XML 59 R20.htm IDEA: XBRL DOCUMENT
v3.20.4

Pension and Other Post-Employment Plans | 12 Months Ended
--- | ---
Dec. 31, 2020
Retirement Benefits [Abstract] |
Pensions | PENSION AND OTHER POST-EMPLOYMENT PLANS Defined Benefit Pension Plans The Company and its subsidiaries sponsor two defined benefit pension plans covering certain salaried and hourly employees. These plans have been closed to new participants for a number of years. Benefits under these plans are primarily based on final average compensation and years of service as defined within the provisions of the individual plans. As a result of plan amendments, the latest of which was in 2008, the only new benefits that were being accrued through the end of 2016 were salary increases for a limited group of participants. Those benefits ceased at the end of 2016, at which point all existing plans became fully frozen. During the year ended December 31, 2018, the U.K. High Court ruled that certain formulas used to calculate guaranteed minimum pension (“GMP”) benefits violated gender-pay equality laws and, as a result, the Company recognized a $2.6 million increase to the benefit obligation of its non-U.S. benefit plan, with a corresponding adjustment to Prior service costs within Accumulated other comprehensive loss. In November 2020, the U.K. High Court further ruled that GMP equalization is applicable to historical transfer payments made since 1990. The Company is currently evaluating the impact of these rulings on its non-U.S. benefit plan’s GMP benefit formulas and monitoring for additional regulatory and interpretive developments. While the non-U.S. benefit plan has not yet been amended to address GMP equalization, the Company has recognized the estimated incremental impact of the November 2020 ruling during the year ended December 31, 2020, resulting in a $0.2 million increase to the benefit obligation of its non-U.S. benefit plan, with a corresponding adjustment to Prior service costs within Accumulated other comprehensive loss. The prior service costs are amortized into net periodic benefit cost over the remaining average life expectancy of plan participants. The following table summarizes net periodic pension (benefit) expense for the U.S. and non-U.S. benefit plans:
| U.S. Benefit Plan |  | Non-U.S. Benefit Plan
(in millions) | 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Company-sponsored plans: |  |  |  |  |  |  |  |  |  |  |
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 0.2 |  |  | $ | 0.2 |  |  | $ | 0.2 |
Interest cost | 5.8 |  |  | 6.8 |  |  | 6.4 |  |  | 1.0 |  |  | 1.4 |  |  | 1.3 |
Expected return on plan assets | (9.2) |  |  | (8.7) |  |  | (8.7) |  |  | (1.9) |  |  | (2.0) |  |  | (2.2) |
Amortization of prior service costs | — |  |  | — |  |  | — |  |  | 0.1 |  |  | 0.1 |  |  | — |
Amortization of actuarial losses | 3.2 |  |  | 2.6 |  |  | 3.0 |  |  | 0.5 |  |  | 0.7 |  |  | 0.6 |
Net periodic pension (benefit) expense | $ | (0.2) |  |  | $ | 0.7 |  |  | $ | 0.7 |  |  | $ | (0.1) |  |  | $ | 0.4 |  |  | $ | (0.1) |
The items that comprise Net periodic pension (benefit) expense, other than service cost, are included as a component of Other expense, net on the Consolidated Statements of Operations. The following table summarizes the weighted-average assumptions used in determining pension costs:
| U.S. Benefit Plan |  | Non-U.S. Benefit Plan
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Discount rate | 3.5 | % |  | 4.4 | % |  | 3.7 | % |  | 2.0 | % |  | 2.8 | % |  | 2.5 | %
Expected long-term rate of return on plan assets | 7.4 | % |  | 7.0 | % |  | 7.0 | % |  | 3.6 | % |  | 4.2 | % |  | 4.2 | %
The following table summarizes the changes in the projected benefit obligation and plan assets:
| U.S. Benefit Plan |  | Non-U.S. Benefit Plan
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Benefit obligation, beginning of year | $ | 169.4 |  |  | $ | 161.6 |  |  | $ | 52.3 |  |  | $ | 49.8 |
Service cost | — |  |  | — |  |  | 0.2 |  |  | 0.2 |
Interest cost | 5.8 |  |  | 6.8 |  |  | 1.0 |  |  | 1.4 |
Actuarial loss | 15.2 |  |  | 10.8 |  |  | 5.1 |  |  | 2.0 |
Benefits and expenses paid | (10.2) |  |  | (9.8) |  |  | (3.0) |  |  | (3.1) |
Amendments (a) | — |  |  | — |  |  | 0.2 |  |  | — |
Foreign currency translation | — |  |  | — |  |  | 1.8 |  |  | 2.0 |
Benefit obligation, end of year | $ | 180.2 |  |  | $ | 169.4 |  |  | $ | 57.6 |  |  | $ | 52.3 |
Accumulated benefit obligation, end of year | $ | 180.2 |  |  | $ | 169.4 |  |  | $ | 57.6 |  |  | $ | 52.3 |
(a) While the non-U.S. benefit plan has not yet been amended, this component of the change to the benefit obligation of the non-U.S. benefit plan during the year ended December 31, 2020 represents the estimated incremental impact of the November 2020 U.K. High Court ruling, as described above. The following table summarizes the weighted-average assumptions used in determining benefit obligations:
| U.S. Benefit Plan |  | Non-U.S. Benefit Plan
| 2020 |  | 2019 |  | 2020 |  | 2019
Discount rate | 2.8 | % |  | 3.5 | % |  | 1.3 | % |  | 2.0 | %
The following summarizes the changes in the fair value of plan assets:
| U.S. Benefit Plan |  | Non-U.S. Benefit Plan
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Fair value of plan assets, beginning of year | $ | 131.6 |  |  | $ | 118.8 |  |  | $ | 55.2 |  |  | $ | 47.7 |
Actual return on plan assets (a) | 16.1 |  |  | 22.6 |  |  | 2.2 |  |  | 7.2 |
Company contribution | 5.0 |  |  | — |  |  | 1.3 |  |  | 1.3 |
Benefits and expenses paid | (10.2) |  |  | (9.8) |  |  | (3.0) |  |  | (3.1) |
Foreign currency translation | — |  |  | — |  |  | 1.7 |  |  | 2.1 |
Fair value of plan assets, end of year | $ | 142.5 |  |  | $ | 131.6 |  |  | $ | 57.4 |  |  | $ | 55.2 |
(a) Actual return on plan assets of the U.S. benefit plan for the years ended December 31, 2020 and 2019, was net of fees, commissions and other expenses paid from plan assets of $2.0 million and $1.9 million, respectively. As more fully described within Note 18 – Fair Value Measurements, the Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value. Following is a description of the valuation methodologies used for assets measured at fair value for the U.S. benefit plan: •Cash and cash equivalents are comprised of cash on deposit and a money market fund, that invests principally in short-term instruments. The money-market fund is valued at the net asset value (“NAV”) of the shares in the fund. •Equity investments represent domestic and foreign securities, including common stock, which are publicly traded on active exchanges and are valued based on quoted market prices. Certain equity securities, which are valued using a model that takes the underlying security’s “best” price, divides it by the applicable exchange rate and multiplies the result by a depository receipt factor, are categorized within Level 2 of the fair value hierarchy. •Fixed income investments include corporate bonds, asset-backed securities and treasury bonds. Corporate bonds are valued using pricing models that include bids provided by brokers or dealers, benchmark yields, base spreads and reported trades. Asset-backed securities are valued using models with readily observable data as inputs. Treasury bonds are valued based on quoted market prices in active markets. •Real estate investments include public real estate investment trusts (“REIT”) and exchange traded REIT funds, which are publicly traded on active exchanges and are valued based on quoted market prices. Following is a description of the valuation methodologies used for assets measured at fair value for the non-U.S. benefit plan: •Cash and cash equivalents are comprised of cash on deposit and a money market fund, that invests principally in short-term instruments. The money-market fund is valued at the NAV of the shares in the fund. •Diversified investment funds and insurance-linked securities are valued based on a daily NAV per share measured by the fund sponsor and used as the basis for current transactions. •Fixed income investments include treasury securities, which are valued based on quoted market prices in active markets, and corporate bonds which are either valued based on quoted market prices in active markets or other readily observable market data. The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The following summarizes the Company’s pension assets in a three-tier fair value hierarchy for its benefit plans:
| U. S. Benefit Plan
| 2020 |  | 2019
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and cash equivalents | $ | 4.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 4.4 |  |  | $ | 4.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 4.0 |
Equity investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. Large Cap | 36.3 |  |  | — |  |  | — |  |  | 36.3 |  |  | 46.1 |  |  | — |  |  | — |  |  | 46.1 |
U.S. Small and Mid Cap | 24.6 |  |  | — |  |  | — |  |  | 24.6 |  |  | 23.8 |  |  | — |  |  | — |  |  | 23.8 |
Developed international | 10.2 |  |  | 9.5 |  |  | — |  |  | 19.7 |  |  | 7.1 |  |  | 5.9 |  |  | — |  |  | 13.0 |
Emerging markets | 9.7 |  |  | 2.2 |  |  | — |  |  | 11.9 |  |  | 10.2 |  |  | 0.5 |  |  | — |  |  | 10.7 |
Fixed income investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government securities | 4.9 |  |  | — |  |  | — |  |  | 4.9 |  |  | 10.5 |  |  | — |  |  | — |  |  | 10.5 |
Asset-backed securities | — |  |  | 3.8 |  |  | — |  |  | 3.8 |  |  | — |  |  | 13.5 |  |  | — |  |  | 13.5 |
Corporate bonds | — |  |  | 31.3 |  |  | — |  |  | 31.3 |  |  | — |  |  | 9.4 |  |  | — |  |  | 9.4 |
Mutual funds | 5.0 |  |  | — |  |  | — |  |  | 5.0 |  |  | — |  |  | — |  |  | — |  |  | — |
Other investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate | 0.4 |  |  | — |  |  | — |  |  | 0.4 |  |  | 0.4 |  |  | — |  |  | — |  |  | 0.4 |
Total assets at fair value (a) | $ | 95.5 |  |  | $ | 46.8 |  |  | $ | — |  |  | $ | 142.3 |  |  | $ | 102.1 |  |  | $ | 29.3 |  |  | $ | — |  |  | $ | 131.4 |
(a) Total assets at fair value in the table above exclude a net receivable of $0.2 million at December 31, 2020 and 2019, respectively.
| Non-U. S. Benefit Plan
| 2020 |  | 2019
(in millions) | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and cash equivalents | $ | 0.4 |  |  | $ | 7.0 |  |  | $ | — |  |  | $ | 7.4 |  |  | $ | 0.2 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.2 |
Diversified investment funds (a) | — |  |  | 29.6 |  |  | — |  |  | 29.6 |  |  | — |  |  | 40.7 |  |  | — |  |  | 40.7 |
Fixed income investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Government securities | — |  |  | — |  |  | — |  |  | — |  |  | 3.8 |  |  | — |  |  | — |  |  | 3.8 |
Corporate bonds | — |  |  | 15.9 |  |  | — |  |  | 15.9 |  |  | 7.2 |  |  | 3.3 |  |  | — |  |  | 10.5 |
Other investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Insurance-linked securities | — |  |  | — |  |  | 4.5 |  |  | 4.5 |  |  | — |  |  | — |  |  | — |  |  | — |
Total assets at fair value | $ | 0.4 |  |  | $ | 52.5 |  |  | $ | 4.5 |  |  | $ | 57.4 |  |  | $ | 11.2 |  |  | $ | 44.0 |  |  | $ | — |  |  | $ | 55.2 |
(a) These funds primarily invest in a diversified portfolio of equity securities and fixed income securities. The Company maintains a structured investment strategy for its U.S. and non-U.S. benefit plans, which are designed to achieve certain target asset allocations depending on the plans’ relative funded status. The target asset allocations for the U.S. benefit plan are (i) between 54% and 69% in equity investments, (ii) between 29% and 44% in fixed income investments and (iii) between 0% and 20% in cash and cash equivalents. Other investments may include real estate investments and mutual funds investing in real estate, commodities or hedge funds. Plan assets for the non-U.S. benefit plan consist principally of a portfolio of diversified investment funds, corporate bonds and insurance-linked securities. The target asset allocations for the non-U.S. benefit plan assets are generally between 65% and 75% in fixed income investments and cash and cash equivalents, and between 25% and 35% in equity investments. The following summarizes the funded status of the Company’s benefit plans:
| U.S. Benefit Plan |  | Non-U.S. Benefit Plan
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Fair value of plan assets, end of year | $ | 142.5 |  |  | $ | 131.6 |  |  | $ | 57.4 |  |  | $ | 55.2 |
Benefit obligation, end of year | 180.2 |  |  | 169.4 |  |  | 57.6 |  |  | 52.3 |
Funded status, end of year | $ | (37.7) |  |  | $ | (37.8) |  |  | $ | (0.2) |  |  | $ | 2.9 |
The following summarizes the amounts recognized within the Company’s Consolidated Balance Sheets:
| U.S. Benefit Plan |  | Non-U.S. Benefit Plan
(in millions) | 2020 |  | 2019 |  | 2020 |  | 2019
Amounts recognized in our Consolidated Balance Sheets include: |  |  |  |  |  |  |
Deferred charges and other long-term assets | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2.9 |
Long-term pension and other post-retirement benefit liabilities | (37.7) |  |  | (37.8) |  |  | (0.2) |  |  | — |
Net (liability) asset recorded | $ | (37.7) |  |  | $ | (37.8) |  |  | $ | (0.2) |  |  | $ | 2.9 |
Amounts recognized in Accumulated other comprehensive loss include: |  |  |  |  |  |  |
Actuarial losses | $ | 81.3 |  |  | $ | 76.2 |  |  | $ | 19.6 |  |  | $ | 14.6 |
Prior service costs | — |  |  | — |  |  | 2.6 |  |  | 2.4 |
Net amount recognized, pre-tax | $ | 81.3 |  |  | $ | 76.2 |  |  | $ | 22.2 |  |  | $ | 17.0 |
As the Company’s benefit plans are fully frozen, all plan participants are now considered to be inactive. As a result, the associated actuarial losses and prior service costs that are included in Accumulated other comprehensive loss are being amortized into net periodic benefit cost over the remaining average life expectancy of plan participants. The Company expects $4.6 million of the actuarial losses and $0.1 million of the prior service costs to be amortized from Accumulated other comprehensive loss into net periodic benefit cost in 2021. In 2021, the Company currently expects to contribute up to $4.3 million to the U.S. benefit plan and up to $1.4 million to the non-U.S. benefit plan. Future contributions to the plans will be based on such factors as annual service cost, the financial return on plan assets, interest rate movements that affect discount rates applied to plan liabilities and the value of benefit payments made. The following summarizes the benefits expected to be paid under the Company’s benefit plans in each of the next five years, and in aggregate for the five years thereafter:
(in millions) | U.S. Benefit Plan |  | Non-U.S. Benefit Plan
2021 | $ | 9.8 |  |  | $ | 2.7 |
2022 | 10.0 |  |  | 2.8 |
2023 | 10.1 |  |  | 2.7 |
2024 | 10.2 |  |  | 2.8 |
2025 | 10.7 |  |  | 2.7 |
2026-2030 | 51.9 |  |  | 13.0 |
Defined Contribution Retirement Plan The Company also sponsors a defined contribution retirement plan (the “401(k) plan”) covering a majority of its employees. Participation is via automatic enrollment and employees may elect to opt out of the 401(k) plan. Company contributions to the 401(k) plan are based on an employee’s years of service, as well as the percentage of employee contributions. The Company’s cost of the 401(k) plan was $7.7 million in 2020, $7.9 million in 2019 and $7.2 million in 2018. Deferred Compensation Plan The Company also provides a deferred compensation plan to certain employees. The deferred compensation plan is a non-qualified, unfunded defined contribution plan, which provides participants with benefits that would have been provided under the 401(k) plan, but could not be provided due to compensation limits for qualified plans under the Internal Revenue Code. At December 31, 2020 and 2019, deferred compensation liabilities of $13.8 million and $11.1 million, respectively, were included on the Consolidated Balance Sheets, primarily within Long-term pension and other post-retirement benefit liabilities. Multi-Employer Pension Plan During the year ended December 31, 2020, the Company withdrew from the Sheet Metal Workers’ National Pension Fund, a multi-employer pension plan that provided defined benefits to employees under a U.S. collective bargaining agreement. As a result, the Company incurred a $2.3 million withdrawal charge, which was recognized as a component of Other expense, net on the Consolidated Statements of Operations. The withdrawal liability was settled in full during the year ended December 31, 2020.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section S99 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(i) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (o) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (p) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 3 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (q) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(1) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(2) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration