Pension and Other Postretirement Benefits

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

Pension Plans

Substantially all active employees of the Company’s U.S. operations participate in defined benefit pension plans and/or defined contribution retirement plans. The Company has defined benefit plans for substantially all its employees in Germany and the United Kingdom. In addition, the Company maintains a SERP, which is a non-qualified defined benefit plan, and a supplemental retirement contribution plan (the "SRCP"), which is a non-qualified, unfunded defined contribution plan. The Company provides benefits under the non-qualified SERP and SRCP plans to the extent necessary to fulfill the intent of its retirement plans without regard to the limitations set by the Internal Revenue Code on qualified retirement benefit plans.

The following table presents the components of net periodic benefit cost for the Company’s defined benefit plans and postretirement plans other than pensions:

Components of Net Periodic Benefit Cost for Defined Benefit Plans 

	Pension Benefits						Postretirement Benefits Other than Pensions
	Three Months Ended June 30,
	2020			2019			2020		2019
Service cost	$	1.2		$	1.3		$	0.3	$	0.3
Interest cost	3.5			4.1			0.2		0.4
Expected return on plan assets (a)	(5.2		)	(5.3		)	—		—
Recognized net actuarial loss	1.3			1.1			0.1		0.2
Amortization of prior service benefit	0.1			0.1			—		—
Net periodic benefit cost	$	0.9		$	1.3		$	0.6	$	0.9

	Pension Benefits						Postretirement Benefits Other than Pensions
	Six Months Ended June 30,
	2020			2019			2020		2019
Service cost	$	2.4		$	2.6		$	0.6	$	0.6
Interest cost	7.0			8.2			0.4		0.8
Expected return on plan assets (a)	(10.4		)	(10.3		)	—		—
Recognized net actuarial loss	2.6			2.6			0.3		0.4
Amortization of prior service benefit	0.2			0.1			—		—
Net periodic benefit cost	$	1.8		$	3.2		$	1.3	$	1.8

(a) The expected return on plan assets is determined by multiplying the fair value of plan assets at the prior year-end (adjusted for estimated current year cash benefit payments and contributions) by the expected long-term rate of return. The Dutch pension plan is funded through an insurance contract, and the expected return on plan assets is calculated based on the discount rate of the insured obligations.

The Company records the service cost component of net periodic benefit cost as part of cost of sales and selling, general and administrative ("SG&A") expenses; and the non-service cost components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, net actuarial gains or losses, and amortization of prior service cost or credits) as part of "Other expense - net" on the Condensed Consolidated Statements of Operations.

The Company continues to monitor the impact of COVID-19 and related global economic conditions and uncertainty on the pension and other postretirement benefit plans. For the six months ended June 30, 2020, the Company made $3.5 million of aggregate contributions to qualified and nonqualified defined benefit pension trusts and payments to pension benefits for unfunded pension and other postretirement benefit plans. The Company expects to make $7.2 million of such payments in calendar 2020. The Company made similar payments of $6.3 million and $13.1 million for the six months ended June 30, 2019 and for the year ended December 31, 2019, respectively.

Multi-Employer Plan

Historically, the Company has contributed to the PACE Industry Union-Management Pension Fund (the “PIUMPF"), a multiemployer pension plan. The amount of our annual contributions to the PIUMPF was negotiated with the plan and the bargaining unit representing our employees covered by the plan. The PIUMPF was certified to be in "critical status" for the plan year beginning January 1, 2010, and continued to be in critical status for the plan year beginning January 1, 2018.

Effective July 1, 2018, the Company and representatives of the United Steelworkers Union (the "USW") of the Lowville mill withdrew from the PIUMPF and recorded an estimated withdrawal liability of $1.0 million, which assumed payment of $0.1 million per year over 20 years, discounted at a credit adjusted risk-free rate of 5.7%. In October 2019, the Company received a billing from PIUMPF for the withdrawal liability, which confirmed the $1.0 million liability, and the Company began making monthly payments. In addition to the withdrawal liability, in October 2019, PIUMPF also demanded immediate payment of $1.3 million for the Company's pro-rata share of the fund's accumulated funding deficiency, which the Company is challenging. As such, the Company has not recorded a liability for this amount (which accrues interest at an annual rate of 12%) as of June 30, 2020.