Quarterly report pursuant to Section 13 or 15(d)

PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Notes)

v3.20.2
PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Notes)
 6 Months Ended
Jun. 30, 2020
Postemployment Benefits [Abstract]  
PENSIONS AND OTHER POSTRETIREMENT BENEFITS
We offer defined benefit pension plans, defined contribution pension plans and OPEB plans, primarily consisting of retiree healthcare benefits, to most employees as part of a total compensation and benefits program. The defined benefit pension plans are noncontributory and benefits generally are based on a minimum formula or employees’ years of service and average earnings for a defined period prior to retirement.
As a result of the acquisition of AK Steel, we assumed the obligations under AK Steel's defined benefit pension plans and OPEB plans. Noncontributory pension and various healthcare and life insurance benefits are provided to a significant portion of our employees and retirees. AK Steel also contributes to multiemployer pension plans according
to collective bargaining agreements that cover certain union-represented employees and defined contribution pension plans. The AK Steel pension and OPEB plans were remeasured as of March 13, 2020.
The following are the components of defined benefit pension and OPEB costs (credits):
Defined Benefit Pension Costs (Credits)
 
(In Millions)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Service cost
$
5.3

 
$
4.2

 
$
10.6

 
$
8.3

Interest cost
14.9

 
8.6

 
23.1

 
17.3

Expected return on plan assets
(36.7
)
 
(13.7
)
 
(55.2
)
 
(27.3
)
Amortization:
 
 
 
 
 
 
 
Prior service costs
0.3

 
0.3

 
0.5

 
0.6

Net actuarial loss
6.6

 
5.9

 
13.3

 
11.8

Net periodic benefit cost (credit)
$
(9.6
)
 
$
5.3

 
$
(7.7
)
 
$
10.7


OPEB Costs (Credits)
 
(In Millions)
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2020
 
2019
 
2020
 
2019
Service cost
$
1.4

 
$
0.4

 
$
1.9

 
$
0.8

Interest cost
4.3

 
2.4

 
6.5

 
4.7

Expected return on plan assets
(4.6
)
 
(4.2
)
 
(9.1
)
 
(8.4
)
Amortization:
 
 
 
 
 
 
 
Prior service credits
(0.5
)
 
(0.5
)
 
(1.0
)
 
(1.0
)
Net actuarial loss
0.7

 
1.2

 
1.4

 
2.5

Net periodic benefit cost (credit)
$
1.3

 
$
(0.7
)
 
$
(0.3
)
 
$
(1.4
)

As a result of the CARES Act enacted on March 27, 2020, we have deferred pension contributions starting in the second quarter of 2020. Based on prior funding requirements, we made defined benefit pension contributions of $0.2 million and $4.0 million for the three and six months ended June 30, 2020, respectively, compared to defined benefit pension contributions of $3.5 million and $6.7 million for the three and six months ended June 30, 2019, respectively. OPEB contributions for our voluntary employee benefit association trust plans are typically made on an annual basis in the first quarter of each year, but due to plan funding requirements being met, no OPEB contributions for our voluntary employee benefit association trust plans were required or made for the three and six months ended June 30, 2020 and 2019.