XML 52 R37.htm IDEA: XBRL DOCUMENT v3.10.0.1
Pension and Postretirement Plans (Tables)
12 Months Ended
Dec. 31, 2018
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Net Benefit Costs [Table Text Block]
Pension and postretirement benefit costs for these plans were comprised of:
 
Pension Benefits
 
Postretirement and Other Benefits
(dollars in millions)
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Service cost
$

 
$

 
$

 
$
0.6

 
$
0.2

 
$
0.3

Interest cost on projected benefit obligation
20.0

 
19.4

 
19.3

 
4.2

 
3.2

 
3.3

Expected return on plan assets
(29.8
)
 
(26.0
)
 
(27.3
)
 

 

 

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (benefit)

 

 
0.1

 
(3.1
)
 
(4.5
)
 
(14.7
)
Actuarial loss
17.0

 
17.5

 
19.1

 
4.1

 
4.7

 
4.9

Pension settlement charges
0.1

 
4.0

 

 

 

 

Pension/postretirement cost (benefit)
$
7.3

 
$
14.9

 
$
11.2

 
$
5.8

 
$
3.6

 
$
(6.2
)
Schedule of Changes in Projected Benefit Obligations [Table Text Block]
Changes in the plans' benefit obligations and funded status are as follows:
 
 
 
 
 
Postretirement and Other Benefits
 
Pension Benefits
 
(dollars in millions)
2018
 
2017
 
2018
 
2017
Change in benefit obligation:
 
 
 
 
 
 
 
   Benefit obligation at January 1,
$
489.2

 
$
505.6

 
$
98.6

 
$
82.6

Hawaiian Telcom opening balance sheet adjustment
184.1

 

 
51.2

 

Service cost

 

 
0.6

 
0.2

Interest cost
20.0

 
19.4

 
4.2

 
3.2

Actuarial (gain) loss
(39.9
)
 
28.1

 
(20.3
)
 
7.6

Benefits paid
(43.0
)
 
(38.6
)
 
(13.1
)
 
(11.6
)
Retiree drug subsidy received

 

 
0.3

 
0.2

Transfer of special death benefit

 
(14.0
)
 

 
14.0

Settlements
(3.6
)
 
(11.3
)
 

 

Other

 

 
2.2

 
2.4

Benefit obligation at December 31,
$
606.8

 
$
489.2

 
$
123.7

 
$
98.6

 
 
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
   Fair value of plan assets at January 1,
$
392.1

 
$
372.3

 
$
7.5

 
$
8.7

Hawaiian Telcom opening balance sheet adjustment
163.0

 

 

 

Actual (loss) return on plan assets
(37.7
)
 
64.8

 
0.3

 
0.2

Employer contributions
11.6

 
4.6

 
10.8

 
10.0

Retiree drug subsidy received

 

 
0.3

 
0.2

Benefits paid
(43.0
)
 
(38.6
)
 
(13.1
)
 
(11.6
)
Settlements
(3.6
)
 
(11.0
)
 

 

   Fair value of plan assets at December 31,
482.4

 
392.1

 
5.8

 
7.5

Unfunded status
$
(124.4
)
 
$
(97.1
)

$
(117.9
)

$
(91.1
)
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block]
A one-percentage point change in assumed healthcare cost trend rates would have the following effect on the postretirement benefit costs and obligation:
(dollars in millions)
1% Increase
 
1% Decrease
Service and interest costs for 2018
$
0.1

 
$
(0.1
)
Postretirement benefit obligation at December 31, 2018
1.8

 
(1.7
)
Schedule of Amounts Recognized in Balance Sheet [Table Text Block]
The projected benefit obligation is recognized in the Consolidated Balance Sheets as follows:
 
Pension Benefits
 
Postretirement and Other Benefits
 
December 31,
 
December 31,
(dollars in millions)
2018
 
2017
 
2018
 
2017
Accrued payroll and benefits (current liability)
$
2.1

 
$
2.1

 
$
11.0

 
$
10.5

Pension and postretirement benefit obligations (noncurrent liability)
122.3

 
95.0

 
106.9

 
80.6

Total
$
124.4

 
$
97.1

 
$
117.9

 
$
91.1

Schedule of Net Periodic Benefit Cost Not yet Recognized [Table Text Block]
Amounts recognized in "Accumulated other comprehensive loss" in the Consolidated Balance Sheets which have not yet been recognized in net pension costs consisted of the following:
 
Pension Benefits
 
Postretirement and Other Benefits
 
 
 
December 31,
 
December 31,
(dollars in millions)
2018
 
2017
 
2018
 
2017
Prior service (cost) benefit, net of tax of ($0.1), ($0.1), $4.6, $5.3
$
(0.1
)
 
$
(0.1
)
 
$
17.5

 
$
19.9

Actuarial loss, net of tax of ($45.0), ($42.5), ($7.1), ($12.7)
(156.3
)
 
(148.4
)
 
(25.6
)
 
(44.5
)
Total
$
(156.4
)
 
$
(148.5
)
 
$
(8.1
)
 
$
(24.6
)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]
Amounts recognized in "Accumulated other comprehensive loss" on the Consolidated Statements of Shareowners’ Deficit and the Consolidated Statements of Comprehensive Income are shown below:
 
Pension Benefits
 
Postretirement and Other Benefits
(dollars in millions)
2018
 
2017
 
2018
 
2017
Prior service cost recognized:
 
 
 
 
 
 
 
     Reclassification adjustments
$

 
$

 
$
(3.1
)
 
$
(4.5
)
Actuarial (loss) gain recognized:
 
 
 
 
 
 
 
     Reclassification adjustments
17.1

 
21.5

 
4.1

 
4.7

     Actuarial (loss) gain arising during the period
(27.7
)
 
11.0

 
20.4

 
(7.4
)
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year [Table Text Block]
The following amounts currently included in "Accumulated other comprehensive loss" are expected to be recognized in 2019 as a component of net periodic pension and postretirement cost:
 
Pension Benefits
 
Postretirement and Other Benefits
(dollars in millions)
 
Prior service benefit
$

 
$
(2.5
)
Actuarial loss
13.9

 
1.9

Total
$
13.9

 
$
(0.6
)
Schedule of Allocation of Plan Assets [Table Text Block]
The fair values of the pension plan assets at December 31, 2018 and 2017 by asset category are as follows:
(dollars in millions)
December 31, 2018
 
Quoted Prices
in active
markets
Level 1
 
Significant
observable
inputs
Level 2
 
Significant
unobservable
inputs
Level 3
Mutual funds
 
 
 
 
 
 
 
U.S. equity index funds
$
165.0

 
$
107.2

 
$
57.8

 
$

International equity index funds
127.2

 
100.7

 
26.5

 

Fixed income bond funds
183.0

 
119.3

 
63.7

 

Fixed income short-term money market funds
7.2

 
0.1

 
7.1

 

Group insurance contract
5.8

 

 

 

Total
$
488.2

 
$
327.3

 
$
155.1

 
$


(dollars in millions)
 
December 31, 2017
 
Quoted Prices
in active
markets
Level 1
 
Significant
observable
inputs
Level 2
 
Significant
unobservable
inputs
Level 3
Mutual funds
 
 
 
 
 
 
 
 
U.S. equity index funds
 
$
151.0

 
$
151.0

 
$

 
$

International equity index funds
 
101.3

 
101.3

 

 

Fixed income bond funds
 
136.1

 
136.1

 

 

Fixed income short-term money market funds
 
3.7

 
3.7

 

 

Group insurance contract
 
7.5

 

 

 

Total
 
$
399.6

 
$
392.1

 
$

 
$

Schedule of Expected Benefit Payments [Table Text Block]
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years:
(dollars in millions)
Pension
Benefits
 
Postretirement
and Other
Benefits
 
Medicare
Subsidy
Receipts
2019
$
77.3

 
$
11.5

 
$
(0.4
)
2020
51.3

 
10.7

 
(0.4
)
2021
50.1

 
10.4

 
(0.3
)
2022
47.9

 
10.0

 
(0.3
)
2023
46.3

 
9.5

 
(0.3
)
Years 2024 - 2028
196.5

 
41.8

 
(1.0
)
Cincinnati Plans [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Health Care Cost Trend Rates [Table Text Block]
The assumed healthcare cost trend rate used to measure the postretirement health benefit obligation is shown below:
Cincinnati Plans
December 31,
 
2018
 
2017
Healthcare cost trend
6.5
%
 
6.5
%
Rate to which the cost trend is assumed to decline (ultimate trend rate)
4.5
%
 
4.5
%
Year the rates reach the ultimate trend rate
2023

 
2022

Cincinnati Plans [Member] | Net Periodic Cost  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Assumptions Used [Table Text Block]
The following are the weighted-average assumptions used in measuring the net periodic cost of the pension and postretirement benefits:
Cincinnati Plans
Pension Benefits
 
 
Postretirement and Other Benefits
 
 
2018
 
2017
 
2016
 
 
2018
 
2017
 
2016
 
Discount rate
3.60
%
 
4.10
%
 
3.80
%

 
3.60
%
 
4.00
%
 
3.70
%
 
Expected long-term rate of return
7.00
%
 
7.25
%
 
7.50
%
 
 

 

 

 
Future compensation growth rate

 

 

 
 

 

 

 

Cincinnati Plans [Member] | Projected Benefit Obligation  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Assumptions Used [Table Text Block]
The following are the weighted-average assumptions used in accounting for and measuring the projected benefit obligations:
Cincinnati Plans
Pension Benefits
 
Postretirement and Other Benefits
 
December 31,
 
December 31,
 
2018
 
2017
 
2018
 
2017
Discount rate
4.20
%
 
3.60
%
 
4.30
%
 
3.60
%
Future compensation growth rate

 

 

 

Hawaii Plans [Member]  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Health Care Cost Trend Rates [Table Text Block]
Hawaii Plans
December 31,
 
2018
Healthcare cost trend
6.8
%
Rate to which the cost trend is assumed to decline (ultimate trend rate)
5.0
%
Year the rates reach the ultimate trend rate
2026

Hawaii Plans [Member] | Net Periodic Cost  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Assumptions Used [Table Text Block]
Hawaii Plans
Pension Benefits
 
Postretirement and Other Benefits
 
2018
 
2018
Discount rate
4.10
%
 
4.20
%
Expected long-term rate of return
7.00
%
 
 
Future compensation growth rate
 
 
 
Hawaii Plans [Member] | Projected Benefit Obligation  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Assumptions Used [Table Text Block]
Hawaii Plans
Pension Benefits
 
Postretirement and Other Benefits
 
December 31,
 
December 31,
 
2018
 
2018
Discount rate
4.20
%
 
4.40
%
Future compensation growth rate