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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2016
Pension and Other Postretirement Benefit Expense [Abstract] |
Employee Benefit Plans | Employee Benefit Plans The Company sponsors defined benefit pension plans covering certain employees, principally in the United Kingdom, the United States, Germany, Switzerland, Finland, France, Norway and Argentina. The Company also provides certain postretirement health care and life insurance benefits for certain employees, principally in the United States and Brazil. The Company also maintains an Executive Nonqualified Pension Plan (“ENPP”), which provides certain U.S.-based senior executives with retirement income for a period of 15 years or up to a lifetime annuity, if certain requirements are met. Benefits under the ENPP vest if the participant has attained age 50 with at least ten years of service (five years of which include years of participation in the ENPP), but are not payable until the participant reaches age 65. The lifetime annuity benefit generally will be available only to participants who retire on or after reaching normal retirement age and otherwise have a vested benefit under the ENPP. The ENPP is an unfunded, nonqualified defined benefit pension plan. Net annual pension costs for the years ended December 31, 2016, 2015 and 2014 for the Company’s defined benefit pension plans and ENPP are set forth below (in millions):
Pension benefits |  | 2016 |  | 2015 |  | 2014(1)
Service cost |  | $ | 16.2 |  |  | $ | 18.7 |  |  | $ | 16.8 |
Interest cost |  | 24.6 |  |  | 31.2 |  |  | 37.3 |
Expected return on plan assets |  | (38.8 | ) |  | (44.4 | ) |  | (44.5 | )
Amortization of net actuarial losses |  | 10.0 |  |  | 8.0 |  |  | 9.5 |
Amortization of prior service cost |  | 1.0 |  |  | 0.4 |  |  | 0.8 |
Net loss recognized due to settlement |  | 0.4 |  |  | 0.2 |  |  | 0.4 |
Net gain recognized due to curtailment |  | (0.1 | ) |  | — |  |  | (0.5 | )
Special termination benefits |  | — |  |  | 0.5 |  |  | 1.3 |
Net annual pension cost |  | $ | 13.3 |  |  | $ | 14.6 |  |  | $ | 21.0 |
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(1) | Rounding may impact summation of amounts.
The weighted average assumptions used to determine the net annual pension costs for the Company’s defined benefit pension plans and ENPP for the years ended December 31, 2016, 2015 and 2014 are as follows:
| 2016 |  | 2015 |  | 2014
All plans: |  |  |  |  |  |  |  |
Weighted average discount rate | 3.6 | % |  | 3.5 | % |  | 4.4 | %
Weighted average expected long-term rate of return on plan assets | 6.8 | % |  | 6.8 | % |  | 6.9 | %
Rate of increase in future compensation | 2.0%-5.0% |  |  | 2.25%-5.0% |  |  | 2.5-5.0% |
U.S.-based plans: |  |  |  |  |  |  |  |
Weighted average discount rate | 4.60 | % |  | 4.15 | % |  | 4.75 | %
Weighted average expected long-term rate of return on plan assets(1) | 6.0 | % |  | 6.0 | % |  | 7.0 | %
Rate of increase in future compensation(2) | 5.0 | % |  | 5.0 | % |  | 5.0 | %
___________________________________
(1) | Applicable for U.S. funded, qualified plans.
(2) | Applicable for U.S. unfunded, nonqualified plan.
Net annual postretirement benefit costs, and the weighted average discount rate used to determine them, for the years ended December 31, 2016, 2015 and 2014 are set forth below (in millions, except percentages):
Postretirement benefits |  | 2016 |  | 2015 |  | 2014
Service cost |  | $ | — |  |  | $ | — |  |  | $ | 0.1 |
Interest cost |  | 1.4 |  |  | 1.3 |  |  | 1.6 |
Amortization of prior service cost |  | 0.2 |  |  | 0.2 |  |  | 0.2 |
Amortization of net actuarial losses |  | — |  |  | 0.1 |  |  | 0.1 |
Other |  | — |  |  | — |  |  | 0.2 |
Net annual postretirement benefit cost |  | $ | 1.6 |  |  | $ | 1.6 |  |  | $ | 2.2 |
Weighted average discount rate |  | 5.1 | % |  | 4.6 | % |  | 5.3 | %
The following tables set forth reconciliations of the changes in benefit obligation, plan assets and funded status as of December 31, 2016 and 2015 (in millions):
|  | Pension and ENPP Benefits |  | Postretirement Benefits
Change in benefit obligation |  | 2016 |  | 2015 |  | 2016 |  | 2015
Benefit obligation at beginning of year |  | $ | 844.4 |  |  | $ | 926.8 |  |  | $ | 27.3 |  |  | $ | 29.6 |
Service cost |  | 16.2 |  |  | 18.7 |  |  | — |  |  | — |
Interest cost |  | 24.6 |  |  | 31.2 |  |  | 1.4 |  |  | 1.3 |
Plan participants’ contributions |  | 1.1 |  |  | 1.2 |  |  | — |  |  | — |
Actuarial losses (gains) |  | 121.9 |  |  | (41.7 | ) |  | 0.6 |  |  | (1.7 | )
Amendments |  | 3.3 |  |  | 8.3 |  |  | — |  |  | — |
Settlements |  | (3.8 | ) |  | (0.5 | ) |  | — |  |  | — |
Curtailments |  | (0.4 | ) |  | — |  |  | — |  |  | — |
Benefits paid |  | (44.1 | ) |  | (50.8 | ) |  | (1.2 | ) |  | (1.2 | )
Special termination benefits and other |  | — |  |  | 0.5 |  |  | — |  |  | — |
Foreign currency exchange rate changes |  | (113.4 | ) |  | (49.3 | ) |  | 0.5 |  |  | (0.7 | )
Benefit obligation at end of year |  | $ | 849.8 |  |  | $ | 844.4 |  |  | $ | 28.6 |  |  | $ | 27.3 |
|  | Pension and ENPP Benefits |  | Postretirement Benefits
Change in plan assets |  | 2016 |  | 2015 |  | 2016 |  | 2015
Fair value of plan assets at beginning of year |  | $ | 630.7 |  |  | $ | 677.2 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets |  | 84.4 |  |  | 5.2 |  |  | — |  |  | — |
Employer contributions |  | 31.3 |  |  | 34.0 |  |  | 1.2 |  |  | 1.2 |
Plan participants’ contributions |  | 1.1 |  |  | 1.2 |  |  | — |  |  | — |
Benefits paid |  | (44.1 | ) |  | (50.8 | ) |  | (1.2 | ) |  | (1.2 | )
Settlements |  | (3.8 | ) |  | (0.5 | ) |  | — |  |  | — |
Foreign currency exchange rate changes |  | (97.9 | ) |  | (35.6 | ) |  | — |  |  | — |
Fair value of plan assets at end of year |  | $ | 601.7 |  |  | $ | 630.7 |  |  | $ | — |  |  | $ | — |
Funded status |  | $ | (248.1 | ) |  | $ | (213.7 | ) |  | $ | (28.6 | ) |  | $ | (27.3 | )
Unrecognized net actuarial losses |  | 384.7 |  |  | 319.0 |  |  | 2.0 |  |  | 1.4 |
Unrecognized prior service cost |  | 13.4 |  |  | 11.2 |  |  | 3.4 |  |  | 3.6 |
Accumulated other comprehensive loss |  | (398.1 | ) |  | (330.2 | ) |  | (5.4 | ) |  | (5.0 | )
Net amount recognized |  | $ | (248.1 | ) |  | $ | (213.7 | ) |  | $ | (28.6 | ) |  | $ | (27.3 | )
Amounts recognized in Consolidated Balance Sheets: |  |  |  |  |  |  |  |  |  |  |  |
Other long-term asset |  | $ | — |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | — |
Other current liabilities |  | (3.5 | ) |  | (3.5 | ) |  | (1.5 | ) |  | (1.5 | )
Accrued expenses |  | (1.7 | ) |  | (2.3 | ) |  | — |  |  | — |
Pensions and postretirement health care benefits (noncurrent) |  | (242.9 | ) |  | (208.1 | ) |  | (27.1 | ) |  | (25.8 | )
Net amount recognized |  | $ | (248.1 | ) |  | $ | (213.7 | ) |  | $ | (28.6 | ) |  | $ | (27.3 | )
The following table summarizes the activity in accumulated other comprehensive loss related to the Company’s ENPP and defined pension and postretirement benefit plans during the years ended December 31, 2016 and 2015 (in millions):
|  | Before-Tax Amount |  | Income Tax |  | After-Tax Amount
Accumulated other comprehensive loss as of December 31, 2014 |  | $ | (341.5 | ) |  | $ | (88.2 | ) |  | $ | (253.3 | )
Prior service cost arising during the year |  | (8.3 | ) |  | (3.6 | ) |  | (4.7 | )
Net loss recognized due to settlement |  | 0.3 |  |  | 0.1 |  |  | 0.2 |
Net actuarial gain arising during the year |  | 4.2 |  |  | 2.1 |  |  | 2.1 |
Amortization of prior service cost |  | 0.6 |  |  | 0.2 |  |  | 0.4 |
Amortization of net actuarial losses |  | 8.1 |  |  | 1.8 |  |  | 6.3 |
Accumulated other comprehensive loss as of December 31, 2015 |  | $ | (336.6 | ) |  | $ | (87.6 | ) |  | $ | (249.0 | )
Prior service cost arising during the year |  | (3.3 | ) |  | (0.7 | ) |  | (2.6 | )
Net loss recognized due to settlement |  | 0.5 |  |  | 0.1 |  |  | 0.4 |
Net gain recognized due to curtailment |  | (0.1 | ) |  | — |  |  | (0.1 | )
Net actuarial loss arising during the year |  | (76.5 | ) |  | (13.6 | ) |  | (62.9 | )
Amortization of prior service cost |  | 1.2 |  |  | 0.1 |  |  | 1.1 |
Amortization of net actuarial losses |  | 10.0 |  |  | 1.4 |  |  | 8.6 |
Accumulated other comprehensive loss as of December 31, 2016 |  | $ | (404.8 | ) |  | $ | (100.3 | ) |  | $ | (304.5 | )
As of December 31, 2016, the Company’s accumulated other comprehensive loss included net actuarial losses of approximately $384.7 million and net prior service cost of approximately $13.4 million related to the Company’s defined benefit pension plans and ENPP. The estimated net actuarial losses and net prior service cost for the defined benefit pension plans and ENPP expected to be amortized from the Company’s accumulated other comprehensive loss during the year ended December 31, 2017 are approximately $12.0 million and $1.2 million, respectively. As of December 31, 2016, the Company’s accumulated other comprehensive loss included net actuarial losses of approximately $2.0 million and net prior service cost of approximately $3.4 million related to the Company’s U.S. and Brazilian postretirement health care benefit plans. The estimated net actuarial losses and net prior service cost for postretirement health care benefit plans expected to be amortized from the Company’s accumulated other comprehensive loss during the year ended December 31, 2017 are less than $0.1 million and approximately $0.2 million, respectively. The aggregate projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit pension plans, ENPP and other postretirement plans with accumulated benefit obligations in excess of plan assets were $877.6 million, $823.8 million and $600.9 million, respectively, as of December 31, 2016, and $869.2 million, $816.9 million and $627.9 million, respectively, as of December 31, 2015. The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Company’s U.S.-based defined benefit pension plans and ENPP with accumulated benefit obligations in excess of plan assets were $118.1 million, $101.9 million and $36.2 million, respectively, as of December 31, 2016, and $112.2 million, $98.4 million and $38.1 million, respectively, as of December 31, 2015. The Company’s accumulated comprehensive loss as of December 31, 2016 reflects a reduction in equity of $403.5 million, net of taxes of $99.8 million, primarily related to the Company’s U.K. pension plan, where the projected benefit obligation exceeded the plan assets. In addition, the Company’s accumulated comprehensive loss as of December 31, 2016 reflects a reduction in equity of approximately $1.3 million, net of taxes of $0.5 million, related to the Company’s GIMA joint venture. The amount represents 50% of GIMA’s unrecognized net actuarial losses and unrecognized prior service cost associated with its pension plan. In addition, GIMA recognized a net actuarial loss due to settlements during 2016 of approximately $0.1 million. The Company’s accumulated comprehensive loss as of December 31, 2015 reflected a reduction in equity of $335.2 million, net of taxes of $87.1 million, primarily related to the Company’s U.K. pension plan, in which the projected benefit obligation exceeded the plan assets. In addition, the Company’s accumulated comprehensive loss as of December 31, 2015 reflected a reduction in equity of approximately $1.4 million, net of taxes of $0.5 million, related to the Company’s GIMA joint venture. This amount represented 50% of GIMA’s unrecognized net actuarial losses and unrecognized prior service cost associated with its pension plan. In addition, GIMA recognized a net actuarial loss due to settlements during 2015 of approximately $0.1 million. The weighted average assumptions used to determine the benefit obligation for the Company’s defined benefit pension plans and ENPP as of December 31, 2016 and 2015 are as follows:
| 2016 |  | 2015
All plans: |  |  |  |  |
Weighted average discount rate | 2.7 | % |  | 3.6 | %
Rate of increase in future compensation | 1.5%-5.0% |  |  | 2.0%-5.0% |
U.S.-based plans: |  |  |  |  |
Weighted average discount rate | 4.25 | % |  | 4.6 | %
Rate of increase in future compensation(1) | 5.0 | % |  | 5.0 | %
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(1) | Applicable for U.S. unfunded, nonqualified plan.
The weighted average discount rate used to determine the benefit obligation for the Company’s postretirement benefit plans for the years ended December 31, 2016 and 2015 was 5.3% and 5.1%, respectively. For the years ended December 31, 2016, 2015 and 2014, the Company used a globally consistent methodology to set the discount rate in the countries where its largest benefit obligations exist. In the United States, the United Kingdom and the Euro Zone, the Company constructed a hypothetical bond portfolio of high-quality corporate bonds and then applied the cash flows of the Company’s benefit plans to those bond yields to derive a discount rate. The bond portfolio and plan-specific cash flows vary by country, but the methodology in which the portfolio is constructed is consistent. In the United States, the bond portfolio is large enough to result in taking a “settlement approach” to derive the discount rate, in which high-quality corporate bonds are assumed to be purchased and the resulting coupon payments and maturities are used to satisfy the Company’s U.S. pension plans’ projected benefit payments. In the United Kingdom and the Euro Zone, the discount rate is derived using a “yield curve approach,” in which an individual spot rate, or zero coupon bond yield, for each future annual period is developed to discount each future benefit payment and, thereby, determine the present value of all future payments. Under the settlement and yield curve approaches, the discount rate is set to equal the single discount rate that produces the same present value of all future payments. Effective January 1, 2016, the Company adopted a spot yield curve to determine the discount rate in the United Kingdom to measure the plan’s service cost and interest cost for the year ended December 31, 2016. Previously, the Company had utilized a single weighted-average discount rate derived from the “yield curve approach” to measure the plan’s benefit obligation, service cost and interest cost. Going forward, the Company has elected to utilize an approach that discounts the individual expected service cost and interest cost cash flows using the applicable spot rates derived from the yield curve over the projected cash flow period. For measuring the expected U.S. postretirement benefit obligation at December 31, 2016, the Company assumed a 7.0% health care cost trend rate for 2017 decreasing to 5.0% by 2025. For measuring the expected U.S. postretirement benefit obligation at December 31, 2015, the Company assumed a 7.25% health care cost trend rate for 2016 decreasing to 5.0% by 2025. For measuring the Brazilian postretirement benefit plan obligation at December 31, 2016, the Company assumed a 11.8% health care cost trend rate for 2017, decreasing to 6.1% by 2028. For measuring the Brazilian postretirement benefit plan obligation at December 31, 2015, the Company assumed a 12.6% health care cost trend rate for 2016, decreasing to 6.8% by 2026. Changing the assumed health care cost trend rates by one percentage point each year and holding all other assumptions constant would have had the following effect to service and interest cost for 2016 and the accumulated postretirement benefit obligation for both the U.S. and Brazilian postretirement plans at December 31, 2016 (in millions):
| One Percentage Point Increase |  | One Percentage Point Decrease
Effect on service and interest cost | $ | 0.2 |  |  | $ | (0.2 | )
Effect on accumulated benefit obligation | $ | 3.6 |  |  | $ | (3.0 | )
The Company currently estimates its minimum contributions and benefit payments to its U.S.-based underfunded defined benefit pension plans and unfunded ENPP for 2017 will aggregate approximately $2.2 million. The Company currently estimates its benefit payments for 2017 to its U.S.-based postretirement health care and life insurance benefit plans will aggregate approximately $1.5 million and its benefit payments for 2017 to its Brazilian postretirement health care benefit plans will aggregate approximately less than $0.1 million. The Company currently estimates its minimum contributions for underfunded plans and benefit payments for unfunded plans for 2017 to its non-U.S.-based defined benefit pension plans will aggregate approximately $26.6 million, of which approximately $19.0 million relates to its U.K. pension plan. During 2016, approximately $47.9 million of benefit payments were made related to the Company’s defined benefit pension plans and ENPP. At December 31, 2016, the aggregate expected benefit payments for the Company’s defined benefit pension plans and ENPP are as follows (in millions):
2017 | $ | 41.9 |
2018 | 41.1 |
2019 | 41.2 |
2020 | 43.6 |
2021 | 44.9 |
2022 through 2026 | 243.3 |
| $ | 456.0 |
During 2016, approximately $1.2 million of benefit payments were made related to the Company’s U.S. and Brazilian postretirement benefit plans. At December 31, 2016, the aggregate expected benefit payments for the Company’s U.S. and Brazilian postretirement benefit plans are as follows (in millions):
2017 | $ | 1.6 |
2018 | 1.6 |
2019 | 1.6 |
2020 | 1.7 |
2021 | 1.8 |
2022 through 2026 | 9.2 |
| $ | 17.5 |
Investment Strategy and Concentration of Risk The weighted average asset allocation of the Company’s U.S. pension benefit plans as of December 31, 2016 and 2015 are as follows:
Asset Category |  | 2016 |  | 2015
Large and small cap domestic equity securities |  | 29 | % |  | 28 | %
International equity securities |  | 11 | % |  | 10 | %
Domestic fixed income securities |  | 42 | % |  | 44 | %
Other investments |  | 18 | % |  | 18 | %
Total |  | 100 | % |  | 100 | %
The weighted average asset allocation of the Company’s non-U.S. pension benefit plans as of December 31, 2016 and 2015 are as follows:
Asset Category |  | 2016 |  | 2015
Equity securities |  | 39 | % |  | 44 | %
Fixed income securities |  | 54 | % |  | 36 | %
Other investments |  | 7 | % |  | 20 | %
Total |  | 100 | % |  | 100 | %
The Company categorizes its pension plan assets into one of three levels based on the assumptions used in valuing the asset. See Note 13 for a discussion of the fair value hierarchy as per the guidance in ASC 820, “Fair Value Measurements” (“ASC 820”). The Company’s valuation techniques are designed to maximize the use of observable inputs and minimize the use of unobservable inputs. The Company uses the following valuation methodologies to measure the fair value of its pension plan assets: Equity Securities: Equity securities are valued on the basis of the closing price per unit on each business day as reported on the applicable exchange. Fixed Income: Fixed income securities are valued using the closing prices in the active market in which the fixed income investment trades. Fixed income funds are valued using the net asset value of the fund, which is based on the fair value of the underlying securities. Cash: These investments primarily consist of short-term investment funds which are valued using the net asset value. Alternative Investments: These investments are reported at fair value as determined by the general partner of the alternative investment. The “market approach” valuation technique is used to value investments in these funds. The funds typically are open-end funds as they generally offer subscription and redemption options to investors. The frequency of such subscriptions or redemptions is dictated by each fund’s governing documents. The amount of liquidity provided to investors in a particular fund generally is consistent with the liquidity and risk associated with the underlying portfolio (i.e., the more liquid the investments in the portfolio, the greater the liquidity provided to investors). Liquidity of individual funds varies based on various factors and may include “gates,” “holdbacks” and “side pockets” imposed by the manager of the fund, as well as redemption fees that may also apply. Investments in these funds typically are valued utilizing the net asset valuations provided by their underlying investment managers, general partners or administrators. The funds consider subscription and redemption rights, including any restrictions on the disposition of the interest, in its determination of the fair value. Insurance Contracts: Insurance contracts are valued using current prevailing interest rates. The fair value of the Company’s pension assets as of December 31, 2016 is as follows (in millions):
| Total |  | Level 1 |  | Level 2 |  | Level 3
Equity securities: |  |  |  |  |  |  |  |  |  |  |
Global equities | $ | 103.6 |  |  | $ | 103.6 |  |  | $ | — |  |  | $ | — |
Non-U.S. equities | 4.1 |  |  | 4.1 |  |  | — |  |  | — |
U.K. equities | 109.1 |  |  | 109.1 |  |  | — |  |  | — |
U.S. large cap equities | 6.2 |  |  | 6.2 |  |  | — |  |  | — |
U.S. small cap equities | 4.3 |  |  | 4.3 |  |  | — |  |  | — |
Total equity securities | 227.3 |  |  | 227.3 |  |  | — |  |  | — |
Fixed income: |  |  |  |  |  |  |  |  |  |  |
Aggregate fixed income | 118.0 |  |  | 118.0 |  |  | — |  |  | — |
International fixed income | 191.9 |  |  | 191.9 |  |  | — |  |  | — |
Total fixed income share(1) | 309.9 |  |  | 309.9 |  |  | — |  |  | — |
Alternative investments: |  |  |  |  |  |  |
Private equity fund | 2.4 |  |  | — |  |  | — |  |  | 2.4 |
Hedge funds measured at net asset value(4) | 34.4 |  |  | — |  |  | — |  |  | — |
Total alternative investments(2) | 36.8 |  |  | — |  |  | — |  |  | 2.4 |
Miscellaneous funds(3) | 21.4 |  |  | — |  |  | — |  |  | 21.4 |
Cash and equivalents measured at net asset value(4) | 6.3 |  |  | — |  |  | — |  |  | — |
Total assets | $ | 601.7 |  |  | $ | 537.2 |  |  | $ | — |  |  | $ | 23.8 |
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(1) | 31% of “fixed income” securities are in foreign securities; 25% are in government treasuries; 19% are in investment-grade corporate bonds; 13% are in high-yield securities; and 12% are in other various fixed income securities.
(2) | 32% of “alternative investments” are in relative value funds; 27% are in long-short equity funds; 23% are in event-driven funds; 12% are distributed in hedged and non-hedged funds; and 6% are in credit funds.
(3) | “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland.
(4) | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
The following is a reconciliation of Level 3 assets as of December 31, 2016 (in millions):
| Total |  | Alternative Investments |  | Miscellaneous Funds
Beginning balance as of December 31, 2015 | $ | 24.1 |  |  | $ | 2.4 |  |  | $ | 21.7 |
Actual return on plan assets: |  |  |  |  |  |  |  |
(a) Relating to assets still held at reporting date | 1.0 |  |  | — |  |  | 1.0 |
(b) Relating to assets sold during period | — |  |  | — |  |  | — |
Purchases, sales and /or settlements | (0.8 | ) |  | — |  |  | (0.8 | )
Foreign currency exchange rate changes | (0.5 | ) |  | — |  |  | (0.5 | )
Ending balance as of December 31, 2016 | $ | 23.8 |  |  | $ | 2.4 |  |  | $ | 21.4 |
The fair value of the Company’s pension assets as of December 31, 2015 is as follows (in millions):
| Total |  | Level 1 |  | Level 2 |  | Level 3
Equity securities: |  |  |  |  |  |  |  |  |  |  |
Global equities | $ | 129.0 |  |  | $ | 129.0 |  |  | $ | — |  |  | $ | — |
Non-U.S. equities | 3.9 |  |  | 3.9 |  |  | — |  |  | — |
U.K. equities | 124.8 |  |  | 124.8 |  |  | — |  |  | — |
U.S. large cap equities | 7.1 |  |  | 7.1 |  |  | — |  |  | — |
U.S. small cap equities | 3.6 |  |  | 3.6 |  |  | — |  |  | — |
Total equity securities | 268.4 |  |  | 268.4 |  |  | — |  |  | — |
Fixed income: |  |  |  |  |  |  |  |  |  |  |
Aggregate fixed income | 16.8 |  |  | 16.8 |  |  | — |  |  | — |
International fixed income | 204.8 |  |  | 204.8 |  |  | — |  |  | — |
Total fixed income share(1) | 221.6 |  |  | 221.6 |  |  | — |  |  | — |
Alternative investments: |  |  |  |  |  |  |
Private equity fund | 2.4 |  |  | — |  |  | — |  |  | 2.4 |
Hedge funds measured at net asset value(4) | 109.2 |  |  | — |  |  | — |  |  | — |
Total alternative investments(2) | 111.6 |  |  | — |  |  | — |  |  | 2.4 |
Miscellaneous funds(3) | 21.7 |  |  | — |  |  | — |  |  | 21.7 |
Cash and equivalents measured at net asset value(4) | 7.4 |  |  | — |  |  | — |  |  | — |
Total assets | $ | 630.7 |  |  | $ | 490.0 |  |  | $ | — |  |  | $ | 24.1 |
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(1) | 45% of “fixed income” securities are in investment-grade corporate bonds; 32% of “fixed income” securities are in government treasuries and 23% are in other various fixed income securities.
(2) | 34% of “alternative investments” are in long-short equity funds; 26% are in event-driven funds; 13% are in relative value funds; 13% are in credit funds; 12% are distributed in hedged and non-hedged funds; and 2% are in multi-strategy funds.
(3) | “Miscellaneous funds” is comprised of insurance contracts in Finland, Norway and Switzerland.
(4) | Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
The following is a reconciliation of Level 3 assets as of December 31, 2015 (in millions):
| Total |  | Alternative Investments |  | Miscellaneous Funds
Beginning balance as of December 31, 2014 | $ | 23.7 |  |  | $ | 0.9 |  |  | $ | 22.8 |
Actual return on plan assets: |  |  |  |  |  |  |  |
(a) Relating to assets still held at reporting date | 2.6 |  |  | 1.0 |  |  | 1.6 |
(b) Relating to assets sold during period | 0.1 |  |  | 0.1 |  |  | — |
Purchases, sales and /or settlements | 0.2 |  |  | 0.4 |  |  | (0.2 | )
Foreign currency exchange rate changes | (2.5 | ) |  | — |  |  | (2.5 | )
Ending balance as of December 31, 2015 | $ | 24.1 |  |  | $ | 2.4 |  |  | $ | 21.7 |
All tax-qualified pension fund investments in the United States are held in the AGCO Corporation Master Pension Trust. The Company’s global pension fund strategy is to diversify investments across broad categories of equity and fixed income securities with appropriate use of alternative investment categories to minimize risk and volatility. The primary investment objective of the Company’s pension plans is to secure participant retirement benefits. As such, the key objective in the pension plans’ financial management is to promote stability and, to the extent appropriate, growth in funded status. The investment strategy for the plans’ portfolio of assets balances the requirement to generate returns with the need to control risk. The asset mix is recognized as the primary mechanism to influence the reward and risk structure of the pension fund investments in an effort to accomplish the plans’ funding objectives. The overall investment strategy for the U.S.-based pension plans is to achieve a mix of approximately 15% of assets for the near-term benefit payments and 85% for longer-term growth. The overall U.S. pension funds invest in a broad diversification of asset types. The Company’s U.S. target allocation of retirement fund investments is 30% large- and small-cap domestic equity securities, 12% international equity securities, 44% broad fixed income securities and 14% in alternative investments. The Company has noted that over very long periods, this mix of investments would achieve an average return of approximately 6.7%. In arriving at the choice of an expected return assumption of 6.0% for its U.S. plans for the year ended December 31, 2017, the Company has tempered this historical indicator with lower expectations for returns and changes to investments in the future as well as the administrative costs of the plans. The overall investment strategy for the non-U.S. based pension plans is to achieve a mix of approximately 30% of assets for the near-term benefit payments and 70% for longer-term growth. The overall non-U.S. pension funds invest in a broad diversification of asset types. The Company’s non-U.S. target allocation of retirement fund investments at December 31, 2016 was 40% equity securities, 55% broad fixed income investments and 5% in alternative investments. The majority of the Company’s non-U.S. pension fund investments are related to the Company’s pension plan in the United Kingdom. The Company has noted that over very long periods, this mix of investments would achieve an average return of approximately 6.3%. In arriving at the choice of an expected return assumption of 6.0% for its U.K.-based plans for the year ended December 31, 2017, the Company has tempered this historical indicator with lower expectations for returns and equity investment in the future as well as the administrative costs of the plans. Equity securities primarily include investments in large-cap and small-cap companies located across the globe. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities, agency mortgages, asset-backed securities and government securities. Alternative and other assets include investments in hedge fund of funds that follow diversified investment strategies. To date, the Company has not invested pension funds in its own stock and has no intention of doing so in the future. Within each asset class, careful consideration is given to balancing the portfolio among industry sectors, geographies, interest rate sensitivity, dependence on economic growth, currency and other factors affecting investment returns. The assets are managed by professional investment firms, who are bound by precise mandates and are measured against specific benchmarks. Among asset managers, consideration is given, among others, to balancing security concentration, issuer concentration, investment style and reliance on particular active investment strategies. The Company participates in a small number of multiemployer plans in the Netherlands and Sweden. The Company has assessed and determined that none of the multiemployer plans which it participates in are individually, or in the aggregate, significant to the Company’s Consolidated Financial Statements. The Company does not expect to incur a withdrawal liability or expect to significantly increase its contributions over the remainder of the multiemployer plans’ contract periods. The Company maintains separate defined contribution plans covering certain employees, primarily in the United States, the United Kingdom and Brazil. Under the plans, the Company contributes a specified percentage of each eligible employee’s compensation. The Company contributed approximately $11.6 million, $12.0 million and $13.3 million for the years ended December 31, 2016, 2015 and 2014, respectively.

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