Pension and Postretirement Plans

6 Months Ended

Jun. 30, 2020

Compensation And Retirement Disclosure [Abstract]

Pension and Postretirement Plans

9.    Pension and Postretirement Plans

As of June 30, 2020, 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, one cash balance pension plan for nonunion employees, and two postretirement health and life insurance plans for Hawaiian Telcom employees (collectively the "Hawaii Plans").

In the six months ended June 30, 2020, the defined benefit plan for union employees made lump sum payments of $7.4 million resulting in a reduction of the benefit obligation of $7.4 million. The Company recorded a pension settlement cost of $1.1 million in the three months ended June 30, 2020 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, 2020 and 2019.

For the three and six months ended June 30, 2020 and 2019, pension and postretirement costs (benefits) were as follows:

	Three Months Ended June 30,
	2020			2019			2020			2019
(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		4.8			6.0			1.0			1.3
Expected return on plan assets		(7.2	)		(7.5	)		—			—
Amortization of:
Prior service benefit		—			—			(0.7	)		(0.7	)
Actuarial loss		4.5			3.4			0.4			0.5
Pension settlement charges		1.1			—			—			—
Pension / postretirement costs	$	3.2		$	1.9		$	0.8		$	1.2

	Six Months Ended June 30,
	2020			2019			2020			2019
(dollars in millions)	Pension Benefits						Postretirement and Other Benefits
Service cost	$	—		$	—		$	0.2		$	0.3
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		9.6			12.0			1.9			2.5
Expected return on plan assets		(14.5	)		(15.3	)		—			—
Amortization of:
Prior service benefit		—			—			(1.3	)		(1.3	)
Actuarial loss		9.0			6.8			0.6			0.9
Pension settlement charges		1.1			—			—			—
Pension / postretirement costs	$	5.2		$	3.5		$	1.4		$	2.4

Amortizations of prior service benefit and actuarial loss represent reclassifications from accumulated other comprehensive income.

Based on current assumptions, contributions are expected to be approximately $6 million and $3 million to the qualified and non-qualified plans in 2020, respectively. Management expects to make cash payments of approximately $8 million related to its postretirement health plans in 2020.

For the six months ended June 30, 2020, contributions to the pension plans were $1.9 million and contributions to the postretirement plans were $2.6 million. For the six months ended June 30, 2019, contributions to the pension plans were $2.5 million and contributions to the postretirement plans were $3.4 million.