Subsequent Events

6 Months Ended

Jun. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

The Yellow Corporation Pension Plan was amended in 2017 to permit the payment of lump sum benefit payments effective January 1, 2018. Subsequent to June 30, 2018, the 2017 amendment triggered a non-cash settlement charge due to the amount of lump sum benefit payments distributed from plan assets in 2018. The lump sum benefit payments reduce pension obligations and are funded from existing plan assets. The non-cash settlement charge results from the requirement to expense a portion of the Plan’s unrecognized actuarial losses associated with the lump sum settlements.

Settlement accounting is triggered when the payment of lump sum benefits meet and exceed a minimum threshold in any fiscal year, a threshold which is based on the sum of the Plan’s service cost and interest cost. The non-cash settlement charge is determined by multiplying the unrecognized losses by the portion of the total projected benefit obligation settled through the payment of lump sums. The third and fourth quarter pension settlement charges cannot be determined at this time, as the actual amounts are dependent on various factors, including final lump sums paid, interest rates and the value of plan assets.