POSTRETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2023

POSTRETIREMENT BENEFITS Disclosure [Abstract]

NOTE 14. POSTRETIREMENT BENEFITS

We provide certain postretirement healthcare (medical) and life insurance benefits for eligible active and retired domestic employees. The healthcare plans are contributory with participants’ contributions adjusted annually based on medical rates of inflation and plan experience. We use a measurement date of December 31 for our postretirement plans.

Other Postretirement Benefits Obligations and Funded Status

Changes in the benefit obligation were as follows:


	December 31, 2023						December 31, 2022
	U.S.		Foreign		Total		U.S.		Foreign		Total
Change in Benefit Obligation	($ in millions)
Benefit obligation - beginning of year	$	28.5	$	6.4	$	34.9	$	39.3	$	11.2	$	50.5
Service cost	0.6		0.1		0.7		0.8		0.3		1.1
Interest cost	1.4		0.4		1.8		0.8		0.3		1.1
Actuarial loss (gain)	1.5		0.2		1.7		(8.0)		(4.2)		(12.2)
Benefits paid	(3.8)		(0.3)		(4.1)		(4.4)		(0.4)		(4.8)
Foreign currency translation adjustments	—		0.2		0.2		—		(0.8)		(0.8)
Benefit obligation - end of year	$	28.2	$	7.0	$	35.2	$	28.5	$	6.4	$	34.9


	December 31, 2023						December 31, 2022
	U.S.		Foreign		Total		U.S.		Foreign		Total
	($ in millions)
Funded status	$	(28.2)	$	(7.0)	$	(35.2)	$	(28.5)	$	(6.4)	$	(34.9)

We recorded a $1.3 million after-tax charge ($1.7 million pretax) to shareholders’ equity as of December 31, 2023, for our other postretirement plans. In 2022, we recorded an after-tax benefit of $9.6 million ($12.2 million pretax) to shareholders’ equity as of December 31, 2022, for our other postretirement plans.

Amounts recognized in the consolidated balance sheets consisted of:


	December 31, 2023						December 31, 2022
	U.S.		Foreign		Total		U.S.		Foreign		Total
	($ in millions)
Accrued benefit in current liabilities	$	(2.4)	$	(0.3)	$	(2.7)	$	(2.6)	$	(0.3)	$	(2.9)
Accrued benefit in noncurrent liabilities	(25.8)		(6.7)		(32.5)		(25.9)		(6.1)		(32.0)
Accumulated other comprehensive loss	11.0		(2.7)		8.3		10.3		(3.1)		7.2
Net balance sheet impact	$	(17.2)	$	(9.7)	$	(26.9)	$	(18.2)	$	(9.5)	$	(27.7)


	Years Ended December 31,
	2023		2022		2021
Components of Net Periodic Benefit Cost	($ in millions)
Service cost	$	0.7	$	1.1	$	1.3
Interest cost	1.8		1.1		1.0
Amortization of prior service cost	0.1		0.1		0.1
Recognized actuarial loss	0.5		1.5		2.1
Net periodic benefit cost	$	3.1	$	3.8	$	4.5

	Years Ended December 31,
	2023		2022		2021
Included in Pretax Other Comprehensive Income (Loss)	($ in millions)
Liability adjustment	$	1.7	$	(12.2)	$	(3.8)
Amortization of prior service costs and actuarial losses	(0.6)		(1.6)		(2.2)

The service cost component of net periodic postretirement benefit cost related to the employees of the operating segments are allocated to the operating segments based on their respective estimated census data.

Other Postretirement Benefits Plan Assumptions

Certain actuarial assumptions, such as discount rate, have a significant effect on the amounts reported for net periodic benefit cost and accrued benefit obligation amounts.


	December 31,
Weighted-Average Assumptions	2023		2022		2021
Discount rate—periodic benefit cost	5.5	%	2.8	%	2.3	%
Discount rate—benefit obligation	5.2	%	5.5	%	2.8	%

The discount rate is based on a hypothetical yield curve represented by a series of annualized individual zero-coupon bond spot rates for maturities ranging from one-half to thirty years. The bonds used in the yield curve must have a rating of AA or better per Standard & Poor’s, be non-callable, and have at least $250 million par outstanding. The yield curve is then applied to the projected benefit payments from the plan. Based on these bonds and the projected benefit payment streams, the single rate that produces the same yield as the matching bond portfolio is used as the discount rate.

We review external data and our own internal trends for healthcare costs to determine the healthcare cost for the postretirement benefit obligation. The assumed healthcare cost trend rates for pre-65 retirees were as follows:


	December 31,
	2023		2022
Healthcare cost trend rate assumed for next year	7.0	%	7.0	%
Rate that the cost trend rate gradually declines to	4.5	%	4.5	%
Year that the rate reaches the ultimate rate	2033		2032

For post-65 retirees, we provide a fixed dollar benefit, which is not subject to escalation.

We expect to make payments of approximately $3 million for each of the next five years under the provisions of our other postretirement benefit plans.