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Retirement Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2022
Compensation And Retirement Disclosure [Abstract]  
Changes in Benefit Obligations and Plan Assets

The following tables detail the changes in the benefit obligations and plan assets of the defined benefit plans for the years ended December 31, 2022 and 2021, as well as the funded status of the plans at each year end and the amounts recognized in the Company’s Consolidated Balance Sheets. The Company uses a December 31 measurement date for all defined benefit pension plans and other postretirement benefit plans.

 

 

2022

 

2021

 

 

2022

 

2021

 

($ in thousands)

Pension Benefits

 

 

Other Post-
Retirement Benefits

 

Change in benefit obligation

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

$

646,832

 

$

660,309

 

 

$

20,282

 

$

18,330

 

Service cost

 

11,438

 

 

11,616

 

 

 

59

 

 

93

 

Interest cost

 

14,639

 

 

13,476

 

 

 

375

 

 

348

 

Plan participants' contributions

 

 

 

 

 

 

794

 

 

778

 

Net actuarial gain

 

(152,009

)

 

(16,000

)

 

 

(5,906

)

 

(1,506

)

Special termination benefits

 

 

 

16,052

 

 

 

 

 

4,173

 

Benefits paid

 

(25,154

)

 

(38,621

)

 

 

(1,808

)

 

(1,934

)

Benefit obligation, end of year

 

495,746

 

 

646,832

 

 

 

13,796

 

 

20,282

 

Change in plan assets

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

859,883

 

 

815,304

 

 

 

 

 

 

Actual return on plan assets

 

(133,843

)

 

83,939

 

 

 

 

 

 

Employer contributions

 

1,150

 

 

1,181

 

 

 

1,015

 

 

1,156

 

Plan participants' contributions

 

 

 

 

 

 

793

 

 

778

 

Benefit payments

 

(25,154

)

 

(38,621

)

 

 

(1,808

)

 

(1,934

)

Expenses

 

(1,501

)

 

(1,920

)

 

 

 

 

 

Fair value of plan assets, end of year

 

700,535

 

 

859,883

 

 

 

 

 

 

Funded status at end of year - net asset (liability)

$

204,789

 

$

213,051

 

 

$

(13,796

)

$

(20,282

)

Amounts recognized in accumulated other
   comprehensive loss

 

 

 

 

 

 

 

 

 

Unrecognized loss (gain) at beginning of year

$

108,121

 

$

164,770

 

 

$

(3,581

)

$

(2,804

)

Net actuarial loss (gain)

 

27,122

 

 

(56,649

)

 

 

(5,256

)

 

(777

)

Unrecognized loss (gain) at end of year

$

135,243

 

$

108,121

 

 

$

(8,837

)

$

(3,581

)

Projected benefit obligation

$

495,746

 

$

646,832

 

 

 

 

 

 

Accumulated benefit obligation

 

472,843

 

 

607,408

 

 

 

 

 

 

Fair value of plan assets

 

700,535

 

 

859,883

 

 

 

 

 

 

Components of Net Periodic (Benefits) Cost

The following table shows net periodic (benefit) cost included in expense and the changes in the amounts recognized in AOCI during 2022, 2021, and 2020.

 

 

 

Years Ended December 31,

 

 

2022

 

2021

 

2020

 

 

2022

 

2021

 

2020

 

($ in thousands)

Pension Benefits

 

 

Other Post-Retirement Benefits

 

Net periodic (benefit) cost

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

$

11,438

 

$

11,616

 

$

12,898

 

 

$

59

 

$

93

 

$

105

 

Interest cost

 

14,639

 

 

13,476

 

 

16,207

 

 

 

375

 

 

348

 

 

484

 

Expected return on plan assets

 

(46,615

)

 

(46,654

)

 

(48,191

)

 

 

 

 

 

 

 

Special termination benefits

 

 

 

16,052

 

 

 

 

 

 

 

4,173

 

 

 

Amortization of net (gain) loss/prior service cost

 

2,830

 

 

5,284

 

 

7,021

 

 

 

(650

)

 

(729

)

 

(653

)

Net periodic (benefit) cost

 

(17,708

)

 

(226

)

 

(12,065

)

 

 

(216

)

 

3,885

 

 

(64

)

Other changes in plan assets and benefit
   obligations recognized in other
   comprehensive income, before taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) gain recognized during the year

 

(2,830

)

 

(5,284

)

 

(7,021

)

 

 

650

 

 

729

 

 

653

 

Net actuarial loss (gain)

 

29,952

 

 

(51,365

)

 

35,539

 

 

 

(5,906

)

 

(1,506

)

 

1,912

 

Total recognized in other comprehensive
   income

 

27,122

 

 

(56,649

)

 

28,518

 

 

 

(5,256

)

 

(777

)

 

2,565

 

Total recognized in net periodic benefit
   cost and other comprehensive income

$

9,414

 

$

(56,875

)

$

16,453

 

 

$

(5,472

)

$

3,108

 

$

2,501

 

Discount rate for benefit obligations

 

5.00

%

 

2.77

%

 

2.40

%

 

 

4.98

%

 

2.32

%

 

2.31

%

Discount rate for net periodic benefit cost

 

2.77

%

 

2.40

%

 

3.14

%

 

 

2.32

%

 

2.31

%

 

3.11

%

Expected long-term return on plan assets

 

5.50

%

 

5.75

%

 

6.50

%

 

n/a

 

n/a

 

n/a

 

Rate of compensation increase

scaled **

 

scaled **

 

scaled *

 

 

n/a

 

n/a

 

n/a

 

 

*Graded scale, declining from 7.25% at age 20 to 2.25% at age 60

** Graded scale, declining from 7.25% at age 20 to 2.25% at age 65

Expected Plan Benefit Payments

The following table presents expected plan benefit payments over the ten years succeeding December 31, 2022:

 

($ in thousands)

Pension

 

Post-Retirement

 

Total

 

2023

$

26,901

 

$

1,491

 

$

28,392

 

2024

 

27,878

 

 

1,279

 

 

29,157

 

2025

 

29,187

 

 

1,083

 

 

30,270

 

2026

 

30,524

 

 

885

 

 

31,409

 

2027

 

31,824

 

 

900

 

 

32,724

 

2028-2032

 

173,696

 

 

4,165

 

 

177,861

 

.

$

320,010

 

$

9,803

 

$

329,813

 

Fair Values of Pension Plan Assets

For all investments, the plan attempts to use quoted market prices of identical assets on active exchanges, or Level 1 measurements. Where such quoted market prices are not available, the plan will use quoted prices for similar instruments or discounted cash flows to estimate the value, reported as Level 2.

 

 

December 31, 2022

 

Fair Value Measurements by Asset Category / Fund

Level 1

 

Level 2

 

Level 3

 

Total

 

($ in thousands)

 

 

 

 

 

 

 

 

Cash and equivalents

$

9,050

 

 

 

 

 

$

9,050

 

Total cash and cash equivalents

 

9,050

 

 

 

 

 

 

9,050

 

Fixed income securities

 

29,577

 

 

31,268

 

 

 

 

60,845

 

Mutual fund-fixed income

 

344

 

 

 

 

 

 

344

 

Exchange Traded Fund (ETF)-Fixed income

 

5,087

 

 

 

 

 

 

5,087

 

Total fixed income

 

35,008

 

 

31,268

 

 

 

 

66,276

 

Domestic and foreign stock

 

50,956

 

 

 

 

 

 

50,956

 

Mutual funds-equity

 

105,486

 

 

 

 

 

 

105,486

 

Total equity

 

156,442

 

 

 

 

 

 

156,442

 

Total assets at fair value

 

200,500

 

 

31,268

 

 

 

 

231,768

 

Common trust funds (fixed income)

 

 

 

 

 

 

 

410,280

 

Common trust fund (real assets)

 

 

 

 

 

 

 

58,487

 

Total

$

200,500

 

$

31,268

 

 

 

$

700,535

 

 

 

December 31, 2021

 

Fair Value Measurements by Asset Category / Fund

Level 1

 

Level 2

 

Level 3

 

Total

 

($ in thousands)

 

 

 

 

 

 

 

 

Cash and equivalents

$

21,280

 

 

 

 

 

$

21,280

 

Total cash and cash equivalents

 

21,280

 

 

 

 

 

 

21,280

 

Fixed income securities

 

29,687

 

 

40,254

 

 

 

 

69,941

 

Mutual fund-fixed income

 

20,428

 

 

 

 

 

 

20,428

 

Exchange Traded Fund (ETF)-Fixed income

 

4,049

 

 

 

 

 

 

4,049

 

Total fixed income

 

54,164

 

 

40,254

 

 

 

 

94,418

 

Domestic and foreign stock

 

109,610

 

 

 

 

 

 

109,610

 

Mutual funds-equity

 

270,863

 

 

 

 

 

 

270,863

 

Total equity

 

380,473

 

 

 

 

 

 

380,473

 

Total assets at fair value

 

455,917

 

 

40,254

 

 

 

 

496,171

 

Common trust funds (fixed income)

 

 

 

 

 

 

 

294,112

 

Common trust fund (real assets)

 

 

 

 

 

 

 

69,600

 

Total

$

455,917

 

$

40,254

 

 

 

$

859,883

 

Percentage and Target Allocations

The following table presents the percentage allocation of the plan assets by asset category and corresponding target allocations at December 31, 2022 and 2021.

 

 

Plan Assets

 

 

Target Allocation

 

at December 31,

 

 

at December 31,

Asset category

2022

 

 

2021

 

 

2022

2021

Cash and equivalents

 

1

 

%

 

3

 

%

0 - 5%

0 - 5%

Fixed income securities

 

68

 

 

 

45

 

 

62-84%

41-47%

Equity securities

 

22

 

 

 

44

 

 

16-22%

35-51%

Real assets

 

9

 

 

 

8

 

 

4-10%

0-12%

 

 

100

 

%

 

100

 

%