XML 130 R27.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2019
Payment for Pension and Other Postretirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
401(k) Savings Plan
IMTT, Atlantic Aviation and the Hawaii Gas business each have a defined contribution plan under Section 401(k) of the Internal Revenue Code, allowing eligible employees to contribute a percentage of their annual compensation up to an annual amount as set by the IRS.
The employer contribution to these plans ranges from 0% to 7% of eligible compensation. Employer contributions were $5 million in both 2019 and 2018 and $4 million in 2017.
IMTT DB Plan
Except for a plan covering certain employees covered by a collective-bargaining agreement at IMTT-Illinois (see below), substantially all employees of IMTT are eligible to participate in a defined benefit pension plan (IMTT DB Plan). Benefits under the IMTT DB Plan are based on years of service and the employees’ highest average compensation for a consecutive five year period. IMTT’s contributions to the plan are based on the recommendations of its consulting actuary.
On January 1, 2017, the IMTT DB Plan was frozen to new participants, except for the union employees of Bayonne, for whom it was subsequently frozen on January 1, 2018.
Hawaii Gas Union Pension Plan
Hawaii Gas has a defined benefit pension plan for Classified Employees of GASCO, Inc. (HG DB Plan) that accrues benefits pursuant to the terms of a collective-bargaining agreement. The plan was frozen to new participants in 2008 in connection with an agreement to increase participant benefits over a three year period after which there will be no further increases to the flat rate as described herein. The HG DB Plan is non-contributory and covers all bargaining unit employees who have met certain service and age requirements. The benefits are based on a flat rate per year of service through the date of employment termination or retirement. Future contributions will be made to meet ERISA funding requirements. The HG DB Plan’s trustee handles the plan assets and, as an investment manager, invests them in a diversified portfolio of primarily equity and fixed-income securities.
Other Plan Benefits
IMTT, Hawaii Gas and Atlantic Aviation have other insignificant plans that are comprised of the following. These plans are shown below collectively as “Other Plan Benefits”.
IMTT
IMTT is the sponsor of a defined benefit plan covering union employees at IMTT-Illinois (IMTT-Illinois Union Plan). Monthly benefits under this plan are computed based on a benefit rate in effect at the date of the participant’s termination multiplied by the number of years of service. IMTT’s contributions to the plan are based on the recommendations of its consulting actuary. On January 1, 2018, the IMTT-Illinois Union Plan was frozen to new participants.
IMTT provides post-retirement life insurance (coverage equal to 25% of final year compensation not to exceed $25,000) and health benefits (coverage for early retirees at least 62 years old on early retirement to age 65, reimbursement of Medicare premiums for the Bayonne terminal employees and some smaller health benefits no longer offered) to retired employees.
Hawaii Gas
Hawaii Gas has a postretirement plan. The GASCO, Inc. Hourly Postretirement Medical and Life Insurance Plan (the PMLI Plan) covers all bargaining unit participants who were employed by Hawaii Gas on April 30, 1999 and who retire after the attainment of age 62 with 15 years of service. Under the provisions of the PMLI Plan, Hawaii Gas pays for medical premiums of the retirees and spouses through the age of 64. After age 64, Hawaii Gas pays for medical premiums up to a maximum of $150 per month. The retirees are also provided $1,000 of life insurance benefits.
Hawaii Gas also has a retiree life insurance program for certain nonunion retirees. This plan is closed to future participants.
Atlantic Aviation
Atlantic Aviation sponsors a retiree medical and life insurance plan available to certain employees. Currently, the plan is funded as required to pay benefits and the plan has no assets. The Company accounts for postretirement healthcare and life insurance benefits in accordance with ASC 715, Compensation — Retirement Benefits, which requires the accrual of the cost of providing postretirement benefits during the active service period of the employee.
Additional information about the fair value of the benefit plan assets, the components of net periodic cost and the projected benefit obligation as of and for the years ended December 31, 2019 and 2018 are ($ in millions).
 
HG DB
Plan Benefits
 
IMTT DB
Plan Benefits
 
Other
Plan Benefits
 
Total
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation – beginning of year
$
49

 
$
53

 
$
143

 
$
162

 
$
28

 
$
29

 
$
220

 
$
244

Service cost
1

 
1

 
5

 
6

 
1

 
1

 
7

 
8

Interest cost
2

 
2

 
6

 
6

 
1

 
1

 
9

 
9

Actuarial losses (gains)
5

 
(4
)
 
23

 
(22
)
 
2

 
(2
)
 
30

 
(28
)
Benefits paid
(3
)
 
(3
)
 
(9
)
 
(9
)
 
(2
)
 
(1
)
 
(14
)
 
(13
)
Benefit obligation – end of year
$
54

 
$
49

 
$
168

 
$
143

 
$
30

 
$
28

 
$
252

 
$
220

Change in plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets - beginning of year
$
46

 
$
51

 
$
88

 
$
102

 
$
9

 
$
9

 
$
143

 
$
162

Actual return on plan assets
9

 
(2
)
 
15

 
(5
)
 
1

 
—

 
25

 
(7
)
Employer contributions
—

 
—

 
—

 
—

 
1

 
1

 
1

 
1

Benefits paid
(3
)
 
(3
)
 
(9
)
 
(9
)
 
(2
)
 
(1
)
 
(14
)
 
(13
)
Fair value of plan assets – end of year
$
52

 
$
46

 
$
94

 
$
88

 
$
9

 
$
9

 
$
155

 
$
143


In 2019 and 2018, there were no contributions made to the IMTT DB Plan or the HG DB Plan. As of December 31, 2019, IMTT is not expected to make any cash contribution to the IMTT DB Plan until 2021 and Hawaii Gas is not expected to make any cash contribution to the HG DB Plan until 2027. The annual amount of any cash contributions will be dependent upon a number of factors such as market conditions and changes to regulations.
The funded status at December 31, 2019 and 2018, are presented in the following table ($ in millions):
 
HG DB
Plan Benefits
 
IMTT DB
Plan Benefits
 
Other Plan
Benefits
 
Total
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Funded status
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded status at end of year
$
(2
)
 
$
(3
)
 
$
(74
)
 
$
(55
)
 
$
(21
)
 
$
(19
)
 
$
(97
)
 
$
(77
)
Net amount recognized in balance sheet
$
(2
)
 
$
(3
)
 
$
(74
)
 
$
(55
)
 
$
(21
)
 
$
(19
)
 
$
(97
)
 
$
(77
)
Amounts recognized in balance sheet consisting of:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current liabilities
$
—

 
$
—

 
$
—

 
$
—

 
$
(1
)
 
$
(1
)
 
$
(1
)
 
$
(1
)
Noncurrent liabilities
(2
)
 
(3
)
 
(74
)
 
(55
)
 
(20
)
 
(18
)
 
(96
)
 
(76
)
Net amount recognized in balance sheet
$
(2
)
 
$
(3
)
 
$
(74
)
 
$
(55
)
 
$
(21
)
 
$
(19
)
 
$
(97
)
 
$
(77
)

Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive loss in 2019 and 2018 are presented in the following table ($ in millions):
 
HG DB
Plan Benefits
 
IMTT DB
Plan Benefits
 
Other
Plan Benefits
 
Total
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Accumulated loss
$
(8
)
 
$
(10
)
 
$
(20
)
 
$
(7
)
 
$
(5
)
 
$
(4
)
 
$
(33
)
 
$
(21
)
Accumulated other comprehensive loss
(8
)
 
(10
)
 
(20
)
 
(7
)
 
(5
)
 
(4
)
 
(33
)
 
(21
)
Net periodic benefit cost in excess (deficit) of cumulative employer contributions
6

 
7

 
(54
)
 
(48
)
 
(16
)
 
(15
)
 
(64
)
 
(56
)
Net amount recognized in balance sheet
$
(2
)
 
$
(3
)
 
$
(74
)
 
$
(55
)
 
$
(21
)
 
$
(19
)
 
$
(97
)
 
$
(77
)

The components of net periodic benefit cost and other changes in other comprehensive loss (income) for the plans are shown below ($ in millions):
 
HG DB
Plan Benefits
 
IMTT DB
Plan Benefits
 
Other
Plan Benefits
 
Total
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Components of net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
1

 
$
1

 
$
1

 
$
5

 
$
6

 
$
5

 
$
1

 
$
1

 
$
1

 
$
7

 
$
8

 
$
7

Interest cost
2

 
2

 
2

 
6

 
6

 
6

 
1

 
1

 
1

 
9

 
9

 
9

Expected return on plan assets
(3
)
 
(3
)
 
(3
)
 
(5
)
 
(6
)
 
(6
)
 
—

 
(1
)
 
—

 
(8
)
 
(10
)
 
(9
)
Recognized actuarial loss
1

 
1

 
1

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
1

 
1

Special termination
benefits
—

 
—

 
—

 
—

 
—

 
1

 
—

 
—

 
—

 
—

 
—

 
1

Net periodic benefit cost
$
1

 
$
1

 
$
1

 
$
6

 
$
6

 
$
6

 
$
2

 
$
1

 
$
2

 
$
9

 
$
8

 
$
9

Other changes recognized in other comprehensive loss (income):
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net (gain) loss arising during the year
$
(1
)
 
$
1

 
$
(2
)
 
$
13

 
$
(11
)
 
$
9

 
$
1

 
$
(1
)
 
$
1

 
$
13

 
$
(11
)
 
$
8

Amortization of loss
(1
)
 
(1
)
 
(1
)
 
—

 
—

 
—

 
—

 
—

 
—

 
(1
)
 
(1
)
 
(1
)
Total recognized in other comprehensive (income) loss
$
(2
)
 
$
—

 
$
(3
)
 
$
13

 
$
(11
)
 
$
9

 
$
1

 
$
(1
)
 
$
1

 
$
12

 
$
(12
)
 
$
7

The assumptions used in accounting for the HG DB Plan Benefits, IMTT DB Plan Benefits and Other Plan Benefits are:
  
HG DB Plan Benefits
 
IMTT DB Plan Benefits
 
Other Plan Benefits
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Weighted average assumptions to determine benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.20
%
 
4.25
%
 
3.60
%
 
3.25
%
 
4.35
%
 
3.70
%
 
2.82% to 3.35%

 
 
3.91% to 4.35%

 
 
3.25% to 3.70%

 
Rate of compensation increase
N/A

 
N/A

 
N/A

 
4.57
%
 
4.57
%
 
4.57
%
 
4.57
%
(1) 
 
4.57
%
(1) 
 
4.57
%
(1) 
Measurement date
December 31
 
December 31
 
December 31
 
December 31
 
December 31
 
December 31
 
December 31
 
 
December 31
 
 
December 31
 
Weighted average assumptions to determine net cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.25
%
 
3.60
%
 
4.00
%
 
4.35
%
 
3.70
%
 
4.30
%
 
3.91% to 4.35%

 
 
3.25% to 3.70%

 
 
3.56% to 4.25%

 
Expected long-term rate of return on plan assets during fiscal year
4.90
%
 
5.90
%
 
5.90
%
 
5.50
%
 
5.60
%
 
6.25
%
 
5.50
%
(2) 
 
5.75
%
(2) 
 
5.75
%
(2) 
Rate of compensation increase
N/A

 
N/A

 
N/A

 
4.57
%
 
4.57
%
 
4.57
%
 
4.57
%
(1) 
 
4.57
%
(1) 
 
4.57
%
(1) 
Assumed healthcare cost trend rates:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Initial health care cost trend rate
 
 
 
 
 
 
 
 
 
 
 
 
7.25% to 7.75%

 
 
8.00% to 8.50%

 
 
6.98% to 7.00%

 
Ultimate rate
 
 
 
 
 
 
 
 
 
 
 
 
4.50% to 5.00%

 
 
4.50% to 5.00%

 
 
4.50% to 5.00%

 
Year ultimate rate is reached
 
 
 
 
 
 
 
 
 
 
 
 
2027 to 2028

 
 
2026 to 2027

 
 
2025 to 2028

 
_____________
(1)
Only applies to IMTT post-retirement life insurance plan.
(2)
Only applies to IMTT-Illinois Union Plan.
Pension asset investment decisions are made with assistance of an outside paid advisor to achieve the multiple goals of high rate of return, diversification and safety. The business has instructed the trustee, the investment manager, to maintain the allocation of the defined benefit plans’ assets between equity mutual fund securities, fixed income mutual fund securities, mixed equity and fixed income mutual fund securities, money market funds and cash within the pre-approved parameters set by the management. The weighted average asset allocation at December 31, 2019 and 2018 was:
 
HG DB
Plan Benefits
 
IMTT DB
Plan Benefits
 
Other
Plan Benefits
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Equity securities
26
%
 
23
%
 
44
%
 
42
%
 
47
%
 
45
%
Fixed income securities
69
%
 
71
%
 
40
%
 
41
%
 
43
%
 
44
%
Private equity
—

 
—

 
8
%
 
7
%
 
2
%
 
1
%
Global real estate fund
4
%
 
4
%
 
4
%
 
6
%
 
5
%
 
6
%
Cash
1
%
 
2
%
 
4
%
 
4
%
 
3
%
 
4
%
Total
100
%
 
100
%
 
100
%
 
100
%
 
100
%
 
100
%

The expected returns on plan assets were estimated based on the allocation of assets and management’s expectations regarding future performance of the investments held in the investment portfolios. The asset allocations as of December 31, 2019 and 2018 measurement dates were ($ in millions):
 
Fair Value Measurements at December 31, 2019
Pension Benefits – Plan Assets
Total
 
Quoted Prices in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Net
Asset
Value
(NAV)
Asset category:
 
 
 
 
 
 
 
 
 
Cash and money market
$
5

 
$
5

 
$
—

 
$
—

 
$
—

Equity securities
59

 
—

 
59

 
—

 
—

Fixed income securities
77

 
—

 
77

 
—

 
—

Global real estate fund
6

 
—

 
6

 
—

 
—

Domestic private equity
8

 
—

 
—

 
—

 
8

Total
$
155

 
$
5

 
$
142

 
$
—

 
$
8

 
Fair Value Measurements at December 31, 2018
Pension Benefits – Plan Assets
Total
 
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Net
Asset
Value
(NAV)
Asset category:
 
 
 
 
 
 
 
 
 
Cash and money market
$
5

 
$
5

 
$
—

 
$
—

 
$
—

Equity securities
52

 
—

 
52

 
—

 
—

Fixed income securities
73

 
—

 
73

 
—

 
—

Global real estate fund
7

 
—

 
7

 
—

 
—

Domestic private equity
6

 
—

 
—

 
—

 
6

Total
$
143

 
$
5

 
$
132

 
$
—

 
$
6


The estimated future benefit payments for the next ten years are ($ in millions):
 
HG DB Plan Benefits
 
IMTT DB Plan Benefits
 
Other Plan Benefits
 
Total
2020
$
3

 
$
10

 
$
2

 
$
15

2021
3

 
7

 
2

 
12

2022
3

 
7

 
2

 
12

2023
3

 
8

 
2

 
13

2024
3

 
8

 
2

 
13

Thereafter
16

 
45

 
9

 
70

Total
$
31

 
$
85

 
$
19

 
$
135