XML 53 R37.htm IDEA: XBRL DOCUMENT v3.22.1
Pension and Postretirement Plans (Tables)
 12 Months Ended
Dec. 31, 2021
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

 

 

Predecessor

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

Predecessor

 

 

Predecessor

 

(dollars in millions)

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

Service cost

 

$

—

 

 

 

$

—

 

 

$

—

 

 

$

—

 

 

 

$

0.1

 

 

 

$

0.3

 

 

$

0.4

 

 

$

0.6

 

Interest cost on projected benefit obligation

 

 

4.7

 

 

 

 

10.2

 

 

 

18.8

 

 

 

23.9

 

 

 

 

0.8

 

 

 

 

1.8

 

 

 

3.7

 

 

 

5.0

 

Expected return on plan assets

 

 

(10.2

)

 

 

 

(19.9

)

 

 

(29.0

)

 

 

(30.7

)

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service benefit

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

(1.7

)

 

 

(2.5

)

 

 

(2.5

)

Actuarial loss

 

 

—

 

 

 

 

16.0

 

 

 

18.1

 

 

 

13.7

 

 

 

 

—

 

 

 

 

—

 

 

 

1.2

 

 

 

1.8

 

Pension settlement charges

 

 

—

 

 

 

 

—

 

 

 

3.8

 

 

 

—

 

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

—

 

Pension/postretirement (benefit) cost

 

$

(5.5

)

 

 

$

6.3

 

 

$

11.7

 

 

$

6.9

 

 

 

$

0.9

 

 

 

$

0.4

 

 

$

2.8

 

 

$

4.9

 
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

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

Predecessor

 

(dollars in millions)

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of period

 

$

633.3

 

 

 

$

674.1

 

 

$

652.9

 

 

 

$

102.8

 

 

 

$

109.6

 

 

$

116.3

 

Service cost

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

0.1

 

 

 

 

0.3

 

 

 

0.4

 

Interest cost

 

 

4.7

 

 

 

 

10.2

 

 

 

18.8

 

 

 

 

0.8

 

 

 

 

1.8

 

 

 

3.7

 

Actuarial (gain) loss (a) (b)

 

 

(11.4

)

 

 

 

(17.0

)

 

 

62.8

 

 

 

 

(0.6

)

 

 

 

(4.0

)

 

 

(3.5

)

Benefits paid

 

 

(12.8

)

 

 

 

(26.6

)

 

 

(39.3

)

 

 

 

(2.4

)

 

 

 

(5.4

)

 

 

(7.9

)

Retiree drug subsidy received

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

0.2

 

 

 

0.1

 

Settlements (c)

 

 

(1.9

)

 

 

 

(7.4

)

 

 

(21.1

)

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Other

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

0.2

 

 

 

 

0.3

 

 

 

0.5

 

Benefit obligation at end of period

 

$

611.9

 

 

 

$

633.3

 

 

$

674.1

 

 

 

$

100.9

 

 

 

$

102.8

 

 

$

109.6

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of period

 

$

571.8

 

 

 

$

570.6

 

 

$

538.8

 

 

 

$

3.3

 

 

 

$

3.1

 

 

$

4.3

 

Actual return on plan assets

 

 

1.3

 

 

 

 

32.5

 

 

 

84.5

 

 

 

 

—

 

 

 

 

0.1

 

 

 

0.1

 

Employer contributions

 

 

0.8

 

 

 

 

2.7

 

 

 

7.7

 

 

 

 

2.4

 

 

 

 

5.1

 

 

 

6.5

 

Retiree drug subsidy received

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

 

—

 

 

 

 

0.3

 

 

 

0.1

 

Benefits paid

 

 

(12.8

)

 

 

 

(26.6

)

 

 

(39.3

)

 

 

 

(2.4

)

 

 

 

(5.3

)

 

 

(7.9

)

Settlements (c)

 

 

(1.9

)

 

 

 

(7.4

)

 

 

(21.1

)

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Fair value of plan assets at end of period

 

 

559.2

 

 

 

 

571.8

 

 

 

570.6

 

 

 

 

3.3

 

 

 

 

3.3

 

 

 

3.1

 

Unfunded status

 

$

(52.7

)

 

 

$

(61.5

)

 

$

(103.5

)

 

 

$

(97.6

)

 

 

$

(99.5

)

 

$

(106.5

)

 

 

(a)

The actuarial (gain) recorded in the Successor and Predecessor periods in 2021 for the pension plans was primarily driven by an increase in the discount rate. The actuarial loss recorded during the period ended December 31, 2020 for the pension plans was primarily driven by changes in the discount rate as well as gains or losses to record pension assets to fair value.

 

 

(b)

The actuarial (gain) recorded in the Successor and Predecessor periods in 2021 for the postretirement plans is primarily due to an increase in the discount rate and the result of actual versus expected benefit payments. The actuarial (gain) recorded for the period ending December 31, 2020 is primarily due to updated participant assumptions for the Hawaii plans partially offset by changes to the discount rate for both plans.

 

(c)

The decrease in pension plan settlements in the Successor and Predecessor periods in 2021 compared to 2020 is due to participant elections in 2020 to take lump sum payments upon termination as result of the voluntary severance program offered to employees in both Cincinnati and Hawaii. The extent of the funding exceeded the settlement accounting threshold, and as such in all periods presented, these activities 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

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

 

December 31,

 

 

 

December 31,

 

 

 

December 31,

 

 

 

December 31,

 

(dollars in millions)

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Accrued payroll and benefits (current liability)

 

$

2.0

 

 

 

$

2.1

 

 

 

$

7.8

 

 

 

$

8.5

 

Pension and postretirement benefit obligations (noncurrent liability)

 

 

50.7

 

 

 

 

101.4

 

 

 

 

89.8

 

 

 

 

98.0

 

Total

 

$

52.7

 

 

 

$

103.5

 

 

 

$

97.6

 

 

 

$

106.5

 
Schedule of Net Periodic Benefit Cost Not yet Recognized

Amounts recognized in "Accumulated other comprehensive income (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

 

 

 

Successor

 

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

 

December 31,

 

 

 

December 31,

 

 

 

December 31,

 

 

 

December 31,

 

(dollars in millions)

 

2021

 

 

 

2020

 

 

 

2021

 

 

 

2020

 

Prior service (cost) benefit, net of tax of ($0.1), $3.4

 

$

—

 

 

 

$

(0.1

)

 

 

$

—

 

 

 

$

13.7

 

Actuarial gain (loss), net of tax of $0.7, ($39.0), $0.1, ($4.3)

 

 

2.0

 

 

 

 

(136.1

)

 

 

 

0.6

 

 

 

 

(16.3

)

Total

 

$

2.0

 

 

 

$

(136.2

)

 

 

$

0.6

 

 

 

$

(2.6

)
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

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

 

 

 

Pension Benefits

 

 

 

Postretirement and Other Benefits

 

 

 

Successor

 

 

 

Predecessor

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

Predecessor

 

(dollars in millions)

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

Prior service cost recognized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification adjustments

 

$

—

 

 

 

$

—

 

 

$

—

 

 

 

$

—

 

 

 

$

(1.7

)

 

$

(2.5

)

Actuarial gain (loss) recognized:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification adjustments

 

 

—

 

 

 

 

15.6

 

 

 

21.9

 

 

 

 

—

 

 

 

 

—

 

 

 

1.2

 

Actuarial gain (loss) arising during the period

 

 

2.7

 

 

 

 

29.5

 

 

 

(7.1

)

 

 

 

0.7

 

 

 

 

4.0

 

 

 

3.6

 
Schedule of Allocation of Plan Assets

The fair values of the pension plan assets at December 31, 2021 and 2020 by asset category are as follows:

 

 

 

Successor

 

(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

 

 

$

—

 

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Predecessor

 

(dollars in millions)

 

December 31,

2020

 

 

Quoted prices

in active

markets

Level 1

 

 

Significant

observable

inputs

Level 2

 

 

Significant

unobservable

inputs

Level 3

 

Mutual funds

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. equity index funds

 

$

151.2

 

 

$

151.2

 

 

$

—

 

 

$

—

 

International equity index funds

 

 

152.4

 

 

 

152.4

 

 

 

—

 

 

 

—

 

Fixed income bond funds

 

 

265.0

 

 

 

265.0

 

 

 

—

 

 

 

—

 

Fixed income short-term money market funds

 

 

2.0

 

 

 

2.0

 

 

 

—

 

 

 

—

 

Group insurance contract

 

 

3.1

 

 

 

—

 

 

 

—

 

 

 

—

 

Total

 

$

573.7

 

 

$

570.6

 

 

$

—

 

 

$

—

 
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

 

2022

 

$

54.2

 

 

$

8.0

 

 

$

(0.2

)

2023

 

 

51.0

 

 

 

7.6

 

 

 

(0.1

)

2024

 

 

49.7

 

 

 

7.3

 

 

 

(0.1

)

2025

 

 

48.9

 

 

 

6.9

 

 

 

(0.1

)

2026

 

 

44.6

 

 

 

6.6

 

 

 

(0.1

)

Years 2027 - 2031

 

 

186.6

 

 

 

29.2

 

 

 

(0.3

)
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

 

 

Predecessor

 

Cincinnati Plans

 

September 8, 2021 to

 

 

 

January 1, 2021 to

 

 

Year Ended

 

 

 

December 31, 2021

 

 

 

September 7, 2021

 

 

December 31, 2020

 

Healthcare cost trend

 

 

6.5

%

 

 

 

6.5

%

 

 

6.5

%

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

 

 

4.5

%

 

 

 

4.5

%

 

 

4.5

%

Year the rates reach the ultimate trend rate

 

2026

 

 

 

2025

 

 

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

 

 

Predecessor

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

Predecessor

 

 

Predecessor

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

Discount rate

 

 

2.60

%

 

 

 

2.40

%

 

 

3.10

%

 

 

4.20

%

 

 

 

2.60

%

 

 

2.40%

 

 

 

3.20

%

 

 

4.30

%

Expected long-term rate of return

 

 

6.00

%

 

 

 

6.00

%

 

 

6.00

%

 

 

6.50

%

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

Predecessor

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

 

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

%

 

 

 

2.80

%

 

 

 

2.60

%

 

 

2.40

%

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

 

 

Predecessor

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

Predecessor

 

 

Predecessor

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

Year Ended December 31, 2019

 

Discount rate

 

 

2.50

%

 

 

 

2.30

%

 

 

2.80

%

 

 

4.20

%

 

 

 

2.80

%

 

 

 

2.60

%

 

 

3.30

%

 

 

4.40

%

Expected long-term rate of return

 

 

6.00

%

 

 

 

6.00

%

 

 

6.00

%

 

 

6.50

%

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

—

 

Cash balance interest credit rate

 

 

1.10

%

 

 

 

1.20

%

 

 

2.00

%

 

 

2.20

%

 

 

 

—

 

 

 

 

—

 

 

 

—

 

 

 

—

 

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

 

 

Predecessor

 

 

 

Successor

 

 

 

Predecessor

 

 

Predecessor

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

 

 

September 8, 2021 to December 31, 2021

 

 

 

January 1, 2021 to September 7, 2021

 

 

Year Ended December 31, 2020

 

Discount rate

 

 

2.70

%

 

 

 

2.50

%

 

 

2.30

%

 

 

 

2.90

%

 

 

 

2.80

%

 

 

2.60

%

Cash balance interest credit rate

 

 

1.30

%

 

 

 

1.10

%

 

 

1.20

%

 

 

 

—

 

 

 

 

—

 

 

 

—

 

Future compensation growth rate

 

 

—

 

 

 

 

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