EMPLOYEE BENEFIT PLANS

DEFINED BENEFIT RETIREMENT AND OTHER POST-RETIREMENT BENEFIT PLANS

We have a noncontributory, tax-qualified defined benefit pension plan (qualified pension plan) for our eligible employees. The qualified pension plan is closed to employees hired after December 31, 2007. Employees hired prior to January 1, 2008 continue to participate in the qualified pension plan. Employees hired or rehired after December 31, 2007 cannot participate in the qualified pension plan but are participants in the Money Purchase Pension (MPP) plan discussed below. We also have non-qualified, non-contributory defined benefit retirement plans which cover certain former employees, non-employee directors or surviving spouses.

Our policy is to fund amounts on an actuarial basis to provide assets sufficient to meet benefit payments to be paid to plan participants. We contributed $10.0 million to the qualified pension plan and $0.1 million to the non-qualified pension plans during each of the two months ended December 31, 2016 and 2015.

We provide certain postretirement health care and life insurance benefits to eligible retirees. Employees are eligible for these benefits if they have met age and service requirements at retirement, as set forth in the plan. Effective January 1, 2016, we replaced the existing retiree medical and dental group coverage for eligible retirees with a tax-free Health Reimbursement Arrangement (HRA). Under the HRA, participating eligible retirees and their dependents may qualify for a subsidy each year through the HRA account to help purchase medical and dental coverage available on public and private health care exchanges using a tax-advantaged account funded by us to pay for allowable medical and dental expenses.

Net periodic benefit costs disclosed in the table below represents the cost of the respective benefit plans for the periods presented. However, portions of the net periodic benefit costs disclosed in the table below have been capitalized as a component of property, plant and equipment.

The following table includes the components of net periodic benefit cost components for the two months ended December 31, 2016 and 2015.



	Qualified Pension							Nonqualified Pension				Other Benefits
(in millions)	2016				2015			2016		2015		2016			2015
Service cost	$	2.0			$	1.8		$	—	$	—	$	0.2		$	0.2
Interest cost	2.1				1.6			—		—		0.2			0.2
Expected return on plan assets	(3.8		)		(4.0		)	—		—		(0.3		)	(0.3		)
Amortization of prior service (credit) cost	(0.4		)		(0.3		)	—		0.1		—			(0.1		)
Amortization of net loss	1.9				1.4			—		—		0.1			0.1
Settlement loss recognized	2.5			⁽¹⁾	—			—		—		—			—
Other	0.1				—			—		—		—			—
Net periodic benefit cost	$	4.4			$	0.5		$	—	$	0.1	$	0.2		$	0.1

⁽¹⁾ Settlement loss is a result of lump sum distributions related to severance activities exceeding periodic service and interest costs in the two months ended December 31, 2016. This settlement loss is included in costs to achieve expenses in Note 2.

In the current period, we changed the year end of our benefit plans from October 31 to December 31. As a result of this change, we re-measured our plans as of December 31, 2016, including updating the discount rate from 3.80% at October 31, 2016 to 4.10% at December 31, 2016. This change in discount rate decreased our total net benefit obligation of our plans at December 31, 2016 by $9.7 million to $11.7 million.

We anticipate that we will contribute the following amounts to our plans during the twelve month period ending December 31, 2017.



(in millions)
Qualified pension plan	$	11.0
Nonqualified pension plans	0.5
OPEB plan	2.2

EMPLOYEE SAVINGS PLAN

We maintain a 401(k) plan where employees who have met minimum service requirements may defer a portion of their base salary and cash incentive payments to the plan, and we match a portion of their contributions. Employee contributions vest immediately, and company contributions vest after six months of service. Employees receive a company match of 100% up to the first 5% of eligible pay contributed. Our 401(k) matching contributions were $1.3 million during each of the two months ended December 31, 2016 and 2015.

The MPP is a defined contribution pension plan that allows the employee to direct the investments and assume the risk of investment returns. Under the MPP plan, we annually deposit a percentage of each participant’s pay into an account of the MPP plan. This contribution equals 4% of the participant’s compensation plus an additional 4% of compensation above the social security wage base up to the Internal Revenue Service (IRS) compensation limit. The participant is vested in this plan after three years of service. We did not make any contributions to the MPP plan during either of the two months ended December 31, 2016 and 2015. In January 2017, we contributed $2.2 million to the MPP plan.

OTHER

We have a non-qualified defined contribution restoration plan for certain officers at the vice president level and above where benefits payable under the plan are informally funded annually through a rabbi trust with a bank as the trustee. We contributed $0.4 million and $0.5 million to this plan during the two months ended December 31, 2016 and 2015, respectively.