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Retirement and Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Changes in Plans Benefit Obligations, Fair Value of Assets, and Funded Status
The following provides a reconciliation of the changes in the plans’ benefit obligations, fair value of assets and funded status as of December 31, 2022 and 2021:
Pension BenefitsOther Postretirement Benefits
(in millions)2022202120222021
Change in benefit obligations:    
Benefit obligation at January 1$126 $139 $13 $13 
Service cost— — 
Interest cost— — 
Actuarial gain(29)(4)(5)(2)
Benefits paid(2)(2)(1)— 
Plan amendments(2)— — — 
Settlements(39)(11)— — 
Benefit obligation at December 31$57 $126 $$13 
Pension BenefitsOther Postretirement Benefits
(in millions)2022202120222021
Change in plan assets:    
Fair value of plan assets at January 1$114 $106 $— $— 
Actual return on plan assets— — — 
Employer contributions— 12 
Benefits paid(2)(2)(1)(1)
Settlements(40)(8)— — 
Fair value of plan assets at December 31$72 $114 $— $— 
Funded status of plans at December 31 (1)
$15 $(12)$(9)$(13)
(1)The funded status of the pension plan includes a $1 million liability related to a supplemental employee retirement plan as of December 31, 2022 and 2021.
Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets
The pension plans’ projected benefit obligation, accumulated benefit obligation and fair value of plan assets as of December 31, 2022 and 2021 are as follows:
(in millions)20222021
Projected benefit obligation$57 $126 
Accumulated benefit obligation57 126 
Fair value of plan assets72 114 
Pension and Other Postretirement Benefit Costs
Pension and other postretirement benefit costs include the following components for 2022, 2021 and 2020:
Pension BenefitsOther Postretirement Benefits
(in millions)202220212020202220212020
Service cost (1)
$— $— $$$$
Interest cost— — — 
Expected return on plan assets— (4)(6)— — — 
Amortization of prior service cost(1)— — — — — 
Amortization of net loss— — — — — 
Net periodic benefit cost— 
Settlement (gain) loss(1)— — — — 
Total benefit cost$$$$$$
(1)The Company froze its pension plan effective January 1, 2021, resulting in no service cost for the years ended December 31, 2022 and December 31, 2021.
Amounts Recognized in Other Comprehensive Income
Amounts recognized in other comprehensive income for the years ended December 31, 2022 and 2021 were as follows:
Pension BenefitsOther Postretirement Benefits
(in millions)2022202120222021
Net actuarial gain arising during the year$30 $$$
Amortization of prior service cost(2)— — — 
Amortization of net loss— — — 
Settlements(1)— — 
Less: Tax effect (1)
— — — — 
Amounts recognized in other comprehensive income$27 $11 $$
(1)Other postretirement benefit tax effects of $1.1 million for the year ended December 31, 2022 and pension and other postretirement benefit tax effects of $2.7 million and $0.4 million, respectively, for the year ended December 31, 2021, were netted against a valuation allowance and therefore included in accumulated other comprehensive income.
Schedule of Assumptions Used
The assumptions used in the measurement of the Company’s benefit obligations as of December 31, 2022 and 2021 are as follows:
Pension BenefitsOther Postretirement Benefits
2022202120222021
Discount rate5.60 %3.20 %5.50 %3.10 %
Rate of compensation increase (1)
n/a3.50 %n/an/a
(1)Rate of compensation increase for other postretirement benefits is disclosed as “n/a” as the benefit is the same for all employees and not based on compensation.
The assumptions used in the measurement of the Company’s net periodic benefit cost for 2022, 2021 and 2020 are as follows:
Pension BenefitsOther Postretirement Benefits
202220212020202220212020
Discount rate5.60 %3.20 %3.70 %3.10 %2.80 %3.50 %
Expected return on plan assets0.10 %0.10 %6.50 %n/an/an/a
Rate of compensation increase (1)
n/a3.50 %3.50 %n/an/an/a
(1)Rate of compensation increase for other postretirement benefits is disclosed as “n/a” as the benefit is the same for all employees and not based on compensation.
Schedule of Health Care Cost Trend Rates
For measurement purposes, the following trend rates were assumed for 2022 and 2021:
20222021
Health care cost trend assumed for next year7.0 %6.5 %
Rate to which the cost trend is assumed to decline5.0 %5.0 %
Year that the rate reaches the ultimate trend rate20402038
Schedule of Expected Benefit Payments The following timeline reflects the Company’s current estimate of benefit payments to be made and the timing thereof, including projected future interest costs:
Pension BenefitsOther Postretirement Benefits
(in millions)(in millions)
2023$58 2023$— 
2024— 2024— 
2025— 2025
2026— 2026
2027— 2027
Years 2028-2032— Years 2028-2032
Schedule of Allocation of Plan Assets Plan assets are periodically balanced whenever the allocation to any asset class falls outside of the specified range.
Pension Plan Asset Allocations
Asset category:Target RangeActual
Fixed income (1)
70 - 100%
97 %
Cash (2)
0 - 30%
%
Total100 %100 %
(1)Includes fixed income pension plan assets in the table below.
(2)Includes Cash and cash equivalent pension plan assets in the table below.
Fair Value Measurement of Pension Plan Assets
Utilizing the fair value hierarchy described in Note 8, the Company’s fair value measurement of pension plan assets as of December 31, 2022 is as follows:
(in millions)TotalQuoted Prices in Active Markets for Identical Assets (Level 1)Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Measured within fair value hierarchy    
Fixed income (1)
69 69 — — 
Cash and cash equivalents— — 
Total plan assets at fair value$71 $71 $— $— 
(1)U.S. Treasury Notes.
Utilizing the fair value hierarchy described in Note 8, the Company’s fair value measurement of pension plan assets at December 31, 2021 was as follows:
(in millions)TotalQuoted Prices in Active Markets for Identical Assets (Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Measured within fair value hierarchy
Fixed income (1)
90 90 — — 
Cash and cash equivalents24 24 — — 
Total plan assets at fair value$114 $114 $— $— 
(1)U.S. Treasury Notes