XML 57 R35.htm IDEA: XBRL DOCUMENT v3.22.0.1
Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Schedule of Cost of Pension Plans
Pension plan cost includes the following components:
(in thousands)
202120202019
Service cost for benefits earned$53,041 $43,492 $33,854 
Interest cost on benefit obligation36,824 37,578 39,306 
Expected return on plan assets(50,275)(49,411)(47,484)
Prior service cost amortization1,428 1,343 1,394 
Net actuarial loss amortization16,106 12,125 5,113 
Pension plan cost (1)
$57,124 $45,127 $32,183 

(1)     Pension plan costs represent the total cost before reimbursements to Indemnity from the Exchange and its subsidiaries. The components of pension plan costs other than the service cost components are included in the line item "Other (expense) income" in the Statements of Operations after reimbursements from the Exchange and its subsidiaries.
Schedule of Actuarial Assumptions Used to Measure the Year-End Obligations and Net Periodic Benefit Costs for the Subsequent Year
The following table describes the assumptions at December 31 used to measure the year-end obligations and the net periodic benefit costs for the subsequent year:
2021202020192018
Employee pension plan:
Discount rate3.16 %2.96 %3.59 %4.47 %
Expected return on assets5.50 6.00 6.00 6.75 
Compensation increases (1)
3.21 3.21 3.21 3.32 
SERP: 
Discount rate – pre-retirement/post-retirement (2)
3.11 2.86 
3.59/3.09
4.47/3.97
Rate of compensation increase5.00 5.00 5.00 5.00 

(1)    The rate of compensation increase for the employee plan is age-graded.  An equivalent single compensation increase rate of 3.21% in 2021, 2020 and 2019 would produce similar results.
(2)    In 2020, the SERP discount rate methodology was revised to utilize SERP specific cash outflows independent of the employee pension plan discount rate, eliminating a difference between pre-retirement and post-retirement rates.
Schedule of Funded Status of Pension Plans and Amounts Recognized in the Statements of Financial Position The following table sets forth the funded status of the pension plans and the amounts recognized in the Statements of Financial Position at December 31:
(in thousands)
20212020
Funded status at end of year$(132,411)$(165,098)
Pension liabilities – due within one year (1)
$(2,028)$(752)
Pension liabilities – due after one year(130,383)(164,346)
Net amount recognized$(132,411)$(165,098)

(1)    The current portion of pension liabilities is included in accounts payable and accrued liabilities.
Schedule of Reconciliation of Beginning and Ending Balances of the Projected Benefit Obligation, as well as the Accumulated Benefit Obligation The following table sets forth a reconciliation of beginning and ending balances of the projected benefit obligation, as well as the accumulated benefit obligation at December 31:
(in thousands)
20212020
Projected benefit obligation, beginning of year$1,246,159 $1,054,467 
Service cost for benefits earned53,041 43,492 
Interest cost on benefit obligation36,824 37,578 
Plan amendments4,059 — 
Actuarial (gain) loss(38,400)134,470 
Benefits paid(29,029)(23,848)
Projected benefit obligation, end of year$1,272,654 $1,246,159 
Accumulated benefit obligation, end of year$1,037,820 $1,006,884 
Schedule of Defined Benefit Pension Plans with Projected Benefit Obligations in Excess of Plan Assets
Both the defined benefit plan and the SERP had projected benefit obligations in excess of plan assets at December 31:
(in thousands)Projected Benefit Obligation in Excess of Plan Assets
20212020
Projected benefit obligation$1,272,654 $1,246,159 
Plan assets1,140,243 1,081,061 
Schedule of Defined Benefit Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
The SERP had accumulated benefit obligations in excess of plan assets at December 31:
(in thousands)Accumulated Benefit Obligation in Excess of Plan Assets
20212020
Accumulated benefit obligation$29,190 $26,462 
Plan assets— — 
Schedule of Reconciliation of Beginning and Ending Balances of the Fair Value of Plan Assets
The following table sets forth a reconciliation of beginning and ending balances of the fair value of plan assets at December 31:
(in thousands)
20212020
Fair value of plan assets, beginning of year$1,081,061 $907,625 
Actual gain on plan assets86,966 195,713 
Employer contributions1,245 1,571 
Benefits paid(29,029)(23,848)
Fair value of plan assets, end of year$1,140,243 $1,081,061 
Schedule of Amounts Included in Accumulated Other Comprehensive Loss that were Not Yet Recognized as Components of Net Benefit Costs
Net actuarial loss and prior service cost included in accumulated other comprehensive loss that were not yet recognized as components of net benefit costs were as follows:
(in thousands)
20212020
Net actuarial loss$27,524 $118,721 
Prior service cost12,201 9,570 
Net amount not yet recognized$39,725 $128,291 
Schedule of Amounts Recognized in Other Comprehensive Income for Pension Plans
Amounts recognized in other comprehensive income for pension plans were as follows:
(in thousands)
20212020
Net actuarial gain arising during the year$(75,091)$(11,832)
Amortization of net actuarial loss(16,106)(12,125)
Amortization of prior service cost(1,428)(1,343)
Amendments (1)
4,059 — 
Total recognized in other comprehensive income$(88,566)$(25,300)
(1)    In 2021, there were four new SERP participants.
Schedule of Target and Actual Asset Allocations for the Portfolio
The target and actual asset allocations for the portfolio are as follows for the years ended December 31:
Target asset
allocation		Target asset
allocation		Actual asset
allocation		Actual asset
allocation
Asset allocation:2021202020212020
Equity securities:
U.S. equity securities27 %(1)27 %27 %28 %
Non-U.S. equity securities18 (2)18 18 18 
Total equity securities
45 45 45 46 
Debt securities54 (3)54 54 53 
Other1 (4)1 1 1 
Total100 %100 %100 %100 %

(1)    U.S. equity securities – 21% seek to achieve excess returns relative to the Russell 2000 Index. The remaining 79% of the allocation to U.S. equity securities are comprised of equity index funds that track the S&P 500.
(2)    Non-U.S. equity securities – 11% are allocated to international small cap investments, while another 20% are allocated to international emerging market investments.  The remaining 69% of the Non-U.S. equity securities are allocated to investments seeking to achieve excess returns relative to an international market index.
(3)    Debt securities – 34% are allocated to long U.S. Treasury Strips, 66% are allocated to U.S. corporate bonds with an emphasis on long duration bonds rated A or better.
(4)    Institutional money market fund.
Schedule of Fair Value Measurements of Pension Plan Assets by Major Category and Level of Input
The following tables present fair value measurements for the pension plan assets by major category and level of input as of:
December 31, 2021
Fair value measurements of plan assets using:
(in thousands)Total Level 1Level 2Level 3
Equity securities:
U.S. equity securities$305,440 $0 $305,440 $0 
Non-U.S. equity securities200,949 139,688 61,261 0 
Total equity securities506,389 139,688 366,701 0 
Debt securities620,337 0 620,337 0 
Other13,517 13,517 0 0 
Total$1,140,243 $153,205 $987,038 $0 


December 31, 2020
Fair value measurements of plan assets using:
(in thousands)TotalLevel 1Level 2Level 3
Equity securities:
U.S. equity securities$296,624 $0 $296,624 $0 
Non-U.S. equity securities196,971 134,841 62,130 0 
Total equity securities493,595 134,841 358,754 0 
Debt securities574,910 0 574,910 0 
Other12,556 12,556 0 0 
Total$1,081,061 $147,397 $933,664 $0 
Schedule of Benefits Expected to be Paid Over the Next 10 Years from Pension Plans
The following table sets forth amounts of benefits expected to be paid over the next 10 years from our pension plans as of:

(in thousands)
Year ending
December 31,		Expected future
benefit payments
2022$29,730 
202333,975 
202436,025 
202539,813 
202642,218 
2027 - 2031265,680