XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Employee Benefits | 9 Months Ended
--- | ---
Sep. 30, 2017
Retirement Benefits [Abstract] |
Employee Benefits | Employee Benefits Pension and Similar Benefit Plans. We provide contributions to: (i) defined contribution 401(k) savings plans for salaried employees and certain hourly employees; (ii) a non-qualified, unfunded, unsecured plan of deferred compensation for key employees who would otherwise suffer a loss of benefits under our defined contribution plan; (iii) multi-employer pension plans sponsored by the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union AFL-CIO, CLC ("USW"), the International Association of Machinists and certain other unions at certain of our production facilities; and (iv) a defined benefit plan for salaried employees at our London, Ontario (Canada) facility. Deferred Compensation Program. We have a non-qualified, unfunded, unsecured plan of deferred compensation for key employees who would otherwise suffer a loss of benefits under our defined contribution plan as a result of the limitations imposed by the Internal Revenue Code of 1986. Despite the plan being an unfunded plan, we make an annual contribution to a rabbi trust to fulfill future funding obligations as contemplated by the terms of the plan. These assets are held in various investment funds at certain registered investment companies and are accounted for as available for sale securities within Level 2 of the fair value hierarchy and are measured and recorded at fair value based on their quoted market prices. The fair value of these assets at September 30, 2017 and December 31, 2016 was $9.7 million and $8.2 million, respectively, and are included in Other assets. Offsetting liabilities relating to the deferred compensation plan are included in Long-term liabilities. Union VEBA Postretirement Obligation. Certain eligible retirees participate in a voluntary employees' beneficiary association ("VEBA") that provides healthcare and medical cost reimbursement benefits for eligible retirees represented by certain unions and their surviving spouses and eligible dependents ("Union VEBA"). We have an obligation to make variable cash contributions to the Union VEBA with respect to periods through September 2017. During the first quarter of 2017, we paid $17.1 million to the Union VEBA with respect to the twelve months ended December 31, 2016. Our final cash contribution to the Union VEBA with respect to the nine months ending September 30, 2017 will be paid in the first quarter of 2018. Although the final contribution amount is variable, it cannot exceed $12.8 million. As of September 30, 2017, $12.0 million was recorded within Other accrued liabilities for this final contribution. Salaried VEBA Postretirement Obligation. Additionally, certain other retirees who retired prior to 2004 and certain employees who were hired prior to February 2002 and have subsequently retired or will retire with the requisite age and service, along with their surviving spouses and eligible dependents, are eligible to participate in a separate VEBA that provides healthcare cost, medical cost and long-term care insurance cost reimbursement benefits ("Salaried VEBA"). We have an ongoing obligation with no express termination date to make annual variable cash contributions to the Salaried VEBA based on the contribution formula discussed in Note 6 of Notes to Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2016. The contribution amount cannot exceed $2.9 million per year. Our contribution with respect to 2016 was $2.9 million, which we paid in the first quarter of 2017. We account for the Salaried VEBA as a defined benefit plan in our financial statements. Fair Value of Plan Assets. The plan assets of the Salaried VEBA and our Canadian pension plan are measured annually on December 31 and reflected in our Consolidated Balance Sheets at fair value. In determining the fair value of the plan assets at an annual period end, we utilize primarily the results of valuations supplied by the investment advisors responsible for managing the assets of each plan, which we independently review for reasonableness. Components of Net Periodic Benefit Cost. Our results of operations included the following impacts associated with the Canadian defined benefit plan and the Salaried VEBA: (i) a charge for service rendered by employees; (ii) a charge for accretion of interest; (iii) a benefit for the return on plan assets; and (iv) amortization of prior service costs associated with plan amendments and net gains or losses on assets. Net periodic benefit cost related to the Canadian defined benefit plan was not material for the quarters and nine months ended September 30, 2017 and September 30, 2016. The following table presents the components of Net periodic postretirement benefit cost relating to Salaried VEBA for the periods presented (in millions of dollars):
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Salaried VEBA 1: |  |  |  |  |  |  |
Interest cost | $ | 0.8 |  |  | $ | 0.7 |  |  | $ | 2.3 |  |  | $ | 2.2 |
Expected return on plan assets | (1.0 | ) |  | (1.0 | ) |  | (3.1 | ) |  | (3.0 | )
Amortization of prior service cost | 1.2 |  |  | 1.0 |  |  | 3.6 |  |  | 3.0 |
Amortization of net actuarial loss | 0.2 |  |  | 0.1 |  |  | 0.6 |  |  | 0.3 |
Total net periodic postretirement benefit cost relating to Salaried VEBA | $ | 1.2 |  |  | $ | 0.8 |  |  | $ | 3.4 |  |  | $ | 2.5 |
____________
1 | The service cost was insignificant for all periods presented.
The following table presents the total charges (income) related to all benefit plans for the periods presented (in millions of dollars):
| Quarter Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2017 |  | 2016 |  | 2017 |  | 2016
Included within Fabricated Products: |  |  |  |  |  |  |
Deferred compensation plan | $ | 0.1 |  |  | $ | 0.1 |  |  | $ | 0.3 |  |  | $ | 0.2 |
Defined contribution plans | 1.3 |  |  | 1.6 |  |  | 6.8 |  |  | 6.7 |
Multiemployer pension plans | 1.1 |  |  | 1.2 |  |  | 3.4 |  |  | 3.5 |
Total Fabricated Products | $ | 2.5 |  |  | $ | 2.9 |  |  | $ | 10.5 |  |  | $ | 10.4 |
Included within All Other: |  |  |  |  |  |  |
Deferred compensation plan | 0.4 |  |  | 0.4 |  |  | 1.1 |  |  | 0.6 |
Defined contribution plans | 0.1 |  |  | 0.1 |  |  | 0.7 |  |  | 0.7 |
Net periodic postretirement benefit cost relating to Salaried VEBA | 1.2 |  |  | 0.8 |  |  | 3.4 |  |  | 2.5 |
Loss (gain) on removal of Union VEBA net assets | 0.5 |  |  | — |  |  | (0.8 | ) |  | (0.1 | )
Total All Other | $ | 2.2 |  |  | $ | 1.3 |  |  | $ | 4.4 |  |  | $ | 3.7 |
Total | $ | 4.7 |  |  | $ | 4.2 |  |  | $ | 14.9 |  |  | $ | 14.1 |
For all periods presented, substantially all of the Fabricated Products segment's employee benefits related charges are in Cost of products sold, excluding depreciation and amortization and other items with the remaining balance in Selling, general, administrative, research and development ("SG&A and R&D").

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration