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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2020
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] |
Employee Benefit Plans | Note 12: Employee Benefit Plans Defined Benefit Pension Plans The Company maintains defined benefit pension plans for employees of certain of its foreign subsidiaries. Such plans conform to local practice in terms of providing minimum benefits mandated by law, collective agreements or customary practice. The Company recognizes the aggregate amount of all overfunded plans as assets and the aggregate amount of all underfunded plans as liabilities in its Consolidated Balance Sheets. The Company's expected long-term rate of return on plan assets is updated at least annually, taking into consideration its asset allocation, historical returns on similar types of assets and the current economic environment. For estimation purposes, the Company assumes its long-term asset mix will generally be consistent with the current mix. The Company determines its discount rates using highly rated corporate bond yields and government bond yields. Benefits under all of the plans are valued utilizing the projected unit credit cost method. The Company's policy is to fund its defined benefit plans in accordance with local requirements and regulations. The funding is primarily driven by the current assessment of the economic environment and projected benefit payments of foreign subsidiaries. The measurement date for determining the defined benefit obligations for all plans is December 31 of each year. The Company recognizes actuarial gains and losses during the period the Company's annual pension plan actuarial valuations are prepared, which generally occurs during the fourth calendar quarter of each year, or during any interim period where a revaluation is deemed necessary. For the years ended December 31, 2020, 2019 and 2018, the Company recognized actuarial losses amounting to $4.0 million, $15.6 million and $6.1 million, respectively. For 2020, the net actuarial loss of $8.1 million which was primarily due to a decrease in the discount rates and other insignificant changes in actuarial assumptions, was partially offset by better than expected return on plan assets amounting to $4.1 million. Following is a summary of the status of the Company's foreign defined benefit pension plans and the net periodic pension cost (amounts in millions):
|  | Year Ended December 31,
|  | 2020 |  | 2019 |  | 2018
Service cost |  | $ | 10.9 |  |  | $ | 9.4 |  |  | $ | 9.6 |
Interest cost |  | 4.7 |  |  | 5.0 |  |  | 4.7 |
Expected return on plan assets |  | (6.3) |  |  | (6.0) |  |  | (6.1) |
Curtailment gain |  | (1.6) |  |  | — |  |  | (0.3) |
Actuarial losses |  | 4.0 |  |  | 15.6 |  |  | 6.1 |
Total net periodic pension cost |  | $ | 11.7 |  |  | $ | 24.0 |  |  | $ | 14.0 |
Weighted average assumptions |  |  |  |  |  |
Discount rate used for net periodic pension costs |  | 1.43 | % |  | 1.74 | % |  | 1.66 | %
Discount rate used for pension benefit obligations |  | 1.31 | % |  | 1.43 | % |  | 1.74 | %
Expected return on plan assets |  | 3.06 | % |  | 3.23 | % |  | 3.18 | %
Rate of compensation increase |  | 3.26 | % |  | 3.07 | % |  | 3.22 | %
The long-term rate of return on plan assets was determined using the weighted-average method, which incorporates factors that include the historical inflation rates, interest rate yield curve and current market conditions.
|  | 2020 |  | 2019
Change in projected benefit obligation (PBO) |  |  |  |
Projected benefit obligation at the beginning of the year |  | $ | 322.9 |  |  | $ | 290.8 |
Service cost |  | 10.9 |  |  | 9.4 |
Interest cost |  | 4.7 |  |  | 5.0 |
Net actuarial loss |  | 8.1 |  |  | 25.8 |
Benefits paid by plan assets |  | (8.9) |  |  | (5.7) |
Benefits paid by the Company |  | (7.4) |  |  | (3.8) |
Curtailments and settlements |  | (1.6) |  |  | (0.2) |
Translation and other loss |  | 22.5 |  |  | 1.6 |
Projected benefit obligation at the end of the year |  | $ | 351.2 |  |  | $ | 322.9 |
Accumulated benefit obligation at the end of the year |  | $ | 288.3 |  |  | $ | 258.8 |
Change in plan assets |  |  |  |
Fair value of plan assets at the beginning of the year |  | $ | 190.2 |  |  | $ | 174.9 |
Actual return on plan assets |  | 10.4 |  |  | 16.2 |
Benefits paid from plan assets |  | (8.9) |  |  | (5.7) |
Employer contributions |  | 4.3 |  |  | 4.6 |
Settlements |  | — |  |  | (0.2) |
Translation and other gain |  | 13.3 |  |  | 0.4 |
Fair value of plan assets at the end of the year |  | $ | 209.3 |  |  | $ | 190.2 |
|  | As of December 31,
|  | 2020 |  | 2019
Plans with underfunded or non-funded projected benefit obligation (1) |  |  |  |
Projected benefit obligation |  | $ | 248.7 |  |  | $ | 314.7 |
Fair value of plan assets |  | 97.7 |  |  | 180.5 |
Plans with underfunded or non-funded accumulated benefit obligation |  |  |  |
Accumulated benefit obligation |  | $ | 189.4 |  |  | $ | 193.6 |
Fair value of plan assets |  | 97.7 |  |  | 115.2 |
Amounts recognized in the balance sheet consist of |  |  |  |
Non-current assets |  | $ | 9.0 |  |  | $ | — |
Current liabilities |  | (0.3) |  |  | (0.3) |
Non-current liabilities |  | (150.6) |  |  | (132.4) |
Funded status |  | $ | (141.9) |  |  | $ | (132.7) |
(1) Certain pension plans that were in an underfunded status as of December 31, 2019 changed to an overfunded status as of December 31, 2020. Plan Assets The Company's overall investment strategy is to focus on stable and low credit risk investments aimed at providing a positive rate of return to the plan assets. The Company has an investment mix with a wide diversification of asset types and fund strategies that are aligned with each region and foreign location's economy and market conditions. Investments in government securities are generally guaranteed by the respective government offering the securities. Investments in corporate bonds, equity securities, and foreign mutual funds are made with the expectation that these investments will give an adequate rate of long-term returns despite periods of high volatility. Other types of investments include investments in cash deposits, money market funds and insurance contracts. Asset allocations are based on the anticipated required funding amounts, timing of benefit payments, historical returns on similar assets and the influence of the current economic environment. The following table sets forth, by level within the fair value hierarchy, a summary of investments measured at fair value and the asset allocations of the plan assets in the Company's foreign pension plans (in millions):
|  | As of December, 31, 2020
|  | Allocation |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Asset Category |  |  |  |  |  |  |  |  |  |
Cash/Money Markets |  | 2 | % |  | $ | 4.1 |  |  | $ | 4.1 |  |  | $ | — |  |  | $ | — |
Foreign Government/Treasury Securities (1) |  | 10 | % |  | 21.4 |  |  | 21.4 |  |  | — |  |  | — |
Corporate Bonds, Debentures (2) |  | 18 | % |  | 36.9 |  |  | — |  |  | 36.9 |  |  | — |
Equity Securities (3) |  | 23 | % |  | 48.5 |  |  | — |  |  | 48.5 |  |  | — |
Mutual Funds |  | 5 | % |  | 9.5 |  |  | — |  |  | 9.5 |  |  | — |
Investment and Insurance Contracts (4) |  | 42 | % |  | 88.9 |  |  | — |  |  | 31.4 |  |  | 57.5 |
|  | 100 | % |  | $ | 209.3 |  |  | $ | 25.5 |  |  | $ | 126.3 |  |  | $ | 57.5 |
|  | As of December, 31, 2019
|  | Allocation |  | Total |  | Level 1 |  | Level 2 |  | Level 3
Asset Category |  |  |  |  |  |  |  |  |  |
Cash/Money Markets |  | 3 | % |  | $ | 4.5 |  |  | $ | 4.5 |  |  | $ | — |  |  | $ | — |
Foreign Government/Treasury Securities (1) |  | 10 | % |  | 19.4 |  |  | 19.4 |  |  | — |  |  | — |
Corporate Bonds, Debentures (2) |  | 19 | % |  | 35.3 |  |  | — |  |  | 35.3 |  |  | — |
Equity Securities (3) |  | 21 | % |  | 40.4 |  |  | — |  |  | 40.4 |  |  | — |
Mutual Funds |  | 4 | % |  | 8.0 |  |  | — |  |  | 8.0 |  |  | — |
Investment and Insurance Contracts (4) |  | 43 | % |  | 82.6 |  |  | — |  |  | 30.6 |  |  | 52.0 |
|  | 100 | % |  | $ | 190.2 |  |  | $ | 23.9 |  |  | $ | 114.3 |  |  | $ | 52.0 |
_______________________ (1) Includes investments primarily in guaranteed return securities. (2) Includes investments in government bonds and corporate bonds of developed countries, emerging market government bonds, emerging market corporate bonds and convertible bonds. (3) Includes investments in equity securities of developed countries and emerging markets. (4) Includes certain investments with insurance companies that guarantee a minimum rate of return on the investment. When available, the Company uses observable market data, including pricing on recently closed market transactions and quoted prices, which are included in Level 2. When data is unobservable, valuation methodologies using comparable market data are utilized and included in Level 3. Activity during the years ended December 31, 2020 and 2019, respectively, for plan assets with fair value measurement using significant unobservable inputs (Level 3) were as follows (in millions):
|  |  |  |  |  | Investment and Insurance Contracts |  |
Balance at December 31, 2018 |  |  |  |  |  | $ | 50.6 |  |  |
Actual return on plan assets |  |  |  |  |  | 3.3 |  |  |
Purchase, sales and settlements. net |  |  |  |  |  | (0.9) |  |  |
Foreign currency impact |  |  |  |  |  | (1.0) |  |  |
Balance at December 31, 2019 |  |  |  |  |  | $ | 52.0 |  |  |
Actual return on plan assets |  |  |  |  |  | 0.8 |  |  |
Purchase, sales and settlements, net |  |  |  |  |  | (0.3) |  |  |
Foreign currency impact |  |  |  |  |  | 5.0 |  |  |
Balance at December 31, 2020 |  |  |  |  |  | $ | 57.5 |  |  |
The expected benefit payments from the Company's defined benefit plans from 2021 through 2025 and the five years thereafter are as follows (in millions):
2021 |  | $ | 7.0 |
2022 |  | 10.6 |
2023 |  | 14.0 |
2024 |  | 15.8 |
2025 |  | 17.9 |
Five years thereafter |  | 114.3 |
Total |  | $ | 179.6 |
The total underfunded status was $141.9 million at December 31, 2020. The Company expects to contribute $22.1 million during 2021 to its foreign defined benefit plans. Defined Contribution Plans The Company has a deferred compensation savings plan for all eligible U.S. employees established under the provisions of Section 401(k) of the Internal Revenue Code (the "Code"). Eligible employees may contribute a percentage of their salary subject to certain limitations. The Company has elected to match 100% of employee contributions between 0% and 4% of their salary, with an annual limit of $11,400. The Company recognized $19.4 million, $18.1 million and $19.2 million of expense relating to matching contributions in 2020, 2019 and 2018, respectively. Certain foreign subsidiaries have defined contribution plans in which eligible employees participate. The Company recognized compensation expense of $21.8 million, $20.6 million and $20.5 million relating to these plans for the years ended 2020, 2019 and 2018, respectively.

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