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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2019
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract]  
Employee Benefit Plans Employee Benefit Plans
 
Defined Benefit Pension and Other Postretirement Benefit Plans
The Company provides funded and unfunded non-contributory defined benefit pension plans covering certain of its salaried and hourly employees. Benefits are generally based on the employee’s age and compensation. The Company funds the plans in an amount not less than the minimum statutory funding requirements or more than the maximum amount that can be deducted for U.S. federal income tax purposes.
The Company also currently provides certain postretirement medical and life insurance coverage for eligible employees. Generally, covered employees who terminate employment after meeting eligibility requirements are eligible for postretirement coverage for themselves and their dependents. The Company offers a subsidy to eligible retirees based on age and years of service at retirement and contain other cost-sharing features such as deductibles and coinsurance. The Company’s current funding policy is to fund the cost of all postretirement benefits as they are paid.
On January 1, 2015, the Company’s cash balance and excess plans were amended to freeze new service credits for any new or active employee.

Obligations and Funded Status.
Summaries of the changes in the benefit obligations, plan assets and funded status of the plans are as follows:
 
Pension Benefits
 
Other Postretirement Benefits
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
(In thousands)
 
 
 
 
 
 
 
CHANGE IN BENEFIT OBLIGATIONS
 
 
 
 
 
 
 
Benefit obligations at beginning of period
$
228,873

 
$
270,098

 
$
88,563

 
$
110,519

Service cost
—

 
—

 
480

 
558

Interest cost
8,141

 
9,269

 
3,505

 
3,674

Settlement gain
(1,326
)
 
(2,332
)
 
—

 
—

Curtailments
—

 
—

 
30

 
—

Benefits paid
(34,918
)
 
(36,895
)
 
(7,304
)
 
(5,388
)
Other-primarily actuarial (gain) loss
16,778

 
(11,267
)
 
2,593

 
(20,800
)
Benefit obligations at end of period
$
217,548

 
$
228,873

 
$
87,867

 
$
88,563

CHANGE IN PLAN ASSETS
 
 
 
 
 
 
 
Value of plan assets at beginning of period
$
212,506

 
$
255,642

 
$
—

 
$
—

Actual return on plan assets
33,998

 
(6,463
)
 
—

 
—

Employer contributions
216

 
222

 
7,304

 
5,388

Benefits paid
(34,918
)
 
(36,895
)
 
(7,304
)
 
(5,388
)
Value of plan assets at end of period
$
211,802

 
$
212,506

 
$
—

 
$
—

Accrued benefit cost
$
(5,746
)
 
$
(16,367
)
 
$
(87,867
)
 
$
(88,563
)
ITEMS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC BENEFIT COST
 
 
 
 
 
 
 
Prior service credit
$
992

 
$
—

 
$
—

 
$
—

Accumulated gain
14,537

 
8,899

 
20,333

 
25,936

 
$
15,529

 
$
8,899

 
$
20,333

 
$
25,936

BALANCE SHEET AMOUNTS
 
 
 
 
 
 
 
Current liability
$
(270
)
 
$
(220
)
 
$
(7,300
)
 
$
(5,400
)
Noncurrent liability
(5,476
)
 
(16,147
)
 
(80,567
)
 
(83,163
)
 
$
(5,746
)
 
$
(16,367
)
 
$
(87,867
)
 
$
(88,563
)

Pension Benefits
The accumulated benefit obligation for all pension plans was $217.5 million and $228.9 million at December 31, 2019 and 2018, respectively.
The Company uses the corridor method of amortizing actuarial gains (losses); it is anticipated there will be $0.1 million of prior service credit amortized from accumulated other comprehensive income into net periodic benefit cost during 2020.

Other Postretirement Benefits
The Company uses the corridor method of amortizing actuarial gains (losses); it is anticipated there will be $2.1 million of gains amortized from accumulated other comprehensive income into net periodic benefit cost during 2020.

Components of Net Periodic Benefit Cost. The following table details the components of pension and postretirement benefit costs (credits):
 
Pension Benefits
 
Other Postretirement Benefits
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Year Ended December 31, 2017
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Year Ended December 31, 2017
(In thousands)
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
—

 
$
480

 
$
558

 
$
671

Interest cost(1)
8,141

 
9,269

 
11,169

 
3,505

 
3,674

 
4,150

Curtailments
—

 
—

 
—

 
—

 
—

 
(520
)
Settlements(1)
(1,326
)
 
(2,332
)
 
(1,532
)
 
—

 
—

 
—

Expected return on plan assets(1)
(10,555
)
 
(12,083
)
 
(16,498
)
 
—

 
—

 
—

Amortization of prior service credits(1)
(24
)
 
—

 
—

 
—

 
—

 
—

Amortization of other actuarial losses (gains) (1)
(11
)
 
—

 
—

 
(2,974
)
 
—

 
—

Net benefit cost (credit)
$
(3,775
)
 
$
(5,146
)
 
$
(6,861
)
 
$
1,011

 
$
4,232

 
$
4,301



(1) In accordance with the adoption of ASU 2017-07, “Compensation-Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost,” these costs are recorded within Nonoperating expenses in the Consolidated Income Statements on the line item “Non-service related pension and postretirement benefit costs.”
The differences generated from changes in assumed discount rates and returns on plan assets are amortized into earnings over the remaining service attribution periods of the employees using the corridor method.
Assumptions. The following table provides the assumptions used to determine the actuarial present value of projected benefit obligations for the respective periods.
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
(Percentages)
 
 
 
Pension Benefits
 
 
 
Discount rate
3.09/2.90
 
4.11/3.94
 
 
 
 
Other Postretirement Benefits
 
 
 
Discount rate
3.09
 
4.12

The following table provides the weighted average assumptions used to determine net periodic benefit cost for the respective periods.
 
Year Ended December 31, 2019
 
Year Ended December 31, 2018
 
Year Ended December 31, 2017
(Percentages)
 
 
 
 
 
Pension Benefits
 
 
 
 
 
Discount rate
3.65
 
3.82
 
3.77
Expected return on plan assets
5.10
 
5.30
 
6.20
 
 
 
 
 
 
Other Postretirement Benefits
 
 
 
 
 
Discount rate
4.12
 
3.49
 
3.85


The discount rates used in 2019, 2018 and 2017 were reevaluated during the year for settlements and curtailments. The obligations are remeasured at an updated discount rate that impacts the benefit cost recognized subsequent to the remeasurement.
The Company establishes the expected long-term rate of return at the beginning of each fiscal year based upon historical returns and projected returns on the underlying mix of invested assets. The Company utilizes modern portfolio theory modeling techniques in the development of its return assumptions. This technique projects rates of return that can be generated through various asset allocations that lie within the risk tolerance set forth by members of the Company’s pension committee (the “Pension Committee”). The risk assessment provides a link between a pension plan’s risk capacity, management’s willingness to accept investment risk and the asset allocation process, which ultimately leads to the return generated by the invested assets.
The health care cost trend rate assumed for 2020 is 5.7% and is expected to reach an ultimate trend rate of 4.5% by 2038. A one-percentage-point increase in the health care cost trend rate would increase the postretirement benefit obligation at December 31, 2019 by $8.7 million and the net periodic postretirement benefit cost for the year ended December 31, 2019 by $0.4 million.

Plan Assets
The Pension Committee is responsible for overseeing the investment of pension plan assets. The Pension Committee is responsible for determining and monitoring appropriate asset allocations and for selecting or replacing investment managers, trustees and custodians. The pension plan’s current investment targets are 27% equity and 73% fixed income securities. The Pension Committee reviews the actual asset allocation in light of these targets on a periodic basis and rebalances among investments as necessary. The Pension Committee evaluates the performance of investment managers as compared to the performance of specified benchmarks and peers and monitors the investment managers to ensure adherence to their stated investment style and to the plan’s investment guidelines.
The Company’s pension plan assets at December 31, 2019 and 2018, respectively, are categorized below according to the fair value hierarchy as defined in Note 16, “Fair Value Measurements”:
 
Total
 
Level 1
 
Level 2
 
Level 3
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
(In thousands)
Equity Securities:(A)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. small-cap
$
2,319

 
$
2,751

 
$
2,319

 
$
2,751

 
$
—

 
$
—

 
$
—

 
$
—

U.S. mid-cap
1,397

 
1,182

 
1,397

 
1,182

 
—

 
—

 
—

 
—

U.S. large-cap
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Non-U.S.
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Fixed income securities:

 

 
 
 
 
 
 
 
 
 
 
 
—

U.S. government securities(B)
50,610

 
43,829

 
35,751

 
38,436

 
14,859

 
5,393

 
—

 
—

Non-U.S. government securities(C)
2,242

 
2,092

 
—

 
—

 
2,242

 
2,092

 
—

 
—

U.S. government asset and mortgage backed securities(D)
—

 
7,667

 
—

 
—

 
—

 
7,667

 
—

 
—

Corporate fixed income(E)
108,023

 
68,762

 
—

 
—

 
108,023

 
68,762

 
—

 
—

State and local government securities(F)
2,653

 
3,480

 
—

 
—

 
2,653

 
3,480

 
—

 
—

Other investments(I)
—

 
5,223

 
—

 
—

 
—

 
5,223

 
—

 
—

Total
$
167,244

 
$
134,986

 
$
39,467

 
$
42,369

 
$
127,777

 
$
92,617

 
$
—

 
$
—

Assets at net asset value(G)
53,418

 
82,765

 
 
 
 
 
 
 
 
 
 
 
 
Short-term investments(H)
—

 
7,003

 
 
 
 
 
 
 
 
 
 
 
 
Other liabilities(J)
(8,860
)
 
(12,248
)
 
 
 
 
 
 
 
 
 
 
 
 
 
$
211,802

 
$
212,506

 
 
 
 
 
 
 
 
 
 
 
 
 (A) Equity securities includes investments in 1) common stock, 2) preferred stock and 3) mutual funds. Investments in common and preferred stocks are valued using quoted market prices multiplied by the number of shares owned. Investments in mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges.
(B) U.S. government securities includes agency and treasury debt. These investments are valued using dealer quotes in an active market.
(C) Non-U.S. government securities includes debt securities issued by foreign governments and are valued utilizing a price spread basis valuation technique with observable sources from investment dealers and research vendors.
(D) U.S. government asset and mortgage backed securities includes government-backed mortgage funds which are valued utilizing an income approach that includes various valuation techniques and sources such as discounted cash flows models, benchmark yields and securities, reported trades, issuer trades and/or other applicable data.
(E) Corporate fixed income is primarily comprised of corporate bonds and certain corporate asset-backed securities that are denominated in the U.S. dollar and are investment-grade securities. These investments are valued using dealer quotes.
(F) State and local government securities include different U.S. state and local municipal bonds and asset backed securities, these investments are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes, benchmark yields and securities, reported trades, issuer trades and/or other applicable data.
(G) Investments that are measured at fair value using the net asset value per share practical expedient have not been classified in the fair value hierarchy in accordance with Accounting Standards Update 2015-07. These investments are primarily mutual funds that are highly liquid with no restrictions on ability to redeem the funds into cash.
(H) Short-term investments include governmental agency funds, government repurchase agreements, commingled funds, and pooled funds and mutual funds. Governmental agency funds are valued utilizing an option adjusted spread valuation technique and sources such as interest rate generation processes, benchmark yields and broker quotes. Investments in governmental
repurchase agreements, commingled funds and pooled funds and mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.
(I) Other investments include cash, forward contracts, derivative instruments, credit default swaps, interest rate swaps and mutual funds. Investments in interest rate swaps are valued utilizing a market approach that includes various valuation techniques and sources such as value generation models, broker quotes in active and non-active markets, benchmark yields and securities, reported trades, issuer trades and/or other applicable data. Forward contracts and derivative instruments are valued at their exchange listed price or broker quote in an active market. The mutual funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date and are traded on listed exchanges.
(J)Net payable amount due for pending securities purchased and sold due to broker/dealer.
Cash Flows. The Company expects to make no contributions to the pension plans in 2020.
The following represents expected future benefit payments from the plan:
 
 
 
Other
 
Pension
 
Postretirement
 
Benefits
 
Benefits
 
(In thousands)
2020
$
18,016

 
$
12,043

2021
16,603

 
12,273

2022
15,257

 
12,071

2023
14,240

 
11,974

2024
13,640

 
11,836

Next 5 years
60,068

 
58,640

 
$
137,824

 
$
118,837


Other Plans
The Company sponsors savings plans which were established to assist eligible employees in providing for their future retirement needs. The Company’s expense, representing its contributions to the plans, was $17.5 million, $17.9 million, and $18.0 million for the years ended December 31, 2019, 2018, and 2017 respectively.