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Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2014
General Discussion of Pension and Other Postretirement Benefits [Abstract]  
Schedule of Defined Benefit Plans Disclosures
The information below includes amounts calculated based on benefit obligation and asset valuation measurement dates of December 31, 2014 and 2013.
 
Pension Benefits
 
Other Benefits
 
2014
 
2013
 
2014
 
2013
Change in benefit obligations:
 
 
 
 
 
 
 
Benefit obligations at beginning of year
$
3,380.6

 
$
3,759.4

 
$
479.2

 
$
602.0

Service cost
1.7

 
2.4

 
4.9

 
4.7

Interest cost
146.0

 
138.8

 
21.7

 
21.0

Plan participants’ contributions
—

 
—

 
25.4

 
27.0

Actuarial loss (gain)
432.1

 
(214.8
)
 
45.1

 
(54.3
)
Amendments
2.0

 
6.0

 
(12.8
)
 
—

Dearborn acquisition
—

 
—

 
128.2

 
—

Contributions to Butler and Zanesville retirees’ VEBA trusts
—

 
—

 
(3.1
)
 
(30.8
)
Benefits paid
(416.6
)
 
(311.4
)
 
(96.6
)
 
(95.6
)
Medicare subsidy reimbursement received
—

 
—

 
7.3

 
5.2

Foreign currency exchange rate changes
(0.6
)
 
0.2

 
—

 
—

Benefit obligations at end of year
$
3,545.2

 
$
3,380.6

 
$
599.3

 
$
479.2

 
 
 
 
 
 
 
 
Change in plan assets:
 

 
 

 
 

 
 

Fair value of plan assets at beginning of year
$
2,808.5

 
$
2,591.1

 
$
—

 
$
—

Actual gain on plan assets
257.8

 
337.7

 
—

 
—

Employer contributions
213.9

 
191.1

 
63.9

 
63.4

Plan participants’ contributions
—

 
—

 
25.4

 
27.0

Benefits paid
(416.6
)
 
(311.4
)
 
(96.6
)
 
(95.6
)
Medicare subsidy reimbursement received
—

 
—

 
7.3

 
5.2

Fair value of plan assets at end of year
$
2,863.6

 
$
2,808.5

 
$
—

 
$
—

Funded status
$
(681.6
)
 
$
(572.1
)
 
$
(599.3
)
 
$
(479.2
)
 
 
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets:
 

 
 

 
 

 
 

Current liabilities
$
(2.1
)
 
$
(17.5
)
 
$
(53.5
)
 
$
(68.4
)
Noncurrent liabilities
(679.5
)
 
(554.6
)
 
(545.8
)
 
(410.8
)
Total
$
(681.6
)
 
$
(572.1
)
 
$
(599.3
)
 
$
(479.2
)
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive income, before tax:
 

 
 

 
 

 
 

Actuarial loss (gain)
$
355.7

 
$
(16.7
)
 
$
23.1

 
$
(19.8
)
Prior service cost (credit)
16.3

 
18.5

 
(258.1
)
 
(318.4
)
Total
$
372.0

 
$
1.8

 
$
(235.0
)
 
$
(338.2
)
Schedule of Assumptions Used
Assumptions used to value benefit obligations and determine pension and OPEB expense (income) are as follows:
 
Pension Benefits
 
Other Benefits
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Assumptions used to determine benefit obligations at December 31:
Discount rate
3.82
%
 
4.53
%
 
3.85
%
 
3.90
%
 
4.48
%
 
3.77
%
Rate of compensation increase
4.00
%
 
4.00
%
 
4.00
%
 
4.00
%
 
4.00
%
 
4.00
%
Subsequent year healthcare cost trend rate
 
 
 
 
 
 
7.00
%
 
7.00
%
 
7.50
%
Ultimate healthcare cost trend rate
 
 
 
 
 
 
4.50
%
 
4.50
%
 
4.50
%
Year ultimate healthcare cost trend rate begins
 
 
 
 
 
 
2020

 
2019

 
2019

 
 
 
 
 
 
 
 
 
 
 
 
Assumptions used to determine pension and OPEB expense (income) for the year ended December 31:
Discount rate
4.53
%
 
3.85
%
 
4.74
%
 
4.48
%
 
3.77
%
 
4.72
%
Expected return on plan assets
7.25
%
 
7.25
%
 
8.00
%
 
 
 
 
 
 
Rate of compensation increase
4.00
%
 
4.00
%
 
4.00
%
 
4.00
%
 
4.00
%
 
4.00
%
Schedule of Change in Assumed Health Care Cost Trend Rates
As of December 31, 2014, a one-percentage-point change in the assumed healthcare cost trend rates would have the following effects:
 
One Percentage Point
 
Increase
 
Decrease
Effect on total service cost and interest cost components
$
0.1

 
$
(0.1
)
Effect on postretirement benefit obligation
4.1

 
(4.3
)
Schedule of Expected Benefit Payments
The following presents estimated future benefit payments to beneficiaries:
 
Pension
Plans
 
Other
Benefits
(a)
 
Medicare
Subsidy
(a)
2015
$
286.5

 
$
53.5

 
$
(3.1
)
2016
289.1

 
49.8

 
(1.6
)
2017
302.6

 
46.9

 
(1.6
)
2018
261.7

 
44.6

 
(1.6
)
2019
254.5

 
43.2

 
(1.6
)
2020 through 2024
1,154.8

 
194.3

 
(8.8
)

(a)
The amounts shown do not include the lump sum payment in 2015 to the VEBA trust related to the Zanesville Retiree Settlement.  These amounts reflect the fact that the Company has eliminated its OPEB liability related to the group of retirees covered by the Butler Retiree Settlement after 2014 and the Zanesville Retiree Settlement after 2015.
Schedule of Plan Assets
The following table sets forth by level within the fair value hierarchy a summary of the plan’s investments measured at fair value on a recurring basis at December 31, 2014 and 2013. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note 16 for more information on the determination of fair value.
 
 
Quoted Prices
in Active
Markets for
Identical Assets
 
Significant Other
Observable Inputs
 
Significant
Unobservable
Inputs
 
 
 
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
Total
 
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Equity Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. securities
 
$
199.4

 
$
176.6

 
$
—

 
$
—

 
$
—

 
$
—

 
$
199.4

 
$
176.6

U.S. common/collective trusts
 
—

 
—

 
862.4

 
840.5

 
—

 
—

 
862.4

 
840.5

EAFE common/collective trusts
 
—

 
—

 
272.9

 
277.6

 
—

 
—

 
272.9

 
277.6

Emerging market securities
 
—

 
79.4

 
—

 
—

 
—

 
—

 
—

 
79.4

Emerging market common/collective trusts
 
—

 
—

 
125.7

 
128.1

 
—

 
—

 
125.7

 
128.1

Global investments
 
—

 
—

 
210.7

 
230.8

 
—

 
—

 
210.7

 
230.8

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fixed Income Investments:
 


 


 


 


 


 


 


 


U.S. investment-grade corporate common/collective trusts
 
—

 
—

 
421.8

 
378.4

 
—

 
—

 
421.8

 
378.4

U.S. treasuries common/collective trusts
 
—

 
—

 
98.4

 
88.1

 
—

 
—

 
98.4

 
88.1

Mortgage-backed common/collective trusts
 
—

 
—

 
18.0

 
20.5

 
—

 
—

 
18.0

 
20.5

Global investments
 
—

 
—

 
435.4

 
350.8

 
—

 
—

 
435.4

 
350.8

U.S. high-yield corporate securities
 
—

 
—

 
178.4

 
191.6

 
—

 
—

 
178.4

 
191.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Investments:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Private equity funds (a)
 
—

 
—

 
—

 
—

 
0.9

 
0.6

 
0.9

 
0.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
39.6

 
45.5

 
—

 
—

 
—

 
—

 
39.6

 
45.5

Total
 
$
239.0

 
$
301.5

 
$
2,623.7

 
$
2,506.4

 
$
0.9

 
$
0.6

 
$
2,863.6

 
$
2,808.5


(a)
Consists of private equity funds that have no remaining capital commitments due from the Company.
Schedule of Changes in Plan Assets for Level 3 Assets
The following sets forth activity for Level 3 assets for 2014 and 2013:
Level 3 Assets
 
Private Equity Funds
December 31, 2012
 
$
3.2

Distribution to master pension trust
 
(2.6
)
December 31, 2013
 
$
0.6

Gains (losses) recognized in other comprehensive income (loss)
 
0.3

December 31, 2014
 
$
0.9
Schedule of Net Benefit Costs
The components of pension and OPEB expense (income) for the years 2014, 2013 and 2012 are as follows:
 
Pension Benefits
 
Other Benefits
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Components of pension and OPEB expense (income):
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
1.7

 
$
2.4

 
$
3.2

 
$
4.9

 
$
4.7

 
$
4.6

Interest cost
146.0

 
138.8

 
160.2

 
21.7

 
21.0

 
31.5

Expected return on plan assets
(202.8
)
 
(184.5
)
 
(188.3
)
 
—

 
—

 
—

Amortization of prior service cost (credit)
4.3

 
3.8

 
3.8

 
(73.2
)
 
(80.0
)
 
(77.4
)
Reversal of prior amortization related to Zanesville Retiree Settlement
—

 
—

 
—

 
—

 
—

 
2.5

Recognized net actuarial loss (gain):
 
 
 
 
 
 
 
 
 
 
 
Annual amortization
2.5

 
23.6

 
24.5

 
(1.3
)
 
2.4

 
0.1

Pension corridor charge
2.0

 
—

 
157.3

 
—

 
—

 
—

Settlement (gain) loss
0.2

 
(0.8
)
 
—

 
3.5

 
—

 
—

Pension and OPEB expense (income)
$
(46.1
)
 
$
(16.7
)
 
$
160.7

 
$
(44.4
)
 
$
(51.9
)
 
$
(38.7
)
Schedule of Multiemployer Plans
The Company’s participation in these plans for the years ended December 31, 2014, 2013 and 2012, is outlined in the table below. The Company does not provide more than five percent of the total contributions to any multiemployer plan. Forms 5500 are not yet available for plan years ending in 2014.
               Pension Fund
 
EIN/Pension Plan Number
 
Pension Protection Act Zone Status (a)
 
FIP/RP Status Pending/Implemented (b)
 
Contributions
 
Surcharge Imposed (c)
 
Expiration Date of Collective Bargaining Agreement
 
 
 
 
2014
 
2013
 
 
 
2014
 
2013
 
2012
 
 
 
 
Steelworkers Pension Trust
 
23-6648508/499
 
Green
 
Green
 
No
 
$
8.1

 
$
7.3

 
$
7.0

 
No
 
3/31/2017 to 9/1/2018 (d)
IAM National Pension Fund’s National Pension Plan
 
51-6031295/002
 
Green
 
Green
 
No
 
16.5

 
14.8

 
12.6

 
No
 
5/20/2015 to 3/1/2018 (e)
 
 
 
 
 
 
 
 
 
 
$
24.6

 
$
22.1

 
$
19.6

 
 
 
 
(a)
The most recent Pension Protection Act zone status available in 2014 and 2013 is for each plan’s year-end at December 31, 2013 and 2012, respectively. The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Generally, plans in the red zone are less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. The Steelworkers Pension Trust and IAM National Pension Fund’s National Pension Plan elected funding relief under section 431(b)(8) of the Internal Revenue Code and section 304(b)(8) of the Employment Retirement Income Security Act of 1974 (ERISA). This election allows those plans’ investment losses for the plan year ended December 31, 2008, to be amortized over 29 years for funding purposes.
(b)
The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented, as defined by ERISA.
(c)
The surcharge represents an additional required contribution due as a result of the critical funding status of the plan.
(d)
The Company or its AK Tube subsidiary is a party to three collective bargaining agreements (at its Ashland Works, Mansfield Works and at the AK Tube Walbridge plant) that require contributions to the Steelworkers Pension Trust. The labor contract for approximately 300 hourly employees at Mansfield Works expires on March 31, 2017. The labor contract for approximately 100 hourly employees at the AK Tube Walbridge plant expires January 22, 2018. The labor contract for approximately 830 hourly employees at the Ashland Works expires on September 1, 2018.
(e)
The Company is a party to three collective bargaining agreements (at its Middletown Works, Zanesville Works and Butler Works) that require contributions to the IAM National Pension Fund’s National Pension Plan. The labor contract for approximately 130 hourly employees at Zanesville Works expires on May 20, 2015. The labor contract for approximately 1,200 hourly employees at Butler Works expires on October 1, 2016. The labor contract for approximately 1,640 hourly employees at Middletown Works expires on March 15, 2018.