Defined Benefit Plans

9 Months Ended

Sep. 30, 2016

11.

Defined Benefit Plans

The components of net periodic benefit cost for pension and postretirement benefits for the nine and three months ended September 30, 2016 and 2015 were as follows:


(In millions)	Nine Months Ended September 30,
	Pension Benefits						Postretirement Benefits
	2016			2015			2016			2015
Service cost	$	7.2		$	8.7		$	—		$	—
Interest cost		25.8			25.2			0.2			0.4
Expected return on plan assets		(27.9	)		(30.3	)		—			—
Recognition of prior service costs (credits)		—			0.1			(10.0	)		(10.3	)
Recognition of actuarial losses (gains)		—			2.9			1.9			(0.1	)

Net periodic benefit cost (income)	$	5.1		$	6.6		$	(7.9	)	$	(10.0	)


(In millions)	Three Months Ended September 30,
	Pension Benefits						Postretirement Benefits
	2016			2015			2016			2015
Service cost	$	1.6		$	2.3		$	—		$	—
Interest cost		8.4			8.3			(0.1	)		0.1
Expected return on plan assets		(8.9	)		(9.9	)		—			—
Recognition of prior service costs (credits)		—			0.1			(3.8	)		(3.3	)
Recognition of actuarial losses (gains)		—			2.9			1.0			(0.1	)

Net periodic benefit cost (income)	$	1.1		$	3.7		$	(2.9	)	$	(3.3	)

In the first quarter of 2013, the Company communicated a plan amendment to reduce health benefits to certain retired employees. Due to the risk of litigation at the time of the initial communication, the Company elected to defer the full recognition of the benefit arising from the plan amendment. Following a favorable court decision in the first quarter of 2016, the Company determined that it was now probable that it would realize the benefit from the plan amendment. As a result, the Company performed a re-measurement of the affected retiree plan liability as of March 31, 2016. This remeasurement resulted in a $10.7 million reduction of accrued retiree benefit plan liabilities and a corresponding increase in prior service credits. These prior service credits will be amortized over the next eight months after September 30, 2016. In addition, we recorded a $0.9 million actuarial loss during the first quarter of 2016.

In the third quarter of 2015, we recognized actuarial losses of $6.1 million related to the sale of the Waterloo tool storage business in discontinued operations in addition to the $2.8 million of actuarial losses reflected above.