Benefit Plans (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
Retirement Benefits [Abstract] |
|
Liability Under Executive Benefit Plans |
The liability under these two deferral plans was as follows: | | | | | | | | | | | | | | | (in thousands) | | December 31, 2021 | | December 31, 2020 | Current liabilities | | $ | 10,111 | | | $ | 11,132 | | Noncurrent liabilities | | 84,664 | | | 80,890 | | Total liability - Supplemental Savings Incentive Plan and Director Deferral Plan | | $ | 94,775 | | | $ | 92,022 | | The liability under this plan was as follows: | | | | | | | | | | | | | | | (in thousands) | | December 31, 2021 | | December 31, 2020 | Current liabilities | | $ | 178 | | | $ | 137 | | Noncurrent liabilities | | 6,815 | | | 4,728 | | Total liability - Long-Term Retention Plan | | $ | 6,993 | | | $ | 4,865 | | The liability under this plan was as follows: | | | | | | | | | | | | | | | (in thousands) | | December 31, 2021 | | December 31, 2020 | Current liabilities | | $ | 4,036 | | | $ | 4,176 | | Noncurrent liabilities | | 37,008 | | | 38,605 | | Total liability - Officer Retention Plan | | $ | 41,044 | | | $ | 42,781 | | The liability under this plan was as follows: | | | | | | | | | | | | | | | (in thousands) | | December 31, 2021 | | December 31, 2020 | Current liabilities | | $ | 8,247 | | | $ | 8,515 | | Noncurrent liabilities | | 7,675 | | | 7,866 | | Total liability - Long-Term Performance Plan | | $ | 15,922 | | | $ | 16,381 | |
|
Changes in Projected Benefit Obligation |
The following tables set forth pertinent information for the two Company-sponsored pension plans:
| | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2021 | | 2020 | Beginning balance - projected benefit obligation | | $ | 368,245 | | | $ | 332,304 | | Service cost | | 7,529 | | | 6,331 | | Interest cost | | 9,846 | | | 10,957 | | Actuarial (gain) loss | | (12,735) | | | 31,300 | | Benefits paid | | (13,410) | | | (12,647) | | Ending balance - projected benefit obligation | | $ | 359,475 | | | $ | 368,245 | |
|
Change in Plan Assets |
Change in Plan Assets
| | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2021 | | 2020 | Beginning balance - plan assets at fair value | | $ | 319,699 | | | $ | 276,699 | | Actual return on plan assets | | 16,427 | | | 40,680 | | Employer contributions | | 6,800 | | | 16,250 | | Benefits and expenses paid | | (14,676) | | | (13,930) | | Ending balance - plan assets at fair value | | $ | 328,250 | | | $ | 319,699 | |
|
Funded Status |
Funded Status
| | | | | | | | | | | | | | | (in thousands) | | December 31, 2021 | | December 31, 2020 | Projected benefit obligation | | $ | (359,475) | | | $ | (368,245) | | Plan assets at fair value | | 328,250 | | | 319,699 | | Net funded status | | $ | (31,225) | | | $ | (48,546) | |
|
Amounts Recognized in the Consolidated Balance Sheet |
Amounts Recognized in the Consolidated Balance Sheets
| | | | | | | | | | | | | | | (in thousands) | | December 31, 2021 | | December 31, 2020 | Current liabilities | | $ | — | | | $ | — | | Noncurrent liabilities | | (31,225) | | | (48,546) | | Total liability - pension plans | | $ | (31,225) | | | $ | (48,546) | |
|
Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
Net Periodic Pension Cost
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2021 | | 2020 | | 2019 | Service cost | | $ | 7,529 | | | $ | 6,331 | | | $ | 4,853 | | Interest cost | | 9,846 | | | 10,957 | | | 12,299 | | Expected return on plan assets | | (13,000) | | | (13,617) | | | (10,290) | | Recognized net actuarial loss | | 4,954 | | | 4,619 | | | 3,688 | | Amortization of prior service cost | | 3 | | | 19 | | | 22 | | Net periodic pension cost | | $ | 9,332 | | | $ | 8,309 | | | $ | 10,572 | |
Net Periodic Postretirement Benefit Cost
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2021 | | 2020 | | 2019 | Service cost | | $ | 1,516 | | | $ | 1,454 | | | $ | 1,496 | | Interest cost | | 1,772 | | | 2,031 | | | 2,750 | | Recognized net actuarial loss | | 682 | | | 383 | | | 730 | | Amortization of prior service cost | | — | | | — | | | (1,293) | | Net periodic postretirement benefit cost | | $ | 3,970 | | | $ | 3,868 | | | $ | 3,683 | |
|
Significant Assumptions |
Significant Assumptions
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | | | 2021 | | 2020 | | 2019 | Projected benefit obligation at the measurement date: | | | | | | | Discount rate - Primary Plan | | 2.97 | % | | 2.66 | % | | 3.36 | % | Discount rate - Bargaining Plan | | 3.31 | % | | 3.12 | % | | 3.61 | % | Weighted average rate of compensation increase | | N/A | | N/A | | N/A | Net periodic pension cost for the fiscal year: | | | | | | | Discount rate - Primary Plan | | 2.66 | % | | 3.36 | % | | 4.47 | % | Discount rate - Bargaining Plan | | 3.12 | % | | 3.61 | % | | 4.63 | % | Weighted average expected long-term rate of return of plan assets - Primary Plan(1) | | 4.75 | % | | 5.50 | % | | 5.00 | % | Weighted average expected long-term rate of return of plan assets - Bargaining Plan(1) | | 5.75 | % | | 6.25 | % | | 5.25 | % | Weighted average rate of compensation increase | | N/A | | N/A | | N/A |
(1)The weighted average expected long-term rate of return assumption for the pension plan assets, which was used to compute net periodic pension cost, is based upon target asset allocation and is determined using forward-looking performance and duration assumptions set at the beginning of each fiscal year.
|
Anticipated Future Pension and Postretirement Benefit Payments |
Cash Flows
| | | | | | | | | (in thousands) | | Anticipated Future Pension Benefit Payments for the Fiscal Years | 2022 | | $ | 14,276 | | 2023 | | 15,111 | | 2024 | | 15,731 | | 2025 | | 16,474 | | 2026 | | 17,090 | | 2027 - 2031 | | 92,221 | |
Cash Flows
| | | | | | | | | (in thousands) | | Anticipated Future Postretirement Benefit Payments Reflecting Expected Future Service | 2022 | | $ | 2,990 | | 2023 | | 3,114 | | 2024 | | 3,321 | | 2025 | | 3,399 | | 2026 | | 3,629 | | 2027 - 2031 | | 20,356 | |
|
Target Asset Allocation, Actual Asset Allocation, and Weighted Average Expected Long-Term Rate of Return and Summary of Pension Plan Assets |
The Company’s pension plans target asset allocation for 2022, actual asset allocation at December 31, 2021 and December 31, 2020, and the weighted average expected long-term rate of return by asset category for the Primary Plan were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Percentage of Plan Assets at Fiscal Year-End | | Target Allocation | | Weighted Average Expected Long-Term Rate of Return | | | 2021 | | 2020 | | 2022 | | 2022 | U.S. debt securities | | 87 | % | | 58 | % | | 98 | % | | 2.94 | % | U.S. equity securities | | — | % | | 24 | % | | — | % | | — | % | International debt securities | | 10 | % | | 8 | % | | — | % | | — | % | International equity securities | | — | % | | 8 | % | | — | % | | — | % | Cash and cash equivalents | | 3 | % | | 2 | % | | 2 | % | | 0.06 | % | Total | | 100 | % | | 100 | % | | 100 | % | | 3.00 | % |
The Company’s pension plans target asset allocation for 2022, actual asset allocation at December 31, 2021 and December 31, 2020, and the weighted average expected long-term rate of return by asset category for the Bargaining Plan were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | Percentage of Plan Assets at Fiscal Year-End | | Target Allocation | | Weighted Average Expected Long-Term Rate of Return | | | 2021 | | 2020 | | 2022 | | 2022 | U.S. debt securities | | 46 | % | | 46 | % | | 41 | % | | 2.26 | % | U.S. equity securities | | 40 | % | | 39 | % | | 47 | % | | 2.59 | % | International debt securities | | 2 | % | | 2 | % | | — | % | | — | % | International equity securities | | 11 | % | | 12 | % | | 11 | % | | 0.59 | % | Cash and cash equivalents | | 1 | % | | 1 | % | | 1 | % | | 0.06 | % | Total | | 100 | % | | 100 | % | | 100 | % | | 5.50 | % |
The following table summarizes the Company’s pension plan assets, which are classified as Level 1 and Level 2 for fair value measurement. The Company does not have any Level 3 pension plan assets. See Note 15 for additional information.
| | | | | | | | | | | | | | | (in thousands) | | December 31, 2021 | | December 31, 2020 | Pension plan assets - fixed income | | $ | 300,670 | | | $ | 205,812 | | Pension plan assets - equity securities | | 18,867 | | | 106,424 | | Pension plan assets - cash and cash equivalents | | 8,713 | | | 7,463 | | Total pension plan assets | | $ | 328,250 | | | $ | 319,699 | |
|
Reconciliation of Activity in Postretirement Benefit Plan |
The following tables set forth pertinent information for the Company’s postretirement benefit plan:
Reconciliation of Activity
| | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2021 | | 2020 | Benefit obligation at beginning of year | | $ | 67,665 | | | $ | 62,056 | | Service cost | | 1,516 | | | 1,454 | | Interest cost | | 1,772 | | | 2,031 | | Plan participants’ contributions | | 930 | | | 753 | | Actuarial (gain) loss | | (3,414) | | | 4,555 | | Benefits paid | | (3,313) | | | (3,184) | | Benefit obligation at end of year | | $ | 65,156 | | | $ | 67,665 | |
|
Reconciliation of Plan Assets Fair Value in Postretirement Benefit Plan |
Reconciliation of Plan Assets Fair Value
| | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2021 | | 2020 | Fair value of plan assets at beginning of year | | $ | — | | | $ | — | | Employer contributions | | 2,383 | | | 2,431 | | Plan participants’ contributions | | 930 | | | 753 | | Benefits paid | | (3,313) | | | (3,184) | | Fair value of plan assets at end of year | | $ | — | | | $ | — | |
|
Funded Status in Postretirement Benefit Plan |
Funded Status
| | | | | | | | | | | | | | | (in thousands) | | December 31, 2021 | | December 31, 2020 | Current liabilities | | $ | (2,990) | | | $ | (2,886) | | Noncurrent liabilities | | (62,166) | | | (64,779) | | Total liability - postretirement benefits | | $ | (65,156) | | | $ | (67,665) | |
|
Significant Assumptions |
Significant Assumptions
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | | | 2021 | | 2020 | | 2019 | Benefit obligation discount rate at measurement date | | 2.98 | % | | 2.70 | % | | 3.32 | % | Net periodic postretirement benefit cost discount rate for fiscal year | | 2.70 | % | | 3.32 | % | | 4.41 | % | | | | | | | | Postretirement benefit expense - Pre-Medicare: | | | | | | | Weighted average healthcare cost trend rate | | 6.26 | % | | 6.53 | % | | 7.13 | % | Trend rate graded down to ultimate rate | | 4.50 | % | | 4.50 | % | | 4.50 | % | Ultimate rate year | | 2029 | | 2028 | | 2026 | | | | | | | | Postretirement benefit expense - Post-Medicare: | | | | | | | Weighted average healthcare cost trend rate | | 6.54 | % | | 6.73 | % | | 7.11 | % | Trend rate graded down to ultimate rate | | 4.50 | % | | 4.50 | % | | 4.50 | % | Ultimate rate year | | 2029 | | 2028 | | 2026 |
|
Reconciliation of Amounts in Accumulated Other Comprehensive Loss That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost |
A reconciliation of the amounts in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | December 31, 2020 | | Actuarial Loss | | Reclassification Adjustments | | December 31, 2021 | Pension Plans: | | | | | | | | | Actuarial loss | | $ | (147,664) | | | $ | 14,897 | | | $ | 4,954 | | | $ | (127,813) | | Prior service costs | | (7) | | | — | | | 3 | | | (4) | | Postretirement Benefits: | | | | | | | | | Actuarial loss | | (13,908) | | | 3,414 | | | 682 | | | (9,812) | | Total within accumulated other comprehensive loss | | $ | (161,579) | | | $ | 18,311 | | | $ | 5,639 | | | $ | (137,629) | |
|
Multiemployer Plans |
The Company’s participation in the Teamsters Plan is outlined in the table below. A red zone represents less than 80% funding and requires a financial improvement plan (“FIP”) or rehabilitation plan (“RP”).
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2021 | | 2020 | | 2019 | Pension Protection Act Zone Status | | Red | | Red | | Red | FIP or RP pending or implemented | | Yes | | Yes | | Yes | Surcharge imposed | | Yes | | Yes | | Yes | Contribution | | $ | 933 | | | $ | 924 | | | $ | 987 | |
|