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Pension and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits, Description [Abstract]  
Schedule of Defined Benefit Plans Disclosures
Amounts presented below are calculated based on benefit obligation and asset valuation measurement dates of December 31, 2019 and 2018:
 
Pension Benefits
 
Other Benefits
 
2019
 
2018
 
2019
 
2018
Change in benefit obligations:
 
 
 
 
 
 
 
Benefit obligations at beginning of year
$
2,210.0

 
$
2,808.0

 
$
398.2

 
$
448.5

Service cost
2.5

 
3.2

 
3.5

 
4.5

Interest cost
85.9

 
94.5

 
16.4

 
15.6

Plan participants’ contributions
—

 
—

 
24.3

 
24.7

Actuarial loss (gain)
206.5

 
(148.8
)
 
16.2

 
(23.7
)
Amendments
—

 
—

 
—

 
(11.1
)
Benefits paid
(211.3
)
 
(268.1
)
 
(53.2
)
 
(62.6
)
Annuity settlement
(615.6
)
 
(278.8
)
 
—

 
—

Termination benefits—Ashland Works
9.7

 
—

 
3.6

 
—

Medicare subsidy reimbursement received
—

 
—

 
2.1

 
2.3

Benefit obligations at end of year
$
1,687.7

 
$
2,210.0

 
$
411.1

 
$
398.2

 
 
 
 
 
 
 
 
Change in plan assets:
 

 
 

 
 

 
 

Fair value of plan assets at beginning of year
$
1,739.6

 
$
2,322.2

 
$
—

 
$
—

Actual gain (loss) on plan assets
382.5

 
(87.0
)
 
—

 
—

Employer contributions
44.8

 
51.3

 
26.8

 
35.6

Plan participants’ contributions
—

 
—

 
24.3

 
24.7

Benefits paid
(211.3
)
 
(268.1
)
 
(53.2
)
 
(62.6
)
Annuity settlement
(615.6
)
 
(278.8
)
 
—

 
—

Medicare subsidy reimbursement received
—

 
—

 
2.1

 
2.3

Fair value of plan assets at end of year
$
1,340.0

 
$
1,739.6

 
$
—

 
$
—

Funded status
$
(347.7
)
 
$
(470.4
)
 
$
(411.1
)
 
$
(398.2
)
 
 
 
 
 
 
 
 
Amounts recognized in the consolidated balance sheets:
 

 
 

 
 

 
 

Current liabilities
$
(5.4
)
 
$
(1.2
)
 
$
(35.6
)
 
$
(37.5
)
Noncurrent liabilities
(342.3
)
 
(469.2
)
 
(375.5
)
 
(360.7
)
Total
$
(347.7
)
 
$
(470.4
)
 
$
(411.1
)
 
$
(398.2
)
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive loss, before taxes:
 

 
 

 
 

 
 

Actuarial loss (gain)
$
48.5

 
$
134.1

 
$
(15.5
)
 
$
(35.4
)
Prior service cost (credit)
15.9

 
19.4

 
(69.2
)
 
(82.4
)
Total
$
64.4

 
$
153.5

 
$
(84.7
)
 
$
(117.8
)
Schedule of Assumptions Used
Assumptions used to value benefit obligations and determine pension and OPEB (income) expense are presented below:
 
Pension Benefits
 
Other Benefits
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Assumptions used to determine benefit obligations at December 31:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.29
%
 
4.22
%
 
3.54
%
 
3.33
%
 
4.27
%
 
3.59
%
Rate of compensation increase
4.00
%
 
4.00
%
 
4.00
%
 
 
 
 
 
 
Interest crediting rate
3.80
%
 
3.80
%
 
3.80
%
 
 
 
 
 
 
Subsequent year healthcare cost trend rate
 
 
 
 
 
 
6.17
%
 
6.50
%
 
6.65
%
Ultimate healthcare cost trend rate
 
 
 
 
 
 
4.50
%
 
4.50
%
 
4.50
%
Year ultimate healthcare cost trend rate begins
 
 
 
 
 
 
2025

 
2025

 
2025

 
 
 
 
 
 
 
 
 
 
 
 
Assumptions used to determine pension and OPEB (income) expense for the year ended December 31:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.14
%
 
3.69
%
 
3.93
%
 
4.27
%
 
3.59
%
 
4.04
%
Expected return on plan assets
6.75
%
 
7.00
%
 
7.25
%
 
 
 
 
 
 
Rate of compensation increase
4.00
%
 
4.00
%
 
4.00
%
 
 
 
 
 
 
Interest crediting rate
3.80
%
 
3.80
%
 
3.80
%
 
 
 
 
 
 
Schedule of Expected Benefit Payments
Estimated future benefit payments to beneficiaries are presented below:
 
Pension
Plans
 
Other
Benefits
2020
$
142.6

 
$
35.6

2021
134.7

 
34.7

2022
137.2

 
34.0

2023
125.4

 
32.1

2024
130.7

 
30.4

2025 through 2029
592.7

 
129.4
Schedule of Plan Assets
Master pension trust investments measured at fair value on a recurring basis at December 31, 2019 and 2018 are presented below, with certain assets presented by level within the fair value hierarchy. As a practical expedient, we estimate the value of common/collective trusts and equity mutual funds by using the net asset value (“NAV”) per share multiplied by the number of shares of the trust investment held as of the measurement date. If we have the ability to redeem our investment in the respective alternative investment at the NAV with no significant restrictions on the redemption at the consolidated balance sheet date, excluding equity mutual funds, we categorized the alternative investment as a reconciliation of pension investments reported in the fair value hierarchy to the master pension trust’s balance. See Note 17 for more information on the determination of fair value.
 
 
Quoted Prices
in Active
Markets for
Identical Assets
 
Significant Other
Observable Inputs
 
 
 
 
 
 
(Level 1)
 
(Level 2)
 
Total
 
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Investments in fair value hierarchy
 
 
 
 
 
 
 
 
 
 
 
 
Equity investments:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. securities
 
$
39.1

 
$
35.4

 
$
—

 
$
—

 
$
39.1

 
$
35.4

Global securities
 
—

 
—

 
140.2

 
131.4

 
140.2

 
131.4

Fixed-income investments:
 


 


 


 


 


 


High-yield U.S. securities
 
—

 
—

 
87.2

 
84.5

 
87.2

 
84.5

Other U.S. securities
 
—

 
—

 
318.2

 
700.8

 
318.2

 
700.8

Global securities
 
—

 
—

 
66.1

 
82.8

 
66.1

 
82.8

Other investments
 
—

 
—

 
79.1

 
78.0

 
79.1

 
78.0

Total pension investments in fair value hierarchy
 
$
39.1

 
$
35.4

 
$
690.8

 
$
1,077.5

 
$
729.9

 
$
1,112.9

 
 
 
 
 
 
 
 
 
 
 
 
 
Investments with fair values measured at net asset value
 
 

 
 

 
 

 
 

 
 

 
 

Common/collective trusts:
 
 
 
 
 
 
 
 
 
 
 
 
U.S. equity securities (a)
 
 
 
 
 
 
 
 
 
367.2

 
355.8

Global equity securities (a)
 
 
 
 
 
 
 
 
 
196.9

 
178.2

Global fixed-income securities (b)
 
 
 
 
 
 
 
 
 
46.0

 
92.7

Total pension assets at fair value
 
 
 
 
 
 
 
 
 
$
1,340.0

 
$
1,739.6


(a)
Investments may include common stocks, options and futures.
(b)
Investments may include investment-grade and high-yield corporate bonds, interest rate swaps, options and futures.
Schedule of Net Benefit Costs
Components of pension and OPEB (income) expense for the years 2019, 2018 and 2017 are presented below:
 
Pension Benefits
 
Other Benefits
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Components of pension and OPEB (income) expense:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
2.5

 
$
3.2

 
$
2.8

 
$
3.5

 
$
4.5

 
$
4.7

Interest cost
85.9

 
94.5

 
108.2

 
16.4

 
15.6

 
17.3

Expected return on plan assets
(109.7
)
 
(148.8
)
 
(149.9
)
 
—

 
—

 
—

Amortization of prior service cost (credit)
3.6

 
3.8

 
4.7

 
(13.2
)
 
(13.6
)
 
(58.5
)
Recognized net actuarial loss (gain):
 
 
 
 
 
 
 
 
 
 
 
Annual amortization
(7.6
)
 
16.1

 
10.5

 
(3.6
)
 
(1.3
)
 
(4.2
)
Settlement loss
26.9

 
14.5

 
—

 
—

 
—

 
—

Termination benefits—Ashland Works
9.7

 
—

 
—

 
3.6

 
—

 
—

Pension and OPEB (income) expense
$
11.3

 
$
(16.7
)
 
$
(23.7
)
 
$
6.7

 
$
5.2

 
$
(40.7
)
Schedule of Multiemployer Plans

Our participation in these multiemployer plans for the years ended December 31, 2019, 2018 and 2017, is presented below. We do not provide more than five percent of the total contributions to any multiemployer plan. Forms 5500 are not yet available for plan years ending in 2019.
Pension Fund
 
EIN/Pension Plan Number
 
Pension Protection Act Zone Status (a)
 
FIP/RP Status Pending/Implemented (b)
 
Contributions
 
Surcharge Imposed (c)
 
Expiration Date of Collective Bargaining Agreement
 
 
 
 
2019
 
2018
 
 
 
2019
 
2018
 
2017
 
 
 
 
Steelworkers Pension Trust
 
23-6648508/499
 
Green
 
Green
 
No
 
$
3.9

 
$
4.2

 
$
6.3

 
No
 
1/22/2021 to 5/14/2021 (d)
IAM National Pension Fund’s National Pension Plan
 
51-6031295/002
 
Red
 
Green
 
Yes
 
18.9

 
17.7

 
18.4

 
Yes
 
3/15/2020 to 6/15/2022 (e)
 
 
 
 
 
 
 
 
 
 
$
22.8

 
$
21.9

 
$
24.7

 
 
 
 
(a)
The most recent Pension Protection Act zone status available in 2019 and 2018 is for each plan’s year-end at December 31, 2018 and 2017, except that the IAM National Pension Fund’s National Pension Plan reflects the election by the Fund to place the Fund in Red Zone in April 2019. The plan’s actuary certifies the zone status. Generally, plans in the red zone are less than 65% funded, plans in the yellow zone are between 65% and 80% funded, and plans in the green zone are at least 80% funded. The Steelworkers Pension Trust and IAM National Pension Fund’s National Pension Plan elected funding relief under section 431(b)(8) of the Internal Revenue Code and section 304(b)(8) of the Employment Retirement Income Security Act of 1974 (ERISA). This election allows those plans’ investment losses for the plan year ended December 31, 2008, to be amortized over 29 years for funding purposes.
(b)
The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented, as defined by ERISA.
(c)
The surcharge represents an additional required contribution due as a result of the critical funding status of the plan.
(d)
We are a party to three collective bargaining agreements at our Ashland Works, Mansfield Works and at the AK Tube Walbridge plant that require contributions to the Steelworkers Pension Trust. The labor contract for approximately 100 hourly employees at the AK Tube Walbridge plant expires January 22, 2021. The labor contract for approximately 300 hourly employees at Mansfield Works expires on March 31, 2021. The labor contract for approximately 10 active hourly employees at the Ashland Works currently expires May 14, 2021.
(e)
We are a party to three collective bargaining agreements at our Butler Works, Middletown Works and Zanesville Works that require contributions to the IAM National Pension Fund’s National Pension Plan. The labor contract for approximately 1,750 hourly employees at Middletown Works expires on March 15, 2020. The labor contract for approximately 100 hourly employees at Zanesville Works expires on May 31, 2022. The labor contract for approximately 1,100 hourly employees at Butler Works expires on June 15, 2022.