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Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plans | 12 Months Ended
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Dec. 31, 2023
Retirement Benefits [Abstract] |
Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan | Pension Benefits, Other Postretirement Benefits and Employee Savings and Investment Plan Pension and Other Postretirement Benefits Pension and Other Postretirement Benefit Plans As of December 31, 2023, we had one qualified noncontributory defined benefit pension plan: the Union Plan. Additionally, we sponsor non-qualified noncontributory defined benefit pension plans and postretirement benefit plans including multiple fully insured or self-funded medical plans and life insurance plans for certain retirees. The measurement date for all plans is December 31 st for each respective plan year. Plan Assets and Plan Benefit Obligations The following table summarizes the change in plan assets and changes in benefit obligations:
| Pension Benefits |  | Other Postretirement Benefits
(Dollars in millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Change in plan assets: |  |  |  |  |  |  |
Fair value of plan assets as of January 1 | $ | 26.3 |  |  | $ | 33.5 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets | 1.9 |  |  | (5.6) |  |  | — |  |  | — |
Settlement | (0.3) |  |  | — |  |  | — |  |  | — |
Employer contributions | 0.3 |  |  | — |  |  | — |  |  | — |
Benefit payments | (1.5) |  |  | (1.6) |  |  | — |  |  | — |
Fair value of plan assets as of December 31 | $ | 26.7 |  |  | $ | 26.3 |  |  | $ | — |  |  | $ | — |
Change in plan benefit obligations: |  |  |  |  |  |  |
Fair value of plan benefit obligations as of January 1 | $ | 21.3 |  |  | $ | 28.7 |  |  | $ | 1.4 |  |  | $ | 1.4 |
Service cost | — |  |  | — |  |  | 0.1 |  |  | 0.1 |
Interest cost | 1.1 |  |  | 0.7 |  |  | 0.1 |  |  | — |
Actuarial (gain) loss | 0.8 |  |  | (6.6) |  |  | — |  |  | (0.1) |
Settlement | (0.3) |  |  | — |  |  | — |  |  | — |
Benefit payments | (1.5) |  |  | (1.5) |  |  | — |  |  | — |
Fair value of plan benefit obligations as of December 31 | $ | 21.4 |  |  | $ | 21.3 |  |  | $ | 1.6 |  |  | $ | 1.4 |
Amount overfunded (underfunded) | $ | 5.3 |  |  | $ | 5.0 |  |  | $ | (1.6) |  |  | $ | (1.4) |
The increase in our pension plan benefit obligations in 2023 was primarily driven by actuarial losses and interest costs, partially offset by benefit payments and settlements. The decrease in our pension plan benefit obligations in 2022 was primarily driven by actuarial gains and benefit payments, partially offset by interest costs. The pension-related balances reflected in the consolidated statements of financial position consisted of the following:
| Pension Benefits |  | Other Postretirement Benefits
| As of December 31, |  | As of December 31,
(Dollars in millions) | 2023 |  | 2022 |  | 2023 |  | 2022
Assets & Liabilities: |  |  |  |  |  |  |
Non-current assets | $ | 5.3 |  |  | $ | 5.2 |  |  | $ | — |  |  | $ | — |
Current liabilities | — |  |  | — |  |  | (0.2) |  |  | (0.2) |
Non-current liabilities | — |  |  | (0.2) |  |  | (1.4) |  |  | (1.2) |
Net assets (liabilities) | $ | 5.3 |  |  | $ | 5.0 |  |  | $ | (1.6) |  |  | $ | (1.4) |
Accumulated Other Comprehensive Loss: |  |  |  |  |  |  |
Net actuarial (loss) gain | $ | (11.6) |  |  | $ | (11.8) |  |  | $ | 0.2 |  |  | $ | 0.2 |
Accumulated other comprehensive (loss) income | $ | (11.6) |  |  | $ | (11.8) |  |  | $ | 0.2 |  |  | $ | 0.2 |
The PBO, ABO, and fair value of plan assets for our pension plan with plan assets in excess of its PBO or ABO were as follows:
(Dollars in millions) | 2023 |  | 2022
Projected benefit obligation | $ | 21.5 |  |  | $ | 21.0 |
Accumulated benefit obligation | $ | 21.5 |  |  | $ | 21.0 |
Fair value of plan assets | $ | 26.7 |  |  | $ | 26.3 |
The PBO and ABO of plan assets for our other postretirement benefit plans with a PBO or ABO in excess of plan assets were as follows:
(Dollars in millions) | 2023 |  | 2022
Projected benefit obligation | $ | (1.6) |  |  | $ | (1.4) |
Accumulated benefit obligation | $ | (1.6) |  |  | $ | (1.4) |
Fair value of plan assets | $ | — |  |  | $ | — |
The PBO, ABO, and fair value of plan assets for our pension plan with a PBO or ABO in excess of its plan assets were immaterial as of December 31, 2023 and 2022. Components of Net Periodic Benefit Cost (Credit) The components of net periodic benefit cost (credit) were as follows:
| Pension Benefits |  | Other Postretirement Benefits
| Years Ended December 31, |  | Years Ended December 31,
(Dollars in millions) | 2023 |  | 2022 |  | 2021 |  | 2023 |  | 2022 |  | 2021
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 0.1 |  |  | $ | 0.1 |  |  | $ | 0.1 |
Interest cost | 1.1 |  |  | 0.7 |  |  | 0.7 |  |  | 0.1 |  |  | — |  |  | — |
Expected return of plan assets | (1.4) |  |  | (1.3) |  |  | (1.5) |  |  | — |  |  | — |  |  | — |
Amortization of prior service credit | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (0.1) |
Amortization of net loss (gain) | 0.5 |  |  | 0.4 |  |  | 0.4 |  |  | — |  |  | — |  |  | — |
Settlement | 0.1 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost (credit) | $ | 0.3 |  |  | $ | (0.2) |  |  | $ | (0.4) |  |  | $ | 0.2 |  |  | $ | 0.1 |  |  | $ | — |
Plan Assumptions The key plan assumptions utilized in our annual plan measurements were as follows:
| Pension Benefits |  | Other Postretirement Benefits
| 2023 |  | 2022 |  | 2023 |  | 2022
Weighted average assumptions used in benefit obligations: |  |  |  |  |  |  |
Discount rate | 4.75 | % |  | 5.25 | % |  | 4.75 | % |  | 5.00 | %
Weighted average assumptions used in net periodic benefit costs: |  |  |  |  |  |  |
Discount rate | 5.25 | % |  | 2.75 | % |  | 5.00 | % |  | 2.25 | %
Expected long-term rate of return on assets | 5.59 | % |  | 4.17 | % |  | — | % |  | — | %
For measurement purposes as of December 31, 2023, we assumed an annual health care cost trend rate of 7.00% for covered health care benefits for retirees pre-age 65 or post-age 65. For measurement purposes as of December 31, 2022, we assumed an annual health care cost trend rate of 6.25% for covered health care benefits for retirees pre-age 65 or post-age 65. Our pension plan assets are invested with the objective of achieving a total rate of return over the long-term that is sufficient to fund future pension obligations. In managing these assets and our investment strategy, we consider future cash contributions to the plan as well as the potential of the portfolio underperforming the market. We set asset allocation target ranges based on current funding status and future projections in order to mitigate the portfolio performance risk while maintaining its funded status. Fixed income securities comprise a substantial percentage of our plan assets portfolio. As of December 31, 2023, we held approximately 90% fixed income and short-term cash securities and 10% equity securities in our portfolio, compared to December 31, 2022 when we held approximately 91% fixed income and short-term cash securities and 9% equity securities. In determining our investment strategy and calculating the net benefit cost, we utilized an expected long-term rate of return on plan assets, which was developed based on several factors, including the plans’ asset allocation targets, the historical and projected performance on those asset classes, as well as the plan’s current asset composition. To justify our assumptions, we analyzed certain data points related to portfolio performance. Based on the historical returns and the projected future returns, we determined that a target return of 5.22% is appropriate for the current portfolio. The following table presents the fair value of the pension plan net assets by asset category and level, within the fair value hierarchy, as of December 31, 2023 and 2022:
| Fair Value of Plan Assets as of December 31, 2023
(Dollars in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Fixed income bonds | $ | 0.2 |  |  | $ | 22.3 |  |  | $ | — |  |  | $ | 22.5 |
Mutual funds | 3.0 |  |  | — |  |  | — |  |  | 3.0 |
Pooled separate accounts | — |  |  | 0.1 |  |  | — |  |  | 0.1 |
Guaranteed deposit account | — |  |  | — |  |  | 1.1 |  |  | 1.1 |
Total plan assets at fair value | $ | 3.2 |  |  | $ | 22.4 |  |  | $ | 1.1 |  |  | $ | 26.7 |
| Fair Value of Plan Assets as of December 31, 2022
(Dollars in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total
Fixed income bonds | $ | — |  |  | $ | 22.2 |  |  | $ | — |  |  | $ | 22.2 |
Mutual funds | 2.5 |  |  | — |  |  | — |  |  | 2.5 |
Pooled separate accounts | — |  |  | 0.5 |  |  | — |  |  | 0.5 |
Guaranteed deposit account | — |  |  | — |  |  | 1.1 |  |  | 1.1 |
Total plan assets at fair value | $ | 2.5 |  |  | $ | 22.7 |  |  | $ | 1.1 |  |  | $ | 26.3 |
The following table presents a summary of changes in the fair value of the guaranteed deposit account’s Level 3 assets for the year ended December 31, 2023:
(Dollars in millions) | Guaranteed Deposit Account
Balance as of December 31, 2022 | $ | 1.1 |
Change in unrealized gain (loss) | — |
Purchases, sales, issuances and settlements (net) | — |
Balance as of December 31, 2023 | $ | 1.1 |
Cash Flows We were not required to make any contributions to our qualified noncontributory defined benefit pension plan in 2023 and 2022. We made expected benefit payments for our qualified noncontributory defined benefit pension plan through the utilization of plan assets in 2023 and 2022. As there is no funding requirement for the non-qualified noncontributory defined benefit pension plans and other postretirement benefit plans, we funded benefit payments, which were immaterial in 2023 and 2022, as incurred using cash from operations. The benefit payments are based on the same assumptions used to measure our benefit obligations as of December 31, 2023. The following table sets forth the expected benefit payments to be paid for our pension plans and our other postretirement benefit plans:
(Dollars in millions) | Pension Benefits |  | Other Postretirement Benefits
2024 | $ | 1.7 |  |  | $ | 0.2 |
2025 | $ | 1.7 |  |  | $ | 0.2 |
2026 | $ | 1.7 |  |  | $ | 0.2 |
2027 | $ | 1.7 |  |  | $ | 0.2 |
2028 | $ | 1.6 |  |  | $ | 0.1 |
2029-2033 | $ | 7.6 |  |  | $ | 0.8 |
Employee Savings and Investment Plan We sponsor the RESIP, a 401(k) plan for domestic employees. In 2023, employees could defer an amount they choose, up to the annual IRS limit of $22,500. Certain eligible participants are also allowed to contribute the maximum catch-up contribution per IRS regulations. We match each eligible employee’s annual pre-tax contributions at a rate of 100% for the first 1% of the employee’s salary and 50% for the next 5% of each employee’s salary for a total match of 3.5%. Unless otherwise indicated by the participant, the matching dollars are invested in the same funds as the participant’s contributions. RESIP related expense amounted to $4.6 million, $11.8 million and $5.6 million in 2023, 2022 and 2021, respectively. The higher expense in 2022 was primarily due to a $6.5 million discretionary RESIP contribution related to the previously anticipated merger with DuPont.

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