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Retirement Plans and Other Postretirement Benefits (Tables) | 12 Months Ended
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Dec. 31, 2020
Retirement Benefits [Abstract] |
Summary of contributions to qualified defined contribution plan, 401(k), non-qualified defined contribution plan and total assets of the plans | Contributions to employees' accounts under the 401(k) plan and the non-qualified defined contribution plan, as well as total assets of the plans, were as follows:
($ in thousands) |  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018
401(k) plan |  |  |  |  |  |
Contributions to employees' accounts |  | $ | 8,187 |  |  | $ | 8,233 |  |  | $ | 7,655 |
Total assets at the end of the year |  | 228,449 |  |  | 206,247 |  |  | 167,767 |
Non-qualified defined contribution plan |  |  |  |  |  |
Contributions to employees' accounts |  | 68 |  |  | 58 |  |  | 70 |
Total assets at the end of the year |  | — |  |  | — |  |  | — |
Funded status of the defined benefit, supplemental retirement pension plans and postretirement benefits other than pensions | The following tables summarize the funded status of the defined benefit and supplemental retirement pension plans as of December 31, 2020, 2019 and 2018 (the measurement dates) and identify (1) the assumptions used to determine the projected benefit obligation and (2) the components of net pension cost for the defined benefit plan and supplemental retirement plans for the following periods:
($ in thousands) |  | Defined Benefit Plan |  | Supplemental Defined Benefit Plans
|  | December 31, |  | December 31,
|  | 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of year |  | $ | 24,820 |  |  | $ | 25,075 |  |  | $ | 28,432 |  |  | $ | 15,228 |  |  | $ | 15,404 |  |  | $ | 16,832 |
Service cost |  | 650 |  |  | 650 |  |  | 650 |  |  | — |  |  | — |  |  | — |
Interest cost |  | 731 |  |  | 997 |  |  | 947 |  |  | 453 |  |  | 620 |  |  | 566 |
Plan amendments |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Actuarial loss (gain) |  | 1,021 |  |  | 101 |  |  | (2,208) |  |  | 1,318 |  |  | 516 |  |  | (789) |
Benefits paid |  | (1,538) |  |  | (2,003) |  |  | (2,746) |  |  | (1,312) |  |  | (1,312) |  |  | (1,205) |
Settlements |  | (1,392) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Projected benefit obligation at end of year |  | $ | 24,292 |  |  | $ | 24,820 |  |  | $ | 25,075 |  |  | $ | 15,687 |  |  | $ | 15,228 |  |  | $ | 15,404 |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 23,164 |  |  | $ | 22,090 |  |  | $ | 25,843 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Actual return on plan assets |  | 2,253 |  |  | 3,471 |  |  | (640) |  |  | — |  |  | — |  |  | — |
Employer contributions |  | — |  |  | — |  |  | — |  |  | 1,312 |  |  | 1,312 |  |  | 1,205 |
Benefits paid |  | (1,538) |  |  | (2,003) |  |  | (2,746) |  |  | (1,312) |  |  | (1,312) |  |  | (1,205) |
Expenses paid |  | (542) |  |  | (394) |  |  | (367) |  |  | — |  |  | — |  |  | — |
Settlements |  | (1,392) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Fair value of plan assets at end of year |  | $ | 21,945 |  |  | $ | 23,164 |  |  | $ | 22,090 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Funded status |  | $ | (2,347) |  |  | $ | (1,656) |  |  | $ | (2,985) |  |  | $ | (15,687) |  |  | $ | (15,228) |  |  | $ | (15,404) |
Prepaid (accrued) benefit expense |  | $ | 5,485 |  |  | $ | 6,690 |  |  | $ | 7,425 |  |  | $ | (9,327) |  |  | $ | (9,884) |  |  | $ | (10,320) |
Total amount recognized in Consolidated Balance Sheets, all in Other liabilities |  | $ | (2,347) |  |  | $ | (1,656) |  |  | $ | (2,985) |  |  | $ | (15,687) |  |  | $ | (15,228) |  |  | $ | (15,404) |
Amounts recognized in accumulated other comprehensive income (loss) (AOCI): |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Net actuarial loss |  | (7,833) |  |  | (8,345) |  |  | 10,410 |  |  | (6,360) |  |  | (5,345) |  |  | 5,084 |
Total amount recognized in AOCI |  | $ | (7,833) |  |  | $ | (8,345) |  |  | $ | 10,410 |  |  | $ | (6,360) |  |  | $ | (5,345) |  |  | $ | 5,084 |
Information for pension plans with an accumulated benefit obligation greater than plan assets: |  |  |  |  |  |  |  |  |  |  |  |
Projected benefit obligation |  | $ | 24,292 |  |  | $ | 24,820 |  |  | $ | 25,075 |  |  | $ | 15,687 |  |  | $ | 15,228 |  |  | $ | 15,404 |
Accumulated benefit obligation |  | 24,292 |  |  | 24,820 |  |  | 25,075 |  |  | 15,687 |  |  | 15,228 |  |  | 15,404 |
Fair value of plan assets |  | 21,945 |  |  | 23,164 |  |  | 22,090 |  |  | — |  |  | — |  |  | — |
Defined benefit plan and the supplemental defined benefit plans |
($ in thousands) |  | Defined Benefit Plan |  | Supplemental Defined Benefit Plans
|  | Year Ended December 31, |  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Components of net periodic pension (income) expense: |  |  |  |  |  |  |  |  |  |  |  |
Service cost: |  |  |  |  |  |  |  |  |  |  |  |
Benefit accrual |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Other expenses |  | 650 |  |  | 650 |  |  | 650 |  |  | — |  |  | — |  |  | — |
Interest cost |  | 731 |  |  | 997 |  |  | 947 |  |  | 453 |  |  | 620 |  |  | 566 |
Expected return on plan assets |  | (966) |  |  | (1,222) |  |  | (1,377) |  |  | — |  |  | — |  |  | — |
Settlement loss |  | 447 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Actuarial loss |  | 342 |  |  | 310 |  |  | 371 |  |  | 302 |  |  | 256 |  |  | 310 |
Net periodic pension expense |  | $ | 1,204 |  |  | $ | 735 |  |  | $ | 591 |  |  | $ | 755 |  |  | $ | 876 |  |  | $ | 876 |
Changes in plan assets and benefit obligations included in other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Net actuarial loss (gain) |  | 277 |  |  | (1,755) |  |  | 177 |  |  | 1,318 |  |  | 516 |  |  | (789) |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |
Prior service cost |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Actuarial loss |  | (790) |  |  | (310) |  |  | (371) |  |  | (302) |  |  | (256) |  |  | (310) |
Total recognized in other comprehensive income (loss) |  | $ | (513) |  |  | $ | (2,065) |  |  | $ | (194) |  |  | $ | 1,016 |  |  | $ | 260 |  |  | $ | (1,099) |
Weighted average assumptions used to determine expense: |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 3.10 | % |  | 4.20 | % |  | 3.50 | % |  | 3.10 | % |  | 4.20 | % |  | 3.50 | %
Expected return on plan assets |  | 4.80 | % |  | 5.75 | % |  | 5.90 | % |  | * |  | * |  | *
Annual rate of salary increase |  | * |  | * |  | * |  | * |  | * |  | *
Weighted average assumptions used to determine benefit obligations as of December 31: |  |  |  |  |  |  |  |  |  |  |  |
Discount rate |  | 2.08 | % |  | 3.10 | % |  | 4.20 | % |  | 2.08 | % |  | 3.10 | % |  | 4.20 | %
Expected return on plan assets |  | 4.80 | % |  | 5.75 | % |  | 5.90 | % |  | * |  | * |  | *
Annual rate of salary increase |  | * |  | * |  | * |  | * |  | * |  | *
* Not applicable.
Fair value hierarchy for the Company's defined benefit pension plan assets | Fair values of the equity security funds and fixed income funds have been determined from public quotations. The following table presents the fair value hierarchy for the Company's defined benefit pension plan assets, excluding cash held.
($ in thousands) |  |  |  | Fair Value Measurements at Reporting Date Using
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
December 31, 2020 |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |
Equity security funds (1) |  |  |  |  |  |  |  |
United States |  | $ | 4,367 |  |  | $ | — |  |  | $ | 4,367 |  |  | $ | — |
International |  | 4,351 |  |  | — |  |  | 4,351 |  |  | — |
Fixed income funds |  | 13,059 |  |  | — |  |  | 13,059 |  |  | — |
Short-term investment funds |  | 168 |  |  | 168 |  |  | — |  |  | — |
Total |  | $ | 21,945 |  |  | $ | 168 |  |  | $ | 21,777 |  |  | $ | — |
December 31, 2019 |  |  |  |  |  |  |  |
Asset category |  |  |  |  |  |  |  |
Equity security funds (1) |  |  |  |  |  |  |  |
United States |  | $ | 8,883 |  |  | $ | — |  |  | $ | 8,883 |  |  | $ | — |
International |  | 2,214 |  |  | — |  |  | 2,214 |  |  | — |
Fixed income funds |  | 11,116 |  |  | — |  |  | 11,116 |  |  | — |
Short-term investments funds |  | 951 |  |  | 951 |  |  | — |  |  | — |
Total |  | $ | 23,164 |  |  | $ | 951 |  |  | $ | 22,213 |  |  | $ | — |
(1) None of the trust fund assets for the defined benefit pension plan have been invested in shares of HMEC's common stock.
Summary of minimum funding requirement and the expected full year contributions for the Company's plans | The following table discloses that minimum funding requirement and the expected full year contributions for the Company's plans.
($ in thousands) |  | Defined Benefit Pension Plans
|  | Defined Benefit Plan |  | Supplemental Defined Benefit Plans
Minimum funding requirement for 2020 |  | $ | — |  |  | $ | — |
Expected contributions (approximations) for the year ended December 31, 2021 at the time of issuance of this Form 10-K (1) |  | $ | — |  |  | $ | 1,282 |
N/A - Not applicable. (1) HMEC's Annual Report on Form 10-K for the year ended December 31, 2020.
Estimated future benefit payments | Estimated future benefit payments as of December 31, 2020 were as follows:
($ in thousands) |  | 2021 |  | 2022 |  | 2023 |  | 2024 |  | 2025 |  | 2026-2030
Pension plans |  |  |  |  |  |  |  |  |  |  |  |
Defined benefit plan |  | $ | 2,131 |  |  | $ | 2,185 |  |  | $ | 1,979 |  |  | $ | 2,013 |  |  | $ | 1,942 |  |  | $ | 7,099 |
Supplemental retirement plans |  | 1,282 |  |  | 1,263 |  |  | 1,240 |  |  | 1,213 |  |  | 1,182 |  |  | 5,269 |

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