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Annual report pursuant to Section 13 and 15(d)

PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables)

v3.10.0.1
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables)
12 Months Ended
Dec. 31, 2018
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:
Ìý
(In Millions)
Ìý
2018
Ìý
2017
Ìý
2016
Defined benefit pension plans
$
12.7

Ìý
$
18.0

Ìý
$
16.5

Defined contribution pension plans
3.1

Ìý
2.9

Ìý
2.8

Other postretirement benefits
(5.9
)
Ìý
(6.1
)
Ìý
(4.0
)
Total
$
9.9

Ìý
$
14.8

Ìý
$
15.3

Obligations and Funded Status
The following tables and information provide additional disclosures:
Ìý
(In Millions)
Ìý
Pension Benefits
Ìý
Other Benefits
Change in benefit obligations:
2018
Ìý
2017
Ìý
2018
Ìý
2017
Benefit obligations — beginning of year
$
973.1

Ìý
$
931.6

Ìý
$
265.9

Ìý
$
264.6

Service cost (excluding expenses)
18.7

Ìý
17.1

Ìý
2.2

Ìý
1.8

Interest cost
30.3

Ìý
30.5

Ìý
8.3

Ìý
8.3

Plan amendments
2.2

Ìý
—

Ìý
12.8

Ìý
—

Curtailment gain
(0.9
)
Ìý
—

Ìý
—

Ìý
—

Actuarial (gain) loss
(57.0
)
Ìý
54.6

Ìý
(29.4
)
Ìý
7.4

Benefits paid
(60.7
)
Ìý
(60.7
)
Ìý
(24.4
)
Ìý
(21.4
)
Participant contributions
—

Ìý
—

Ìý
5.6

Ìý
4.6

Federal subsidy on benefits paid
—

Ìý
—

Ìý
0.9

Ìý
0.6

Benefit obligations — end of year
$
905.7

Ìý
$
973.1

Ìý
$
241.9

Ìý
$
265.9

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
$
749.8

Ìý
$
685.8

Ìý
$
262.5

Ìý
$
253.0

Actual return on plan assets
(29.6
)
Ìý
100.2

Ìý
(8.2
)
Ìý
24.2

Participant contributions
—

Ìý
—

Ìý
0.5

Ìý
0.3

Employer contributions
27.6

Ìý
24.4

Ìý
3.0

Ìý
1.7

Asset transfers
0.1

Ìý
0.1

Ìý
—

Ìý
—

Benefits paid
(60.7
)
Ìý
(60.7
)
Ìý
(17.6
)
Ìý
(16.7
)
Fair value of plan assets — end of year
$
687.2

Ìý
$
749.8

Ìý
$
240.2

Ìý
$
262.5

Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Funded status at DecemberÌý31:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Fair value of plan assets
$
687.2

Ìý
$
749.8

Ìý
$
240.2

Ìý
$
262.5

Benefit obligations
(905.7
)
Ìý
(973.1
)
Ìý
(241.9
)
Ìý
(265.9
)
Amount recognized at DecemberÌý31
$
(218.5
)
Ìý
$
(223.3
)
Ìý
$
(1.7
)
Ìý
$
(3.4
)
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Amounts recognized in Statements of Financial Position:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Non-current assets
$
—

Ìý
$
—

Ìý
$
32.1

Ìý
$
35.4

Current liabilities
(0.1
)
Ìý
(0.5
)
Ìý
(3.5
)
Ìý
(3.9
)
Non-current liabilities
(218.4
)
Ìý
(222.8
)
Ìý
(30.3
)
Ìý
(34.9
)
Total amount recognized
$
(218.5
)
Ìý
$
(223.3
)
Ìý
$
(1.7
)
Ìý
$
(3.4
)
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
$
330.1

Ìý
$
318.7

Ìý
$
82.1

Ìý
$
88.3

Prior service cost (credit)
8.5

Ìý
8.8

Ìý
(9.9
)
Ìý
(25.6
)
Net amount recognized
$
338.6

Ìý
$
327.5

Ìý
$
72.2

Ìý
$
62.7

Fair Value Of Plan Assets, Benefit Obligation And Funded Status
Ìý
(In Millions)
Ìý
2018
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
$
249.8

Ìý
$
429.4

Ìý
$
8.0

Ìý
$
—

Ìý
$
687.2

Ìý
$
—

Ìý
$
240.2

Ìý
$
240.2

Benefit obligation
(340.8
)
Ìý
(548.9
)
Ìý
(10.7
)
Ìý
(5.3
)
Ìý
(905.7
)
Ìý
(32.9
)
Ìý
(209.0
)
Ìý
(241.9
)
Funded status
$
(91.0
)
Ìý
$
(119.5
)
Ìý
$
(2.7
)
Ìý
$
(5.3
)
Ìý
$
(218.5
)
Ìý
$
(32.9
)
Ìý
$
31.2

Ìý
$
(1.7
)
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
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
)
Components Of Net Periodic Benefit Cost
Components of Net Periodic Benefit Cost
Ìý
(In Millions)
Ìý
Pension Benefits
Ìý
Other Benefits
Ìý
2018
Ìý
2017
Ìý
2016
Ìý
2018
Ìý
2017
Ìý
2016
Service cost
$
18.7

Ìý
$
17.1

Ìý
$
17.6

Ìý
$
2.2

Ìý
$
1.8

Ìý
$
1.7

Interest cost
30.3

Ìý
30.5

Ìý
30.3

Ìý
8.3

Ìý
8.3

Ìý
9.1

Expected return on plan assets
(60.0
)
Ìý
(54.5
)
Ìý
(54.7
)
Ìý
(18.4
)
Ìý
(17.7
)
Ìý
(17.1
)
Amortization:

Ìý

Ìý

Ìý

Ìý

Ìý

Prior service costs (credits)
2.2

Ìý
2.6

Ìý
2.2

Ìý
(3.0
)
Ìý
(3.0
)
Ìý
(3.7
)
Net actuarial loss
21.2

Ìý
22.3

Ìý
21.1

Ìý
5.0

Ìý
4.5

Ìý
6.0

Curtailments
0.3

Ìý
—

Ìý
—

Ìý
—

Ìý
—

Ìý
—

Net periodic benefit cost (credit)
$
12.7

Ìý
$
18.0

Ìý
$
16.5

Ìý
$
(5.9
)
Ìý
$
(6.1
)
Ìý
$
(4.0
)
Curtailment effects
(0.3
)
Ìý
—

Ìý
—

Ìý
—

Ìý
—

Ìý
—

Current year actuarial loss (gain)
31.6

Ìý
9.3

Ìý
37.8

Ìý
(2.9
)
Ìý
1.2

Ìý
(8.1
)
Amortization of net loss
(21.2
)
Ìý
(22.3
)
Ìý
(21.1
)
Ìý
(5.0
)
Ìý
(4.5
)
Ìý
(6.0
)
Current year prior service cost
2.2

Ìý
—

Ìý
5.7

Ìý
12.8

Ìý
—

Ìý
9.8

Amortization of prior service credit (cost)
(2.2
)
Ìý
(2.6
)
Ìý
(2.2
)
Ìý
3.0

Ìý
3.0

Ìý
3.7

Total recognized in other comprehensive income (loss)
$
10.1

Ìý
$
(15.6
)
Ìý
$
20.2

Ìý
$
7.9

Ìý
$
(0.3
)
Ìý
$
(0.6
)
Total recognized in net periodic cost and other
ÌýÌýÌýÌýcomprehensive income (loss)
$
22.8

Ìý
$
2.4

Ìý
$
36.7

Ìý
$
2.0

Ìý
$
(6.4
)
Ìý
$
(4.6
)
Weighted-Average Assumptions Used to Determine Benefit Obligations
Weighted-average assumptions used to determine benefit obligations at DecemberÌý31 were:
Ìý
PensionÌýBenefits
Ìý
OtherÌýBenefits
Ìý
2018
Ìý
2017
Ìý
2018
Ìý
2017
Discount rate:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Iron Hourly Pension Plan
4.31
%
Ìý
3.60
%
Ìý
N/A
%
Ìý
N/A
%
Salaried Pension Plan
4.21
Ìý
Ìý
3.52
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ore Mining Pension Plan
4.33
Ìý
Ìý
3.61
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Supplemental Executive Retirement Plan
4.22
Ìý
Ìý
3.50
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Hourly OPEB Plan
N/A
Ìý
Ìý
N/A
Ìý
Ìý
4.29
Ìý
Ìý
3.60
Ìý
Salaried OPEB Plan
N/A
Ìý
Ìý
N/A
Ìý
Ìý
4.27
Ìý
Ìý
3.57
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 were:
Ìý
Pension Benefits
Ìý
Other Benefits
Ìý
2018
Ìý
2017
Ìý
2016
Ìý
2018
Ìý
2017
Ìý
2016
Obligation Discount Rate:
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Ìý
Iron Hourly Pension Plan
3.61
%
Ìý
4.02
%
Ìý
4.27
%
Ìý
N/A
%
Ìý
N/A
%
Ìý
N/A
%
Salaried Pension Plan
3.52
Ìý
Ìý
3.91
Ìý
Ìý
4.13
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ore Mining Pension Plan
3.61
Ìý
Ìý
4.04
Ìý
Ìý
4.28
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Supplemental Executive Retirement Plan
3.54
Ìý
Ìý
3.90
Ìý
Ìý
4.01
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
3.60
Ìý
Ìý
4.03
Ìý
Ìý
4.32
Ìý
Salaried OPEB Plan
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
3.57
Ìý
Ìý
3.98
Ìý
Ìý
4.22
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
3.76
Ìý
Ìý
4.30
Ìý
Ìý
4.66
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Salaried Pension Plan
3.53
Ìý
Ìý
3.93
Ìý
Ìý
4.14
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ore Mining Pension Plan
3.75
Ìý
Ìý
4.27
Ìý
Ìý
4.60
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Supplemental Executive Retirement Plan
3.43
Ìý
Ìý
3.69
Ìý
Ìý
3.87
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
3.73
Ìý
Ìý
4.23
Ìý
Ìý
4.56
Ìý
Salaried OPEB Plan
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
3.76
Ìý
Ìý
4.30
Ìý
Ìý
4.63
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
3.21
Ìý
Ìý
3.38
Ìý
Ìý
3.46
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Salaried Pension Plan
3.08
Ìý
Ìý
3.21
Ìý
Ìý
3.21
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ore Mining Pension Plan
3.22
Ìý
Ìý
3.41
Ìý
Ìý
3.48
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Supplemental Executive Retirement Plan
3.16
Ìý
Ìý
3.36
Ìý
Ìý
3.30
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
3.10
Ìý
Ìý
3.24
Ìý
Ìý
3.48
Ìý
Salaried OPEB Plan
N/A
Ìý
Ìý
N/A
Ìý
Ìý
N/A
Ìý
Ìý
3.15
Ìý
Ìý
3.28
Ìý
Ìý
3.31
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
2.00
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
2018
Ìý
2017
Health care cost trend rate assumed for next year
6.75
%
Ìý
7.00
%
Ultimate health care cost trend rate
5.00
Ìý
Ìý
5.00
Ìý
Year that the ultimate rate is reached
2026
Ìý
Ìý
2026
Ìý
Plan Assets and Asset Allocation
The following table reflects the actual asset allocations for pension and VEBA plan assets as of DecemberÌý31, 2018 and 2017, as well as the 2019 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.
Ìý
Pension Assets
Ìý
VEBA Assets
Asset Category
2019
Target
Allocation
Ìý
Percentage of
Plan Assets at
DecemberÌý31,
Ìý
2019
Target
Allocation
Ìý
Percentage of
Plan Assets at
DecemberÌý31,
2018
Ìý
2017
Ìý
2018
Ìý
2017
Equity securities
45.0
%
Ìý
38.9
%
Ìý
43.6
%
Ìý
8.0
%
Ìý
8.1
%
Ìý
8.7
%
Fixed income
28.0
%
Ìý
26.0
%
Ìý
27.0
%
Ìý
80.0
%
Ìý
77.0
%
Ìý
77.7
%
Hedge funds
5.0
%
Ìý
5.4
%
Ìý
5.0
%
Ìý
4.0
%
Ìý
4.7
%
Ìý
4.4
%
Private equity
7.0
%
Ìý
6.2
%
Ìý
5.3
%
Ìý
3.0
%
Ìý
1.2
%
Ìý
1.5
%
Structured credit
7.5
%
Ìý
11.4
%
Ìý
9.7
%
Ìý
2.0
%
Ìý
3.5
%
Ìý
3.0
%
Real estate
7.5
%
Ìý
10.3
%
Ìý
8.7
%
Ìý
3.0
%
Ìý
5.4
%
Ìý
4.6
%
Cash
—
%
Ìý
1.8
%
Ìý
0.7
%
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 value of our pension plan assets by asset category is as follows:
Ìý
(In Millions)
Ìý
December 31, 2018
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
$
112.6

Ìý
$
—

Ìý
$
—

Ìý
$
112.6

U.S. small/mid-cap
22.5

Ìý
—

Ìý
—

Ìý
22.5

International
132.0

Ìý
—

Ìý
—

Ìý
132.0

Fixed income
151.1

Ìý
27.4

Ìý
—

Ìý
178.5

Hedge funds
—

Ìý
—

Ìý
37.2

Ìý
37.2

Private equity
—

Ìý
—

Ìý
42.6

Ìý
42.6

Structured credit
—

Ìý
—

Ìý
78.8

Ìý
78.8

Real estate
—

Ìý
—

Ìý
70.5

Ìý
70.5

Cash
12.5

Ìý
—

Ìý
—

Ìý
12.5

Total
$
430.7

Ìý
$
27.4

Ìý
$
229.1

Ìý
$
687.2

Ìý
(In Millions)
Ìý
December 31, 2017
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
$
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

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:
Ìý
(In Millions)
Ìý
Year Ended December 31, 2018
Ìý
HedgeÌý
Funds
Ìý
PrivateÌýEquity
Funds
Ìý
Structured
CreditÌýFund
Ìý
Real
Estate
Ìý
Total
Beginning balance — January 1, 2018
$
37.4

Ìý
$
39.8

Ìý
$
72.9

Ìý
$
65.5

Ìý
$
215.6

Actual return on plan assets:

Ìý

Ìý

Ìý

Ìý
Ìý
Relating to assets still held at
ÌýÌýÌýÌýthe reporting date
(0.2
)
Ìý
1.4

Ìý
5.9

Ìý
5.4

Ìý
12.5

Relating to assets sold during
ÌýÌýÌýÌýthe period
—

Ìý
4.0

Ìý
—

Ìý
—

Ìý
4.0

Purchases
—

Ìý
5.2

Ìý
—

Ìý
—

Ìý
5.2

Sales
—

Ìý
(7.8
)
Ìý
—

Ìý
(0.4
)
Ìý
(8.2
)
Ending balance — December 31, 2018
$
37.2

Ìý
$
42.6

Ìý
$
78.8

Ìý
$
70.5

Ìý
$
229.1

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
the 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

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
2017
Ìý
$
24.4

Ìý
$
—

Ìý
$
2.1

Ìý
$
2.1

2018
Ìý
27.6

Ìý
—

Ìý
3.8

Ìý
3.8

2019 (Expected)1
Ìý
15.9

Ìý
—

Ìý
3.5

Ìý
3.5

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, 2018). Funding obligations have been suspended as 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 2019
For 2019, we estimate net periodic benefit cost as follows:
Ìý
(InÌýMillions)
Defined benefit pension plans
$
21.5

Other postretirement benefits
(2.8
)
Total
$
18.7

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
2019
$
70.4

Ìý
$
18.0

Ìý
$
(0.8
)
Ìý
$
17.2

2020
67.9

Ìý
17.7

Ìý
(0.8
)
Ìý
16.9

2021
67.5

Ìý
17.2

Ìý
(0.9
)
Ìý
16.3

2022
67.0

Ìý
17.0

Ìý
(0.9
)
Ìý
16.1

2023
67.9

Ìý
16.9

Ìý
(1.0
)
Ìý
15.9

2024-2028
309.7

Ìý
82.2

Ìý
(5.4
)
Ìý
76.8

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 by asset category is as follows:
Ìý
(In Millions)
Ìý
DecemberÌý31, 2018
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
$
9.7

Ìý
$
—

Ìý
$
—

Ìý
$
9.7

U.S. small/mid-cap
2.4

Ìý
—

Ìý
—

Ìý
2.4

International
7.3

Ìý
—

Ìý
—

Ìý
7.3

Fixed income
146.8

Ìý
37.8

Ìý
—

Ìý
184.6

Hedge funds
—

Ìý
—

Ìý
11.4

Ìý
11.4

Private equity
—

Ìý
—

Ìý
3.0

Ìý
3.0

Structured credit
—

Ìý
—

Ìý
8.5

Ìý
8.5

Real estate
—

Ìý
—

Ìý
13.1

Ìý
13.1

Cash
0.2

Ìý
—

Ìý
—

Ìý
0.2

Total
$
166.4

Ìý
$
37.8

Ìý
$
36.0

Ìý
$
240.2

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

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

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:
Ìý
(In Millions)
Ìý
Year Ended December 31, 2018
Ìý
HedgeÌý
Funds
Ìý
PrivateÌýEquity
Funds
Ìý
Structured
CreditÌýFund
Ìý
Real
Estate
Ìý
Total
Beginning balance — January 1, 2018
$
11.4

Ìý
$
3.9

Ìý
$
7.9

Ìý
$
12.0

Ìý
$
35.2

Actual return on plan assets:

Ìý

Ìý

Ìý

Ìý
Ìý
Relating to assets still held at the reporting date
—

Ìý
(0.1
)
Ìý
0.6

Ìý
1.1

Ìý
1.6

Relating to assets sold during the period
—

Ìý
0.3

Ìý
—

Ìý
—

Ìý
0.3

Purchases
—

Ìý
—

Ìý
—

Ìý
—

Ìý
—

Sales
—

Ìý
(1.1
)
Ìý
—

Ìý
—

Ìý
(1.1
)
Ending balance — December 31, 2018
$
11.4

Ìý
$
3.0

Ìý
$
8.5

Ìý
$
13.1

Ìý
$
36.0

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

Contributions