XML 134 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of Changes in Projected Benefit Obligations
The change in benefit obligations and change in plan assets as of December 31 are as follows:

 
Pension
 
OPEB
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
314.4

 
$
344.1

 
$
108.7

 
$
120.8

Service cost
4.0

 
4.3

 
0.2

 
0.2

Interest cost
13.3

 
12.4

 
4.5

 
4.2

Plan amendments
—

 
0.5

 
—

 
0.1

Actuarial (gain) loss
46.5

 
(28.0
)
 
0.1

 
(10.5
)
Medicare Part D
—

 
—

 
0.3

 
0.3

Benefits paid
(19.8
)
 
(18.9
)
 
(6.1
)
 
(6.4
)
Benefit obligation at end of year
$
358.4

 
$
314.4

 
$
107.7

 
$
108.7
Schedule of Changes in Fair Value of Plan Assets
 
Pension
 
OPEB
 
2019
 
2018
 
2019
 
2018
Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
261.7

 
$
303.4

 
$
—

 
$
—

Actual return on plan assets
52.2

 
(24.6
)
 
—

 
—

Employer contributions
1.8

 
1.8

 
5.8

 
6.1

Medicare Part D subsidy received
—

 
—

 
0.3

 
0.3

Benefits paid
(19.8
)
 
(18.9
)
 
(6.1
)
 
(6.4
)
Fair value of assets at end of year
$
295.9

 
$
261.7

 
$
—

 
$
—
Schedule of Amounts Recognized in Balance Sheet

The increase of actual return on plan assets in 2019 was primarily attributable to the recovery of market prices during 2019.
 
Pension
 
OPEB
 
2019
 
2018
 
2019
 
2018
Funded status of plans:
 
 
 
 
 
 
 
Funded status
$
(62.6
)
 
$
(52.7
)
 
$
(107.7
)
 
$
(108.7
)
Amounts recognized in the Consolidated Balance Sheets:
 
 
 
 
 
 
 
Non-current assets
—

 
—

 
—

 
—

Current liabilities
(1.8
)
 
(1.8
)
 
(7.1
)
 
(7.5
)
Non-current liabilities
(60.8
)
 
(50.9
)
 
(100.7
)
 
(101.2
)
Net amount recognized
$
(62.6
)
 
$
(52.7
)
 
$
(107.8
)
 
$
(108.7
)
Amounts recognized in accumulated other comprehensive loss (pre-tax):
 

 
 
 
 

 
 
Net loss
$
89.7

 
$
83.7

 
$
41.7

 
$
43.9

Prior service cost (benefit)
1.2

 
1.4

 
(16.7
)
 
(21.6
)
Total
$
90.9

 
$
85.1

 
$
25.0

 
$
22.3
Schedule of Net Benefit Cost
Net Periodic Benefit Cost:
 
Year Ended December 31,
 
Pension
 
OPEB
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost
$
4.0

 
$
4.3

 
$
4.4

 
$
0.2

 
$
0.2

 
$
0.8

Interest cost
13.3

 
12.4

 
13.3

 
4.5

 
4.2

 
5.3

Expected return on plan assets
(18.3
)
 
(21.1
)
 
(19.0
)
 
—

 
—

 
—

Amortization of prior service costs
0.1

 
0.1

 
0.1

 
(4.9
)
 
(7.3
)
 
(3.7
)
Amortization of net loss
6.6

 
5.2

 
4.7

 
2.3

 
4.0

 
3.9

Curtailment (benefit) cost
—

 
—

 
—

 
—

 
—

 
(1.4
)
Net periodic benefit cost
$
5.7

 
$
0.9

 
$
3.5

 
$
2.1

 
$
1.2

 
$
4.9
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) Other changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss (pre-tax):
 
Year Ended December 31,
 
Pension
 
OPEB
 
2019
 
2018
 
2019
 
2018
Net loss (gain)
$
12.6

 
$
17.6

 
$
0.1

 
$
(10.5
)
Prior service cost (benefit)
—

 
0.5

 
—

 
0.1

Amortization of net loss, including recognition due to settlement
(6.6
)
 
(5.2
)
 
(2.3
)
 
(4.0
)
Amortization of prior service (cost) benefit, including recognition due to curtailment
(0.1
)
 
(0.1
)
 
4.9

 
7.2

Total amount recognized in other comprehensive loss
5.9

 
12.8

 
2.7

 
(7.2
)
Net periodic benefit cost
5.7

 
0.9

 
2.1

 
1.2

Total recognized in net periodic benefit cost and other comprehensive loss
$
11.6

 
$
13.7

 
$
4.8

 
$
(6.0
)
Schedule of Weighted Average Assumptions Used in Calculating Benefit Obligation and Net Periodic Benefit Cost
Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31:
 
Pension
 
OPEB
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Measurement date
12/31/2018
 
12/31/2017
 
12/31/2016
 
12/31/2018
 
12/31/2017
 
12/31/2016
Fiscal year end
12/31/2019
 
12/31/2018
 
12/31/2017
 
12/31/2019
 
12/31/2018
 
12/31/2017
Discount rate (1)
4.38%
 
3.69%
 
4.15%
 
4.29%
 
3.66%
 
4.05%
Rate of compensation increase (3)
3%/3.5%
 
3%/4%
 
3%/4%
 
3%/3.5%
 
3%/4%
 
3%/4%
Expected return on plan assets (4)
7.25%
 
7.18%
 
6.82%
 
—
 
—
 
—

(1) 
We use the Ryan Above Median Yield Curve to determine the discount rate.
(2) 
For 2019 and 2018, the rate of compensation increase is 3% per year for the first year and 3.5% per year thereafter.
(3) 
For 2019, the rate of compensation increase is 3% per year for the first year and 3.5% per year thereafter. For 2018, the rate of compensation increase is 3% for the first two years and 4% per year thereafter. For 2017, the rate of compensation increase is 3% per year for the first two years and 4% per year thereafter.
(4) 
The rate for each of our defined benefit plans was selected by taking into account our expected asset mix and is based on historical performance as well as expected future rates of return on plan assets.
Weighted average assumptions used to determine benefit obligations at December 31:
 
Pension
 
OPEB
 
2019
 
2018
 
2019
 
2018
Discount rate (1)
3.26%
 
4.39%
 
3.07%
 
4.27%
Rate of compensation increase (2)
3%/3.5%
 
3%/3.5%
 
3%/3.5%
 
3%/3.5%
Measurement date
12/31/2019
 
12/31/2018
 
12/31/2019
 
12/31/2018
Schedule of Allocation of Plan Assets The Pension Plans’ weighted average long-term strategic asset allocation policy targets are as follows:
 
Pension Plan Asset Allocation
 
2019 Target
 
December 31, 2019
 
December 31, 2018
Equities:
 
 
 
 
 
U.S. equities
26%
 
27%
 
25%
International equities
22%
 
23%
 
19%
Fixed income
52%
 
50%
 
56%
 
 
 
100%
 
100%

Fair Value of Pension Plans’ assets included under the fair value hierarchy:
As of December 31, 2019
Level 1
 
Level 2
 
Level 3
 
Total
Equities:
 
 
 
 
 
 
 
U.S. equities
$
78.5

 
$
—

 
$
—

 
$
78.5

International equities
66.7

 
—

 
—

 
66.7

Fixed income
150.7

 
—

 
—

 
150.7

Total
$
295.9

 
$
—

 
$
—

 
$
295.9

As of December 31, 2018
 

 
 

 
 

 
 

Equities:
 

 
 

 
 

 
 

U.S. equities
$
66.5

 
$
—

 
$
—

 
$
66.5

International equities
49.0

 
—

 
—

 
49.0

Fixed income
146.2

 
—

 
—

 
146.2

Total
$
261.7

 
$
—

 
$
—

 
$
261.7
Schedule Of Expected Benefit Plan Contributions
We expect to make the following contributions for 2020:
 
2020
Expected pension plan contributions
$
1.8

Expected OPEB benefits payments
7.0
Schedule of Expected Benefit Payments
The following table provides the estimated future benefit payments for the pension and other postretirement benefit plans:
 
Pension Benefits
 
OPEB Benefits
2020
$
20.6

 
$
7.0

2021
20.7

 
7.2

2022
20.9

 
7.3

2023
20.7

 
7.1

2024
20.3

 
7.1

2025 – 2029
100.6

 
33.6
Schedule of Multiemployer Plans
Century’s participation in the plan for the year ended December 31, 2019, is outlined in the table below.
Fund
 
Steelworkers Pension Trust
EIN / PN
 
23-6648508/499
Pension Protection Act Zone Status 2019 (1)
 
Green
Pension Protection Act Zone Status 2018 (1)
 
Green
Subject to Financial Improvement/Rehabilitation Plan (2)
 
No
Contributions of Century Aluminum 2019
 
$1.3
Contributions of Century Aluminum 2018
 
$1.0
Contributions of Century Aluminum 2017
 
$0.8
Withdrawal from Plan Probable
 
No
Surcharge Imposed
 
No
Expiration Date of Collective Bargaining Agreement (2)
 
April 1, 2020

(1)
The most recent Pension Protection Act zone status available in 2019 and 2018 is for the plan's year-end December 31, 2018 and December 31, 2017, respectively.  The zone status is based on information that Century received from the plan as well as publicly available information per the Department of Labor and is certified by the plan’s actuary. Among other factors, plans in the green zone are at least 80 percent funded.
(2)
The “Subject to Financial Improvement / Rehabilitation Plan” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject.