the Company. Plan coverage for health benefits is provided to future hourly and salaried retirees in accordance with the applicable plan document. Life insurance benefits are provided to future hourly retirees in accordance with the applicable labor agreement. Net periodic postretirement benefit cost included the following components:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| (Dollars in millions)
Service cost for benefits earned | $ | 10.4 |  |  | $ | 11.2 |  |  | $ | 12.2 |
Interest cost on accumulated postretirement benefit obligation | 34.5 |  |  | 33.8 |  |  | 36.4 |
Amortization of prior service (credit) cost | (9.2 | ) |  | (6.8 | ) |  | 1.3 |
Amortization of actuarial loss | 20.4 |  |  | 24.9 |  |  | 14.5 |
Special termination benefits (1) | — |  |  | — |  |  | 1.6 |
Net periodic postretirement benefit cost | $ | 56.1 |  |  | $ | 63.1 |  |  | $ | 66.0 |
(1) | Reflected in "Restructuring and pension settlement charges" in the consolidated statement of operations for the year ended December 31, 2014.
The following includes pre-tax amounts recorded in "Accumulated other comprehensive loss":
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
| (Dollars in millions)
Net actuarial loss (gain) arising during year | $ | 32.3 |  |  | $ | (35.1 | ) |  | $ | 115.8 |
Prior service credit arising during year | — |  |  | — |  |  | (18.0 | )
Amortization: |  |  |  |  |  |  |  |
Actuarial loss | (20.4 | ) |  | (24.9 | ) |  | (14.5 | )
Prior service credit (cost) | 9.2 |  |  | 6.8 |  |  | (1.3 | )
Settlement related to the Patriot bankruptcy: (1) |  |  |  |  |
Prior service cost | 7.2 |  |  | (16.6 | ) |  | — |
Total recorded in "Accumulated other comprehensive loss" | $ | 28.3 |  |  | $ | (69.8 | ) |  | $ | 82.0 |
(1) | Refer to Note 27. "Matters Related to the Bankruptcy of Patriot Coal Corporation" herein for additional details related to this transaction.
The Company amortizes actuarial gain and loss using a 0% corridor with an amortization period that covers the average future working lifetime of active employees (10.31 years and 10.49 years at January 1, 2017 and 2016, respectively). The estimated net actuarial loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic postretirement benefit cost during the year ending December 31, 2017 are $22.0 million and $9.2 million, respectively. The following table sets forth the plans' funded status reconciled with the amounts shown in the consolidated balance sheets:
| December 31,
| 2016 |  | 2015
| (Dollars in millions)
Change in benefit obligation: |  |  |  |  |
Accumulated postretirement benefit obligation at beginning of period | $ | 776.1 |  |  | $ | 839.1 |
Service cost | 10.4 |  |  | 11.2 |
Interest cost | 34.5 |  |  | 33.8 |
Participant contributions | 0.6 |  |  | 1.7 |
Plan changes(1) | 7.2 |  |  | (16.6 | )
Benefits paid | (49.0 | ) |  | (46.5 | )
Actuarial loss (gain) | 32.3 |  |  | (35.1 | )
Settlement related to the Patriot bankruptcy (1) | — |  |  | (15.2 | )
Other | — |  |  | 3.7 |
Accumulated postretirement benefit obligation at end of period | 812.1 |  |  | 776.1 |
Change in plan assets: |  |  |  |  |
Fair value of plan assets at beginning of period | — |  |  | — |
Employer contributions | 48.4 |  |  | 44.8 |
Participant contributions | 0.6 |  |  | 1.7 |
Benefits paid and administrative fees (net of Medicare Part D reimbursements) | (49.0 | ) |  | (46.5 | )
Fair value of plan assets at end of period | — |  |  | — |
Funded status at end of year | (812.1 | ) |  | (776.1 | )
Less: Current portion (included in "Accounts payable and accrued expenses") | 55.8 |  |  | 53.2 |
Noncurrent obligation (included in "Accrued postretirement benefit costs") | $ | (756.3 | ) |  | $ | (722.9 | )
(1) | Refer to Note 27. "Matters Related to the Bankruptcy of Patriot Coal Corporation" herein for additional details related to the changes in the benefit obligation.
The weighted-average assumptions used to determine the benefit obligations as of the end of each year were as follows:
| December 31,
| 2016 |  | 2015
Discount rate | 4.15 | % |  | 4.50 | %
Measurement date | December 31, 2016 |  |  | December 31, 2015 |
The weighted-average assumptions used to determine net periodic benefit cost during each year were as follows:
| Year Ended December 31,
| 2016 |  | 2015 |  | 2014
Discount rate | 4.50 | % |  | 4.10 | % |  | 4.90 | %
Measurement date | December 31, 2015 |  |  | December 31, 2014 |  |  | December 31, 2013 |
The following presents information about the assumed health care cost trend rate:
| Year Ended December 31,
| 2016 |  | 2015
Pre-Medicare: |  |  |
Health care cost trend rate assumed for next year | 6.20 | % |  | 6.60 | %
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 4.75 | % |  | 4.75 | %
Year that the rate reaches the ultimate trend rate | 2021 |  |  | 2021 |
Post-Medicare: |  |  |
Health care cost trend rate assumed for next year | 5.60 | % |  | 5.80 | %
Rate to which the cost trend is assumed to decline (the ultimate trend rate) | 4.75 | % |  | 4.75 | %
Year that the rate reaches the ultimate trend rate | 2021 |  |  | 2021 |
Assumed health care cost trend rates have a significant effect on the expense and liability amounts reported for health care plans. A one-percentage-point change in the assumed health care cost trend would have the following effects:
| One Percentage- Point Increase |  | One Percentage- Point Decrease
| (Dollars in millions)
Effect on total service and interest cost components (1) | $ | 3.6 |  |  | $ | (3.2 | )
Effect on total postretirement benefit obligation (1) | $ | 67.0 |  |  | $ | (61.9 | )
(1) | In addition to the effect on total service and interest cost components of expense, changes in trend rates would also increase or decrease the actuarial gain or loss amortization expense component. The impact on actuarial gain or loss amortization would approximate the increase or decrease in the obligation divided by 10.31 years at January 1, 2017.
Plan Assets The Company’s postretirement benefit plans are unfunded. Estimated Future Benefit Payments The following benefit payments (net of retiree contributions), which reflect expected future service, as appropriate, are expected to be paid by the Company:
| Postretirement
| Benefits
| (Dollars in millions)
2017 | $ | 55.0 |
2018 | 56.2 |
2019 | 57.0 |
2020 | 57.5 |
2021 | 61.3 |
Years 2022-2026 | 290.3 |

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- Definition Postretirement Health Care and LIfe Insurance Benefits [Abstract] + References No definition available. + Details
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- Definition Disclosure of accounting policy for plans, other than pension plans, that provide postretirement benefits (including both defined benefit and defined contribution plans). This accounting policy may address (1) the types of plans sponsored by the entity, and the benefits provided by each plan (2) groups that participate in (or are covered by) each plan (3) how plan assets, liabilities and expenses are measured, including the use of any actuaries and (4) significant assumptions used by the entity to value plan assets and liabilities and how such assumptions are derived. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 80 -URI http://asc.fasb.org/subtopic&trid=2235144 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -URI http://asc.fasb.org/subtopic&trid=2235116 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=51655414&loc=d3e18780-107790 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -URI http://asc.fasb.org/subtopic&trid=2235172 + Details
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