Pension and Postretirement Benefit Obligations

3 Months Ended

Mar. 31, 2023

Retirement Benefits [Abstract]

Pension and Postretirement Benefit Obligations

Pension and Postretirement Benefit Obligations

Pension Plans

There are two Company-sponsored pension plans. The primary Company-sponsored pension plan (the “Primary Plan”) was frozen as of June 30, 2006 and no benefits accrued to participants after that date. The second Company-sponsored pension plan (the “Bargaining Plan”) is for certain employees under collective bargaining agreements. Benefits under the Bargaining Plan are determined in accordance with negotiated formulas for the respective participants. Contributions to the plans are based on actuarially determined amounts and are limited to the amounts currently deductible for income tax purposes.

During 2022, the Company began the process of terminating the Primary Plan. During 2023, the Company has offered a lump sum benefit payout option to certain plan participants. The Company expects to complete the purchase of group annuity contracts that will transfer the pension benefit obligation for the Primary Plan to an insurance company in 2023.

The components of net periodic pension cost were as follows:

	First Quarter
(in thousands)	2023		2022
Service cost	$	1,099	$	1,860
Interest cost	3,508		2,659
Expected return on plan assets	(2,914)		(2,035)
Recognized net actuarial loss	973		989
Amortization of prior service cost	4		—
Net periodic pension cost	$	2,670	$	3,473

The Company did not make any contributions to the two Company-sponsored pension plans during the first quarter of 2023. The Company expects to make cash contributions of approximately $5 million to $10 million to the Primary Plan during 2023 to fund the termination of the Primary Plan. The Company also expects to make cash contributions of approximately $5 million to $10 million to the Bargaining Plan during 2023 to fund the ongoing projected benefit obligation of the Bargaining Plan.

Postretirement Benefits

The Company provides postretirement benefits for employees meeting specified qualifying criteria. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Company does not prefund these benefits and has the right to modify or terminate certain of these benefits in the future.

The components of net periodic postretirement benefit cost were as follows:

	First Quarter
(in thousands)	2023		2022
Service cost	$	294	$	383
Interest cost	698		474
Recognized net actuarial loss	—		92
Net periodic postretirement benefit cost	$	992	$	949