PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Defined Benefit Plan Disclosure [Line Items] |
Ìý
|
| Retirement And Defined Compensation Plans Disclosures [Table Text Block] |
The following table summarizes the annual expense (income) recognized related to the retirement plans for 2017, 2016 and 2015:
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
2017 |
Ìý |
2016 |
Ìý |
2015 |
Defined benefit pension plans |
$ |
18.0 |
|
Ìý |
$ |
16.5 |
|
Ìý |
$ |
23.9 |
|
Defined contribution pension plans |
2.9 |
|
Ìý |
2.8 |
|
Ìý |
3.6 |
|
Other postretirement benefits |
(6.1 |
) |
Ìý |
(4.0 |
) |
Ìý |
4.4 |
|
Total |
$ |
14.8 |
|
Ìý |
$ |
15.3 |
|
Ìý |
$ |
31.9 |
|
|
| Obligations and Funded Status |
The following tables and information provide additional disclosures for the years ending DecemberÌý31, 2017 and 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
Pension Benefits |
Ìý |
Other Benefits |
Change in benefit obligations: |
2017 |
Ìý |
2016 |
Ìý |
2017 |
Ìý |
2016 |
Benefit obligations — beginning of year |
$ |
931.6 |
|
Ìý |
$ |
910.8 |
|
Ìý |
$ |
264.6 |
|
Ìý |
$ |
266.0 |
|
Service cost (excluding expenses) |
17.1 |
|
Ìý |
17.6 |
|
Ìý |
1.8 |
|
Ìý |
1.7 |
|
Interest cost |
30.5 |
|
Ìý |
30.3 |
|
Ìý |
8.3 |
|
Ìý |
9.1 |
|
Plan amendments |
— |
|
Ìý |
5.7 |
|
Ìý |
— |
|
Ìý |
9.8 |
|
Actuarial (gain) loss |
54.6 |
|
Ìý |
38.1 |
|
Ìý |
7.4 |
|
Ìý |
(7.2 |
) |
Benefits paid |
(60.7 |
) |
Ìý |
(70.9 |
) |
Ìý |
(21.4 |
) |
Ìý |
(21.3 |
) |
Participant contributions |
— |
|
Ìý |
— |
|
Ìý |
4.6 |
|
Ìý |
6.0 |
|
Federal subsidy on benefits paid |
— |
|
Ìý |
— |
|
Ìý |
0.6 |
|
Ìý |
0.5 |
|
Benefit obligations — end of year |
$ |
973.1 |
|
Ìý |
$ |
931.6 |
|
Ìý |
$ |
265.9 |
|
Ìý |
$ |
264.6 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Change in plan assets: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Fair value of plan assets — beginning of year |
$ |
685.8 |
|
Ìý |
$ |
700.6 |
|
Ìý |
$ |
253.0 |
|
Ìý |
$ |
250.6 |
|
Actual return on plan assets |
100.2 |
|
Ìý |
54.8 |
|
Ìý |
24.2 |
|
Ìý |
16.0 |
|
Participant contributions |
— |
|
Ìý |
— |
|
Ìý |
0.3 |
|
Ìý |
0.5 |
|
Employer contributions |
24.4 |
|
Ìý |
1.2 |
|
Ìý |
1.7 |
|
Ìý |
1.7 |
|
Asset transfers |
0.1 |
|
Ìý |
0.1 |
|
Ìý |
— |
|
Ìý |
— |
|
Benefits paid |
(60.7 |
) |
Ìý |
(70.9 |
) |
Ìý |
(16.7 |
) |
Ìý |
(15.8 |
) |
Fair value of plan assets — end of year |
$ |
749.8 |
|
Ìý |
$ |
685.8 |
|
Ìý |
$ |
262.5 |
|
Ìý |
$ |
253.0 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Funded status at DecemberÌý31: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Fair value of plan assets |
$ |
749.8 |
|
Ìý |
$ |
685.8 |
|
Ìý |
$ |
262.5 |
|
Ìý |
$ |
253.0 |
|
Benefit obligations |
(973.1 |
) |
Ìý |
(931.6 |
) |
Ìý |
(265.9 |
) |
Ìý |
(264.6 |
) |
Amount recognized at DecemberÌý31 |
$ |
(223.3 |
) |
Ìý |
$ |
(245.8 |
) |
Ìý |
$ |
(3.4 |
) |
Ìý |
$ |
(11.6 |
) |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Amounts recognized in Statements of Financial Position: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Noncurrent assets |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
$ |
35.4 |
|
Ìý |
$ |
27.3 |
|
Current liabilities |
(0.5 |
) |
Ìý |
(0.1 |
) |
Ìý |
(3.9 |
) |
Ìý |
(4.1 |
) |
Noncurrent liabilities |
(222.8 |
) |
Ìý |
(245.7 |
) |
Ìý |
(34.9 |
) |
Ìý |
(34.8 |
) |
Total amount recognized |
$ |
(223.3 |
) |
Ìý |
$ |
(245.8 |
) |
Ìý |
$ |
(3.4 |
) |
Ìý |
$ |
(11.6 |
) |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Amounts recognized in accumulated other comprehensive loss: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Net actuarial loss |
$ |
318.7 |
|
Ìý |
$ |
315.9 |
|
Ìý |
$ |
88.3 |
|
Ìý |
$ |
87.0 |
|
Prior service cost (credit) |
8.8 |
|
Ìý |
11.0 |
|
Ìý |
(25.6 |
) |
Ìý |
(26.9 |
) |
Net amount recognized |
$ |
327.5 |
|
Ìý |
$ |
326.9 |
|
Ìý |
$ |
62.7 |
|
Ìý |
$ |
60.1 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Net actuarial loss |
$ |
21.1 |
|
Ìý |
Ìý |
Ìý |
$ |
4.9 |
|
Ìý |
Ìý |
Prior service cost (credit) |
2.2 |
|
Ìý |
Ìý |
Ìý |
(3.0 |
) |
Ìý |
Ìý |
Net amount recognized |
$ |
23.3 |
|
Ìý |
Ìý |
Ìý |
$ |
1.9 |
|
Ìý |
Ìý |
|
| Fair Value Of Plan Assets, Benefit Obligation And Funded Status |
|
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|
|
|
|
Ìý |
(In Millions) |
Ìý |
2017 |
Ìý |
Pension Plans |
Ìý |
Other Benefits |
Ìý |
Salaried |
Ìý |
Hourly |
Ìý |
Mining |
Ìý |
SERP |
Ìý |
Total |
Ìý |
Salaried |
Ìý |
Hourly |
Ìý |
Total |
Fair value of plan assets |
$ |
269.4 |
|
Ìý |
$ |
473.0 |
|
Ìý |
$ |
7.4 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
749.8 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
262.5 |
|
Ìý |
$ |
262.5 |
|
Benefit obligation |
(368.0 |
) |
Ìý |
(590.0 |
) |
Ìý |
(10.3 |
) |
Ìý |
(4.8 |
) |
Ìý |
(973.1 |
) |
Ìý |
(37.7 |
) |
Ìý |
(228.2 |
) |
Ìý |
(265.9 |
) |
Funded status |
$ |
(98.6 |
) |
Ìý |
$ |
(117.0 |
) |
Ìý |
$ |
(2.9 |
) |
Ìý |
$ |
(4.8 |
) |
Ìý |
$ |
(223.3 |
) |
Ìý |
$ |
(37.7 |
) |
Ìý |
$ |
34.3 |
|
Ìý |
$ |
(3.4 |
) |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
2016 |
Ìý |
Pension Plans |
Ìý |
Other Benefits |
Ìý |
Salaried |
Ìý |
Hourly |
Ìý |
Mining |
Ìý |
SERP |
Ìý |
Total |
Ìý |
Salaried |
Ìý |
Hourly |
Ìý |
Total |
Fair value of plan assets |
$ |
242.9 |
|
Ìý |
$ |
436.9 |
|
Ìý |
$ |
6.0 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
685.8 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
253.0 |
|
Ìý |
$ |
253.0 |
|
Benefit obligation |
(351.9 |
) |
Ìý |
(565.6 |
) |
Ìý |
(10.0 |
) |
Ìý |
(4.1 |
) |
Ìý |
(931.6 |
) |
Ìý |
(37.6 |
) |
Ìý |
(227.0 |
) |
Ìý |
(264.6 |
) |
Funded status |
$ |
(109.0 |
) |
Ìý |
$ |
(128.7 |
) |
Ìý |
$ |
(4.0 |
) |
Ìý |
$ |
(4.1 |
) |
Ìý |
$ |
(245.8 |
) |
Ìý |
$ |
(37.6 |
) |
Ìý |
$ |
26.0 |
|
Ìý |
$ |
(11.6 |
) |
|
| Components Of Net Periodic Benefit Cost |
Components of Net Periodic Benefit Cost
|
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|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
Pension Benefits |
Ìý |
Other Benefits |
Ìý |
2017 |
Ìý |
2016 |
Ìý |
2015 |
Ìý |
2017 |
Ìý |
2016 |
Ìý |
2015 |
Service cost |
$ |
17.1 |
|
Ìý |
$ |
17.6 |
|
Ìý |
$ |
22.7 |
|
Ìý |
$ |
1.8 |
|
Ìý |
$ |
1.7 |
|
Ìý |
$ |
6.4 |
|
Interest cost |
30.5 |
|
Ìý |
30.3 |
|
Ìý |
37.7 |
|
Ìý |
8.3 |
|
Ìý |
9.1 |
|
Ìý |
13.4 |
|
Expected return on plan assets |
(54.5 |
) |
Ìý |
(54.7 |
) |
Ìý |
(59.8 |
) |
Ìý |
(17.7 |
) |
Ìý |
(17.1 |
) |
Ìý |
(18.3 |
) |
Amortization: |
|
Ìý |
|
Ìý |
|
Ìý |
|
Ìý |
|
Ìý |
|
Prior service costs (credits) |
2.6 |
|
Ìý |
2.2 |
|
Ìý |
2.3 |
|
Ìý |
(3.0 |
) |
Ìý |
(3.7 |
) |
Ìý |
(3.7 |
) |
Net actuarial loss |
22.3 |
|
Ìý |
21.1 |
|
Ìý |
20.8 |
|
Ìý |
4.5 |
|
Ìý |
6.0 |
|
Ìý |
6.6 |
|
Curtailments and settlements |
— |
|
Ìý |
— |
|
Ìý |
0.2 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
— |
|
Net periodic benefit cost (credit) |
$ |
18.0 |
|
Ìý |
$ |
16.5 |
|
Ìý |
$ |
23.9 |
|
Ìý |
$ |
(6.1 |
) |
Ìý |
$ |
(4.0 |
) |
Ìý |
$ |
4.4 |
|
Curtailment effects |
— |
|
Ìý |
— |
|
Ìý |
(1.2 |
) |
Ìý |
— |
|
Ìý |
— |
|
Ìý |
— |
|
Current year actuarial loss (gain) |
9.3 |
|
Ìý |
37.8 |
|
Ìý |
(0.7 |
) |
Ìý |
1.2 |
|
Ìý |
(8.1 |
) |
Ìý |
0.2 |
|
Amortization of net loss |
(22.3 |
) |
Ìý |
(21.1 |
) |
Ìý |
(21.0 |
) |
Ìý |
(4.5 |
) |
Ìý |
(6.0 |
) |
Ìý |
(6.6 |
) |
Current year prior service cost |
— |
|
Ìý |
5.7 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
9.8 |
|
Ìý |
— |
|
Amortization of prior service credit (cost) |
(2.6 |
) |
Ìý |
(2.2 |
) |
Ìý |
(2.3 |
) |
Ìý |
3.0 |
|
Ìý |
3.7 |
|
Ìý |
3.7 |
|
Total recognized in other comprehensive income (loss) |
$ |
(15.6 |
) |
Ìý |
$ |
20.2 |
|
Ìý |
$ |
(25.2 |
) |
Ìý |
$ |
(0.3 |
) |
Ìý |
$ |
(0.6 |
) |
Ìý |
$ |
(2.7 |
) |
|
Total recognized in net periodic cost and other
ÌýÌýÌýÌýcomprehensive income (loss)
|
$ |
2.4 |
|
Ìý |
$ |
36.7 |
|
Ìý |
$ |
(1.3 |
) |
Ìý |
$ |
(6.4 |
) |
Ìý |
$ |
(4.6 |
) |
Ìý |
$ |
1.7 |
|
|
| Additional Information |
|
| Weighted-Average Assumptions Used to Determine Benefit Obligations |
Weighted-average assumptions used to determine benefit obligations at DecemberÌý31 were:
|
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|
|
|
|
|
|
|
|
|
|
|
Ìý |
PensionÌýBenefits |
Ìý |
OtherÌýBenefits |
Ìý |
2017 |
Ìý |
2016 |
Ìý |
2017 |
Ìý |
2016 |
Discount rate |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Iron Hourly Pension Plan |
3.60 |
% |
Ìý |
4.02 |
% |
Ìý |
N/A |
% |
Ìý |
N/A |
% |
Salaried Pension Plan |
3.52 |
Ìý |
Ìý |
3.92 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ore Mining Pension Plan |
3.61 |
Ìý |
Ìý |
4.04 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
SERP |
3.50 |
Ìý |
Ìý |
3.90 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Hourly OPEB Plan |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
3.60 |
Ìý |
Ìý |
4.02 |
Ìý |
Salaried OPEB Plan |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
3.57 |
Ìý |
Ìý |
3.99 |
Ìý |
Salaried rate of compensation increase |
3.00 |
Ìý |
Ìý |
3.00 |
Ìý |
Ìý |
3.00 |
Ìý |
Ìý |
3.00 |
Ìý |
Hourly rate of compensation increase |
2.00 |
Ìý |
Ìý |
2.00 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
|
| Weighted-Average Assumptions Used To Determine Net Benefit Costs |
Weighted-average assumptions used to determine net benefit cost for the years 2017, 2016 and 2015 were:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Pension Benefits |
Ìý |
Other Benefits |
Ìý |
2017 |
Ìý |
2016 |
Ìý |
2015 |
Ìý |
2017 |
Ìý |
2016 |
Ìý |
2015 |
Obligation Discount Rate |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Iron Hourly Pension Plan |
4.02 |
% |
Ìý |
4.27 |
% |
Ìý |
3.83 |
% |
Ìý |
N/A |
% |
Ìý |
N/A |
% |
Ìý |
N/A |
% |
Salaried Pension Plan |
3.91 |
Ìý |
Ìý |
4.13 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ore Mining Pension Plan |
4.04 |
Ìý |
Ìý |
4.28 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
SERP |
3.90 |
Ìý |
Ìý |
4.01 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Hourly OPEB Plan |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
4.03 |
Ìý |
Ìý |
4.32 |
Ìý |
Ìý |
3.83 |
Ìý |
Salaried OPEB Plan |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
3.98 |
Ìý |
Ìý |
4.22 |
Ìý |
Ìý |
3.83 |
Ìý |
Service Cost Discount Rate |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Iron Hourly Pension Plan |
4.30 |
Ìý |
Ìý |
4.66 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Salaried Pension Plan |
3.93 |
Ìý |
Ìý |
4.14 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ore Mining Pension Plan |
4.27 |
Ìý |
Ìý |
4.60 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
SERP |
3.69 |
Ìý |
Ìý |
3.87 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Hourly OPEB Plan |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
4.23 |
Ìý |
Ìý |
4.56 |
Ìý |
Ìý |
3.83 |
Ìý |
Salaried OPEB Plan |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
4.30 |
Ìý |
Ìý |
4.63 |
Ìý |
Ìý |
3.83 |
Ìý |
Interest Cost Discount Rate |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Iron Hourly Pension Plan |
3.38 |
Ìý |
Ìý |
3.46 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Salaried Pension Plan |
3.21 |
Ìý |
Ìý |
3.21 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ore Mining Pension Plan |
3.41 |
Ìý |
Ìý |
3.48 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
SERP |
3.36 |
Ìý |
Ìý |
3.30 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Hourly OPEB Plan |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
3.24 |
Ìý |
Ìý |
3.48 |
Ìý |
Ìý |
3.83 |
Ìý |
Salaried OPEB Plan |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
3.28 |
Ìý |
Ìý |
3.31 |
Ìý |
Ìý |
3.83 |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Expected return on plan assets |
8.25 |
Ìý |
Ìý |
8.25 |
Ìý |
Ìý |
8.25 |
Ìý |
Ìý |
7.00 |
Ìý |
Ìý |
7.00 |
Ìý |
Ìý |
7.00 |
Ìý |
Salaried rate of compensation increase |
3.00 |
Ìý |
Ìý |
3.00 |
Ìý |
Ìý |
3.00 |
Ìý |
Ìý |
3.00 |
Ìý |
Ìý |
3.00 |
Ìý |
Ìý |
3.00 |
Ìý |
Hourly rate of compensation increase |
2.00 |
Ìý |
Ìý |
2.00 |
Ìý |
Ìý |
2.50 |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
Ìý |
N/A |
Ìý |
|
| Assumed Health Care Cost Trend Rates |
Assumed health care cost trend rates at DecemberÌý31 were:
|
|
|
|
|
|
|
Ìý |
2017 |
Ìý |
2016 |
Health care cost trend rate assumed for next year |
7.00 |
% |
Ìý |
6.50 |
% |
Ultimate health care cost trend rate |
5.00 |
Ìý |
Ìý |
5.00 |
Ìý |
Year that the ultimate rate is reached |
2026 |
Ìý |
Ìý |
2023 |
Ìý |
|
| Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates |
A change of one percentage point in assumed health care cost trend rates would have the following effects:
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
Increase |
Ìý |
Decrease |
Effect on total of service and interest cost |
$ |
1.0 |
|
Ìý |
$ |
(0.8 |
) |
Effect on postretirement benefit obligation |
21.2 |
|
Ìý |
(17.6 |
) |
|
| Plan Assets and Asset Allocation |
The following table reflects the actual asset allocations for pension and VEBA plan assets as of DecemberÌý31, 2017 and 2016, as well as the 2018 weighted average target asset allocations. Equity investments include securities in large-cap, mid-cap and small-cap companies located in the U.S. and worldwide. Fixed income investments primarily include corporate bonds and government debt securities. Alternative investments include hedge funds, private equity, structured credit and real estate.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Pension Assets |
Ìý |
VEBA Assets |
Asset Category |
2018
Target
Allocation
|
Ìý |
Percentage of
Plan Assets at
DecemberÌý31,
|
Ìý |
2018
Target
Allocation
|
Ìý |
Percentage of
Plan Assets at
DecemberÌý31,
|
2017 |
Ìý |
2016 |
Ìý |
2017 |
Ìý |
2016 |
Equity securities |
45.0 |
% |
Ìý |
43.6 |
% |
Ìý |
43.2 |
% |
Ìý |
8.0 |
% |
Ìý |
8.7 |
% |
Ìý |
8.4 |
% |
Fixed income |
28.0 |
% |
Ìý |
27.0 |
% |
Ìý |
26.4 |
% |
Ìý |
80.0 |
% |
Ìý |
77.7 |
% |
Ìý |
78.3 |
% |
Hedge funds |
5.0 |
% |
Ìý |
5.0 |
% |
Ìý |
5.9 |
% |
Ìý |
4.0 |
% |
Ìý |
4.4 |
% |
Ìý |
4.4 |
% |
Private equity |
7.0 |
% |
Ìý |
5.3 |
% |
Ìý |
5.3 |
% |
Ìý |
3.0 |
% |
Ìý |
1.5 |
% |
Ìý |
1.7 |
% |
Structured credit |
7.5 |
% |
Ìý |
9.7 |
% |
Ìý |
9.3 |
% |
Ìý |
2.0 |
% |
Ìý |
3.0 |
% |
Ìý |
2.7 |
% |
Real estate |
7.5 |
% |
Ìý |
8.7 |
% |
Ìý |
9.0 |
% |
Ìý |
3.0 |
% |
Ìý |
4.6 |
% |
Ìý |
4.4 |
% |
Cash |
— |
% |
Ìý |
0.7 |
% |
Ìý |
0.9 |
% |
Ìý |
— |
% |
Ìý |
0.1 |
% |
Ìý |
0.1 |
% |
Total |
100.0 |
% |
Ìý |
100.0 |
% |
Ìý |
100.0 |
% |
Ìý |
100.0 |
% |
Ìý |
100.0 |
% |
Ìý |
100.0 |
% |
|
| Fair Value, Assets and Liabilities Measured on Recurring Basis |
Pension
The fair values of our pension plan assets at DecemberÌý31, 2017 and 2016 by asset category are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
December 31, 2017 |
Asset Category |
QuotedÌýPricesÌýinÌýActive
Markets for Identical
Assets/Liabilities
(Level 1)
|
Ìý |
SignificantÌýOther
Observable
Inputs
(Level 2)
|
Ìý |
Significant
Unobservable
Inputs
(Level 3)
|
Ìý |
Total |
Equity securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. large-cap |
$ |
130.1 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
$ |
130.1 |
|
U.S. small/mid-cap |
35.5 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
35.5 |
|
International |
160.9 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
160.9 |
|
Fixed income |
173.6 |
|
Ìý |
28.8 |
|
Ìý |
— |
|
Ìý |
202.4 |
|
Hedge funds |
— |
|
Ìý |
— |
|
Ìý |
37.4 |
|
Ìý |
37.4 |
|
Private equity |
— |
|
Ìý |
— |
|
Ìý |
39.8 |
|
Ìý |
39.8 |
|
Structured credit |
— |
|
Ìý |
— |
|
Ìý |
72.9 |
|
Ìý |
72.9 |
|
Real estate |
— |
|
Ìý |
— |
|
Ìý |
65.5 |
|
Ìý |
65.5 |
|
Cash |
5.3 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
5.3 |
|
Total |
$ |
505.4 |
|
Ìý |
$ |
28.8 |
|
Ìý |
$ |
215.6 |
|
Ìý |
$ |
749.8 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
December 31, 2016 |
Asset Category |
QuotedÌýPricesÌýinÌýActive
Markets for Identical
Assets/Liabilities
(Level 1)
|
Ìý |
Significant Other
Observable
Inputs
(Level 2)
|
Ìý |
Significant
Unobservable
Inputs
(Level 3)
|
Ìý |
Total |
Equity securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. large-cap |
$ |
144.7 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
$ |
144.7 |
|
U.S. small/mid-cap |
39.9 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
39.9 |
|
International |
111.8 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
111.8 |
|
Fixed income |
157.5 |
|
Ìý |
23.7 |
|
Ìý |
— |
|
Ìý |
181.2 |
|
Hedge funds |
— |
|
Ìý |
— |
|
Ìý |
40.6 |
|
Ìý |
40.6 |
|
Private equity |
— |
|
Ìý |
— |
|
Ìý |
36.1 |
|
Ìý |
36.1 |
|
Structured credit |
— |
|
Ìý |
— |
|
Ìý |
63.8 |
|
Ìý |
63.8 |
|
Real estate |
— |
|
Ìý |
— |
|
Ìý |
61.9 |
|
Ìý |
61.9 |
|
Cash |
5.8 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
5.8 |
|
Total |
$ |
459.7 |
|
Ìý |
$ |
23.7 |
|
Ìý |
$ |
202.4 |
|
Ìý |
$ |
685.8 |
|
|
| Effect of Fair Value Measurements Using Significant Unobservable Inputs on Changes in Plan Assets |
The following represents the effect of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets for the years ended DecemberÌý31, 2017 and 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
Year Ended December 31, 2017 |
Ìý |
HedgeÌý
Funds
|
Ìý |
PrivateÌýEquity
Funds
|
Ìý |
Structured
CreditÌýFund
|
Ìý |
Real
Estate
|
Ìý |
Total |
Beginning balance — January 1, 2017 |
$ |
40.6 |
|
Ìý |
$ |
36.1 |
|
Ìý |
$ |
63.8 |
|
Ìý |
$ |
61.9 |
|
Ìý |
$ |
202.4 |
|
Actual return on plan assets: |
|
Ìý |
|
Ìý |
|
Ìý |
|
Ìý |
Ìý |
|
Relating to assets still held at
ÌýÌýÌýÌýthe reporting date
|
2.5 |
|
Ìý |
0.3 |
|
Ìý |
9.1 |
|
Ìý |
4.2 |
|
Ìý |
16.1 |
|
|
Relating to assets sold during
ÌýÌýÌýÌýthe period
|
0.4 |
|
Ìý |
4.5 |
|
Ìý |
— |
|
Ìý |
(0.1 |
) |
Ìý |
4.8 |
|
Purchases |
39.0 |
|
Ìý |
4.5 |
|
Ìý |
— |
|
Ìý |
14.4 |
|
Ìý |
57.9 |
|
Sales |
(45.1 |
) |
Ìý |
(5.6 |
) |
Ìý |
— |
|
Ìý |
(14.9 |
) |
Ìý |
(65.6 |
) |
Ending balance — December 31, 2017 |
$ |
37.4 |
|
Ìý |
$ |
39.8 |
|
Ìý |
$ |
72.9 |
|
Ìý |
$ |
65.5 |
|
Ìý |
$ |
215.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
Year Ended December 31, 2016 |
Ìý |
HedgeÌý
Funds
|
Ìý |
PrivateÌýEquity
Funds
|
Ìý |
Structured
CreditÌýFund
|
Ìý |
Real
Estate
|
Ìý |
Total |
Beginning balance — January 1, 2016 |
$ |
40.7 |
|
Ìý |
$ |
33.1 |
|
Ìý |
$ |
62.1 |
|
Ìý |
$ |
57.5 |
|
Ìý |
$ |
193.4 |
|
Actual return on plan assets: |
|
Ìý |
|
Ìý |
|
Ìý |
|
Ìý |
Ìý |
|
Relating to assets still held at
ÌýÌýÌýÌýthe reporting date
|
(0.1 |
) |
Ìý |
(2.7 |
) |
Ìý |
10.0 |
|
Ìý |
5.1 |
|
Ìý |
12.3 |
|
Relating to assets sold during
the period |
— |
|
Ìý |
3.7 |
|
Ìý |
(0.3 |
) |
Ìý |
(0.1 |
) |
Ìý |
3.3 |
|
Purchases |
— |
|
Ìý |
8.0 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
8.0 |
|
Sales |
— |
|
Ìý |
(6.0 |
) |
Ìý |
(8.0 |
) |
Ìý |
(0.6 |
) |
Ìý |
(14.6 |
) |
Ending balance — December 31, 2016 |
$ |
40.6 |
|
Ìý |
$ |
36.1 |
|
Ìý |
$ |
63.8 |
|
Ìý |
$ |
61.9 |
|
Ìý |
$ |
202.4 |
|
VEBA
Assets fo
|
| Schedule Of Annual Contributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Ìý |
(In Millions) |
Ìý |
Ìý |
Pension
Benefits
|
Ìý |
Other Benefits |
Company Contributions |
Ìý |
VEBA |
Ìý |
Direct
Payments
|
Ìý |
Total |
2016 |
Ìý |
$ |
1.2 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
1.1 |
|
Ìý |
$ |
1.1 |
|
2017 |
Ìý |
24.4 |
|
Ìý |
— |
|
Ìý |
2.1 |
|
Ìý |
2.1 |
|
2018 (Expected)1
|
Ìý |
27.8 |
|
Ìý |
— |
|
Ìý |
4.0 |
|
Ìý |
4.0 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
1ÌýPursuant to the bargaining agreement, benefits can be paid from VEBA trusts that are at least 70% funded (all VEBA trusts are over 70% funded at DecemberÌý31, 2017). Funding obligations have been suspended as Hibbing's, UTAC's, Tilden's and Empire's share of the value of their respective trust assets have reached 90% of their obligation.
|
|
| Estimated Net Periodic Benefit Cost |
Estimated Cost for 2018
For 2018, we estimate net periodic benefit cost as follows:
|
|
|
|
|
Ìý |
(InÌýMillions) |
Defined benefit pension plans |
$ |
12.3 |
|
Other postretirement benefits |
(6.2 |
) |
Total |
$ |
6.1 |
|
|
| Estimated Future Benefit Payments |
Estimated Future Benefit Payments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
Pension
Benefits
|
Ìý |
Other Benefits |
|
Gross
Company
Benefits
|
Ìý |
Less
Medicare
Subsidy
|
Ìý |
Net
Benefit
Payments
|
2018 |
$ |
69.6 |
|
Ìý |
$ |
18.9 |
|
Ìý |
$ |
(0.7 |
) |
Ìý |
$ |
18.2 |
|
2019 |
66.7 |
|
Ìý |
18.0 |
|
Ìý |
(0.8 |
) |
Ìý |
17.2 |
|
2020 |
66.0 |
|
Ìý |
17.4 |
|
Ìý |
(0.9 |
) |
Ìý |
16.5 |
|
2021 |
65.1 |
|
Ìý |
16.9 |
|
Ìý |
(1.0 |
) |
Ìý |
15.9 |
|
2022 |
65.2 |
|
Ìý |
16.7 |
|
Ìý |
(1.1 |
) |
Ìý |
15.6 |
|
2023-2027 |
310.5 |
|
Ìý |
81.5 |
|
Ìý |
(6.6 |
) |
Ìý |
74.9 |
|
|
| Veba Trust [Member] |
Ìý
|
| Defined Benefit Plan Disclosure [Line Items] |
Ìý
|
| Fair Value, Assets and Liabilities Measured on Recurring Basis |
The fair value of our other benefit plan assets at DecemberÌý31, 2017 and 2016 by asset category are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
DecemberÌý31, 2017 |
Asset Category |
QuotedÌýPricesÌýinÌýActive
Markets for Identical
Assets/Liabilities
(Level 1)
|
Ìý |
SignificantÌýOther
Observable
Inputs
(Level 2)
|
Ìý |
Significant
Unobservable
Inputs
(Level 3)
|
Ìý |
Total |
Equity securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. large-cap |
$ |
11.4 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
$ |
11.4 |
|
U.S. small/mid-cap |
2.8 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
2.8 |
|
International |
8.8 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
8.8 |
|
Fixed income |
164.1 |
|
Ìý |
40.0 |
|
Ìý |
— |
|
Ìý |
204.1 |
|
Hedge funds |
— |
|
Ìý |
— |
|
Ìý |
11.4 |
|
Ìý |
11.4 |
|
Private equity |
— |
|
Ìý |
— |
|
Ìý |
3.9 |
|
Ìý |
3.9 |
|
Structured credit |
— |
|
Ìý |
— |
|
Ìý |
7.9 |
|
Ìý |
7.9 |
|
Real estate |
— |
|
Ìý |
— |
|
Ìý |
12.0 |
|
Ìý |
12.0 |
|
Cash |
0.2 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
0.2 |
|
Total |
$ |
187.3 |
|
Ìý |
$ |
40.0 |
|
Ìý |
$ |
35.2 |
|
Ìý |
$ |
262.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
DecemberÌý31, 2016 |
Asset Category |
QuotedÌýPricesÌýinÌýActive
Markets for Identical
Assets/Liabilities
(Level 1) |
Ìý |
SignificantÌýOther
Observable
Inputs
(Level 2) |
Ìý |
Significant
Unobservable
Inputs
(Level 3) |
Ìý |
Total |
Equity securities: |
|
Ìý |
|
Ìý |
|
Ìý |
|
U.S. large-cap |
$ |
10.6 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
$ |
10.6 |
|
U.S. small/mid-cap |
2.7 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
2.7 |
|
International |
8.1 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
8.1 |
|
Fixed income |
162.0 |
|
Ìý |
35.9 |
|
Ìý |
— |
|
Ìý |
197.9 |
|
Hedge funds |
— |
|
Ìý |
— |
|
Ìý |
11.2 |
|
Ìý |
11.2 |
|
Private equity |
— |
|
Ìý |
— |
|
Ìý |
4.3 |
|
Ìý |
4.3 |
|
Structured credit |
— |
|
Ìý |
— |
|
Ìý |
6.9 |
|
Ìý |
6.9 |
|
Real estate |
— |
|
Ìý |
— |
|
Ìý |
11.1 |
|
Ìý |
11.1 |
|
Cash |
0.2 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
0.2 |
|
Total |
$ |
183.6 |
|
Ìý |
$ |
35.9 |
|
Ìý |
$ |
33.5 |
|
Ìý |
$ |
253.0 |
|
|
| Effect of Fair Value Measurements Using Significant Unobservable Inputs on Changes in Plan Assets |
The following represents the effect of fair value measurements using significant unobservable inputs (Level 3) on changes in plan assets for the year ended DecemberÌý31, 2017 and 2016:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
Year Ended December 31, 2017 |
Ìý |
HedgeÌý
Funds
|
Ìý |
PrivateÌýEquity
Funds
|
Ìý |
Structured
CreditÌýFund
|
Ìý |
Real
Estate
|
Ìý |
Total |
Beginning balance — January 1, 2017 |
$ |
11.2 |
|
Ìý |
$ |
4.3 |
|
Ìý |
$ |
6.9 |
|
Ìý |
$ |
11.1 |
|
Ìý |
$ |
33.5 |
|
Actual return on plan assets: |
|
Ìý |
|
Ìý |
|
Ìý |
|
Ìý |
Ìý |
Relating to assets still held at the reporting date |
0.8 |
|
Ìý |
0.9 |
|
Ìý |
2.0 |
|
Ìý |
3.4 |
|
Ìý |
7.1 |
|
Relating to assets sold during the period |
— |
|
Ìý |
(0.4 |
) |
Ìý |
(1.0 |
) |
Ìý |
(2.5 |
) |
Ìý |
(3.9 |
) |
Purchases |
17.1 |
|
Ìý |
1.8 |
|
Ìý |
2.1 |
|
Ìý |
3.0 |
|
Ìý |
24.0 |
|
Sales |
(17.7 |
) |
Ìý |
(2.7 |
) |
Ìý |
(2.1 |
) |
Ìý |
(3.0 |
) |
Ìý |
(25.5 |
) |
Ending balance — December 31, 2017 |
$ |
11.4 |
|
Ìý |
$ |
3.9 |
|
Ìý |
$ |
7.9 |
|
Ìý |
$ |
12.0 |
|
Ìý |
$ |
35.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
(In Millions) |
Ìý |
Year Ended December 31, 2016 |
Ìý |
HedgeÌý
Funds
|
Ìý |
PrivateÌýEquity
Funds
|
Ìý |
Structured
CreditÌýFund
|
Ìý |
Real
Estate
|
Ìý |
Total |
Beginning balance — January 1, 2016 |
$ |
11.2 |
|
Ìý |
$ |
5.5 |
|
Ìý |
$ |
5.8 |
|
Ìý |
$ |
10.0 |
|
Ìý |
$ |
32.5 |
|
Actual return on plan assets: |
|
Ìý |
|
Ìý |
|
Ìý |
|
Ìý |
Ìý |
Relating to assets still held at the reporting date |
— |
|
Ìý |
(0.3 |
) |
Ìý |
1.1 |
|
Ìý |
1.1 |
|
Ìý |
1.9 |
|
Relating to assets sold during the period |
— |
|
Ìý |
0.1 |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
0.1 |
|
Purchases |
— |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
— |
|
Ìý |
— |
|
Sales |
— |
|
Ìý |
(1.0 |
) |
Ìý |
— |
|
Ìý |
— |
|
Ìý |
(1.0 |
) |
Ending balance — December 31, 2016 |
$ |
11.2 |
|
Ìý |
$ |
4.3 |
|
Ìý |
$ |
6.9 |
|
Ìý |
$ |
11.1 |
|
Ìý |
$ |
33.5 |
|
Contributions
|