The Company's primary defined benefit plan was frozen effective December 31, 2011. No new employees are permitted to enter the Company’s frozen plan and participants will earn no additional benefits. Benefits are generally based upon years of service and compensation. The defined benefit retirement income plans are funded in conformity with the applicable government regulations. The Company funds at least the minimum amount required for all funded plans using actuarial cost methods and assumptions acceptable under government regulations.

The annual income and expense amounts relating to the pension plan are based on calculations, which include various actuarial assumptions including mortality expectations, discount rates and expected long-term rates of return. The Company reviews its actuarial assumptions on an annual basis as of December 31 (or more frequently if a significant event requiring remeasurement occurs, such as a settlement) and modifies the assumptions based on current rates and trends when it is appropriate to do so. The effects of modifications are recognized immediately on the audited Consolidated Balance Sheets, but are amortized into operating earnings over future periods, with the deferred amount recorded in accumulated other comprehensive loss. During the year ended December 31, 2022, the Company used the Society of Actuaries Pri-2012 base rate mortality table and MP-2021 mortality improvement projection scale in the calculation of the Company’s U.S. pension plan obligations.

The pension plan obligations are calculated using generally accepted actuarial methods and are measured as of December 31. Actuarial gains and losses for frozen plans are amortized using the corridor method over the average remaining expected life of plan participants.

The Company made cash contributions of $1.4 million and $0.2 million to its pension and other postretirement benefits plans, respectively, during the year ended December 31, 2022. In 2023, the Company expects to make cash contributions of approximately $1.8 million and $0.1 million to its pension and other postretirement benefits plans, respectively.

Total pension income was $0.9 million, $4.2 million and $2.0 million for the years ended December 31, 2022, 2021 and 2020, respectively, which is included within investment and other income, net in the audited Consolidated Statements of Operations. The components of the estimated net pension plan income for the years ended December 31, 2022, 2021 and 2020 were as follows:


	Year Ended December 31,
	2022			2021			2020
Interest cost	$	7.4		$	6.2		$	8.8
Expected return on assets		(11.6	)		(14.2	)		(13.9	)
Amortization, net		3.3			3.8			3.1
Net pension plan income	$	(0.9	)	$	(4.2	)	$	(2.0	)

Weighted-average assumption used to calculate net pension plan income:
Discount rate		2.9	%		2.6	%		3.2	%
Expected return on plan assets		4.8	%		6.0	%		6.0	%

Reconciliation of funded status


	Pension Benefits						Other Postretirement Benefits
	2022			2021			2022			2021
Benefit obligation at beginning of year	$	314.0		$	325.6		$	1.6		$	1.8
Interest cost		7.4			6.2			—			—
Actuarial gain		(67.0	)		(0.4	)		(0.2	)		—
Benefits paid		(17.3	)		(17.4	)		(0.2	)		(0.2	)
Benefit obligation at end of year (a)	$	237.1		$	314.0		$	1.2		$	1.6

Fair value of plan assets at beginning of year	$	273.1		$	274.9		$	—		$	—
Actual return on assets		(63.7	)		14.4			—			—
Employer contributions		1.4			1.2			0.2			0.2
Benefits paid		(17.3	)		(17.4	)		(0.2	)		(0.2	)
Fair value of plan assets at end of year	$	193.5		$	273.1		$	—		$	—
Under funded status at end of year	$	(43.6	)	$	(40.9	)	$	(1.2	)	$	(1.6	)

___________

(a)

As the Company’s defined benefit plan is frozen and participants do not earn additional service benefits, the projected benefit obligation and accumulated benefit obligation are the same.

The decrease in benefit obligation during the year ended December 31, 2022 was primarily from a higher actuarial gain due to the increasing interest rate environment during the year ended December 31, 2022, partially offset by interest costs.

The accumulated benefit obligation for all defined benefit pension and other postretirement benefits plans was $238.3 million and $315.6 million at December 31, 2022 and 2021, respectively. The underfunded pension and other postretirement plans liabilities are presented within the Company's audited Consolidated Balance Sheets as follows:


	Pension Benefits						Other Postretirement Benefits
	December 31,						December 31,
	2022			2021			2022			2021
Accrued benefit cost (included in accrued liabilities)	$	(1.8	)	$	(1.8	)	$	(0.1	)	$	(0.1	)
Pension and other postretirement benefits plans liabilities		(41.8	)		(39.1	)		(1.1	)		(1.5	)
Net liabilities	$	(43.6	)	$	(40.9	)	$	(1.2	)	$	(1.6	)

The amounts included in accumulated other comprehensive loss in the audited Consolidated Balance Sheets, excluding tax effects, that have not been recognized as components of net periodic benefit cost at December 31, 2022 and 2021 were as follows:


	Pension Benefits						Other Postretirement Benefits
	December 31,						December 31,
	2022			2021			2022			2021
Accumulated other comprehensive loss:
Net actuarial loss	$	(92.7	)	$	(87.6	)	$	(0.3	)	$	(0.6	)

The pre-tax amounts recognized in other comprehensive (loss) income during the years ended December 31, 2022, 2021 and 2020 were as follows:


	Pension Benefits							Other Postretirement Benefits
	Year Ended December 31,							Year Ended December 31,
	2022			2021		2020		2022		2021		2020
Amortization of:
Net actuarial loss	$	3.3		$	3.7	$	3.1	$	—	$	0.1	$	—
Amounts arising during the period:
Net actuarial (loss) gain		(8.4	)		0.6		1.7		0.3		—		(0.2	)
Total (loss) gain	$	(5.1	)	$	4.3	$	4.8	$	0.3	$	0.1	$	(0.2	)

Actuarial gains and losses in excess of 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets were recognized as a component of net pension plan income over the average remaining service period of the plan’s active employees. As a result of the plan being frozen, the actuarial gains and losses are recognized as a component of net pension plan income over the average remaining expected life of plan participants.

The weighted average assumptions used to determine the benefit obligation at December 31, 2022 and 2021 were as follows:


	Pension Benefits						Other Postretirement Benefits
	December 31,						December 31,
	2022			2021			2022			2021
Discount rate		5.2	%		2.9	%		5.2	%		2.7	%
Interest crediting rate		3.6	%		2.4	%	N/A			N/A

Benefit payments are expected to be paid as follows:


	Pension Benefits		Other Postretirement Benefits
2023	$	17.9	$	0.1
2024		18.5		0.1
2025		18.0		0.1
2026		18.7		0.1
2027		17.6		0.1
2028-2032		86.4		0.5

The Company’s U.S. pension plans are frozen and the Company has a risk management approach for its U.S. pension plan assets. The overall investment objective of this approach is to reduce the risk of significant decreases in the plan’s funded status by allocating a larger portion of the plan’s assets to investments expected to hedge the impact of interest rate risks on the plan’s obligation. The expected long-term rate of return for plan assets is based upon many factors including asset allocations, historical asset returns, current and expected future market conditions, risk and active management premiums. The target asset allocation percentage as of December 31, 2022, for the primary U.S. pension plan was approximately 60% for fixed income investments and approximately 40% for return seeking investments.

The fair values of the Company’s pension plan assets at December 31, 2022 and 2021, by asset category, were as follows:


	December 31, 2022
	Total		Level 1		Level 2
Asset Category:
Cash and Cash Equivalents	$	2.8	$	—	$	2.8
Fixed Income		15.7		—		15.7
Assets Measured at NAV		175.0		—		—
Total	$	193.5	$	—	$	18.5


	December 31, 2021
	Total		Level 1		Level 2
Asset Category:
Cash and Cash Equivalents	$	2.8	$	1.5	$	1.3
Fixed Income		25.6		—		25.6
Assets Measured at NAV		244.7		—		—
Total	$	273.1	$	1.5	$	26.9

The Company segregated its plan assets by the following major categories and levels for determining their fair value as of December 31, 2022 and 2021:

Cash and cash equivalents— Carrying value approximates fair value. As such, these assets were classified as Level 1. The Company also invests in certain short-term investments which are valued using the amortized cost method. As such, these assets were classified as Level 2.

Fixed Income— Fixed income securities are primarily in a diversified portfolio of long duration governmental instruments. They are primarily valued using a market approach, using matrix pricing and considering a security’s relationship to other securities for which quoted prices in an active market may be available. Inputs used in developing fair value estimates include reported trades, broker quotes, benchmarks, and spreads. As the value of these assets was determined based on observable inputs obtained by third parties, the Company classified these assets as Level 2.

Assets measured at NAV— The Company invests in certain funds that are valued at calculated net asset value per share (“NAV”), but are not quoted on active markets such as certain equity common funds, fixed income funds, hedge funds and corporate bond funds. The Company believes that the NAV is representative of fair value at the reporting date, as there are no significant restrictions on redemption of these investments or other reasons to indicate that the investment would be redeemed at an amount different than the NAV.

For Level 2 plan assets, management reviews significant investments on a quarterly basis including investigation of unusual fluctuations in price or returns and obtaining an understanding of the pricing methodology to assess the reliability of third-party pricing estimates.

The valuation methodologies described above may generate a fair value calculation that may not be indicative of net realizable value or future fair values. While the Company believes the methodologies used are appropriate, the use of different methodologies or assumptions in calculating fair value could result in different amounts.

Employer 401(k) Savings Plan — For the benefit of most of its U.S. employees, the Company maintains a defined contribution retirement savings plan ("401(k)") that is intended to be qualified under Section 401(a) of the Internal Revenue Code. Under this plan, employees may contribute a percentage of eligible compensation on both a before-tax and after-tax basis and, starting in 2022, the Company provides for a matching contribution of $0.50 for every dollar an employee contributes up to 6% of eligible compensation. The Company can contribute a discretionary match, based on the Company's performance. The Company did not provide a 401(k) discretionary match to participants in 2022, but provided a 401(k) discretionary match in 2021 and 2020, payable to participants' accounts in the first quarter of the respective following year. Expense for the Company's 401(k) matching contributions was $5.6 million, $17.3 million and $5.3 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Multiemployer Pension Plans — On October 1, 2016, DFIN became an independent publicly traded company through the distribution by R.R. Donnelley & Sons Company (“RRD”) of shares of DFIN common stock to RRD stockholders (the “Separation”). On April 13, 2020, LSC Communications, Inc. (“LSC”), RRD publishing and retail-centric print services and office products business which separated from RRD at the same time as DFIN, announced that it voluntarily filed for business reorganization under Chapter 11 of the U.S. Bankruptcy Code (“LSC Chapter 11 Filing”) and stopped making required withdrawal liability payments to multiemployer pension plans (“MEPP”) from which RRD had withdrawn prior to the Separation. Responsibility for certain pre-Separation withdrawal liability obligations, resulting in such monthly and quarterly payment obligations, had been assigned to the parties, including LSC (the “LSC MEPP Liabilities”) pursuant to the September 14, 2016 Separation and Distribution Agreement among the Company, RRD and LSC (the “Separation Agreement”), however, the Company and RRD remained jointly and severally liable for the LSC MEPP Liabilities pursuant to laws and regulations governing multiemployer pension plans.

In 2020, the Company recorded charges of $19.0 million for its estimated payments related to the LSC MEPP Liabilities, including the Company’s low end of the range of potential outcomes as well as the Company’s estimated shared payments until a final allocation by the arbitration panel was determined.

In 2021, the Company and RRD reached settlements with two of the three LSC multiemployer pension plan funds (the “Partial LSC MEPP Settlements”) and made lump sum payments to settle all obligations related to these funds. In 2021, the Company recorded net charges of $5.4 million, which reflected the conclusion of arbitration proceedings where the final allocation of the LSC MEPP Liabilities of one-third to the Company and two-thirds to RRD was determined by the arbitration panel. As a result of the final liability allocation, the Company received a reimbursement from RRD of $7.1 million for 2020 and 2021 payments made in excess of the Company’s allocated share of the LSC MEPP Liabilities, including the lump sum payments made associated with the Partial LSC MEPP Settlements. As of December 31, 2021, subsequent to the completion of arbitration, the Company had $10.1 million accrued, on a discounted basis, assuming a blended discount rate of approximately 3.5%. The Company's undiscounted LSC MEPP Liabilities were $12.3 million, $1.1 million of which is payable in each of the five succeeding years and the remainder thereafter through 2033, with annual payments ranging from $0.8 million to $1.1 million. The expense associated with the LSC MEPP Liabilities and the reimbursement from RRD were recorded in SG&A expenses within the Corporate segment in the Company’s audited Consolidated Statements of Operations for the years ended December 31, 2021 and 2020.

As of December 31, 2022, the Company's MEPP liabilities totaled $11.0 million, including $9.4 million related to its share of LSC MEPP Liabilities.

There can be no assurance that the Company’s actual future liabilities relating to the MEPP liabilities (including MEPP liabilities where the Company and RRD remain jointly and severally liable) will not differ materially from the amount recorded in the Company’s audited Consolidated Financial Statements. If RRD fails to make required payments in respect of the remaining LSC MEPP Liabilities, or RRD fails to make required payments in respect of RRD's MEPP liabilities, the Company may become obligated to make such payments. In addition, the Company’s MEPP liabilities could be affected by the financial stability of other employers participating in such plans and decisions by those employers to withdraw from such plans in the future.