Pension and Postretirement Plans

6 Months Ended

Jun. 30, 2024

Retirement Benefits [Abstract]

Pension and Postretirement Plans

9. Pension and Postretirement Plans

As of June 30, 2024, the Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan in Cincinnati (collectively, the "Cincinnati Plans"), and one noncontributory defined benefit plan for union employees and two postretirement health and life insurance plans for Hawaiian Telcom employees (collectively, the "Hawaii Plans").

In the second quarter of 2024, the Hawaii defined benefit plan for union employees made lump sum payments of $5.5 million resulting in a reduction of the benefit obligation of $5.5 million. The Company recorded a pension settlement gain of $0.4 million in the second quarter of 2024 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost component of the net pension cost.

On December 31, 2023, the cash balance pension plan for nonunion employees ("HTMPP") under the Hawaii plans was merged into the management pension plan ("CBMPP") under the Cincinnati Plans. Pension plan assets and liabilities in the HTMPP were transferred to the CBMPP and remeasured at December 31, 2023.

In accordance with ASC 715, only the service cost component of net benefit cost is eligible for capitalization, which was immaterial for the three and six months ended June 30, 2024 and 2023.

Pension and postretirement (benefits) costs are as follows:

	Three Months Ended June 30,
	2024			2023			2024			2023
(dollars in millions)	Pension Benefits						Postretirement and Other Benefits
Service cost	$	—		$	—		$	0.1		$	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		5.0			5.5			1.3			1.3
Expected return on plan assets		(5.6	)		(5.2	)		—			—
Amortization of:
Prior service benefit		—			—			(0.2	)		(0.2	)
Actuarial gain		(0.1	)		—			(1.0	)		(1.4	)
Pension settlement gain		(0.4	)		—			—			—
Pension / postretirement (benefit) cost	$	(1.1	)	$	0.3		$	0.2		$	(0.2	)

	Six Months Ended June 30,
	2024			2023			2024			2023
(dollars in millions)	Pension Benefits						Postretirement and Other Benefits
Service cost	$	—		$	—		$	0.2		$	0.2
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		10.1			11.0			2.5			2.6
Expected return on plan assets		(11.3	)		(10.4	)		—			—
Amortization of:
Prior service benefit		—			—			(0.4	)		(0.4	)
Actuarial gain		(0.1	)		(0.1	)		(1.9	)		(2.3	)
Pension settlement gain		(0.4	)		—			—			—
Pension / postretirement (benefit) cost	$	(1.7	)	$	0.5		$	0.4		$	0.1

Amortization of prior service benefit and actuarial gain in the three and six months ended June 30, 2024 and 2023 represent reclassifications from accumulated other comprehensive income.

For the six months ended June 30, 2024, there were no contributions to the qualified pension plans, and contributions to the non-qualified pension plans were $0.8 million. For the six months ended June 30, 2023, there were no contributions to the qualified pension plans, and contributions to the non-qualified pension plans were $0.8 million. Based on current assumptions, contributions are expected to be approximately $1 million to the qualified pension plans and approximately $2 million to the non-qualified pension plans in 2024.

For the six months ended June 30, 2024 and 2023, contributions to our postretirement plans were $3.4 million and $3.0 million, respectively. Management expects to make total cash payments of approximately $7 million related to its postretirement health plans in 2024.