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Pension plans and other postretirement benefits (Tables)

12 Months Ended

Dec. 31, 2022

Net Periodic Pension Expense for Defined Benefit Plans

Net periodic pension expense for defined benefit plans consisted of the following:


	Year Ended December 31
	2022			2021			2020
	(In thousands)

Service cost	$	17,660		$	20,513		$	19,944
Interest cost on benefit obligation		82,467			61,873			71,421
Expected return on plan assets		(187,609	)		(143,448	)		(125,512	)
Amortization of prior service cost		516			553			557
Recognized net actuarial loss		19,895			89,017			58,096
Net periodic pension cost (benefit)	$	(67,071	)	$	28,508		$	24,506

Net other postretirement benefits expense for defined benefit plans consisted of the following:


	Year Ended December 31
	2022			2021			2020
	(In thousands)

Service cost	$	2,604		$	1,014		$	970
Interest cost on benefit obligation		2,188			1,311			1,741
Amortization of prior service credit		(2,772	)		(4,738	)		(4,738	)
Recognized net actuarial gain		(1,481	)		(1,295	)		(1,236	)
Net other postretirement benefits	$	539		$	(3,708	)	$	(3,263	)

Data Relating to Funding Position of Defined Benefit Plans

Data relating to the funding position of the defined benefit plans were as follows:


	Pension Benefits						Other Postretirement Benefits
	2022			2021			2022			2021
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	2,420,213		$	2,521,292		$	51,846		$	55,281
Service cost		17,660			20,513			2,604			1,014
Interest cost		82,467			61,873			2,188			1,311
Plan participants’ contributions		—			—			2,433			2,553
Actuarial (gain) loss		(636,220	)		(69,230	)		(21,735	)		(2,232	)
Plan amendment		—			—			13,260			—
Business combinations		632,855			—			14,859			—
Medicare Part D reimbursement		—			—			506			540
Benefits paid		(137,987	)		(114,235	)		(5,600	)		(6,621	)
Benefit obligation at end of year		2,378,988			2,420,213			60,361			51,846
Change in plan assets:
Fair value of plan assets at beginning of year		2,595,838			2,420,582			—			—
Actual return on plan assets		(385,823	)		278,260			—			—
Employer contributions		14,397			11,231			2,661			3,528
Business combinations		855,555			—			—			—
Plan participants’ contributions		—			—			2,433			2,553
Medicare Part D reimbursement		—			—			506			540
Benefits paid		(137,987	)		(114,235	)		(5,600	)		(6,621	)
Fair value of plan assets at end of year		2,941,980			2,595,838			—			—
Funded status	$	562,992		$	175,625		$	(60,361	)	$	(51,846	)
Prepaid asset recognized in the consolidated balance sheet		715,418			332,197			—			—
Accrued liability recognized in the consolidated balance sheet		(152,426	)		(156,572	)		(60,361	)		(51,846	)
Net accrued asset (liability) recognized in the consolidated balance sheet	$	562,992		$	175,625		$	(60,361	)	$	(51,846	)
Amounts recognized in accumulated other comprehensive income (“AOCI”) were:
Net loss (gain)	$	309,039		$	391,721		$	(34,892	)	$	(14,638	)
Net prior service cost (credit)		208			724			(1,499	)		(17,531	)
Pre-tax adjustment to AOCI		309,247			392,445			(36,391	)		(32,169	)
Taxes		(80,095	)		(101,447	)		9,425			8,316
Net adjustment to AOCI	$	229,152		$	290,998		$	(26,966	)	$	(23,853	)

Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

The table below reflects the changes in plan assets and benefit obligations recognized in other comprehensive income related to the Company’s postretirement benefit plans.


	Pension Plans			Other Postretirement Benefit Plans			Total
	(In thousands)
2022
Net loss (gain)	$	(62,787	)	$	(21,735	)	$	(84,522	)
Net prior service cost		—			13,260			13,260
Amortization of prior service (cost) credit		(516	)		2,772			2,256
Amortization of actuarial (loss) gain		(19,895	)		1,481			(18,414	)
Total recognized in other comprehensive income, pre-tax	$	(83,198	)	$	(4,222	)	$	(87,420	)
2021
Net loss (gain)	$	(204,042	)	$	(2,232	)	$	(206,274	)
Amortization of prior service (cost) credit		(553	)		4,738			4,185
Amortization of actuarial (loss) gain		(89,017	)		1,295			(87,722	)
Total recognized in other comprehensive income, pre-tax	$	(293,612	)	$	3,801		$	(289,811	)

Assumed Weighted-Average Rates Used to Determine Benefit Obligations

The assumed weighted-average rates used to determine benefit obligations at December 31 were:


	Pension Benefits						Other Postretirement Benefits
	2022			2021			2022			2021

Discount rate		5.00	%		2.75	%		5.00	%		2.75	%
Rate of increase in future compensation levels		3.33	%		3.35	%		—			—

Assumed Weighted-Average Rates Used to Determine Net Benefit Expense

The assumed weighted-average rates used to determine net benefit expense for the years ended December 31 were:


	Pension Benefits									Other Postretirement Benefits
	2022			2021			2020			2022			2021			2020

Discount rate		2.75	%		2.50	%		3.25	%		2.75	%		2.50	%		3.25	%
Long-term rate of return on plan assets		6.25	%		6.25	%		6.50	%		—			—			—
Rate of increase in future compensation levels		3.35	%		3.37	%		4.29	%		—			—			—

Fair Values of Company's Pension Plan Assets by Asset Category

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


	Fair Value Measurement of Plan Assets At December 31, 2022
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Asset category:
Money-market investments	$	89,829	$	52,005	$	37,824	$	—
Equity securities:
M&T		118,285		118,285		—		—
Domestic (a)		449,466		449,466		—		—
International (b)		18,510		18,510		—		—
Mutual funds:
Domestic (a)		279,299		279,299		—		—
International (b)		477,194		477,194		—		—
		1,342,754		1,342,754		—		—
Debt securities:
Corporate (c)		199,728		—		199,728		—
Government		236,199		—		236,199		—
International		14,777		—		14,777		—
Mutual funds:
Domestic (d)		422,615		422,615		—		—
		873,319		422,615		450,704		—
Other:
Diversified mutual fund		108,483		108,483		—		—
Real estate partnerships		26,953		6,651		—		20,302
Private equity / debt		211,098		—		—		211,098
Hedge funds		276,367		108,957		—		167,410
Guaranteed deposit fund		9,601		—		—		9,601
		632,502		224,091		—		408,411
Total (e)	$	2,938,404	$	2,041,465	$	488,528	$	408,411


	Fair Value Measurement of Plan Assets At December 31, 2021
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Asset category:
Money-market investments	$	82,751	$	43,616	$	39,135	$	—
Equity securities:
M&T		134,447		134,447		—		—
Domestic (a)		369,283		369,283		—		—
International (b)		14,835		14,835		—		—
Mutual funds:
Domestic (a)		280,347		280,347		—		—
International (b)		461,304		461,304		—		—
		1,260,216		1,260,216		—		—
Debt securities:
Corporate (c)		178,528		—		178,528		—
Government		206,540		—		206,540		—
International		12,933		—		12,933		—
Mutual funds:
Domestic (d)		315,424		315,424		—		—
		713,425		315,424		398,001		—
Other:
Diversified mutual fund		108,239		108,239		—		—
Real estate partnerships		16,620		5,264		—		11,356
Private equity / debt		151,550		—		—		151,550
Hedge funds		250,691		74,599		—		176,092
Guaranteed deposit fund		10,041		—		—		10,041
		537,141		188,102		—		349,039
Total (e)	$	2,593,533	$	1,807,358	$	437,136	$	349,039

(a)

This category is mainly comprised of equities of companies primarily within the small-cap, mid-cap and large-cap sectors of the U.S. economy and range across diverse industries.

(b)

This category is comprised of equities in companies primarily within the mid-cap and large-cap sectors of international markets mainly in developed and emerging markets in Europe and the Pacific Rim.

(c)

This category represents investment grade bonds of U.S. issuers from diverse industries.

(d)

Approximately 73% of the mutual funds were invested in investment grade bonds and 27% in high-yielding bonds at December 31, 2022. Approximately 72% of the mutual funds were invested in investment grade bonds and 28% in high-yielding bonds at December 31, 2021. The holdings within the funds were spread across diverse industries.

(e)

Excludes dividends and interest receivable totaling $4 million and $2 million at December 31, 2022 and 2021, respectively.

Changes in Level 3 Pension Plan Assets Measured at Fair Value on Recurring Basis

The changes in Level 3 pension plan assets measured at estimated fair value on a recurring basis during the year ended December 31, 2022 were as follows:


	Balance – January 1, 2022		Net Purchases (Sales)			Total Realized/ Unrealized Gains (Losses)			Balance – December 31, 2022
	(In thousands)
Other
Real estate partnerships	$	11,356	$	6,062		$	2,884		$	20,302
Private equity/debt		151,550		66,393			(6,845	)		211,098
Hedge funds		176,092		(2,714	)		(5,968	)		167,410
Guaranteed deposit fund		10,041		819			(1,259	)		9,601
Total	$	349,039	$	70,560		$	(11,188	)	$	408,411

Defined Benefit Plan Estimated Future Benefit Payments

Estimated benefits expected to be paid in future years related to the Company’s defined benefit pension and other postretirement benefits plans are as follows:


	Pension Benefits		Other Postretirement Benefits
	(In thousands)
Year ending December 31:
2023	$	145,705	$	3,910
2024		150,676		3,925
2025		155,164		4,342
2026		158,433		4,278
2027		163,737		4,226
2028 through 2032		833,186		19,943