PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS

3 Months Ended

Mar. 31, 2022

Retirement Benefits [Abstract]

PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS

PENSION PLAN AND OTHER POSTRETIREMENT BENEFITS

Prior to January 1, 2021, substantially all of the Company’s employees were covered by the defined benefit pension, a cash balance plan that provided benefits based upon a fixed percentage of an employee’s annual compensation. As part of an ongoing effort to reduce costs, the Company elected to freeze its pension plan effective January 1, 2021. Employees that were participants in the pension plan prior to January 1, 2021 continued to receive the interest component of the plan but no longer received the service component. On September 13, 2021, the Compensation Committee of the Board of Directors approved terminating the Company’s pension plan, effective December 31, 2021, subject to approval by the Internal Revenue Service. This decision, among other benefits, will provide plan participants quicker access to, and greater flexibility in, the management of participants’ respective benefits due under the plan.

The Company has commenced the pension plan termination process, but the specific date for the completion of the process is unknown at this time and will depend on certain legal and regulatory requirements or approvals. As part of the termination process, the Company expects to distribute lump sum payments to or purchase annuities for the benefit of plan participants, which is dependent on the participants’ elections.

The postretirement benefit plan provides contributory health care and life insurance benefits. Employees become eligible for these benefits if they meet age and service requirements. Generally, the benefits paid are a stated percentage of medical expenses reduced by deductibles and other coverages.

Substantially all of the Company’s employees continue to be covered by the postretirement benefit plans.  The Company accounts for its defined benefit pension and other postretirement plans by recognizing the funded status of each defined pension benefit plan and other postretirement benefit plan on the Company’s balance sheet. In the event a plan is overfunded, the Company recognizes an asset. Conversely, if a plan is underfunded, the Company recognizes a liability.

Net periodic pension costs include the following components for the three months ended March 31, 2022 and 2021:

	Consolidated Statements of Operations Classification of Net Periodic Benefit Cost	For the three months ended March 31,
(in millions)		2022		2021
Service cost	General and administrative expenses	$	—	$	—
Interest cost	Other Income (Loss), Net	1		1
Expected return on plan assets	Other Income (Loss), Net	—		(1)
Amortization of net loss	Other Income (Loss), Net	—		—
Settlement loss	Other Income (Loss), Net	—		—
Net periodic benefit cost		$	1	$	—

The Company recognized an immaterial non-cash settlement loss in the first quarter of 2022.

The Company’s other postretirement benefit plan had a net periodic benefit cost of less than $1 million for each of the three months ended March 31, 2022 and 2021.

The Company does not expect to make any additional contributions to its pension plan during 2022 or thereafter until the plan termination is completed. The Company recognized liabilities of $12 million and $13 million related to its pension and other postretirement benefits as of both March 31, 2022 and December 31, 2021.

The Company maintains a non-qualified deferred compensation supplemental retirement savings plan (“Non-Qualified Plan”) for certain key employees who may elect to defer and contribute a portion of their compensation, as permitted by the Non-Qualified Plan.  Shares of the Company’s common stock purchased under the terms of the Non-Qualified Plan are included in treasury stock and totaled 1,745 shares at March 31, 2022 and 2,035 shares at December 31, 2021.