Pension and Postretirement Plans

6 Months Ended

Jun. 30, 2022

Compensation And Retirement Disclosure [Abstract]

Pension and Postretirement Plans

8.    Pension and Postretirement Plans

As of June 30, 2022, 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, 2022, the Hawaii defined benefit plan for union employees made lump sum payments of $5.4 million resulting in a reduction of the benefit obligation of $5.4 million. The lump sum payments to the plan participants exceeded the sum of the service cost and the interest cost component of the net pension cost resulting in a nominal pension settlement cost for the three months ended June 30, 2022. In the six months ended June 30, 2021, the Hawaii defined benefit plan for union employees made lump sum payments of $6.7 million resulting in a reduction of the benefit obligation of $6.7 million. The lump sum payments to the plan participants exceeded the sum of the service cost and the interest cost component of the net pension cost resulting in a nominal pension settlement cost for the three months ended June 30, 2021.

In accordance with ASC 715, only the service cost component of net benefit cost is eligible for capitalization, which was immaterial for the six months ended June 30, 2022 and 2021.

Pension and postretirement (benefits) costs are as follows:

	Pension Benefits						Postretirement and Other Benefits
	Successor			Predecessor			Successor		Predecessor
(dollars in millions)	Three Months Ended June 30, 2022			Three Months Ended June 30, 2021			Three Months Ended June 30, 2022		Three Months Ended June 30, 2021
Service cost	$	—		$	—		$	0.1	$	0.1
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		3.8			3.7			0.7		0.7
Expected return on plan assets		(7.1	)		(7.2	)		—		—
Amortization of:
Prior service benefit		—			—			—		(0.7	)
Actuarial loss		—			5.2			—		—
Pension / postretirement (benefit) cost	$	(3.3	)	$	1.7		$	0.8	$	0.1

	Pension Benefits						Postretirement and Other Benefits
	Successor			Predecessor			Successor		Predecessor
(dollars in millions)	Six Months Ended June 30, 2022			Six Months Ended June 30, 2021			Six Months Ended June 30, 2022		Six Months Ended June 30, 2021
Service cost	$	—		$	—		$	0.2	$	0.2
Other components of pension and postretirement benefit plans expense:
Interest cost on projected benefit obligation		7.7			7.5			1.4		1.3
Expected return on plan assets		(14.3	)		(14.7	)		—		—
Amortization of:
Prior service benefit		—			—			—		(1.3	)
Actuarial loss		—			11.5			—		—
Pension / postretirement (benefit) cost	$	(6.6	)	$	4.3		$	1.6	$	0.2

Amortizations of prior service benefit and actuarial loss in the three and six months ended June 30, 2021 represent reclassifications from accumulated other comprehensive income.

For the six months ended June 30, 2022, there were no contributions to the qualified pension plans, and contributions to the non-qualified pension plans were $1.0 million. For the six months ended June 30, 2021, contributions to the qualified and non-qualified pension plans were $0.8 million and $1.2 million, respectively. Based on current assumptions, no contributions are expected to be made to the qualified pension plans in 2022. Contributions to the non-qualified pension plans in 2022 are expected to be approximately $3 million.

For the six months ended June 30, 2022 and 2021, contributions to our postretirement plans were $3.2 million and $3.1 million, respectively. Management expects to make total cash payments of approximately $7 million related to its postretirement health plans in 2022.