Pension And Other Postretirement Benefits

6 Months Ended

Jun. 30, 2021

Pension And Other Postretirement Benefits [Abstract]

Pension And Other Postretirement Benefits

6. PENSION AND OTHER POSTRETIREMENT BENEFITS

We have a noncontributory defined benefit pension plan (the "Pension Plan") covering substantially all employees first hired prior to July 1, 2015 after the completion of one year of service and 1,000 hours of service.  The Pension Plan provides retirement benefits based on an employee’s final average earnings and years of service.  These employees become 100% vested after three years of service, regardless of age.  A supplemental benefit plan provides nonqualified pension benefits for compensation in excess of the IRS compensation limits applicable to the Pension Plan and eligible compensation deferred by a participant.

Our funding policy is to make contributions to the Pension Plan, provided that the total annual contributions will not be less than the Employee Retirement Income Security Act of 1974 (“ERISA”) and the Pension Protection Act of 2006 minimums or greater than the maximum tax-deductible amount, to review the contribution and funding strategy on a regular basis, and to allow discretionary contributions to be made by us from time to time.  The assets of the Pension Plan are invested primarily in fixed income investments and equity securities. We pay nonqualified pension benefits when they are due according to the terms of the supplemental benefit plan.

We provide certain postretirement healthcare and life insurance benefits to retired employees. Substantially all of our employees hired or rehired prior to 2014 may become eligible for postretirement medical benefits if they reach the age and service requirements of the retiree medical plan and retire on a pension (except a deferred pension) under the Pension Plan. Medical benefits are self-insured and claims are administered through a third party administrator. The cost of coverage is determined based on the annual projected plan costs. The participant's premium or cost is determined based on Company guidelines. Postretirement life insurance benefits are insured through an insurance company. We fund postretirement benefits as incurred, and accordingly, there were no assets held in the postretirement benefits plan at June 30, 2021 and December 31, 2020.

The net periodic benefit cost for the three and six months ended June 30, 2021 and 2020 includes the following components:

	Pension Benefits				Postretirement Benefits
	Three Months Ended				Three Months Ended
	June 30,				June 30,
Components of Net Periodic Benefit Cost	2021		2020		2021		2020
Selling, general and administrative expenses:
Service cost	$	7.6	$	7.1	$	0.5	$	0.6
Total selling, general and administrative expenses	$	7.6	$	7.1	$	0.5	$	0.6
Non-operating expenses:
Interest cost	$	5.8	$	6.8	$	0.5	$	0.6
Expected return on plan assets		(7.6)		(8.0)		—		—
Amortization of:
Net actuarial loss		8.3		7.6		0.1		0.1
Total non-operating expenses	$	6.5	$	6.4	$	0.6	$	0.7
Net periodic benefit cost	$	14.1	$	13.5	$	1.1	$	1.3

	Pension Benefits				Postretirement Benefits
	Six Months Ended				Six Months Ended
	June 30,				June 30,
Components of Net Periodic Benefit Cost	2021		2020		2021		2020
Selling, general and administrative expenses:
Service cost	$	15.2	$	14.3	$	1.1	$	1.1
Total selling, general and administrative expenses	$	15.2	$	14.3	$	1.1	$	1.1
Non-operating expenses:
Interest cost	$	11.9	$	13.8	$	0.9	$	1.2
Expected return on plan assets		(15.4)		(16.4)		—		—
Amortization of:
Net actuarial loss		16.9		14.8		0.4		0.3
Total non-operating expenses	$	13.4	$	12.2	$	1.3	$	1.5
Net periodic benefit cost	$	28.6	$	26.5	$	2.4	$	2.6

We made qualified and nonqualified pension contributions totaling $10.0 million during the three-month periods ended June 30, 2021 and June 30, 2020. Contributions made during the six-month periods ended June 30, 2021 and 2020 totaled $21.6 million and $21.8 million, respectively. Additional contributions of $20.0 million are expected to be paid during the remainder of 2021, but may change at our discretion.