XML 49 R36.htm IDEA: XBRL DOCUMENT v3.23.1
Pension and Postretirement Plans (Tables)
 12 Months Ended
Dec. 31, 2022
Schedule of Pension and Postretirement Benefit Costs

Pension and postretirement (benefits) costs for these plans were comprised of:

 

 

 

Pension Benefits

 

 

 

Postretirement and Other Benefits

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

(dollars in millions)

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

Service cost

 

$

—

 

 

$

—

 

 

 

$

—

 

 

$

—

 

 

 

$

0.8

 

 

$

0.1

 

 

 

$

0.3

 

 

$

0.4

 

Interest cost on projected benefit obligation

 

 

16.3

 

 

 

4.7

 

 

 

 

10.2

 

 

 

18.8

 

 

 

 

4.2

 

 

 

0.8

 

 

 

 

1.8

 

 

 

3.7

 

Expected return on plan assets

 

 

(27.5

)

 

 

(10.2

)

 

 

 

(19.9

)

 

 

(29.0

)

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service benefit

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

(0.2

)

 

 

—

 

 

 

 

(1.7

)

 

 

(2.5

)

Actuarial loss (gain)

 

 

—

 

 

 

—

 

 

 

 

16.0

 

 

 

18.1

 

 

 

 

(0.6

)

 

 

—

 

 

 

 

—

 

 

 

1.2

 

Pension settlement charges

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

3.8

 

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Pension/postretirement (benefit) cost

 

$

(11.2

)

 

$

(5.5

)

 

 

$

6.3

 

 

$

11.7

 

 

 

$

4.2

 

 

$

0.9

 

 

 

$

0.4

 

 

$

2.8

 
Schedule of Changes in Projected Benefit Obligations

Changes in the plans' benefit obligations and funded status are as follows:

 

 

 

Pension Benefits

 

 

 

Postretirement and Other Benefits

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

(dollars in millions)

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of period

 

$

611.9

 

 

$

633.3

 

 

 

$

674.1

 

 

 

$

100.9

 

 

$

102.8

 

 

 

$

109.6

 

Service cost

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

0.8

 

 

 

0.1

 

 

 

 

0.3

 

Interest cost

 

 

16.3

 

 

 

4.7

 

 

 

 

10.2

 

 

 

 

4.2

 

 

 

0.8

 

 

 

 

1.8

 

Hawaii Plan Adjustment

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

45.9

 

 

 

—

 

 

 

 

—

 

Plan Amendment

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

(4.7

)

 

 

—

 

 

 

 

—

 

Actuarial (gain) loss (a) (b)

 

 

(146.3

)

 

 

(11.4

)

 

 

 

(17.0

)

 

 

 

(37.1

)

 

 

(0.6

)

 

 

 

(4.0

)

Benefits paid

 

 

(34.9

)

 

 

(12.8

)

 

 

 

(26.6

)

 

 

 

(9.8

)

 

 

(2.4

)

 

 

 

(5.4

)

Settlements (c)

 

 

(7.5

)

 

 

(1.9

)

 

 

 

(7.4

)

 

 

 

—

 

 

 

—

 

 

 

 

—

 

Other

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

2.2

 

 

 

0.2

 

 

 

 

0.5

 

Benefit obligation at end of period

 

$

439.5

 

 

$

611.9

 

 

 

$

633.3

 

 

 

$

102.4

 

 

$

100.9

 

 

 

$

102.8

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of period

 

$

559.2

 

 

$

571.8

 

 

 

$

570.6

 

 

 

$

3.3

 

 

$

3.3

 

 

 

$

3.1

 

Actual (loss) return on plan assets

 

 

(128.3

)

 

 

1.3

 

 

 

 

32.5

 

 

 

 

0.1

 

 

 

—

 

 

 

 

0.1

 

Employer contributions

 

 

2.1

 

 

 

0.8

 

 

 

 

2.7

 

 

 

 

7.3

 

 

 

2.4

 

 

 

 

5.1

 

Benefits paid

 

 

(34.9

)

 

 

(12.8

)

 

 

 

(26.6

)

 

 

 

(7.5

)

 

 

(2.4

)

 

 

 

(5.0

)

Settlements (c)

 

 

(7.5

)

 

 

(1.9

)

 

 

 

(7.4

)

 

 

 

—

 

 

 

—

 

 

 

 

—

 

Fair value of plan assets at end of period

 

 

390.6

 

 

 

559.2

 

 

 

 

571.8

 

 

 

 

3.2

 

 

 

3.3

 

 

 

 

3.3

 

Unfunded status

 

$

(48.9

)

 

$

(52.7

)

 

 

$

(61.5

)

 

 

$

(99.2

)

 

$

(97.6

)

 

 

$

(99.5

)

 

(a)
The actuarial (gain) recorded during the year ended December 31, 2022 and in the Successor and Predecessor periods in 2021 for the pension plans was primarily driven by an increase in the discount rate in each of the respective periods.
(b)
The actuarial (gain) recorded for the year ended December 31, 2022 for the postretirement plans was primarily driven by an increase in the discount rate, updated census data and the result of actual versus expected benefit payments. The actuarial (gain) recorded in the Successor and Predecessor periods in 2021 for the postretirement plans was primarily due to an increase in the discount rate and the result of actual versus expected benefit payments.
(c)
Participant elections to take lump sum payments that exceeded the settlement accounting threshold and have been categorized as settlements.
Schedule of Amounts Recognized in Balance Sheet

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)

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

Accrued payroll and benefits (current liability)

 

$

1.5

 

 

$

2.0

 

 

 

$

8.1

 

 

$

7.8

 

Pension and postretirement benefit obligations (noncurrent liability)

 

 

47.4

 

 

 

50.7

 

 

 

 

91.1

 

 

 

89.8

 

Total

 

$

48.9

 

 

$

52.7

 

 

 

$

99.2

 

 

$

97.6

 
Schedule of Net Periodic Benefit Cost Not yet Recognized

Amounts recognized in "Accumulated other comprehensive income" 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)

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

Prior service (cost) benefit, net of tax of ($0.2)

 

 

—

 

 

 

—

 

 

 

 

(0.6

)

 

 

—

 

Actuarial (loss) gain, net of tax of ($1.6), $0.7, $10.2, $0.1

 

 

(5.1

)

 

 

2.0

 

 

 

 

32.8

 

 

 

0.6

 

Total

 

$

(5.1

)

 

$

2.0

 

 

 

$

32.2

 

 

$

0.6

 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Amounts recognized in "Accumulated other comprehensive income" on the Consolidated Statements of Equity (Deficit) and the Consolidated Statements of Comprehensive Income (Loss) are shown below:

 

 

 

Pension Benefits

 

 

 

Postretirement and Other Benefits

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

(dollars in millions)

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

Prior service cost recognized:

 

 

 

 

`

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification adjustments

 

$

—

 

 

$

—

 

 

 

$

—

 

 

 

$

4.7

 

 

$

—

 

 

 

$

(1.7

)

Actuarial gain (loss) recognized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification adjustments

 

 

—

 

 

 

—

 

 

 

 

15.6

 

 

 

 

(0.8

)

 

 

—

 

 

 

 

—

 

Actuarial (loss) gain arising during the period

 

 

(9.4

)

 

 

2.7

 

 

 

 

29.5

 

 

 

 

37.6

 

 

 

0.7

 

 

 

 

4.0

 
Schedule of Allocation of Plan Assets

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

 

(dollars in millions)

 

December 31,
2022

 

 

Quoted prices
in active
markets
Level 1

 

 

Significant
observable
inputs
Level 2

 

 

Significant
unobservable
inputs
Level 3

 

Mutual funds

 

 

 

 

 

 

 

 

 

 

 

 

U.S. equity index funds

 

$

71.5

 

 

$

71.5

 

 

$

—

 

 

$

—

 

International equity index funds

 

 

74.5

 

 

 

74.5

 

 

 

—

 

 

 

—

 

Fixed income bond funds

 

 

244.5

 

 

 

244.5

 

 

 

—

 

 

 

—

 

Fixed income short-term money market funds

 

 

0.1

 

 

 

0.1

 

 

 

—

 

 

 

—

 

Group insurance contract

 

 

3.2

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

393.8

 

 

$

390.6

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(dollars in millions)

 

December 31,
2021

 

 

Quoted prices
in active
markets
Level 1

 

 

Significant
observable
inputs
Level 2

 

 

Significant
unobservable
inputs
Level 3

 

Mutual funds

 

 

 

 

 

 

 

 

 

 

 

 

U.S. equity index funds

 

$

104.8

 

 

$

104.8

 

 

$

—

 

 

$

—

 

International equity index funds

 

 

101.8

 

 

 

101.8

 

 

 

—

 

 

 

—

 

Fixed income bond funds

 

 

350.7

 

 

 

350.7

 

 

 

—

 

 

 

—

 

Fixed income short-term money market funds

 

 

1.9

 

 

 

1.9

 

 

 

—

 

 

 

—

 

Group insurance contract

 

 

3.3

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

562.5

 

 

$

559.2

 

 

$

—

 

 

$

—

 
Schedule of Expected Benefit Payments

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

 

 2023

 

$

47.2

 

 

$

8.2

 

 

$

(0.1

)

 2024

 

 

46.1

 

 

 

8.1

 

 

 

(0.1

)

 2025

 

 

44.8

 

 

 

8.0

 

 

 

(0.1

)

 2026

 

 

41.5

 

 

 

7.8

 

 

 

(0.1

)

 2027

 

 

39.2

 

 

 

7.7

 

 

 

(0.1

)

Years 2028 - 2032

 

 

166.9

 

 

 

36.3

 

 

 

(0.2

)
Cincinnati Plans [Member]  
Schedule of Health Care Cost Trend Rates

The assumed healthcare cost trend rate used to measure the postretirement health benefit obligation is shown below:

 

 

 

Successor

 

 

 

Predecessor

 

Cincinnati Plans

 

Year Ended

 

 

September 8, 2021 to

 

 

 

January 1, 2021 to

 

 

 

December 31, 2022

 

 

December 31, 2021

 

 

 

September 7, 2021

 

Healthcare cost trend

 

 

6.50

%

 

 

6.50

%

 

 

 

6.50

%

Rate to which the cost trend is assumed to decline (ultimate trend rate)

 

 

4.80

%

 

 

4.50

%

 

 

 

4.50

%

Year the rates reach the ultimate trend rate

 

2032

 

 

2026

 

 

 

2025

 
Cincinnati Plans [Member] | Net Periodic Cost [Member]  
Schedule of Assumptions Used

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

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

Discount rate

 

 

2.70

%

 

 

2.60

%

 

 

 

2.40

%

 

 

3.10

%

 

 

 

2.80

%

 

 

2.60

%

 

 

2.40%

 

 

 

3.20

%

Expected long-term rate of return

 

 

5.80

%

 

 

6.00

%

 

 

 

6.00

%

 

 

6.00

%

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Cash balance interest credit rate

 

 

4.00

%

 

 

4.00

%

 

 

 

4.00

%

 

 

4.00

%

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Future compensation growth rate

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 
Cincinnati Plans [Member] | Projected Benefit Obligation [Member]  
Schedule of Assumptions Used

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

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

Discount rate

 

 

5.40

%

 

 

2.70

%

 

 

 

2.60

%

 

 

 

5.40

%

 

 

2.80

%

 

 

 

2.60

%

Cash balance interest credit rate

 

 

4.00

%

 

 

4.00

%

 

 

 

4.00

%

 

 

 

—

 

 

 

—

 

 

 

 

—

 

Future compensation growth rate

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

—

 
Hawaii Plans [Member] | Net Periodic Cost [Member]  
Schedule of Assumptions Used

Hawaii Plans

 

Pension Benefits

 

 

 

Postretirement and Other Benefits

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

Discount rate

 

 

3.90

%

 

 

2.50

%

 

 

 

2.30

%

 

 

2.80

%

 

 

 

3.70

%

 

 

2.80

%

 

 

 

2.60

%

 

 

3.30

%

Expected long-term rate of return

 

 

5.00

%

 

 

6.00

%

 

 

 

6.00

%

 

 

6.00

%

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Cash balance interest credit rate

 

 

1.90

%

 

 

1.10

%

 

 

 

1.20

%

 

 

2.00

%

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Future compensation growth rate

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

—

 
Hawaii Plans [Member] | Projected Benefit Obligation [Member]  
Schedule of Assumptions Used

Hawaii Plans

 

Pension Benefits

 

 

 

Postretirement and Other Benefits

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

 

Year Ended December 31, 2022

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

Discount rate

 

 

5.40

%

 

 

2.70

%

 

 

 

2.50

%

 

 

 

5.50

%

 

 

2.90

%

 

 

 

2.80

%

Cash balance interest credit rate

 

 

5.10

%

 

 

1.30

%

 

 

 

1.10

%

 

 

 

—

 

 

 

—

 

 

 

 

—

 

Future compensation growth rate

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

—