Benefit Plans

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

BENEFIT PLANS

Benefit Plans

Qualified Retirement Benefits. The Company has a qualified retirement plan covering certain U.S. employees that has been closed to new participants since 2003 and frozen since December 2013.

The Company has a number of non-U.S. defined benefit plans covering eligible employees located predominately in Europe, the most significant of which are German plans. Benefits for these plans are based primarily on each employee's final salary, with periodic adjustments for inflation. The obligations in Germany consist of employer funded pension plans and deferred compensation plans. The employer funded pension plans are based upon direct performance-related commitments in terms of defined contribution plans. Each beneficiary receives, depending on individual pay-scale grouping, contractual classification, or income level, different yearly contributions. The contribution is multiplied by an age factor appropriate to the respective pension plan and credited to the individual retirement account of the employee. The retirement accounts may be used up at retirement by either a one-time lump-sum payout or payments of up to ten years.

The Company has other defined benefit plans outside the U.S., which have not been mentioned here due to materiality.

Supplemental Executive Retirement Benefits. The Company has non-qualified pension plans in the U.S. to provide supplemental retirement benefits to certain officers, which have also been frozen since December 2013. Benefits are payable at retirement based upon a percentage of the participant’s compensation, as defined.

Other Benefits. In addition to providing retirement benefits, the Company provides post-retirement healthcare and life insurance benefits (referred to as other benefits) for certain retired employees. Retired eligible employees in the U.S. may be entitled to these benefits based upon years of service with the Company, age at retirement and collective bargaining agreements. There are no plan assets and the Company funds the benefits as the claims are paid. The post-retirement benefit obligation was determined by application of the terms of medical and life insurance plans together with relevant actuarial assumptions and healthcare cost trend rates.

Changes in Policies. Upon emergence from the Restructuring Proceedings, the Company has elected to make the following policy changes for its benefit plans:

•Increasing the gain/loss amortization corridor from 5 percent to 10 percent, which will reduce future gain/loss amortization volatility.

•For the U.S. defined benefit pension plans, the company has elected to value assets using the fair market value of assets. This method aligns with the assumptions previously utilized by the Company's non-US. defined benefit plans.

The following tables set forth the net periodic benefit cost for the Company’s U.S. defined benefit pension plans:

	Successor		Predecessor
	Period from		Period from		Three months ended
	08/12/2023 through 09/30/2023		07/01/2023 through 08/11/2023		September 30, 2022
Components of net periodic benefit cost
Interest cost	$	2.7	$	2.2	$	4.5
Expected return on plan assets	(2.1)		(2.0)		(4.3)
Recognized net actuarial loss	—		—		0.2
Settlement loss recognized	—		—		14.3
Net periodic pension benefit cost	$	0.6	$	0.2	$	14.7

	Successor		Predecessor
	Period from		Period from		Nine months ended
	08/12/2023 through 09/30/2023		01/01/2023 through 08/11/2023		September 30, 2022
Components of net periodic benefit cost
Interest cost	$	2.7	$	11.9	$	13.0
Expected return on plan assets	(2.1)		(11.0)		(15.9)
Recognized net actuarial loss	—		0.4		3.3
Settlement loss recognized	—		—		14.3
Net periodic pension benefit cost	$	0.6	$	1.3	$	14.7

The following tables set forth the net periodic benefit cost for the Company’s Non-U.S. defined benefit pension plans:

	Successor		Predecessor
	Period from		Period from		Three months ended
	08/12/2023 through 09/30/2023		07/01/2023 through 08/11/2023		September 30, 2022
Components of net periodic benefit cost
Service cost	$	1.0	$	0.8	$	2.4
Interest cost	1.6		1.5		1.1
Expected return on plan assets	(2.0)		(1.7)		(3.8)
Recognized net actuarial gain	—		(0.5)		(0.4)
Amortization of prior service cost	—		(0.1)		(0.1)
Settlement gain recognized	—		(2.1)		—
Net periodic pension benefit cost	$	0.6	$	(2.1)	$	(0.8)

	Successor		Predecessor
	Period from		Period from		Nine months ended
	08/12/2023 through 09/30/2023		01/01/2023 through 08/11/2023		September 30, 2022
Components of net periodic benefit cost
Service cost	$	1.0	$	3.9	$	7.1
Interest cost	1.6		7.2		3.3
Expected return on plan assets	(2.0)		(8.4)		(11.6)
Recognized net actuarial gain	—		(2.3)		(1.3)
Amortization of prior service cost	—		(0.5)		(0.3)
Settlement gain recognized	—		(2.1)		—
Net periodic pension benefit cost	$	0.6	$	(2.2)	$	(2.8)

The following tables set forth the net periodic benefit cost for the Company’s other benefit plans during the period:

	Successor		Predecessor
	Period from		Period from		Three months ended
	08/12/2023 through 09/30/2023		07/01/2023 through 08/11/2023		September 30, 2022
Components of net periodic benefit cost
Interest cost	$	—	$	0.1	$	0.1
Recognized net actuarial gain	—		(0.1)		(0.1)
Net periodic pension benefit cost	$	—	$	—	$	—

	Successor		Predecessor
	Period from		Period from		Nine months ended
	08/12/2023 through 09/30/2023		01/01/2023 through 08/11/2023		September 30, 2022
Components of net periodic benefit cost
Interest cost	$	—	$	0.2	$	0.2
Recognized net actuarial gain	—		(0.3)		(0.3)
Net periodic pension benefit cost	$	—	$	(0.1)	$	(0.1)

The following table represents the weighted-average assumptions used to determine net periodic benefit cost:

	Successor			Predecessor
	September 30, 2023			December 31, 2022
	U.S. Plans	Non-U.S. Plans	Other Benefits	U.S. Plans	Non-U.S. Plans	Other Benefits
Discount rate	3.16%	2.38%	6.83%	2.99%	2.39%	4.22%
Expected long-term return on plan assets	5.25%	3.75%	N/A	5.25%	3.30%	N/A
Rate of compensation increase	N/A	3.88%	N/A	N/A	3.89%	N/A

Contributions and Reimbursements

For the Predecessor Periods from January 1, 2023 through August 11, 2023 and the nine months ended September 30, 2022, there were contributions of $23.3 and $27.6, respectively, made to the qualified and non-qualified pension plans. For the Successor Period from August 12, 2023 through September 30, 2023, contributions of $1.6 were made to the qualified and non-qualified pension plans.

The Company received reimbursements of $22.8 and $17.0 for certain benefits paid from its German plan trustee during March 2023 and May 2022, respectively. Both reimbursements were received by the Predecessor.