RETIREMENT BENEFIT PLANS

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

RETIREMENT BENEFIT PLANS

RETIREMENT BENEFIT PLANS

In connection with the acquisition of Transtar (see Note 3), we established a defined benefit pension plan as well as a postretirement benefit plan to assume certain retirement benefit obligations related to eligible Transtar employees.

Defined Benefit Pensions

Our underfunded pension plan is a tax qualified plan, and we will make contributions accordingly. Our pension plan covers certain eligible Transtar employees and is noncontributory. Pension benefits earned are generally based on years of service and compensation during active employment. The accumulated benefit obligation at December 31, 2022 and 2021 is $2.5 million and $1.4 million, respectively.

Postretirement Benefits

Our unfunded postretirement plan provides healthcare and life insurance benefits for eligible retirees and dependents of Transtar. Depending on retirement date and employee classification, certain healthcare plans contain contribution and cost-sharing features such as deductibles and co-insurance. The remaining healthcare and life insurance plans are non-contributory.

The following table summarizes the changes in our projected benefit obligation and plan assets as of December 31, 2022 and 2021. Service costs are recorded in Operating expenses, and interest costs are recorded in Other (expense) income in the Consolidated and Combined Consolidated Statements of Operations.

	Year Ended December 31,
	2022				2021
	Pension Benefits		Postretirement Benefits		Pension Benefits		Postretirement Benefits
Projected Benefit Obligation
Projected benefit obligation, beginning of period	$	9,805	$	30,033	$	—	$	—
Transtar acquisition	—		(2,854)		9,055		28,488
Plan amendment	—		1,470		—		—
Service costs	1,763		2,143		712		864
Interest costs	315		917		108		337
Actuarial (gains) losses	(2,814)		(3,065)		(20)		344
Benefit paid	(137)		(121)		(50)		—
Projected benefit obligation, end of period	$	8,932	$	28,523	$	9,805	$	30,033
Plan Assets
Fair value of plan assets, beginning of period	$	—	$	—	$	—	$	—
Asset adjustment	1		—		—		—
Actual return on plan assets	1		—		—		—
Employer contributions	1,846		—		50		—
Other benefits paid	(137)		—		(50)		—
Fair value of plan assets, end of period	$	1,711	$	—	$	—	$	—
Funded status at end of year	$	(7,221)	$	(28,523)	$	(9,805)	$	(30,033)

As of December 31, 2022 and 2021, the following amounts were recognized in the Consolidated and Combined Consolidated Balance Sheets:

	Year Ended December 31,
	2022				2021
	Pension Benefits		Postretirement Benefits		Pension Benefits		Postretirement Benefits
Current liabilities	$	—	$	251	$	52	$	102
Non-current liabilities	7,221		28,272		9,753		29,931
Net amounts recognized at end of period	$	7,221	$	28,523	$	9,805	$	30,033

Our retirement plan costs for the years ended December 31, 2022 and 2021 were $2.1 million and $0.8 million for pension benefits and $3.1 million and $1.2 million for postretirement benefits, respectively.

The following table summarizes the components of net periodic pension cost and other amounts recognized in other comprehensive loss for the years ended December 31, 2022 and 2021:

	Year Ended December 31,
	2022				2021
	Pension Benefits		Postretirement Benefits		Pension Benefits		Postretirement Benefits
Prior service cost (credit)	$	—	$	—	$	—	$	—
Amortization of prior service (cost) credit	—		1,470		—		—
Actuarial loss (gain)	(2,814)		(3,065)		(20)		334
Amortization of actuarial (loss) gain	—		—		—		—
Total recognized in other comprehensive loss	$	(2,814)	$	(1,595)	$	(20)	$	334

Weighted-average assumptions used to determine the estimated benefit obligation and period costs as of and for the year ended December 31, 2022 and 2021 are as follows:

	Year Ended December 31,
	2022				2021
	Pension Benefits		Postretirement Benefits		Pension Benefits		Postretirement Benefits
Weighted-average assumptions used to determine pension benefit obligation:
Discount rate	5.31	%	5.29	%	3.02	%	3.00	%
Rate of compensation increase	3.50	%	N/A		3.50	%	N/A
Initial healthcare cost trend rate	N/A		5.80	%	N/A		10% pre-Med; 3% Medicare
Ultimate healthcare cost trend rate	N/A		3.94	%	N/A		3.94	%
Year ultimate healthcare cost trend rate is reached	N/A		2075		N/A		2075
Weighted-average assumptions used to determine net periodic pension and postretirement costs:
Discount rate	3.02	%	3.00	%	2.88	%	2.86	%
Rate of compensation increases	3.50	%	N/A		3.50	%	N/A
Average future working lifetime	11.01 years		11.32 years		10.93 years		11.34 years
Initial healthcare cost trend rate	N/A		6.00	%	N/A		6.00	%
Ultimate healthcare cost trend rate	N/A		3.94	%	N/A		3.80	%
Year ultimate healthcare cost trend rate is reached	N/A		2075		N/A		2075

The following benefit payments, which reflect expected future service and compensation increases, as appropriate, are expected to be made from the Transtar defined benefit plans:

	Pension Benefits		Postretirement Benefits
2023	$	176	$	428
2024	251		640
2025	406		900
2026	590		1,150
2027	756		1,336
Years 2028-2032	5,753		9,308

The pension plan assets are held in a master trust that is invested in a pooled separate account categorized as a money market fund. The assets are valued at fair value and are classified as a Level 2 investment. The pooled separate account invests in a portfolio of high quality, short-term instruments; the fair values of these instruments are used in determining the NAV of the pooled separate account, which is not publicly quoted. We expect to make $1.5 million of contributions to the pension plan during 2023.