Pension and Postretirement Plans

6 Months Ended

Jun. 30, 2025

Retirement Benefits [Abstract]

Pension and Postretirement Plans

7. Pension and Postretirement Plans

As of June 30, 2025, the Company sponsors three noncontributory defined benefit plans and a postretirement health and life insurance plan in Greater 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 2025, the Hawaiian Telcom defined benefit plan for union employees made lump sum payments of $6.5 million resulting in a reduction of the benefit obligation of $6.5 million. The Company recorded a pension settlement gain of $0.6 million in the second quarter of 2025 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost components of the net pension cost.

In the second quarter of 2025, the Greater Cincinnati defined benefit plan for management employees made lump sum payments of $10.6 million resulting in a reduction of the benefit obligation of $10.6 million. The Company recorded a pension settlement gain of $0.2 million in the second quarter of 2025 as the estimated lump sum payments to the plan participants in 2025 are expected to exceed the sum of the service cost and the interest cost components of the net pension cost.

In the first quarter of 2025, the Hawaiian Telcom defined benefit plan for union employees made lump sum payments of $8.0 million resulting in a reduction of the benefit obligation of $8.0 million. The Company recorded a pension settlement gain of $1.0 million in the first quarter of 2025 as a result of the lump sum payments to the plan participants exceeding the sum of the service cost and the interest cost components of the net pension cost.

In the first quarter of 2025, the Greater Cincinnati defined benefit plan for management employees made lump sum payments of $0.7 million resulting in a reduction of the benefit obligation of $0.7 million. The Company recorded a nominal pension settlement gain in the first quarter of 2025 as the estimated lump sum payments to the plan participants in 2025 are expected to exceed the sum of the service cost and the interest cost components of the net pension cost.

In the first quarter of 2025, as a result of the sale of the Disposal Group and restructuring activities carried out by the Company in the fourth quarter of 2024 (described in Note 10), certain participants of the Greater Cincinnati postretirement benefit plan for management employees are no longer eligible for retiree life insurance benefits as the service component was not satisfied as of their termination date. As a result of the participant changes, curtailment accounting was triggered in the first quarter of 2025 and a gain of $0.2 million was recorded.

In the second quarter of 2024, the Hawaiian Telcom 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.

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, 2025 and 2024.

Pension and postretirement (benefits) costs are as follows:

	Three Months Ended June 30,
	2025			2024			2025			2024
(dollars in millions)	Pension Benefits						Postretirement and Other Benefits
Service cost	$	—		$	—		$	—		$	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		3.7			5.0			1.2			1.3
Expected return on plan assets		(3.8	)		(5.6	)		—			—
Amortization of:
Prior service benefit		—			—			(0.2	)		(0.2	)
Actuarial gain		—			(0.1	)		(1.3	)		(1.0	)
Pension settlement gain		(0.8	)		(0.4	)		—			—
Pension / postretirement (benefit) cost	$	(0.9	)	$	(1.1	)	$	(0.3	)	$	0.2

	Six Months Ended June 30,
	2025			2024			2025			2024
(dollars in millions)	Pension Benefits						Postretirement and Other Benefits
Service cost	$	—		$	—		$	0.1		$	0.2
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		7.6			10.1			2.5			2.5
Expected return on plan assets		(7.8	)		(11.3	)		—			—
Amortization of:
Prior service benefit		—			—			(0.4	)		(0.4	)
Actuarial gain		(0.1	)		(0.1	)		(2.4	)		(1.9	)
Pension settlement gain		(1.8	)		(0.4	)		—			—
Postretirement curtailment gain		—			—			(0.2	)		—
Pension / postretirement (benefit) cost	$	(2.1	)	$	(1.7	)	$	(0.4	)	$	0.4

Amortization of prior service benefit and actuarial gain in the three and six months ended June 30, 2025 and 2024 represent reclassifications from accumulated other comprehensive income.

For the six months ended June 30, 2025, contributions to the qualified pension plans were $0.9 million, and contributions to the non-qualified pension plans were $1.2 million. 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. Based on current assumptions, total contributions are expected to be approximately $2 million to the qualified pension plans and approximately $2 million to the non-qualified pension plans in 2025.

For the six months ended June 30, 2025 and 2024, contributions to our postretirement plans were $3.1 million and $3.4 million, respectively. Management expects to make total cash payments of approximately $7 million related to its postretirement health plans in 2025.