Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2012

The components of net periodic pension expense for each of the three years in the period ended December 31, are summarized as follows ($ in millions):


	U.S. Benefit Plans									Non-U.S. Benefit Plan
	2012			2011			2010			2012			2011			2010
Company-sponsored plans
Service cost	$	-		$	-		$	-		$	0.2		$	0.1		$	0.2
Interest cost		7.4			7.4			7.4			2.6			2.9			2.7
Expected return on plan assets		(8.1	)		(7.2	)		(8.2	)		(2.6	)		(3.3	)		(3.1	)
Amortization of actuarial loss		5.5			4.5			3.5			0.8			0.9			0.8

		4.8			4.7			2.7			1.0			0.6			0.6
Multi-employer plans		0.3			0.3			0.2			-			-			-

Net periodic pension expense	$	5.1		$	5.0		$	2.9		$	1.0		$	0.6		$	0.6

Summary of Changes in Projected Benefit Obligation

The following summarizes the changes in the projected benefit obligation and plan assets, the funded status of the Company-sponsored plans, and the major assumptions used to determine these amounts at December 31 ($ in millions):


	U.S. Benefit Plans						Non-U.S. Benefit Plan
	2012			2011			2012			2011
Change in Benefit Obligation
Benefit obligation, beginning of year	$	156.6		$	138.4		$	57.1		$	52.6
Service cost		-			-			0.2			0.1
Interest cost		7.7			7.8			2.6			2.9
Actuarial loss		22.4			17.4			5.9			4.9
Benefits paid		(7.0	)		(7.0	)		(2.9	)		(2.5	)
Translation and other		-			-			2.7			(0.9	)

Benefit obligation, end of year	$	179.7		$	156.6		$	65.6		$	57.1

Accumulated benefit obligation, end of year	$	177.2		$	154.5		$	65.6		$	57.1

Summary of Change in Plan Assets


	U.S. Benefit Plans						Non-U.S. Benefit Plan
	2012			2011			2012			2011
Change in Plan Assets ($ in millions)
Fair value of plan assets, beginning of year	$	97.0		$	104.8		$	47.9		$	50.6
Actual return on plan assets		13.0			(3.5	)		5.3			(0.8	)
Company contribution		9.2			2.7			2.3			1.1
Benefits and expenses paid		(7.0	)		(7.0	)		(2.9	)		(2.5	)
Translation and other		-			-			2.2			(0.5	)

Fair value of plan assets, end of year	$	112.2		$	97.0		$	54.8		$	47.9

Summary of Pension Assets in Three-Tier Fair Value Hierarchy for Benefit Plan

The following table summarizes the Company’s pension assets in a three-tier fair value hierarchy for its benefit plan as of December 31 ($ in millions):


	U. S. Benefit Plans
	2012								2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and Cash Equivalents	$	3.7		$-		$ -	$	3.7		$ -	$	3.9	$	-	$	3.9
Equities
U.S. Large Cap		32.7		-		-		32.7		27.7		-		-		27.7
U.S. Small and Mid Cap		11.9		-		-		11.9		9.9		-		-		9.9
Federal Signal Common Stock		7.1		-		-		7.1		3.9		-		-		3.9
Developed International		6.6		-		-		6.6		3.7		-		-		3.7
Emerging Markets		4.5		-		-		4.5		3.3		-		-		3.3
Fixed Income
Government Bonds		5.7		-		-		5.7		4.5		-		-		4.5
Asset -backed Securities		-		5.9		-		5.9		-		6.7		-		6.7
Collective/Common Trust and Other
Mutual Funds		34.1		-		-		34.1		33.3		0.1		-		33.4

Total assets at fair value	$	106.3	$	5.9	$	-	$	112.2	$	86.3	$	10.7	$	-	$	97.0


	Non-U. S. Benefit Plan
	2012								2011
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	10.6		$ -	$	-	$	10.6	$	8.6		$ -	$	-	$	8.6
Equity Securities		4.8		29.7		-		34.5		4.0		25.1		-		29.1
Government Securities		4.1		-		-		4.1		4.9		-		-		4.9
Company Bonds and Debt Securities		5.6		-		-		5.6		5.3		-		-		5.3

Total	$	25.1	$	29.7	$	-	$	54.8	$	22.8	$	25.1	$	-	$	47.9

Funded Status


	U.S. Benefit Plans						Non-U.S. Benefit Plan
	2012			2011			2012			2011
Funded status, end of year ($ in millions):
Fair value of plan assets	$	112.2		$	97.0		$	54.8		$	47.9
Benefit obligations		179.7			156.6			65.6			57.1

Funded status	$	(67.5	)	$	(59.6	)	$	(10.8	)	$	(9.2	)

Components of Amounts Recognized in Balance Sheet


	U.S. Benefit Plans						Non-U.S. Benefit Plan
	2012			2011			2012			2011
Amounts recognized in the balance sheet consist of ($ in millions):
Long term pension liabilities	$	(67.5	)	$	(59.6	)	$	(10.8	)	$	(9.2	)
Accumulated other comprehensive loss, pre-tax		91.5			79.3			26.8			23.2

Net amount recognized	$	24.0		$	19.7		$	16.0		$	14.0

Components of Amounts Recognized in Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income consist of ($ in millions):
Net actuarial loss	$	91.5	$	79.3	$	26.8	$	23.2
Prior service cost		-		-		-		-

Net amount recognized, pre-tax	$	91.5	$	79.3	$	26.8	$	23.2

Benefits Expected to be Paid under Defined Benefit Plans

The following table presents the benefits expected to be paid under the Company’s defined benefit plans in each of the next five years, and in aggregate for the five years thereafter ($ in millions):


	U.S. Benefit Plans		Non-U.S. Benefit Plan
2013	$	7.9	$	2.7
2014		8.1		2.8
2015		8.8		2.9
2016		8.7		3.0
2017		9.5		3.1
2018-2022		51.8		16.8

Pension Plans, Defined Benefit

Summary of Weighted-Average Assumptions Used

The following table summarizes the weighted-average assumptions used in determining pension costs in each of the three years for the period ended December 31:


	U.S. Benefit Plans									Non-U.S. Benefit Plan
	2012			2011			2010			2012			2011			2010
Discount rate		5.0	%		5.8	%		6.0	%		4.6	%		5.4	%		5.7	%
Rate of increase in compensation levels *		3.5	%		3.5	%		3.5	%		N/A			N/A			N/A
Expected long term rate of return on plan assets		8.1	%		8.2	%		8.5	%		5.3	%		6.5	%		6.5	%

*	Non-U.S. plan benefits are not adjusted for compensation level changes.

Defined Benefit Obligations

Summary of Weighted-Average Assumptions Used

The following table summarizes the weighted-average assumptions used in determining benefit obligations as of December 31:


	U.S. Benefit Plans						Non-U.S. Benefit Plan
	2012			2011			2012			2011
Discount rate		4.2	%		5.0	%		4.1	%		4.6	%
Rate of increase in compensation levels		3.5	%		3.5	%		N/A			N/A