Employee Benefit Plans

Overview — Defined benefit pension plans cover a portion of our salaried and hourly paid employees, including certain employees in foreign countries. Beginning in 2001, we discontinued providing these pension benefits generally to newly hired employees. In addition, we no longer provide service credits to certain active participants. Of the U.S. employees covered by a defined benefit pension plan and actively accruing a benefit, most are part of a collectively bargained plan.

We have domestic postretirement plans that provide health and life insurance benefits to certain retirees and their dependents. Beginning in 2003, we discontinued providing these postretirement benefits generally to newly hired employees. Some of these plans require retiree contributions at varying rates. Not all retirees are eligible to receive these benefits, with eligibility governed by the plan(s) in effect at a particular location.

The plan year-end date for all our plans is December 31.

Transfers of Retiree Pension Obligations and Lump-Sum Offer — In 2013, we executed an agreement to transfer obligations for monthly pension payments to retirees under the SPX U.S. Pension Plan (the "U.S. Plan") to Massachusetts Mutual Life Insurance Company ("Mass Mutual"). Under the agreement, Mass Mutual irrevocably assumed the obligation to make future pension payments to the approximately 16,000 retirees of the U.S. Plan beginning in the second quarter of 2014. The U.S. Plan paid Mass Mutual $663.7 in 2013 to assume obligations totaling approximately $609.0. The partial annuitization of the U.S. Plan resulted in a settlement gain of $4.8, which has been included in net periodic pension benefit expense for 2013. During 2014 the above settlement gain was increased by an additional $4.8 due to refunds by Mass Mutual to the U.S. Plan, with such gain included in net periodic pension benefit expense for 2014. Additionally, during a designated election period in the first quarter of 2014, we offered approximately 7,100 eligible former employees a voluntary lump-sum payment option in lieu of a future pension benefit under the U.S. Plan. Approximately 38%, or $165.2, of the projected benefit obligation of the U.S. Plan was settled as a result of lump-sum payments made to those who accepted the offer. These payments were made during the first quarter of 2014. In connection with the lump-sum payment action, a settlement loss and an actuarial loss of $4.6 and $14.8, respectively,were recorded to net periodic pension benefit expense, with the actuarial loss resulting from the remeasurement of the assets and obligations of the U.S. Plan.

In the fourth quarter of 2014, we executed an agreement to transfer obligations for monthly pension payments to retirees under the SPX U.K. Pension Plan (the "U.K. Plan") to Just Retirement Limited ("Just Retirement"). Under the agreement, Just Retirement irrevocably assumed the obligation to make future pension payments to the approximately 900 retirees of the U.K. Plan beginning in the first quarter of 2015. The U.K. Plan paid Just Retirement 79.2 British Pounds ("GBP") ($123.3 equivalent) in the fourth quarter of 2014 to assume obligations totaling approximately GBP 68.0 ($105.8 equivalent). The partial annuitization of the U.K. Plan resulted in a settlement loss of $15.0, which was included in net periodic pension benefit expense for 2014.

On July 14, 2015, we amended the U.S. Plan and the Supplemental Individual Account Retirement Plan (‘‘SIARP’’) to freeze all benefits for active non-union participants. The amendment resulted in a curtailment gain of $5.1. In connection with the amendment, we remeasured the assets and liabilities of the U.S. Plan and the SIARP as of June 30, 2015, which resulted in a charge to net periodic pension benefit expense of $11.4, which has been included in net periodic pension benefit expense for 2015.

Defined Benefit Pension Plans

Plan assets — Our investment strategy is based on the long-term growth and protection of principle while mitigating overall risk to ensure that funds are available to pay benefit obligations. The domestic plan assets are invested in a broad range of investment classes, including fixed income securities and domestic and international equities. We engage various investment managers who are regularly evaluated on long-term performance, adherence to investment guidelines and the ability to manage risk commensurate with the investment style and objective for which they were hired. We continuously monitor the value of assets by class and routinely rebalance our portfolio with the goal of meeting our target allocations.

The strategy for bonds emphasizes investment-grade corporate and government debt with maturities matching a portion of the longer duration pension liabilities. The bonds strategy also includes a high yield element, which is generally shorter in duration. The strategy for equity assets is to minimize concentrations of risk by investing primarily in companies in a diversified mix of industries worldwide, while targeting neutrality in exposure to global versus regional markets, fund types and fund managers. A small portion of U.S. plan assets is allocated to private equity partnerships and real estate asset fund investments for diversification, providing opportunities for above market returns.

Allowable investments under the plan agreements include fixed income securities, equity securities, mutual funds, venture capital funds, real estate and cash and equivalents. In addition, investments in futures and option contracts, commodities and other derivatives are allowed in commingled fund allocations managed by professional investment managers. Investments prohibited under the plan agreements include private placements and short selling of stock. No shares of our common stock were held by our defined benefit pension plans as of December 31, 2015 or 2014.

Actual asset allocation percentages of each class of our domestic and foreign pension plan assets as of December 31, 2015 and 2014, along with the targeted asset investment allocation percentages, each of which is based on the midpoint of an allocation range, were as follows:

Domestic Pension Plans



	Actual Allocations				Mid-point of Target Allocation Range
	2015		2014		2015
Fixed income common trust funds	54	%	53	%	49	%
Commingled global fund allocation	16	%	12	%	18	%
Corporate bonds	13	%	12	%	12	%
Global equity common trust funds	11	%	11	%	10	%
Global equities	—		4	%	5	%
U.S. Government securities	3	%	4	%	4	%
Short-term investments⁽¹⁾	2	%	3	%	—
Other⁽²⁾	1	%	1	%	2	%
Total	100	%	100	%	100	%

___________________________________________________________________


⁽¹⁾	Short-term investments are generally invested in actively managed common trust funds or interest-bearing accounts.


⁽²⁾	Assets included in this class at December 31, 2015 and 2014 are comprised primarily of insurance contracts, private equity and publicly traded real estate trusts.

Foreign Pension Plans



	Actual Allocations				Mid-point of Target Allocation Range
	2015		2014		2015
Global equity common trust funds	35	%	71	%	45	%
Fixed income common trust funds	8	%	8	%	31	%
Non-U.S. Government securities	17	%	15	%	23	%
Short-term investments⁽¹⁾	40	%	6	%	1	%
Total	100	%	100	%	100	%

___________________________________________________________________

⁽¹⁾

Short-term investments are generally invested in actively managed common trust funds or interest-bearing accounts. As of December 31, 2015, and in connection with a transition to a new investment advisor, the UK Plan had a significant amount of its assets invested in short-term investments. Following the engagement of the new investment advisor for the UK Plan, we anticipate that asset allocations for the UK Plan and aggregate asset allocations for our foreign plans will be more in-line with targeted allocations.

The fair values of pension plan assets at December 31, 2015, by asset class, were as follows:



	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset class:
Debt securities:
Fixed income common trust funds⁽¹⁾	$	163.4	$	13.2	$	150.2	$	—
Corporate bonds	36.0		—		36.0		—
Non-U.S. Government securities	27.4		—		27.4		—
U.S. Government securities	8.8		—		8.8		—
Equity securities:
Global equity common trust funds⁽²⁾	89.0		13.6		75.4		—
Alternative investments:
Commingled global fund allocations⁽³⁾	45.4		22.8		22.6		—
Other:
Short-term investments⁽⁴⁾	71.7		14.2		57.5		—
Other⁽⁵⁾	1.0		—		—		1.0
Total	$	442.7	$	63.8	$	377.9	$	1.0

The fair values of pension plan assets at December 31, 2014, by asset class, were as follows:



	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Asset class:
Debt securities:
Fixed income common trust funds⁽¹⁾	$	178.2	$	15.1	$	163.1	$	—
Corporate bonds	36.5		36.5		—		—
U.S. Government securities	28.5		—		28.5		—
Non-U.S. Government securities	12.0		12.0		—		—
Equity securities:
Global equity common trust funds⁽²⁾	162.8		15.0		142.9		4.9
Global equities:
Finance	2.1		2.1		—		—
Capital equipment	1.9		1.9		—		—
Consumer goods	1.7		1.7		—		—
Materials	1.6		1.6		—		—
Services	0.8		0.8		—		—
Energy	0.2		0.2		—		—
Miscellaneous	4.6		4.6		—		—
Alternative investments:
Commingled global fund allocations⁽³⁾	36.3		10.5		25.8		—
Other:
Short-term investments⁽⁴⁾	19.7		19.7		—		—
Other⁽⁵⁾	5.5		0.3		—		5.2
Total	$	492.4	$	122.0	$	360.3	$	10.1

⁽¹⁾

This class represents investments in actively managed common trust funds that invest in a variety of fixed income investments, which may include corporate bonds, both U.S. and non-U.S. municipal securities, interest rate swaps, options and futures. The funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. The investments are valued based on yields currently available for comparable securities of issuers with similar credit ratings. The Level of the fund(s) (Level 1, 2 or 3) is determined based on the classification of the significant holdings within the fund.

⁽²⁾

This class represents investments in actively managed common trust funds that invest primarily in equity securities, which may include common stocks, options and futures. The funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. The investments are valued based on market values and yields currently available for comparable securities of issuers with similar credit ratings. The Level of the fund(s) (Level 1, 2 or 3) is determined based on the classification of the significant holdings within the fund.

⁽³⁾

This class represents investments in actively managed common trust funds with investments in both equity and debt securities. The investments may include common stock, corporate bonds, U.S. and non-U.S. municipal securities, interest rate swaps, options and futures. The funds are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. The investments are valued based on market values and yields currently available for comparable securities of issuers with similar credit ratings. The Level of the fund(s) (Level 1, 2 or 3) is determined based on the classification of the significant holdings within the fund.


⁽⁴⁾	Short-term investments are valued at $1.00/unit, which approximates fair value. Amounts are generally invested in actively managed common trust funds or interest-bearing accounts.


⁽⁵⁾	This category represents investments in insurance contracts, private equity and publicly traded real estate investment trusts. The insurance contracts and private equity investments are valued using unobservable inputs from the fund manager, primarily based on discounted cash flows models.

Our domestic pension plans participate in a securities lending program through J.P. Morgan Chase Bank, National Association. Securities loaned are required to be fully collateralized by cash or other securities. The gross collateral and the related liability to return collateral amounted to $5.5 and $7.0 at December 31, 2015 and 2014, respectively, and have been included within Level 2 of the fair value hierarchy in the tables above.

During 2015, the balance of our Corporate bonds and US Government securities asset classes were transferred from Level 1 to Level 2 of the fair value hierarchy (the fair value of these asset classes were $44.8 and $48.5 at December 31, 2015 and 2014, respectively). During 2014, there were no significant transfers between Level 1 and Level 2 of the fair value hierarchy. It is our policy to recognize transfers between levels of the fair value hierarchy at the beginning of the fiscal year.

The following table summarizes changes in the fair value of Level 3 assets for the years ended December 31, 2015 and 2014:



	Global Equity Common Trust Funds			Commingled Global Fund Allocations		Fixed Income Common Trust Funds		Other			Total
Balance at December 31, 2013	$	6.8		$	—	$	—	$	6.4		$	13.2
Unrealized gains relating to instruments still held at period end	0.2			—		—		—			0.2
Sales	(2.1		)	—		—		(1.2		)	(3.3		)
Balance at December 31, 2014	4.9			—		—		5.2			10.1
Spin-Off of SPX FLOW	—			—		—		(4.1		)	(4.1		)
Transfer from Level 3 to Level 2 assets	(4.9		)	—		—		—			(4.9		)
Sales	—			—		—		(0.1		)	(0.1		)
Balance at December 31, 2015	$	—		$	—	$	—	$	1.0		$	1.0

Employer Contributions — We currently fund U.S. pension plans in amounts equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, plus additional amounts that may be approved from time to time. During 2015, we made no contributions to our qualified domestic pension plans, and direct benefit payments of $12.3 to our non-qualified domestic pension plans. In 2016, we do not expect to make any minimum required funding contributions to our qualified domestic pension plans and expect to make direct benefit payments of $9.8 to our non-qualified domestic pension plans.

Many of our foreign plan obligations are unfunded in accordance with local laws. These plans have no assets and instead are funded by us on a pay as you go basis in the form of direct benefit payments. In 2015, we made contributions of $6.3 to our foreign plans that are funded, which included $5.6 of contributions that relate to businesses that have been classified as discontinued operations. In addition, we made direct benefit payments of $2.3 to our foreign plans that are unfunded, including $2.0 associated with plans that were transferred to SPX FLOW upon the Spin-Off. In 2016, we expect to make minimum required funding contributions of $2.2, including $1.8 of contributions that relate to businesses that have been classified as discontinued operations, and $0.3 of direct benefit payments to our foreign pension plans.

Estimated Future Benefit Payments — Following is a summary, as of December 31, 2015, of the estimated future benefit payments for our pension plans in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. Benefit payments are paid from plan assets or directly by us for our non-funded plans. The expected benefit payments are estimated based on the same assumptions used at December 31, 2015 to measure our obligations and include benefits attributable to estimated future employee service.

Estimated future benefit payments: (Domestic and foreign pension plans)

	Domestic Pension Benefits		Foreign Pension Benefits
2016	$	55.7	$	4.6
2017	22.0		5.0
2018	22.2		5.6
2019	21.9		6.5
2020	23.5		6.4
Subsequent five years	111.7		34.6

Obligations and Funded Status — The funded status of our pension plans is dependent upon many factors, including returns on invested assets and the level of market interest rates. The combined unfunded status of our pension plans as of December 31, 2015 has decreased since December 31, 2014, primarily as a result of (i) a transfer to SPX FLOW of the obligation of the "Top Management Plan" related to SPX FLOW executive officers, (ii) higher discount rates being used to value the domestic and foreign plans and (iii) changes in mortality rate assumptions used to value the domestic plans in 2015 compared to 2014, partially offset by lower returns on plan assets in 2015. Our non-funded pension plans account for $85.7 of the current underfunded status, as these plans are not required to be funded. The following tables show the domestic and foreign pension plans' funded status and amounts recognized in our consolidated balance sheets:



	Domestic Pension Plans						Foreign Pension Plans
	2015			2014			2015			2014
Change in projected benefit obligation:
Projected benefit obligation — beginning of year	$	455.3		$	568.8		$	239.6		$	335.6
Spin-Off of SPX FLOW ⁽¹⁾	(64.5		)	—			(60.1		)	—
Service cost	2.5			7.1			1.3			2.6
Interest cost	16.5			19.9			7.7			13.8
Employee contributions	—			—			—			0.1
Actuarial losses (gains)	(9.2		)	59.5			(6.1		)	55.3
Settlements ⁽²⁾	(6.0		)	(160.4		)	—			(127.7		)
Curtailment gain ⁽³⁾	(5.1		)	—			—			—
Plan amendment	(0.9		)	—			—			(0.2		)
Benefits paid	(17.5		)	(39.6		)	(12.1		)	(16.0		)
Foreign exchange and other	—			—			(14.6		)	(23.9		)
Projected benefit obligation — end of year ⁽⁴⁾	$	371.1		$	455.3		$	155.7		$	239.6

___________________________________________________________________


⁽¹⁾	Represents the transfer to SPX FLOW of the "Top Management Plan" obligation related to SPX FLOW's executive officers and the impact of transferring foreign defined benefit plans sponsored by SPX FLOW.

⁽²⁾

Settlements for the U.S. Plan in 2014 include (i) $165.2 paid to participants who accepted the voluntary lump-sum payment option offered in the first quarter of 2014, net of (ii) $4.8 refunded by Mass Mutual to the U.S. Plan in 2014 in connection with the partial settlement of the U.S. Plan in 2013. Settlements of the U.K. Plan in 2014 include GBP 79.2 ($123.3 equivalent) that the U.K. Plan paid Just Retirement to irrevocably assume the obligation to make future pension payments to approximately 900 retirees of the U.K. Plan beginning in the first quarter of 2015 and other lump-sum settlements of GBP 2.8 ($4.4 equivalent) paid to participants in connection with provisions of the U.K. Plan.


⁽³⁾	Represents a curtailment gain recorded during the third quarter of 2015 in connection with the amendment of the U.S. Plan and SIARP previously noted.


⁽⁴⁾	The Domestic Pension Plans' and the Foreign Pension Plans' balance at December 31, 2014 includes $62.0, and $59.4, respectively, of obligations that transferred to SPX FLOW at the time of the Spin-Off. As such, the $62.0 and $59.4, respectively, are included in "Liabilities of discontinued operations" within the accompanying consolidated balance sheet as of December 31, 2014.



	Domestic Pension Plans						Foreign Pension Plans
	2015			2014			2015			2014
Change in plan assets:
Fair value of plan assets — beginning of year	$	305.7		$	467.3		$	186.7		$	303.1
Actual return on plan assets	(15.3		)	28.1			(0.8		)	32.9
Contributions (employer and employee)	12.3			10.3			5.5			10.8
Settlements	(6.0		)	(160.4		)	—			(127.7		)
Benefits paid	(17.5		)	(39.6		)	(9.1		)	(12.8		)
Foreign exchange and other	—			—			(14.7		)	(19.6		)
Spin-Off of SPX FLOW	—			—			(4.1		)	—
Fair value of plan assets — end of year	$	279.2		$	305.7		$	163.5		$	186.7
Funded status at year-end	(91.9		)	(149.6		)	7.8			(52.9		)
Amounts recognized in the consolidated balance sheets consist of:
Other assets	$	—		$	3.3		$	15.2		$	15.6
Liabilities of discontinued operations - current	—			—			—			(2.1		)
Accrued expenses	(9.6		)	(10.3		)	(0.3		)	(0.3		)
Liabilities of discontinued operations - non current	—			(62.0		)	—			(57.3		)
Other long-term liabilities	(82.3		)	(80.6		)	(7.1		)	(8.8		)
Net amount recognized	$	(91.9	)	$	(149.6	)	$	7.8		$	(52.9	)
Amount recognized in accumulated other comprehensive income (pre-tax) consists of — net prior service credits	$	(0.9	)	$	(0.2	)	$	—		$	(0.2	)

The following is information about our pension plans that had accumulated benefit obligations in excess of the fair value of their plan assets at December 31, 2015 and 2014:



	Domestic Pension Plans				Foreign Pension Plans
	2015		2014		2015		2014
Projected benefit obligation	$	371.1	$	153.9	$	7.4	$	118.6
Accumulated benefit obligation	370.8		151.0		7.4		115.4
Fair value of plan assets	279.2		1.0		—		50.1

The accumulated benefit obligation for all domestic and foreign pension plans was $370.8 and $155.7, respectively, at December 31, 2015 and $442.9 and $236.0, respectively, at December 31, 2014.

Components of Net Periodic Pension Benefit Expense (Income) — Net periodic pension benefit expense (income) for our domestic and foreign pension plans included the following components:

Domestic Pension Plans



	Year ended December 31,
	2015			2014			2013
Service cost	$	2.5		$	7.1		$	7.6
Interest cost	16.5			19.9			45.6
Expected return on plan assets	(18.0		)	(19.5		)	(73.2		)
Amortization of unrecognized prior service credits	(0.1		)	—			—
Recognized net actuarial losses (gains)⁽¹⁾	18.9			50.9			(3.3		)
Total net periodic pension benefit expense (income)	$	19.8		$	58.4		$	(23.3	)

___________________________________________________________________


⁽¹⁾	Consists primarily of our reported actuarial losses (gains), the difference between actual and expected returns on plan assets, settlement gains (losses), and curtailment gains.

Foreign Pension Plans



	Year ended December 31,
	2015			2014			2013
Service cost	$	1.3		$	2.6		$	2.7
Interest cost	7.7			13.8			13.4
Expected return on plan assets	(9.7		)	(17.6		)	(17.6		)
Settlement loss⁽¹⁾	—			15.0			—
Recognized net actuarial losses⁽²⁾	3.8			25.0			8.2
Total net periodic pension benefit expense	3.1			38.8			6.7
Less: Net periodic pension expense of discontinued operations	(1.9		)	(10.7		)	(2.1		)
Net periodic pension benefit expense of continuing operations	$	1.2		$	28.1		$	4.6

___________________________________________________________________


⁽¹⁾	Includes the settlement loss recorded in connection with the transfer of the pension obligation for the retirees of the U.K. Plan to Just Retirement.


⁽²⁾	Consists of our reported actuarial losses and the difference between actual and expected returns on plan assets.

Assumptions — Actuarial assumptions used in accounting for our domestic and foreign pension plans were as follows:



	Year ended December 31,
	2015		2014		2013
Domestic Pension Plans
Weighted-average actuarial assumptions used in determining net periodic pension expense:
Discount rate	4.09	%	4.54	%	3.85	%
Rate of increase in compensation levels	3.75	%	3.75	%	3.75	%
Expected long-term rate of return on assets	5.75	%	6.76	%	7.25	%
Weighted-average actuarial assumptions used in determining year-end benefit obligations:
Discount rate	4.24	%	3.90	%	4.77	%
Rate of increase in compensation levels	3.75	%	3.75	%	3.75	%
Foreign Pension Plans
Weighted-average actuarial assumptions used in determining net periodic pension expense:
Discount rate	3.68	%	4.23	%	4.35	%
Rate of increase in compensation levels	4.00	%	3.92	%	3.91	%
Expected long-term rate of return on assets	5.81	%	5.78	%	6.45	%
Weighted-average actuarial assumptions used in determining year-end benefit obligations:
Discount rate	3.82	%	3.31	%	4.23	%
Rate of increase in compensation levels	4.00	%	3.87	%	3.92	%

We review the pension assumptions annually. Pension income or expense for the year is determined using assumptions as of the beginning of the year (except for the effects of recognizing changes in the fair value of plan assets and actuarial gains and losses in the fourth quarter of each year), while the funded status is determined using assumptions as of the end of the year. We determined assumptions and established them at the respective balance sheet date using the following principles: (i) the expected long-term rate of return on plan assets is established based on forward looking long-term expectations of asset returns over the expected period to fund participant benefits based on the target investment mix of our plans; (ii) the discount rate is determined by matching the expected projected benefit obligation cash flows for each of the plans to a yield curve that is representative of long-term, high-quality (rated AA or higher) fixed income debt instruments as of the measurement date; and (iii) the rate of increase in compensation levels is established based on our expectations of current and foreseeable future increases in compensation. In addition, we consider advice from independent actuaries.

Postretirement Benefit Plans

Employer Contributions and Future Benefit Payments — Our postretirement medical plans are unfunded and have no plan assets, but are instead funded by us on a pay as you go basis in the form of direct benefit payments or policy premium payments. In 2015, we made benefit payments of $9.4 (net of federal subsidies of $0.2) to our postretirement benefit plans. Following is a summary, as of December 31, 2015, of the estimated future benefit payments and expected federal subsidies for our postretirement plans in each of the next five fiscal years and in the aggregate for five fiscal years thereafter. The expected benefit payments and federal subsidies are estimated based on the same assumptions used at December 31, 2015 to measure our obligations and include benefits attributable to estimated future employee service.



	Postretirement Payments, net of Subsidies		Postretirement Subsidies
2016	$	12.3	$	0.5
2017	11.6		0.5
2018	11.0		0.5
2019	10.4		0.5
2020	9.8		0.5
Subsequent five years	39.5		2.0

Obligations and Funded Status — The following tables show the postretirement plans' funded status and amounts recognized in our consolidated balance sheets:



	Postretirement Benefits
	2015			2014
Change in accumulated postretirement benefit obligation:
Accumulated postretirement benefit obligation — beginning of year	$	130.2		$	131.5
Service cost	0.1			0.4
Interest cost	4.4			5.3
Actuarial losses (gains)	(4.0		)	14.2
Benefits paid	(9.4		)	(13.7		)
Settlement gain	(1.8		)	—
Transfer to SPX FLOW of the life insurance obligations related to SPX FLOW executive officers	(3.2		)	—
Plan amendment and other	4.5			(7.5		)
Accumulated postretirement benefit obligation — end of year⁽¹⁾	$	120.8		$	130.2
Funded status at year-end	$	(120.8	)	$	(130.2	)
Amounts recognized in the consolidated balance sheets consist of:
Accrued expenses	$	(12.0	)	$	(12.6	)
Liabilities of discontinued operations - non current⁽¹⁾	—			(3.1		)
Other long-term liabilities	(108.8		)	(114.5		)
Net amount recognized	$	(120.8	)	$	(130.2	)
Amount recognized in accumulated other comprehensive income (pre-tax) consists of — net prior service credits	$	(6.7	)	$	(7.5	)


⁽¹⁾	Balance at December 31, 2014 includes $3.1 for life insurance obligations to executives that transferred to SPX FLOW at the time of the Spin-Off. Accordingly, the $3.1 is included in “Liabilities of discontinued operations - non current” within the accompanying consolidated balance sheet as of December 31, 2014.

The net periodic postretirement benefit expense (income) included the following components:



	Year ended December 31,
	2015			2014			2013
Service cost	$	0.1		$	0.4		$	0.5
Interest cost	4.4			5.3			4.8
Amortization of unrecognized prior service credits	(0.8		)	(0.3		)	(1.4		)
Settlement gain	(1.8		)	—			—
Recognized net actuarial (gains) losses	(4.0		)	14.2			(7.8		)
Net periodic postretirement benefit expense (income)	$	(2.1	)	$	19.6		$	(3.9	)

Actuarial assumptions used in accounting for our domestic postretirement plans were as follows:



	Year ended December 31,
	2015		2014		2013
Assumed health care cost trend rates:
Health care cost trend rate for next year	6.60	%	6.79	%	6.98	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	5.00	%	5.00	%	5.00	%
Year that the rate reaches the ultimate trend rate	2024		2024		2024
Discount rate used in determining net periodic postretirement benefit expense	3.53	%	4.23	%	3.37	%
Discount rate used in determining year-end postretirement benefit obligation	3.88	%	3.55	%	4.23	%

The accumulated postretirement benefit obligation was determined using the terms and conditions of our various plans, together with relevant actuarial assumptions and health care cost trend rates. It is our policy to review the postretirement assumptions annually. The assumptions are determined by us and are established based on our prior experience and our expectations that future rates will decline. In addition, we consider advice from independent actuaries.

Assumed health care cost trend rates can have a significant effect on the amounts reported for the postretirement benefit plans. Including the effects of recognizing actuarial gains and losses into earnings, a one percentage point increase in the assumed health care cost trend rate would have increased our estimated 2015 postretirement expense by $5.8, and a one percentage point decrease in the assumed health care cost trend rate would have decreased our estimated 2015 postretirement expense by $5.1.

Defined Contribution Retirement Plans

We maintain a defined contribution retirement plan (the "DC Plan") pursuant to Section 401(k) of the U.S. Internal Revenue Code. Under the DC Plan, eligible U.S. employees may voluntarily contribute up to 50% of their compensation into the DC Plan and we match a portion of participating employees' contributions. Our matching contributions are primarily made in newly issued shares of company common stock and are issued at the prevailing market price. The matching contributions vest with the employee immediately upon the date of the match and there are no restrictions on the resale of common stock held by employees.

Under the DC Plan, we contributed 0.434, 0.167 and 0.206 shares of our common stock to employee accounts in 2015, 2014 and 2013, respectively. Compensation expense is recorded based on the market value of shares as the shares are contributed to employee accounts. We recorded $10.2 in 2015, $10.3 in 2014 and $9.4 in 2013 as compensation expense related to the matching contribution.

Certain collectively-bargained employees participate in the DC Plan with company contributions not being made in company common stock, although company common stock is offered as an investment option under these plans.

We also maintain a Supplemental Retirement Savings Plan ("SRSP"), which permits certain members of our senior management and executive groups to defer eligible compensation in excess of the amounts allowed under the DC Plan. We match a portion of participating employees' deferrals to the extent allowable under the SRSP provisions. The matching contributions vest with the participant immediately. Our funding of the participants' deferrals and our matching contributions are held in certain mutual funds (as allowed under the SRSP), as directed by the participant. The fair values of these assets, which totaled $20.0 and $26.0 at December 31, 2015 and 2014, respectively, are based on quoted prices in active markets for identical assets (Level 1). In addition, the assets under the SRSP are available to the general creditors in the event of our bankruptcy and, thus, are maintained on our consolidated balance sheets within other non-current assets, with a corresponding amount in other long-term liabilities for our obligation to the participants. Lastly, these assets are accounted for as trading securities. During 2015, 2014 and 2013, we recorded compensation expense of $0.7, $0.6 and $0.3, respectively, relating to our matching contributions to the SRSP.