Pension and Postretirement Benefits

6 Months Ended

Jun. 30, 2022

Retirement Benefits [Abstract]

Pension and Postretirement Benefits

9.Pension and Postretirement Benefits

During the six months ended June 30, 2022, the Company amended its qualified pension plan and provided an enhanced benefit for eligible hourly active participants who retire subsequent to April 30, 2022. The amendment required a pension remeasurement. The Company elected the use of a practical expedient to perform the pension remeasurement as of February 28, 2022, the month-end closest to the approval of the plan amendment. The discount rate for the remeasurement was 3.75% compared with 3.23% prior to the remeasurement. The enhanced benefit and remeasurement resulted in higher pension expense for the year compared with the initial estimate of the annual pension expense for the qualified plan.

The estimated components of the recorded net periodic benefit cost (credit) for pension and postretirement benefits are as follows:

	Pension						Postretirement Benefits
	Three Months Ended June 30,
	2022			2021			2022			2021
	(Dollars in Millions)
Service cost	$	14.0		$	10.6		$	—		$	—
Interest cost		11.9			8.3			0.1			0.1
Expected return on assets		(22.5	)		(16.3	)		—			—
Amortization of:
Prior service cost (credit)		1.4			0.3			(0.2	)		(0.2	)
Actuarial loss (gain)		1.2			2.8			(0.1	)		—
Net periodic benefit cost (credit)	$	6.0		$	5.7		$	(0.2	)	$	(0.1	)

	Pension						Postretirement Benefits
	Six Months Ended June 30,
	2022			2021			2022			2021
	(Dollars in Millions)
Service cost	$	24.0		$	23.0		$	—		$	—
Interest cost		20.6			17.7			0.2			0.2
Expected return on assets		(38.7	)		(35.1	)		—			—
Amortization of:
Prior service cost (credit)		2.5			0.4			(0.4	)		(0.4	)
Actuarial loss (gain)		2.0			6.2			(0.1	)		(0.1	)
Net periodic benefit cost (credit)	$	10.4		$	12.2		$	(0.3	)	$	(0.3	)

The service cost component of net periodic benefit (credit) cost is included in Cost of revenues – products and services and Selling, general & administrative expenses. All other components are included in Other nonoperating income, net, in the consolidated statements of earnings and comprehensive earnings.