Pensions and Other Benefit Programs

9 Months Ended

Sep. 30, 2021

Compensation And Retirement Disclosure [Abstract]

Pensions and Other Benefit Programs

NOTE 14. PENSIONS AND OTHER BENEFIT PROGRAMS

Following are the components of net periodic benefit costs (credits):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2021			2020			2021			2020
U.S. defined benefit plans:
Pension benefits
Service cost of benefits earned during the period	$	1.2		$	1.4		$	3.6		$	4.2
Interest cost on projected benefit obligation		2.2			2.8			6.7			12.7
Expected return on plan assets		(4.1	)		(6.6	)		(12.4	)		(28.0	)
Amortization of net actuarial loss		0.9			0.8			2.7			5.5
Settlement		-			-			-			374.4
Special termination benefits		-			2.0			-			2.0
Net periodic pension cost	$	0.2		$	0.4		$	0.6		$	370.8
Retiree health and life insurance benefits
Interest cost on projected benefit obligation		0.3			0.4			0.9			1.4
Amortization of prior service credit		(0.1	)		(0.1	)		(0.2	)		(0.2	)
Amortization of net actuarial gain		(0.6	)		(1.7	)		(1.7	)		(5.0	)
Net periodic postretirement (credit)	$	(0.4	)	$	(1.4	)	$	(1.0	)	$	(3.8	)

We also have an unfunded defined benefit pension plan in Germany, which was not acquired by Knauf in connection with the Sale. This plan is reported as a component of our Unallocated Corporate segment. Net periodic pension cost for this plan was immaterial for the three and nine months ended September 30, 2021 and 2020.

The service cost component of net benefit cost has been presented in the Condensed Consolidated Statements of Operations and Comprehensive Income within cost of goods sold and SG&A expenses for all periods presented, which are the same line items as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of net benefit cost are presented in the Condensed Consolidated Statements of Operations and Comprehensive Income separately from the service cost component within other non-operating income (expense), net.

In the first quarter of 2020, we entered into agreements with Athene Annuity and Life Company (“AAIA”) and Athene Annuity & Life Assurance Company of New York (“AANY”) to transfer certain benefit obligations and assets of our U.S. Retirement Income Plan (“RIP”) to AAIA and AANY. As a result of the transaction, we recorded a $374.4 million settlement loss in the first quarter of 2020, which was reflected as a component of other non-operating income (expense), net.

During the third quarter of 2020, we offered an early retirement incentive benefit to employees at one of our manufacturing plants who met certain age and years of service criteria. The consideration period for eligible employees ended on September 30, 2020. Based on eligible employee elections to participate, we recorded a charge of $2.0 million within other non-operating expense, which increased the projected benefit obligation of the RIP. The enhanced retirement benefits did not result in a curtailment.