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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 31, 2019
Retirement Benefits [Abstract] |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Pension Plans The Company sponsors defined benefit pension plans that cover certain U.S., Canadian, German, and United Kingdom employees and which provide benefits of stated amounts for each year of service of the employee. The Company uses a December 31 measurement date for the plans. The following tables provide information regarding the Company’s significant defined benefit pension plans summarized by U.S. and international components. Obligations and Funded Status
|  | U.S. |  |  |  | International |  |
In millions |  | 2019 |  | 2018 |  | 2019 |  | 2018
Change in projected benefit obligation |  |  |  |  |  |  |  |
Obligation at beginning of year |  | $ | (39.4) |  |  | $ | (44.2) |  |  | $ | (309.2) |  |  | $ | (353.0) |
Service cost |  | (0.3) |  |  | (0.3) |  |  | (2.7) |  |  | (2.6) |
Interest cost |  | (1.5) |  |  | (1.3) |  |  | (7.0) |  |  | (7.0) |
Employee contributions |  | — |  |  | — |  |  | (0.5) |  |  | (0.4) |
Plan settlements and amendments |  | — |  |  | — |  |  | 4.4 |  |  | 15.2 |
Benefits paid |  | 3.0 |  |  | 3.5 |  |  | 13.1 |  |  | 13.5 |
Acquisition |  | — |  |  | — |  |  | (5.0) |  |  | (0.9) |
Actuarial gain (loss) |  | (2.9) |  |  | 2.9 |  |  | (32.4) |  |  | 6.7 |
Effect of currency rate changes |  | — |  |  | — |  |  | (8.0) |  |  | 19.3 |
Obligation at end of year |  | $ | (41.1) |  |  | $ | (39.4) |  |  | $ | (347.3) |  |  | $ | (309.2) |
Change in plan assets |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 31.9 |  |  | $ | 37.4 |  |  | $ | 239.4 |  |  | $ | 281.6 |
Actual return on plan assets |  | 5.3 |  |  | (2.0) |  |  | 23.9 |  |  | (6.9) |
Employer contributions |  | — |  |  | — |  |  | 9.4 |  |  | 10.8 |
Employee contributions |  | — |  |  | — |  |  | 0.5 |  |  | 0.4 |
Benefits paid |  | (2.9) |  |  | (3.5) |  |  | (13.1) |  |  | (13.5) |
Settlements |  | — |  |  | — |  |  | (0.4) |  |  | (16.6) |
Acquisition |  | — |  |  | — |  |  | 1.2 |  |  | — |
Effect of currency rate changes |  | — |  |  | — |  |  | 8.9 |  |  | (16.4) |
Fair value of plan assets at end of year |  | $ | 34.3 |  |  | $ | 31.9 |  |  | $ | 269.8 |  |  | $ | 239.4 |
Funded status |  |  |  |  |  |  |  |
Fair value of plan assets |  | $ | 34.3 |  |  | $ | 31.9 |  |  | $ | 269.8 |  |  | $ | 239.4 |
Benefit obligations |  | (41.1) |  |  | (39.4) |  |  | (347.3) |  |  | (309.2) |
Funded status |  | $ | (6.8) |  |  | $ | (7.5) |  |  | $ | (77.5) |  |  | $ | (69.8) |
Amounts recognized in the statement of financial position consist of: |  |  |  |  |  |  |  |
Noncurrent assets |  | $ | — |  |  | $ | — |  |  | $ | 11.8 |  |  | $ | 8.9 |
Current liabilities |  | — |  |  | — |  |  | (2.4) |  |  | (2.1) |
Noncurrent liabilities |  | (6.9) |  |  | (7.5) |  |  | (86.9) |  |  | (76.6) |
Net amount recognized |  | $ | (6.9) |  |  | $ | (7.5) |  |  | $ | (77.5) |  |  | $ | (69.8) |
Amounts recognized in accumulated other comprehensive income (loss) consist of: |  |  |  |  |  |  |  |
Prior service cost |  | — |  |  | — |  |  | (1.4) |  |  | (1.4) |
Net actuarial loss |  | (18.8) |  |  | (20.3) |  |  | (78.3) |  |  | (58.7) |
Net amount recognized |  | $ | (18.8) |  |  | $ | (20.3) |  |  | $ | (79.7) |  |  | $ | (60.1) |
The aggregate accumulated benefit obligation for the U.S. pension plans was $40.2 million and $38.8 million as of December 31, 2019 and 2018, respectively. The aggregate accumulated benefit obligation for the international pension plans was $336.0 million and $301.1 million as of December 31, 2019 and 2018, respectively.
|  | U.S. |  |  |  | International |  |
In millions |  | 2019 |  | 2018 |  | 2019 |  | 2018
Information for pension plans with accumulated benefit obligations in excess of Plan assets: |  |  |  |  |  |  |  |
Projected benefit obligation |  | $ | (41.1) |  |  | $ | (39.4) |  |  | $ | (283.1) |  |  | $ | (251.0) |
Accumulated benefit obligation |  | (40.2) |  |  | (38.8) |  |  | (272.6) |  |  | (243.6) |
Fair value of plan assets |  | 34.3 |  |  | 31.9 |  |  | 193.9 |  |  | 172.3 |
Information for pension plans with projected benefit obligations in |  |  |  |  |  |  |  |
excess of plan assets: |  |  |  |  |  |  |  |
Projected benefit obligation |  | $ | (41.1) |  |  | $ | (39.5) |  |  | $ | (284.4) |  |  | $ | (251.0) |
Fair value of plan assets |  | 34.3 |  |  | 32.0 |  |  | 195.1 |  |  | 172.3 |
Components of Net Periodic Benefit Costs
|  | U.S. |  |  |  |  |  | International |  |  |  |
In millions |  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Service cost |  | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | 0.3 |  |  | $ | 2.7 |  |  | $ | 2.6 |  |  | $ | 2.7 |
Interest cost |  | 1.5 |  |  | 1.3 |  |  | 1.4 |  |  | 7.0 |  |  | 7.0 |  |  | 7.3 |
Expected return on plan assets |  | (1.7) |  |  | (1.8) |  |  | (1.7) |  |  | (11.8) |  |  | (13.5) |  |  | (12.4) |
Amortization of initial net obligation and prior service cost |  | — |  |  | — |  |  | — |  |  | 0.1 |  |  | — |  |  | — |
Amortization of net loss |  | 0.8 |  |  | 1.0 |  |  | 1.0 |  |  | 2.5 |  |  | 2.1 |  |  | 2.8 |
Settlement and curtailment losses recognized |  | — |  |  | — |  |  | — |  |  | — |  |  | 3.1 |  |  | 0.8 |
Net periodic benefit cost |  | $ | 0.9 |  |  | $ | 0.8 |  |  | $ | 1.0 |  |  | $ | 0.5 |  |  | $ | 1.3 |  |  | $ | 1.2 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2019 are as follows:
In millions |  | U.S. |  | International
Net gain (loss) arising during the year |  | $ | 0.7 |  |  | $ | (20.3) |
Effect of exchange rates |  | — |  |  | (2.1) |
Amortization, settlement, or curtailment recognition of net transition obligation |  | — |  |  | 0.4 |
Amortization or curtailment recognition of prior service cost |  | — |  |  | 0.1 |
Amortization or settlement recognition of net loss |  | 0.8 |  |  | 2.5 |
Total recognized in other comprehensive gain |  | $ | 1.5 |  |  | $ | (19.4) |
Total recognized in net periodic benefit cost and other comprehensive gain |  | $ | 0.6 |  |  | $ | (19.9) |
The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed.
|  | U.S. |  |  |  |  |  | International |  |  |  |
|  | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017
Discount rate |  | 3.27 | % |  | 4.30 | % |  | 3.56 | % |  | 1.84 | % |  | 2.53 | % |  | 2.40 | %
Expected return on plan assets |  | 5.35 | % |  | 5.15 | % |  | 4.95 | % |  | 5.01 | % |  | 5.10 | % |  | 5.02 | %
Rate of compensation increase |  | 3.00 | % |  | 3.00 | % |  | 3.00 | % |  | 2.64 | % |  | 2.61 | % |  | 2.54 | %
The discount rate is based on settling the pension obligation with high grade, high yield corporate bonds, and the rate of compensation increase is based on actual experience. The expected return on plan assets is based on historical performance as well as expected future rates of return on plan assets considering the current investment portfolio mix and the long-term investment strategy. As of December 31, 2019, the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2020.
In millions |  | U.S. |  | International
Prior service cost |  | — |  |  | 0.1 |
Net actuarial loss |  | 1.0 |  |  | 4.3 |
|  | $ | 1.0 |  |  | $ | 4.4 |
Pension Plan Assets The Company has established formal investment policies for the assets associated with our pension plans. Objectives include maximizing long-term return at acceptable risk levels and diversifying among asset classes. Asset allocation targets are based on periodic asset liability study results which help determine the appropriate investment strategies. The investment policies permit variances from the targets within certain parameters. The plan assets consist primarily of equity security funds, debt security funds, and temporary cash and cash equivalent investments. The assets held in these funds are generally actively managed and are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. (See Note 19 “Fair Value Measurement” included herein). Plan assets by asset category at December 31, 2019 and 2018 are as follows:
|  | U.S. |  |  |  | International |  |
In millions |  | 2019 |  | 2018 |  | 2019 |  | 2018
Pension Plan Assets |  |  |  |  |  |  |  |
Equity security funds |  | $ | 16.4 |  |  | $ | 13.2 |  |  | $ | 70.8 |  |  | $ | 95.1 |
Debt security funds and other |  | 16.3 |  |  | 17.5 |  |  | 191.3 |  |  | 140.9 |
Cash and cash equivalents |  | 1.6 |  |  | 1.2 |  |  | 7.7 |  |  | 3.4 |
Fair value of plan assets |  | $ | 34.3 |  |  | $ | 31.9 |  |  | $ | 269.8 |  |  | $ | 239.4 |
The U.S. plan has a target asset allocation of 55% equity securities and 45% debt securities. The International plan has a target asset allocation of 26% equity securities, 53% debt securities and 21% in other investments. Investment policies are determined by the respective Plan’s Pension Committee and set forth in its Investment Policy. Rebalancing of the asset allocation occurs on a quarterly basis. The following tables summarize our pension plan assets measured at fair value on a recurring basis by fair value hierarchy level (See Note 19):
|  | December 31, 2019 |  |  |  |  |  |  |  |
In millions |  | NAV |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
US: |  |  |  |  |  |  |  |  |  |
Equity |  | $ | — |  |  | $ | 16.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 16.4 |
Debt Securities and other |  | — |  |  | 3.5 |  |  | 12.8 |  |  | — |  |  | 16.3 |
Cash and cash equivalents |  | — |  |  | 1.5 |  |  | — |  |  | — |  |  | 1.5 |
International: |  |  |  |  |  |  |  |  |  |
Equity |  | $ | 4.9 |  |  | $ | 19.9 |  |  | $ | 46.0 |  |  | $ | — |  |  | $ | 70.8 |
Debt Securities and other |  | — |  |  | 3.1 |  |  | 179.2 |  |  | — |  |  | 182.4 |
Insurance Contracts |  | — |  |  | — |  |  | 4.3 |  |  | 4.6 |  |  | 8.9 |
Cash and cash equivalents |  | — |  |  | 7.0 |  |  | 0.7 |  |  | — |  |  | 7.8 |
Total |  | $ | 4.9 |  |  | $ | 51.5 |  |  | $ | 243.1 |  |  | $ | 4.6 |  |  | $ | 304.1 |
|  | December 31, 2018 |  |  |  |  |  |  |  |
In millions |  | NAV |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
US: |  |  |  |  |  |  |  |  |  |
Equity |  | $ | — |  |  | $ | 13.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 13.2 |
Debt Securities |  | — |  |  | 4.5 |  |  | 13.0 |  |  | — |  |  | 17.5 |
Cash and cash equivalents |  | — |  |  | 1.3 |  |  | — |  |  | — |  |  | 1.3 |
International: |  |  |  |  |  |  |  |  |  |
Equity |  | $ | 3.7 |  |  | $ | 34.8 |  |  | $ | 56.5 |  |  | $ | — |  |  | $ | 95.1 |
Debt Securities |  | — |  |  | — |  |  | 125.6 |  |  | — |  |  | 125.6 |
Insurance Contracts |  | — |  |  | — |  |  | 5.4 |  |  | 9.9 |  |  | 15.3 |
Cash and cash equivalents |  | — |  |  | 3.5 |  |  | — |  |  | — |  |  | 3.5 |
Total |  | $ | 3.7 |  |  | $ | 57.4 |  |  | $ | 200.5 |  |  | $ | 9.9 |  |  | $ | 271.5 |
The following table presents a reconciliation of Level 3 assets:
In millions |  | Total
Balance at December 31, 2017 |  | $ | 13.1 |
Net purchases, issuances, and settlements |  | (3.6) |
Actual return of plan assets |  | 0.3 |
Transfers |  | 0.7 |
Effect of currency rate changes |  | (0.5) |
Balance at December 31, 2018 |  | $ | 9.9 |
Net purchases, issuances, and settlements |  | 0.2 |
Actual return of plan assets |  | 0.3 |
Transfers |  | (5.8) |
Effect of currency rate changes |  | — |
Balance at December 31, 2019 |  | $ | 4.6 |
Cash Flows The Company’s funding methods are based on governmental requirements and differ from those methods used to recognize pension expense. The Company expects to contribute $2.1 million and $8.8 million to the U.S. and international plans respectively during 2020. Benefit payments expected to be paid to plan participants are as follows:
In millions |  | U.S. |  | International
Year ended December 31, |  |  |  |
2020 |  | $ | 3.2 |  |  | $ | 16.0 |
2021 |  | 3.1 |  |  | 16.5 |
2022 |  | 3.0 |  |  | 17.0 |
2023 |  | 3.0 |  |  | 17.7 |
2024 |  | 2.9 |  |  | 17.9 |
2025 through 2029 |  | 13.0 |  |  | 93.4 |
Defined Contribution Plans The Company also participates in certain defined contribution plans and multiemployer pension plans. Costs recognized under these plans are summarized as follows:
|  | For the year ended December 31, |  |  |  |
In millions |  | 2019 |  | 2018 |  | 2017
Multi-employer pension and health & welfare plans |  | $ | 0.9 |  |  | $ | 1.0 |  |  | $ | 1.5 |
401(k) savings and other defined contribution plans |  | 55.7 |  |  | 27.9 |  |  | 23.2 |
Total |  | $ | 56.6 |  |  | $ | 28.8 |  |  | $ | 24.7 |
The 401(k) savings plan is a participant directed defined contribution plan that holds shares of the Company’s stock as one of the investment options. At December 31, 2019 and 2018, the plan held on behalf of its participants about 431,744 shares with a market value of $33.6 million, and 442,239 shares with a market value of $31.1 million, respectively. Additionally, the Company has stock option based benefit and other plans further described in Note 13. The Company contributes to a multi-employer defined benefit pension plan under a collective bargaining agreement that covers certain of its union-represented employees. The risks of participating in such plans are different from the risks of single-employer plans. Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. If the Company ceases to have an obligation to contribute to the multi-employer plan in which it had been a contributing employer, it may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of the Company’s participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multi-employer plan is required to pay to the plan is referred to as a withdrawal liability. The Company’s participation in multi-employer plans for the year ended December 31, 2019 is outlined in the table below. For plans that are not individually significant to the Company, the total amount of contributions is presented in the aggregate.
|  |  |  |  | Pension Protection Act Zone Status (b) |  |  |  | FIP/ |  | Contributions by the Company |  |  |  |  |  |  |  |  |  |  |  |  |  | Expiration Dates of
In thousands |  |  |  |  |  |  |  |  | RP Status Pending/ |  |  |  |  |  |  |  |  |  |  |  |  |  | Surcharge Imposed |  | Collective Bargaining
Pension Fund |  | EIN/PN (a) |  |  | 2019 |  | 2018 |  | Implemented (c) |  | 2019 |  |  |  | 2018 |  |  |  | 2017 |  |  |  | (d) |  | Agreements
Idaho Operating Engineers- |  | EIN # | 91-6075538 |  | Green |  | Green |  | No |  | $ | 881 |  |  | (1) |  |  | $ | 965 |  |  | (1) |  |  | $ | 1,020 |  |  | (1) |  |  | No |  | 8/6/2021
Employers Pension Trust Fund |  | Plan# | 001 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  | Total Contributions |  | $ | 881 |  |  |  |  | $ | 965 |  |  |  |  | $ | 1,020 |  |  |  |  |  |  |
(1)The Company’s contribution represents more than 5% of the total contributions to the plan. (a) The “EIN / PN” column provides the Employer Identification Number and the three-digit plan number assigned to a plan by the Internal Revenue Service. (b) The most recent Pension Protection Act Zone Status available for 2019 and 2018 is for plan years that ended in 2019 and 2018, respectively. The zone status is based on information provided to the Company and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone has been determined to be in “critical status”, based on criteria established under the Internal Revenue Code (“Code”), and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status” and is generally at least 80% funded. (c)The “FIP/RP Status Pending/Implemented” column indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2019. (d) The “Surcharge Imposed” column indicates whether the Company’s contribution rate for 2019 included an amount in addition the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code.

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