XML 66 R41.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Employee Benefit Plans and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Compensation And Retirement Disclosure [Abstract]  
Schedule of Obligations and Funded Status of Defined Benefit Pension and Postretirement Benefit Plans The following table, which includes only company-sponsored defined benefit and other postretirement benefit plans, reconciles the beginning and ending balances of the projected benefit obligation and the fair value of plan assets. We recognize the unfunded status of these plans on the Consolidated Balance Sheets, and we recognize changes in funded status in the year changes occur through the Consolidated Statements of Comprehensive Income (dollars in millions):

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

Year Ended December 31

 

 

Year Ended December 31

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Change in Benefit Obligation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of period

 

$

1,204.9

 

 

$

1,300.2

 

 

$

14.6

 

 

$

16.5

 

Service cost

 

 

24.5

 

 

 

25.0

 

 

 

0.3

 

 

 

0.3

 

Interest cost

 

 

47.0

 

 

 

42.4

 

 

 

0.5

 

 

 

0.5

 

Plan amendments

 

 

2.3

 

 

 

3.0

 

 

 

(0.3

)

 

 

(0.4

)

Actuarial (gain) loss (a)

 

 

188.6

 

 

 

(121.1

)

 

 

0.2

 

 

 

(1.2

)

Participant contributions

 

 

—

 

 

 

—

 

 

 

1.1

 

 

 

1.1

 

Benefits paid

 

 

(47.2

)

 

 

(44.6

)

 

 

(1.9

)

 

 

(2.2

)

Benefit obligation at plan year end

 

$

1,420.1

 

 

$

1,204.9

 

 

$

14.5

 

 

$

14.6

 

Accumulated benefit obligation portion of above

 

$

1,374.4

 

 

$

1,163.3

 

 

 

 

 

 

 

 

 

Change in Fair Value of Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan assets at fair value at beginning of period

 

$

873.2

 

 

$

954.8

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

188.9

 

 

 

(59.9

)

 

 

—

 

 

 

—

 

Company contributions

 

 

58.9

 

 

 

22.9

 

 

 

0.8

 

 

 

1.1

 

Participant contributions

 

 

—

 

 

 

—

 

 

 

1.1

 

 

 

1.1

 

Benefits paid

 

 

(47.2

)

 

 

(44.6

)

 

 

(1.9

)

 

 

(2.2

)

Fair value of plan assets at plan year end

 

$

1,073.8

 

 

$

873.2

 

 

$

—

 

 

$

—

 

Underfunded status

 

$

(346.3

)

 

$

(331.7

)

 

$

(14.5

)

 

$

(14.6

)

Amounts Recognized on Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

(1.4

)

 

 

(1.4

)

 

 

(0.7

)

 

 

(0.8

)

Noncurrent liabilities

 

 

(344.9

)

 

 

(330.3

)

 

 

(13.8

)

 

 

(13.8

)

Accrued obligation recognized at December 31

 

$

(346.3

)

 

$

(331.7

)

 

$

(14.5

)

 

$

(14.6

)

Amounts Recognized in Accumulated Other

Comprehensive Loss (Income) (Pre-Tax)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost (credit)

 

$

24.7

 

 

$

28.7

 

 

$

(5.3

)

 

$

(5.4

)

Actuarial loss (gain)

 

 

239.2

 

 

 

194.6

 

 

 

(4.4

)

 

 

(5.0

)

Total

 

$

263.9

 

 

$

223.3

 

 

$

(9.7

)

 

$

(10.4

)

 

(a)

The actuarial loss in 2019 was due primarily to a decrease in the weighted average discount rate used to estimate pension benefit obligations. The actuarial gain in 2018 was due primarily to an increase in the weighted average discount rate used to estimate our pension benefit obligations.
Components of Net Periodic Benefit Costs and Other Comprehensive (Income) Loss (Pretax)

The components of net periodic benefit cost and other comprehensive (income) loss (pretax) were as follows (dollars in millions):

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

24.5

 

 

$

25.0

 

 

$

23.7

 

 

$

0.3

 

 

$

0.3

 

 

$

0.3

 

Interest cost

 

 

47.0

 

 

 

42.4

 

 

 

41.6

 

 

 

0.5

 

 

 

0.5

 

 

 

0.6

 

Expected return on plan assets

 

 

(52.1

)

 

 

(56.7

)

 

 

(53.9

)

 

 

—

 

 

 

—

 

 

 

—

 

Net amortization of unrecognized amounts

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost (credit)

 

 

6.3

 

 

 

6.9

 

 

 

5.8

 

 

 

(0.3

)

 

 

(0.3

)

 

 

(0.2

)

Actuarial loss (gain)

 

 

7.0

 

 

 

9.4

 

 

 

7.6

 

 

 

(0.4

)

 

 

(0.2

)

 

 

(0.1

)

Net periodic benefit cost

 

$

32.7

 

 

$

27.0

 

 

$

24.8

 

 

$

0.1

 

 

$

0.3

 

 

$

0.6

 

Changes in plan assets and benefit obligations

   recognized in other comprehensive (income)

   loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial net loss (gain)

 

$

51.8

 

 

$

(4.6

)

 

$

32.2

 

 

$

0.2

 

 

$

(1.2

)

 

$

(2.2

)

Prior service cost (credit)

 

 

2.3

 

 

 

3.0

 

 

 

17.4

 

 

 

(0.3

)

 

 

(0.3

)

 

 

(0.6

)

Amortization of prior service cost (credit)

 

 

(6.3

)

 

 

(6.9

)

 

 

(5.8

)

 

 

0.3

 

 

 

0.3

 

 

 

0.2

 

Amortization of actuarial loss (gain)

 

 

(7.0

)

 

 

(9.4

)

 

 

(7.6

)

 

 

0.4

 

 

 

0.2

 

 

 

0.1

 

Total recognized in other comprehensive

   loss (income) (b)

 

$

40.8

 

 

$

(17.9

)

 

$

36.2

 

 

$

0.6

 

 

$

(1.0

)

 

$

(2.5

)

Total recognized in net periodic benefit

   cost and other comprehensive loss (income)

   (pre-tax)

 

$

73.5

 

 

$

9.2

 

 

$

61.0

 

 

$

0.7

 

 

$

(0.7

)

 

$

(1.9

)

 

(b)

Accumulated losses in excess of 10% of the greater of the projected benefit obligation or the market-related value of assets will be recognized on a straight-line basis over the average remaining service period of active employees in PCA plans (which is between seven and ten years) and over the average remaining lifetime of inactive participants of Boise plans (which is between 24 and 27 years), to the extent that losses are not offset by gains in subsequent years. The estimated net loss and prior service cost that will be amortized from “Accumulated other comprehensive loss” into net periodic benefit in 2020 is $14.3 million.
Weighted-Average Assumptions Used To Determine Benefit Obligations and Net Periodic Benefit Cost

The following table presents the assumptions used in the measurement of our benefits obligations:

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

December 31,

 

 

December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

 

2019

 

 

2018

 

 

2017

 

Weighted-Average Assumptions Used to

   Determine Benefit Obligations at

   December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

3.25%

 

 

4.31%

 

 

3.66%

 

 

3.18%

 

 

4.21%

 

 

3.55%

 

Rate of compensation increase

 

4.00%

 

 

4.00%

 

 

4.00%

 

 

N/A

 

 

N/A

 

 

N/A

 

Weighted-Average Assumptions Used to

   Determine Net Periodic Benefit Cost for the

   Years Ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

4.31%

 

 

3.66%

 

 

4.24%

 

 

4.21%

 

 

3.57%

 

 

3.92%

 

Expected return on plan assets

 

6.06%

 

 

6.06%

 

 

6.55%

 

 

N/A

 

 

N/A

 

 

N/A

 

Rate of compensation increase

 

4.00%

 

 

4.00%

 

 

4.00%

 

 

N/A

 

 

N/A

 

 

N/A

 
Assumed Health Care Cost Trend Rates For Postretirement Benefits

Health Care Cost Trend Rate Assumptions. PCA assumed health care cost trend rates for its postretirement benefits plans were as follows:

 

 

 

2019

 

 

2018

 

 

2017

 

Health care cost trend rate assumed for next year

 

7.09%

 

 

7.24%

 

 

7.57%

 

Rate to which the cost trend rate is assumed to decline

   (the ultimate trend rate)

 

4.50%

 

 

4.44%

 

 

4.44%

 

Year that the rate reaches the ultimate trend rate

 

2029

 

 

2028

 

 

2027

 
Schedule of Effects of One-Percentage Point Change In Assumed Health Care Cost Trend Rates on Postretirement Benefits

A one-percentage point change in assumed health care cost trend rates would have the following effects on the 2019 postretirement benefit obligation and the 2018 net postretirement benefit cost (dollars in millions):

 

 

 

 

 

 

 

1-Percentage Point Increase

 

 

1-Percentage Point Decrease

 

Effect on postretirement benefit obligation

 

$

0.5

 

 

$

(0.5

)

Effect on net postretirement benefit cost

 

 

0.1

 

 

 

—

 
Schedule of Pension Plans' Assets Investment Policies and Strategies Assets of our pension plans were invested in the following classes of securities at December 31, 2019 and 2018:

 

 

 

Percentage

of Fair Value at December 31,

 

 

 

2019

 

 

2018

 

Fixed income securities

 

 

50

%

 

 

53

%

International equity securities

 

 

27

%

 

 

27

%

Domestic equity securities

 

 

22

%

 

 

18

%

Other

 

 

1

%

 

 

2

%
Schedule of Fair Value Measurements of Plan Assets by Major Asset Category

The following tables set forth, by level within the fair value hierarchy, discussed in Note 2, Summary of Significant Accounting Policies, the pension plan assets, by major asset category, at fair value at December 31, 2019 and 2018 (dollars in millions):

 

 

 

Fair Value Measurements at December 31, 2019

 

Asset Category

 

Quoted Prices in

Active Markets

for Identical

Assets (Level 1)

 

 

Significant

Other Observable Inputs (Level 2)

 

 

Significant

Unobservable

Inputs (Level 3)

 

 

Net Asset Value (NAV) (a)

 

 

Total

 

Cash and short-term investments

 

$

—

 

 

$

14.9

 

 

$

—

 

 

$

—

 

 

$

14.9

 

Common/collective trust funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

International equities

 

 

163.0

 

 

 

20.8

 

 

 

—

 

 

 

102.3

 

 

 

286.1

 

Domestic equities

 

 

—

 

 

 

240.5

 

 

 

—

 

 

 

—

 

 

 

240.5

 

Corporate and government bonds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fixed income

 

 

140.4

 

 

 

154.6

 

 

 

—

 

 

 

—

 

 

 

295.0

 

Government bonds and agencies

 

 

—

 

 

 

160.7

 

 

 

—

 

 

 

—

 

 

 

160.7

 

Corporate bonds

 

 

—

 

 

 

70.6

 

 

 

—

 

 

 

—

 

 

 

70.6

 

Municipal bonds

 

 

—

 

 

 

5.8

 

 

 

—

 

 

 

—

 

 

 

5.8

 

Private equity securities (b)

 

 

—

 

 

 

—

 

 

 

2.6

 

 

 

—

 

 

 

2.6

 

Total securities at fair value

 

$

303.4

 

 

$

667.9

 

 

$

2.6

 

 

$

102.3

 

 

$

1,076.2

 

Accrued expenses and receivables

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.4

)

Total fair value of plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

1,073.8

 

 

 

 

Fair Value Measurements at December 31, 2018

 

Asset Category

 

Quoted Prices in

Active Markets

for Identical

Assets (Level 1)

 

 

Significant

Other Observable

Inputs (Level 2)

 

 

Significant

Unobservable

Inputs (Level 3)

 

 

Net Asset Value (NAV) (a)

 

 

Total

 

Cash and short-term investments

 

$

0.4

 

 

$

11.6

 

 

$

—

 

 

$

—

 

 

$

12.0

 

Common/collective trust funds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Domestic equities

 

 

—

 

 

 

154.5

 

 

 

—

 

 

 

—

 

 

 

154.5

 

International equities

 

 

136.9

 

 

 

17.8

 

 

 

—

 

 

 

84.1

 

 

 

238.8

 

Corporate and government bonds:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government bonds

 

 

155.0

 

 

 

9.4

 

 

 

—

 

 

 

 

 

 

 

164.4

 

Corporate bonds

 

 

—

 

 

 

64.4

 

 

 

—

 

 

 

 

 

 

 

64.4

 

Fixed income

 

 

95.7

 

 

 

138.8

 

 

 

—

 

 

 

—

 

 

 

234.5

 

Private equity securities (b)

 

 

—

 

 

 

—

 

 

 

3.3

 

 

 

—

 

 

 

3.3

 

Total securities at fair value

 

$

388.0

 

 

$

396.5

 

 

$

3.3

 

 

$

84.1

 

 

$

871.9

 

Receivables and accrued expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.3

 

Total fair value of plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

873.2

 

 

(a)

In accordance with ASC 820, Fair Value Measurement, certain investments that do not have readily-determinable fair values are measured at fair value using the net asset value (NAV) per share practical expedient and are not classified within the fair value hierarchy.

(b)

 Investments in this category are invested in the Pantheon Global Secondary Fund IV, LP. The fund specializes in investments in the private equity secondary market and occasionally directly in private companies to maximize capital growth. Fund investments are carried at fair value as determined quarterly using the market approach to estimate the fair value of private investments. The market approach utilizes prices and other relevant information generated by market transactions, type of security, size of the position, degree of liquidity, restrictions on the disposition, latest round of

financing data, current financial position, and operating results, among other factors. In circumstances where fair values are not provided with respect to any of the company's fund investments, the investment advisor will seek to determine the fair value of such investments based on information provided by the general partners or managers of such funds or from other sources. Audited financial statements are provided by fund management annually. Notwithstanding the above, the variety of valuation bases adopted and quality of management data of the ultimate underlying investee companies means that there are inherent difficulties in determining the value of the investments. Amounts realized on the sale of these investments may differ from the calculated values. Boise had originally committed to a $15.0 million investment, with $5.0 million of the commitment unfunded at December 31, 2019.
Summary of Changes in Pension Plans' Level 3 Assets

The following table sets forth a summary of changes in the fair value of the pension plans' Level 3 assets for the year ended December 31, 2019 (dollars in millions):

 

 

 

2019

 

Balance, beginning of year

 

$

3.3

 

Acquisitions

 

 

—

 

Purchases

 

 

—

 

Sales

 

 

(0.7

)

Unrealized gain

 

 

—

 

Balance, end of year

 

$

2.6

 
Schedule of Estimated Benefit Payments

The following are estimated benefit payments to be paid to current plan participants by year (dollars in millions). Qualified pension benefit payments are paid from plan assets, while nonqualified pension benefit payments are paid by the Company.

 

 

 

Pension

Plans

 

 

Postretirement

Plans

 

2020

 

$

52.7

 

 

$

0.7

 

2021

 

 

56.7

 

 

 

0.7

 

2022

 

 

60.4

 

 

 

0.7

 

2023

 

 

64.1

 

 

 

0.7

 

2024 - 2029

 

 

442.5

 

 

 

4.5