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Postretirement Health Care and Life Insurance Benefits
 12 Months Ended
Dec. 31, 2017
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:
 
Successor
Predecessor
 
April 2 through December 31, 2017
January 1 through April 1, 2017
 
Year Ended December 31, 2016
 
Year Ended December 31, 2015
 
(Dollars in millions)
Service cost for benefits earned
$
6.9

$
2.3

 
$
10.4

 
$
11.2

Interest cost on accumulated postretirement benefit obligation
24.2

8.4

 
34.5

 
33.8

Amortization of prior service credit
—

(2.3
)
 
(9.2
)
 
(6.8
)
Amortization of actuarial loss
—

5.5

 
20.4

 
24.9

Net actuarial gain
(22.0
)
—

 
—

 
—

Net periodic postretirement benefit cost
$
9.1

$
13.9

 
$
56.1

 
$
63.1


In connection with fresh start reporting, the Company made a policy election to prospectively record amounts attributable to prior service cost and actuarial valuation changes, as applicable, currently in earnings rather than recording such amounts within accumulated other comprehensive income and amortizing to expense over applicable time periods.
The following includes pre-tax amounts recorded in “Accumulated other comprehensive income (loss)”:
 
Predecessor
 
January 1 through April 1, 2017
 
Year Ended December 31, 2016

Year Ended December 31, 2015
 
(Dollars in millions)
Net actuarial loss (gain) arising during year
$
—

 
$
32.3

 
$
(35.1
)
Amortization:
 

 
 

 
 

Actuarial loss
(5.5
)
 
(20.4
)
 
(24.9
)
Prior service credit
2.3

 
9.2

 
6.8

Settlement related to the Patriot bankruptcy:
 
 
 
 
 
Prior service credit (cost)
—

 
7.2

 
(16.6
)
Total recorded in “Accumulated other comprehensive income (loss)”
$
(3.2
)
 
$
28.3

 
$
(69.8
)

Prior to April 2, 2017, the Company amortized actuarial gain and loss using a 0% corridor with an amortization period that covered the average future working lifetime of active employees (10.31 years at January 1, 2017).
The following table sets forth the plans’ funded status reconciled with the amounts shown in the consolidated balance sheets:
 
Successor
Predecessor
 
April 2 through December 31, 2017
January 1 through April 1, 2017
 
Year Ended December 31, 2016
 
(Dollars in millions)
Change in benefit obligation:
 
 

 
 

Accumulated postretirement benefit obligation at beginning of period
$
803.1

$
812.1

 
$
776.1

Service cost
6.9

2.3

 
10.4

Interest cost
24.2

8.4

 
34.5

Participant contributions
0.4

0.2

 
0.6

Plan changes
—

—

 
7.2

Benefits paid
(29.3
)
(12.8
)
 
(49.0
)
Actuarial (gain) loss
(22.0
)
—

 
32.3

Fresh start reporting adjustments
—

(7.1
)
 
—

Accumulated postretirement benefit obligation at end of period
783.3

803.1

 
812.1

Change in plan assets:
 

 

 
 

Fair value of plan assets at beginning of period
—

—

 
—

Employer contributions
28.9

12.6

 
48.4

Participant contributions
0.4

0.2

 
0.6

Benefits paid and administrative fees (net of Medicare Part D reimbursements)
(29.3
)
(12.8
)
 
(49.0
)
Fair value of plan assets at end of period
—

—

 
—

Funded status at end of period
(783.3
)
(803.1
)
 
(812.1
)
Less: Current portion (included in “Accounts payable and accrued expenses”)
53.3

56.1

 
55.8

Noncurrent obligation (included in “Accrued postretirement benefit costs”)
$
(730.0
)
$
(747.0
)
 
$
(756.3
)

The weighted-average assumptions used to determine the benefit obligations as of the end of each year were as follows:
 
Successor
Predecessor
 
December 31,
 
2017
2016
Discount rate
3.70
%
4.15
%
Measurement date
December 31, 2017

December 31, 2016


The weighted-average assumptions used to determine net periodic benefit cost during each period were as follows:
 
Successor
Predecessor
 
April 2 through December 31, 2017
January 1 through April 1, 2017
 
Year Ended December 31, 2016
 
Year Ended December 31, 2015
 
Discount rate
4.10
%
4.15
%
 
4.50
%
 
4.10
%
Measurement date
April 1, 2017

December 31, 2016

 
December 31, 2015

 
December 31, 2014


The following presents information about the assumed health care cost trend rate:
 
Successor
Predecessor
 
Year Ended December 31, 2017
Year Ended December 31, 2016
Pre-Medicare:
 
 
Health care cost trend rate assumed for next year
7.00
%
6.20
%
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
2023

2021

 
 
 
Post-Medicare:
 
 
Health care cost trend rate assumed for next year
6.50
%
5.60
%
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
2023

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 for the year ended December 31, 2017:
 
One Percentage-
Point Increase
 
One Percentage-
Point Decrease
 
(Dollars in millions)
Effect on total service and interest cost components
$
3.2

 
$
(2.9
)
Effect on total postretirement benefit obligation
$
69.1

 
$
(60.7
)

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)
2018
$
52.2

2019
53.5

2020
55.9

2021
57.6

2022
56.9

Years 2023-2027
266.4