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Postretirement Benefits
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Postretirement Benefits Postretirement Benefits
Pension Plan
As of December 31, 2024, we had one qualified noncontributory defined benefit pension plan: the Union Plan. The measurement date for the plan is December 31st for each respective plan year.
Plan Assets and Plan Benefit Obligations
The following table summarizes the change in Union Plan assets and changes in benefit obligations:
(Dollars in millions)20242023
Change in plan assets:
Fair value of plan assets as of January 1$26.7 $26.3 
Actual return on plan assets0.4 1.9 
Settlements— (0.3)
Employer contributions— 0.3 
Benefit payments(1.7)(1.5)
Fair value of plan assets as of December 31$25.4 $26.7 
Change in plan benefit obligations:
Fair value of plan benefit obligations as of January 1$21.4 $21.3 
Interest cost1.0 1.1 
Actuarial (gain) loss(1.7)0.8 
Settlements— (0.3)
Benefit payments(1.7)(1.5)
Fair value of plan benefit obligations as of December 31$19.0 $21.4 
Amount overfunded$6.4 $5.3 
The decrease in our pension plan benefit obligations in 2024 was primarily driven by actuarial gains and benefit payments, partially offset by interest costs. The increase in our pension plan benefit obligations in 2023 was primarily driven by actuarial losses and interest costs, partially offset by benefit payments and settlements.
The Union Plan balances reflected in the consolidated statements of financial position, as of December 31, 2024 and 2023, consisted of the following:
(Dollars in millions)20242023
Assets & Liabilities:
Non-current assets$6.4 $5.3 
Net assets$6.4 $5.3 
Accumulated Other Comprehensive Loss:
Net actuarial loss$(10.4)$(11.6)
Accumulated other comprehensive loss$(10.4)$(11.6)
The PBO, ABO, and fair value of plan assets for the Union Plan, which has plan assets in excess of its PBO or ABO as of December 31, 2024 and 2023, were as follows:
(Dollars in millions)20242023
Projected benefit obligation$19.0 $21.5 
Accumulated benefit obligation$19.0 $21.5 
Fair value of plan assets$25.4 $26.7 
Components of Net Periodic Benefit Cost (Credit)
The components of the Union Plan’s net periodic benefit cost (credit) in 2024, 2023 and 2022, were as follows:
(Dollars in millions)202420232022
Interest cost$1.0 $1.1 $0.7 
Expected return of plan assets(1.3)(1.4)(1.3)
Amortization of net loss0.5 0.5 0.4 
Settlement— 0.1 — 
Net periodic benefit cost (credit)$0.2 $0.3 $(0.2)
Plan Assumptions
The key plan assumptions for the Union Plan utilized in our annual plan measurement as of December 31, 2024 and 2023, were as follows:
20242023
Weighted average assumptions used in benefit obligations:
Discount rate5.50 %4.75 %
Weighted average assumptions used in net periodic benefit costs:
Discount rate4.75 %5.25 %
Expected long-term rate of return on assets5.22 %5.59 %
The Union Plan is invested with the objective of achieving a total rate of return over the long-term that is sufficient to fund future pension obligations. In managing these assets and our investment strategy, we consider future cash contributions to the plan as well as the potential of the portfolio underperforming the market. We set asset allocation target ranges based on current funding status and future projections in order to mitigate the portfolio performance risk while maintaining its funded status. Fixed income securities comprise a substantial percentage of our plan assets portfolio. As of December 31, 2024 and 2023, we held approximately 90% fixed income and short-term cash securities and 10% equity securities in our portfolio.
In determining our investment strategy and calculating the net benefit cost, we utilized an expected long-term rate of return on plan assets, which was developed based on several factors, including the plans’ asset allocation targets, the historical and projected performance on those asset classes, as well as the plan’s current asset composition. To justify our assumptions, we analyzed certain data points related to portfolio performance. Based on the historical returns and the projected future returns, we determined that a target return of 5.20% is appropriate for the current portfolio.
The following table presents the fair value of the pension plan net assets by asset category and level, within the fair value hierarchy, as of December 31, 2024 and 2023:
Fair Value of Plan Assets as of December 31, 2024
(Dollars in millions)Level 1Level 2Level 3Total
Fixed income bonds$— $21.6 $— $21.6 
Mutual funds2.8 — — 2.8 
Pooled separate accounts— — — — 
Guaranteed deposit account— — 1.0 1.0 
Total plan assets at fair value$2.8 $21.6 $1.0 $25.4 
Fair Value of Plan Assets as of December 31, 2023
(Dollars in millions)Level 1Level 2Level 3Total
Fixed income bonds$0.2 $22.3 $— $22.5 
Mutual funds3.0 — — 3.0 
Pooled separate accounts— 0.1 — 0.1 
Guaranteed deposit account— — 1.1 1.1 
Total plan assets at fair value$3.2 $22.4 $1.1 $26.7 
Cash Flows
We were not required to make any contributions to our qualified noncontributory defined benefit pension plan in 2024 and 2023. We made expected benefit payments for our qualified noncontributory defined benefit pension plan through the utilization of plan assets in 2024 and 2023.
The benefit payments are based on the same assumptions used to measure our benefit obligations as of December 31, 2024. The following table sets forth the expected benefit payments to be paid for the Union Plan:
(Dollars in millions)Pension Benefits
2025$1.7 
2026$1.7 
2027$1.7 
2028$1.6 
2029$1.6 
2030-2034$7.3 
Employee Savings and Investment Plan
We sponsor the RESIP, a 401(k) plan for domestic employees. In 2024, employees could defer an amount they choose, up to the annual IRS limit of $23,000. Certain eligible participants are also allowed to contribute the maximum catch-up contribution per IRS regulations. We match each eligible employee’s annual pre-tax contributions at a rate of 100% for the first 1% of the employee’s salary and 50% for the next 5% of each employee’s salary for a total match of 3.5%. Unless otherwise indicated by the participant, the matching dollars are invested in the same funds as the participant’s contributions. RESIP related expense amounted to $5.1 million, $4.6 million and $11.8 million in 2024, 2023 and 2022, respectively. The higher expense in 2022 was primarily due to a $6.5 million discretionary RESIP contribution related to the previously anticipated merger with DuPont.
Deferred Compensation Plan
We sponsor a non-qualified deferred compensation plan, which provides specified deferred compensation benefits to a certain group of select employees. The deferred compensation plan is funded through a rabbi trust, which are ultimately invested in accordance with each plan participants’ selections from pre-approved funds. As of December 31, 2024 and 2023, our deferred compensation plan primarily consisted of marketable securities, which includes mutual funds and fixed income funds. Marketable securities are recorded at fair value. The following table summarizes, by major security type, our marketable securities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy:
Fair Value of Deferred Compensation Plan as of December 31, 2024
(Dollars in millions)Adjusted CostUnrealized GainsUnrealized LossesFair Value
Level 1 Securities:
Mutual funds$4.6 $0.5 $— $5.1 
Level 2 Securities:
Fixed income funds$0.2 $— $— $0.2 
Total$4.8 $0.5 $— $5.3 
Fair Value of Deferred Compensation Plan as of December 31, 2023
(Dollars in millions)Adjusted CostUnrealized GainsUnrealized LossesFair Value
Level 1 Securities:
Mutual funds$5.1 $0.2 $(0.1)$5.2 
Level 2 Securities:
Fixed income funds$0.4 $— $— $0.4 
Total$5.5 $0.2 $(0.1)$5.6