Employee Benefit Plans

12 Months Ended

Dec. 31, 2017

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Pension Plans

Certain employees of the Company are covered by Company-sponsored qualified pension plans and a supplemental non-qualified, unfunded pension plan (collectively, the “pension plans”). These pension plans are defined benefit, noncontributory plans. Benefits paid to retirees are based upon age at retirement, years of credited service and average earnings. The Company uses a December 31 measurement date for the pension plans.

Effective as of December 31, 2016, the Company merged the assets and liabilities of the Company-sponsored qualified pension plans into a single, qualified pension plan. The merger did not affect the assets or liabilities of the pension plans.

Upon the adoption of fresh-start accounting, the Company remeasured its obligations under its pension plans. The re-measurement increased the Company's defined benefit pension obligations by approximately $4,348 and was driven primarily by a change in the discount rate.

The Company-sponsored pension plans are frozen for all employees except for employees represented by the United Steelworkers of America. The assets of the Company-sponsored qualified pension plan are maintained in a single trust account.

The Company’s funding policy is to satisfy the minimum funding requirements of the ERISA.

Components of net periodic pension plans (benefit) cost were as follows:

	Successor			Predecessor
	September 1, 2017 through December 31, 2017			January 1, 2017 through August 31, 2017			Year Ended December 31, 2016
Service cost	$	140		$	260		$	377
Interest cost	1,574			3,194			5,182
Expected return on assets	(2,767		)	(5,425		)	(8,139		)
Amortization of prior service cost	—			133			200
Amortization of actuarial loss	—			631			1,832
Net periodic pension plans benefit	$	(1,053	)	$	(1,207	)	$	(548	)

The Company expects no amortization of pension prior service cost and actuarial gain/loss for the next fiscal year (Successor).

The status of the pension plans were as follows:

	Successor			Predecessor
	September 1, 2017 through December 31, 2017			January 1, 2017 through August 31, 2017			Year Ended December 31, 2016
Change in projected benefit obligation:
Projected benefit obligation at beginning of period	$	159,028		$	154,680		$	162,941
Service cost	140			260			377
Interest cost	1,574			3,194			5,182
Benefit payments	(3,889		)	(7,282		)	(9,459		)
Actuarial loss (gain)	574			8,176			(4,361		)
Projected benefit obligation at end of period	$	157,427		$	159,028		$	154,680
Change in plan assets:
Fair value of plan assets at beginning of period	$	162,929		$	157,714		$	154,506
Actual return on assets	3,376			11,897			12,253
Employer contributions	342			600			414
Benefit payments	(3,889		)	(7,282		)	(9,459		)
Fair value of plan assets at end of period	$	162,758		$	162,929		$	157,714
Funded status – net asset	$	5,331		$	3,901		$	3,034
Amounts recognized in the consolidated balance sheets consist of:
Prepaid pension cost	$	10,745		$	9,350		$	8,501
Accrued liabilities	(378		)	(370		)	(367		)
Pension benefit obligations	(5,036		)	(5,079		)	(5,100		)
Net amount recognized	$	5,331		$	3,901		$	3,034
Pre-tax components of accumulated other comprehensive loss:
Unrecognized actuarial gain (loss)	$	34		$	—		$	(25,665	)
Unrecognized prior service cost	—			—			(517		)
Total	$	34		$	—		$	(26,182	)
Accumulated benefit obligation	$	157,427		$	158,373		$	154,044

For the plans with an accumulated benefit obligation in excess of plan assets, the projected benefit obligation, accumulated benefit obligation and fair value of plan assets were $5,414, $5,414 and $0, respectively, at December 31, 2017 (Successor), $5,449, $5,449 and $0, respectively, at August 31, 2017 (Predecessor) and $5,467, $5,467 and $0, respectively, at December 31, 2016 (Predecessor).

The assumptions used to measure the projected benefit obligations for the Company’s defined benefit pension plans were as follows:

	Successor	Predecessor
	September 1, 2017 through December 31, 2017	January 1, 2017 through August 31, 2017	Year Ended December 31, 2016
Discount rate	3.51 - 3.58%	3.52 - 3.62%	3.70 - 3.83%
Projected annual salary increases	0 - 3.00%	0 - 3.00%	0 - 3.00%

The assumptions used to determine net periodic pension cost were as follows:

	Successor	Predecessor
	September 1, 2017 through December 31, 2017	January 1, 2017 through August 31, 2017	Year Ended December 31, 2016
Discount rate	3.52 - 3.62%	3.70 - 3.83%	4.00%
Expected long-term rate of return on plan assets	5.00%	5.25%	5.25%
Projected annual salary increases	0 - 3.00%	0 - 3.00%	0 - 3.00%

The Company’s expected long-term rate of return on plan assets is derived from reviews of asset allocation strategies and historical and anticipated future long-term performance of individual asset classes. The Company’s analysis gives consideration to historical returns and long-term, prospective rates of return.

The Company’s pension plan assets are allocated primarily to fixed income securities at December 31, 2017 (Successor) and December 31, 2016 (Predecessor).

The Company’s pension plans’ funds are managed in accordance with investment policies recommended by its investment advisor and approved by the Human Resources Committee of the Board of Directors. The overall target portfolio allocation is 100% fixed income securities. These funds’ conformance with style profiles and performance is monitored regularly by management, with the assistance of the Company’s investment advisor. Adjustments are typically made in the subsequent quarters when investment allocations deviate from the target range. The investment advisor provides quarterly reports to management and the Human Resources Committee of the Board of Directors.

In accordance with ASU No. 2015-07, "Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value ("NAV") per Share (or Its Equivalent)," certain of the Company's investments have been valued using the NAV per share (or its equivalent) practical expedient and are therefore not classified in the fair value hierarchy. The fair value amounts presented in these tables for the Company's investments are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the reconciliation of changes in the plan's benefit obligations and fair value of plan assets above.

The fair values of the Company’s pension plan assets fall within the following levels of the fair value hierarchy as of December 31, 2017 (Successor):

	Level 1		Level 2		Level 3		Total
Fixed income securities (a)	$	16,841	$	140,877	$	—	$	157,718
Investments measured at net asset value							6,567
Accounts payable – pending trades							(1,527		)
Total							$	162,758

^(a) Fixed income securities are comprised of corporate bonds (80%), government bonds (12%), government agency securities (3%) and other fixed income securities (5%).

The fair values of the Company’s pension plan assets fall within the following levels of the fair value hierarchy as of December 31, 2016 (Predecessor):

	Level 1		Level 2		Level 3		Total
Fixed income securities (b)	$	16,427	$	142,486	$	—	$	158,913
Investments measured at net asset value							5,455
Accounts payable – pending trades							(6,654		)
Total							$	157,714

^(b) Fixed income securities are comprised of corporate bonds (87%), government bonds, (4%) government agency securities (2%) and other fixed income securities (7%).

The estimated future pension benefit payments are:

2018	$	10,563
2019	10,670
2020	10,730
2021	10,748
2022	10,561
2023 — 2027	49,917

The Company was party to a multi-employer pension plan in Ohio. In connection with the April 2015 restructuring plan, the Company stated its intention to withdraw from the Ohio multi-employer pension plan. The liability associated with the withdrawal from this plan was initially estimated by the Company to be $5,500 at December 31, 2015 (Predecessor). Based on additional information obtained by the Company during the year ended December 31, 2016 (Predecessor), the estimated withdrawal obligation was reduced by $1,973, resulting in an estimated liability to withdraw from the plan of $3,527 at December 31, 2016 (Predecessor). The gain recognized from the reduction in the withdrawal liability is included in restructuring expense, net in the Consolidated Statements of Operations and Comprehensive (Loss) Income for the Predecessor year ended December 31, 2016 (Predecessor).

Postretirement Plan

The Company also provides declining value life insurance to its retirees and a maximum of three years of medical coverage to qualified individuals who retire between the ages of 62 and 65. The Company does not fund these benefits in advance, and uses a December 31 measurement date.

Upon the adoption of fresh-start accounting, the Company remeasured its obligations under its postretirement plans. The re-measurement decreased the Company's other postretirement benefit obligations by approximately $74 and was driven primarily by a change in the discount rate.

Components of net periodic postretirement plan benefit were as follows:

	Successor		Predecessor
	September 1, 2017 through December 31, 2017		January 1, 2017 through August 31, 2017			Year Ended December 31, 2016
Service cost	$	12	$	22		$	71
Interest cost	12		33			65
Amortization of actuarial gain	—		(193		)	(209		)
Net periodic postretirement plan gain (cost)	$	24	$	(138	)	$	(73	)

The Company expects no amortization of actuarial gain/loss for the next fiscal year.

The status of the postretirement plan was as follows:

	Successor			Predecessor
	September 1, 2017 through December 31, 2017			January 1, 2017 through August 31, 2017			Year Ended December 31, 2016
Change in accumulated postretirement benefit obligations:
Accumulated postretirement benefit obligation at beginning of period	$	1,490		$	1,564		$	2,427
Service cost	12			22			71
Interest cost	12			33			65
Benefit payments	(78		)	(156		)	(240		)
Actuarial loss (gain)	2			27			(759		)
Accumulated postretirement benefit obligation at end of period	$	1,438		$	1,490		$	1,564
Funded status – net liability	$	(1,438	)	$	(1,490	)	$	(1,564	)
Amounts recognized in the consolidated balance sheets consist of:
Accrued liabilities	$	(97	)	$	(143	)	$	(234	)
Postretirement benefit obligations	(1,341		)	(1,347		)	(1,330		)
Net amount recognized	$	(1,438	)	$	(1,490	)	$	(1,564	)
Pre-tax components of accumulated other comprehensive loss:
Unrecognized actuarial (loss) gain	$	(1	)	$	—		$	2,574
Total	$	(1	)	$	—		$	2,574

The assumed health care cost trend rates for medical plans were as follows:

	Successor	Predecessor
	September 1, 2017 through December 31, 2017	January 1, 2017 through August 31, 2017	Year Ended December 31, 2016
Medical cost trend rate	5.50%	6.00%	6.00%
Ultimate medical cost trend rate	5.00%	5.00%	5.00%
Year ultimate medical cost trend rate will be reached	2019	2019	2019

A 1% increase in the health care cost trend rate assumptions would have increased the accumulated postretirement benefit obligation at December 31, 2017 (Successor) by $50 with no significant impact on the annual periodic postretirement benefit cost. A 1% decrease in the health care cost trend rate assumptions would have decreased the accumulated postretirement benefit obligation at December 31, 2017 (Successor) by $46 with no significant impact on the annual periodic postretirement benefit cost.

The weighted average discount rate used to determine the net periodic postretirement benefit costs and the accumulated postretirement benefit obligations were as follows:

	Successor	Predecessor
	September 1, 2017 through December 31, 2017	January 1, 2017 through August 31, 2017	Year Ended December 31, 2016
Net periodic postretirement benefit costs	3.61%	3.42%	3.50%
Accumulated postretirement benefit obligations	3.45%	3.45%	3.61%

Retirement Savings Plans

The Company’s retirement savings plan for U.S. employees includes features under Section 401(k) of the Internal Revenue Code. The Company provides a 401(k) matching contribution of 100% of each dollar on eligible employee contributions up to the first 3% of the employee’s pre-tax compensation, and an additional 50% of each dollar on eligible employee contributions up to the next 2% of the employee's pre-tax compensation. Each year, in addition to the employer matching contribution, the Company's Chief Executive Officer may approve a discretionary Company contribution up to 4% of eligible employee's annual pre-tax compensation. The discretionary contribution is provided as an identical percentage of each employee's annual pre-tax compensation, regardless of their individual contributions to the 401(k) program. Company contributions cliff vest after two years of employment.

The amounts expensed by the Company relating to its 401(k) plan and other international retirement plans were $749 and $1,244 for the periods September 1, 2017 through December 31, 2017 (Successor) and January 1, 2017 through August 31, 2017 (Predecessor), respectively, and $2,725 for the year ended December 31, 2016 (Predecessor).