Employee Benefits

9 Months Ended

Sep. 30, 2022

Retirement Benefits [Abstract]

Employee Benefits

3. Employee Benefits

Deferred Compensation Plan

Assets of our deferred compensation plan are included in Other assets, classified within Level 1 of the fair value hierarchy and are measured and recorded at fair value based on their quoted market prices. The fair value of these assets at September 30, 2022 and December 31, 2021 was $9.6 million and $10.5 million, respectively. The assets in the trust are held in various investment funds at certain registered investment companies and are accounted for as equity investments with changes in fair value recorded within

Other income (expense), net (see Note 8). Offsetting liabilities relating to the deferred compensation plan are included in Other accrued liabilities and Long-term liabilities.

Short-Term Incentive Plans (“STI Plans”)

As of September 30, 2022, we had a liability of $4.7 million recorded within Accrued salaries, wages and related expenses for estimated probable future payments relating to the nine month performance period of our 2022 STI Plan.

Postretirement Benefit Plans

The following table presents the total expense (benefit) related to all postretirement benefit plans (in millions of dollars):

	Quarter Ended September 30,					Nine Months Ended September 30,
	2022			2021		2022			2021
Defined contribution plans1	$	3.9		$	3.4	$	13.6		$	10.4
Deferred compensation plan2		(0.1	)		0.2		(0.9	)		0.6
Multiemployer pension plans1		1.3			1.3		3.9			3.7
Salaried VEBA2		0.9			0.6		2.8			1.7
Pension plans3		1.3			1.4		4.0			2.9
OPEB3		0.9			0.9		2.8			1.9
Total	$	8.2		$	7.8	$	26.2		$	21.2

1Substantially all of the expense related to employee benefits are in Cost of products sold, excluding depreciation and amortization and other items (“Cost of products sold” or “COGS”) with the remaining balance in Selling, general, administrative, research and development (“SG&A and R&D”).

2The deferred compensation plan and the current service cost component of Net periodic postretirement benefit cost relating to the voluntary employees’ beneficiary association that provides benefits for certain eligible retirees and their surviving spouses and eligible dependents (“Salaried VEBA”) are included within our Statements of Consolidated Income (Loss) in SG&A and R&D for all periods presented. All other components of Net periodic postretirement benefit cost relating to Salaried VEBA are included within Other income (expense), net, on our Statements of Consolidated Income (Loss).

3The current service cost component of Net periodic postretirement benefit cost relating to both the pension plans and the healthcare and life insurance postretirement benefit plan (“OPEB”) are included within our Statements of Consolidated Income (Loss) in COGS for all periods presented. All other components of Net periodic postretirement benefit cost relating to both the pension plans and the OPEB are included within Other income (expense), net, on our Statements of Consolidated Income (Loss).

Components of Net Periodic Postretirement Benefit Cost. Our results of operations included the following impacts associated with the Salaried VEBA, pension plans and OPEB: (i) a charge for service rendered by employees; (ii) a charge for accretion of interest; (iii) a benefit for the expected return on plan assets; (iv) amortization of prior service costs associated with plan amendments; and (v) amortization of net actuarial differences.

The following table presents the components of Net periodic postretirement benefit cost (in millions of dollars):

	Pension Plans						OPEB				Salaried VEBA
	Quarter Ended September 30,						Quarter Ended September 30,				Quarter Ended September 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	1.5		$	1.4		$	0.4	$	0.3	$	—		$	—
Interest cost		0.1			0.1			0.5		0.6		0.5			0.4
Expected return on plan assets		(0.3	)		(0.1	)		—		—		(0.8	)		(0.8	)
Amortization of prior service cost1		—			—			—		—		1.2			0.9
Amortization of net actuarial loss		—			—			—		—		—			0.1
Total net periodic postretirement benefit cost	$	1.3		$	1.4		$	0.9	$	0.9	$	0.9		$	0.6

	Pension Plans2						OPEB2				Salaried VEBA
	Nine Months Ended September 30,						Nine Months Ended September 30,				Nine Months Ended September 30,
	2022			2021			2022		2021		2022			2021
Service cost	$	4.3		$	2.8		$	1.2	$	0.7	$	—		$	—
Interest cost		0.4			0.3			1.6		1.2		1.4			1.2
Expected return on plan assets		(0.7	)		(0.3	)		—		—		(2.3	)		(2.4	)
Amortization of prior service cost1		—			—			—		—		3.7			2.6
Amortization of net actuarial loss		—			0.1			—		—		—			0.3
Total net periodic postretirement benefit cost	$	4.0		$	2.9		$	2.8	$	1.9	$	2.8		$	1.7

1We amortize prior service cost on a straight-line basis over the average remaining years of service to full eligibility for benefits of the active plan participants.

2Net periodic benefit cost for the U.S. pension plan and the OPEB was not included in our Statements of Consolidated Income (Loss) until the March 31, 2021 acquisition date of our Warrick County, Indiana (“Warrick”) facility.