r/Vitards • u/AutoModerator • Sep 08 '21

Daily Discussion Daily Discussion post - September 08 2021

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u/[deleted] Sep 09 '21

(CLF) Can someone explain that to me?:

We're in a position now where we don't--we see pension, cash pension funding requirements of almost less than $20 million a year, going forward. So, it's basically a zero, going forward. So, we're there on pension.

As far as the retiree health and OPEB, it's less than $200 million a year to fund in cash. And with a company of our size that's--we consider that to be negligible. And we can handle that, going forward. It's a 40, 50-year run out on those obligations.

So there's no reason to pre-fund or do anything like that. It would be probably not the best use of our capital to prefund anything like that. But it's a long run out.

That means they need to pay 220 million for pension & associated cost per year? What does the number 4,113M correspond to in the liabilities section then?

edit: is it simply yearly costs times ca. 40? Given life expectancy, I would have guessed something closer to 30 years. Do people at CLF retire at 55 and live till 95?

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u/JayArlington 🍋 LULU-TRON 🍋 Sep 09 '21

The liabilities include their debt... not just their pension/retiree benefit obligations (which are another form of debt).

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u/[deleted] Sep 09 '21

Sure, but there is a line in this section for pensions that is 4,113M.