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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Defined Benefit Plan
We have a defined benefit pension plan which is frozen, that covers certain U.S. hourly and salary employees (the “Chart Plan”). The defined benefit plan provides benefits based primarily on the participants’ years of service and compensation. The Retirement Plan for Union Employees of Smithco Engineering Inc. (the “Hudson Plan”) merged into the Chart Plan as of February 28, 2021 (the “Hudson Plan merger”).
The components of net periodic pension (income) expense are as follows:
 Year Ended December 31,
 202120202019
Interest cost$1.7 $1.8 $2.2 
Expected return on plan assets(3.8)(3.3)(2.9)
Amortization of net loss1.0 1.2 1.3 
Total net periodic pension (income) expense$(1.1)$(0.3)$0.6 
The changes in the projected benefit obligation and plan assets, the funded status of the plans and the amounts recognized in the consolidated balance sheets are as follows:
 
December 31,
20212020
Change in projected benefit obligation:
Projected benefit obligation at beginning of year$62.5 $58.5 
Interest cost1.7 1.8 
Assumption changes(1.9)5.2 
Acquisition of Hudson Plan (1)
3.1 — 
Benefits paid(2.8)(2.7)
Actuarial losses (gains)0.9 (0.3)
Projected benefit obligation at year end63.5 62.5 
Change in plan assets:
Fair value of plan assets at beginning of year53.9 49.1 
Actual return 8.3 6.4 
Acquisition of Hudson Plan (1)
2.4 — 
Employer contributions0.1 1.1 
Benefits paid(2.8)(2.7)
Fair value of plan assets at year end61.9 53.9 
Funded status (Accrued pension liabilities)$(1.6)$(8.6)
Unrecognized actuarial loss recognized in accumulated other comprehensive income (loss)$8.0 $14.9 
_______________
(1)The 2021 changes in the projected benefit obligation and plan assets reflect the effect of the Hudson Plan merger. The Hudson Plan accrued pension liability as of December 31, 2020 is not included in the table above. At December 31, 2020, the projected benefit obligation of the Hudson Plan was $2.9 while the fair value of plan assets was $2.0. Consequently, at December 31, 2020, a liability of $1.0, was included in accrued pension liabilities on the consolidated balance sheets for the underfunded status of the Hudson Plan. Pension expense relative to the Hudson Plan in 2020 was not significant.
The estimated net periodic pension income for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss over the next fiscal year is $2.1.
The actuarial assumptions used in determining pension plan information are as follows: 
 December 31,
 202120202019
Assumptions used to determine benefit obligation at year end:
  Discount rate2.7 %2.4 %3.2 %
Assumptions used to determine net periodic benefit cost:
  Discount rate2.4 %3.2 %4.2 %
  Expected long-term weighted-average rate of return on plan assets7.0 %7.0 %7.0 %
The discount rate reflects the current rate at which the pension liabilities could be effectively settled at year end. In estimating this rate, we look to rates of return on high quality, fixed-income investments that receive one of the two highest ratings given by a recognized rating agency and the expected timing of benefit payments under the plan.
The expected return assumptions were developed using an averaging formula based upon the plans’ investment guidelines, mix of asset classes, historical returns of equities and bonds, and expected future returns. We employ a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan
assets for a prudent level of risk. Risk tolerance is established through careful consideration of short and long-term plan liabilities, plan funded status and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed-income investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value, and small and large capitalizations. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews, annual liability measurements, and periodic asset/liability studies.
The target allocations by asset category and fair values of the plan assets by asset class at December 31 are as follows:
Target Allocations by Asset CategoryFair Value
TotalLevel 2Level 3
Plan Assets:202120202021202020212020
Equity funds
68%
$43.9 $38.9 $43.9 $38.9 $— $— 
Fixed income funds
26%
16.0 13.2 16.0 13.2 — — 
Other investments
6%
2.0 1.8 — — 2.0 1.8 
Total$61.9 $53.9 $59.9 $52.1 $2.0 $1.8 
The plan assets are primarily invested in pooled separate funds. The fair values of equity securities and fixed income securities held in pooled separate funds are based on net asset value of the units of the funds as determined by the fund manager. These funds are similar in nature to retail mutual funds, but are typically more efficient for institutional investors. The fair value of pooled funds is determined by the value of the underlying assets held by the fund and the units outstanding. The value of the pooled funds is not directly observable, but is based on observable inputs. As such, these plan assets are valued using Level 2 inputs. Certain plan assets in the other investments asset category are invested in a general investment account where the fair value is derived from the liquidation value based on an actuarial formula as defined under terms of the investment contract. These plan assets were valued using unobservable inputs and, accordingly, the valuation was performed using Level 3 inputs.
The following table represents changes in the fair value of plan assets categorized as Level 3 from the preceding table:
Balance at December 31, 2019$0.3 
Purchases, sales and settlements, net(3.0)
Transfers, net4.5 
Balance at December 31, 20201.8 
Purchases, sales and settlements, net(3.0)
Transfers, net3.2 
Balance at December 31, 2021$2.0 
Our funding policy is to contribute at least the minimum funding amounts required by law. Based upon current actuarial estimates, we do not expect to contribute to our defined benefit pension plan until 2025. The following benefit payments are expected to be paid by the plan in each of the next five years and in the aggregate for the subsequent five years:
2022$3.3 
20233.4 
20243.5 
20253.5 
20263.6 
In aggregate during five years thereafter17.9 
Multi-Employer Plan
We contribute to a multi-employer plan for certain collective bargaining U.S. employees. The risks of participating in this multi-employer plan are different from a single employer plan in the following aspects:
(a)    Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.
(b)    If a participating employer ceases contributing to the plan, the unfunded obligations of the plan may be inherited by the remaining participating employers.
(c)    If we choose to stop participating in the multi-employer plan, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
We have assessed and determined that the multi-employer plan to which we contribute is not significant to our financial statements. We do not expect to incur a withdrawal liability or expect to significantly increase our contribution over the remainder of the current contract period, which ends in February 2023. We made contributions to the bargaining unit supported multi-employer pension plan resulting in expense of $0.5 for the years ended December 31, 2021, 2020 and 2019.
Defined Contribution Savings Plan
We have a defined contribution savings plan that covers most of our U.S. employees. Company contributions to the plan are based on employee contributions, and include a Company match and discretionary contributions. Expenses under the plan totaled $5.7, $4.9, and $8.7 for the years ended December 31, 2021, 2020 and 2019, respectively.
Voluntary Deferred Income Plan
We provide additional retirement plan benefits to certain members of management under the Amended and Restated Chart Industries, Inc. Voluntary Deferred Income Plan. This is an unfunded plan. We recorded $0.1, $0.3, and $0.3 of expense associated with this plan for the years ended December 31, 2021, 2020 and 2019, respectively.