Pension and Other Postretirement Benefit Plans

The Company sponsors defined benefit pension plans and other postretirement benefit plans (primarily for the continuation of medical benefits) for eligible employees in the United States and certain other countries.

Net Periodic Pension and Other Postretirement Benefit Cost (Credit)

The components of the Company’s net periodic pension benefit cost (credit) are shown below (in millions):



	Three Months Ended												Nine Months Ended
	October 1, 2016						September 26, 2015						October 1, 2016						September 26, 2015
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Service cost	$	1.4		$	1.6		$	1.1		$	1.8		$	4.2		$	4.8		$	3.5		$	6.5
Interest cost	7.5			3.8			7.2			4.1			22.4			11.9			21.5			13.0
Expected return on plan assets	(9.5		)	(5.9		)	(9.9		)	(6.3		)	(28.6		)	(17.5		)	(29.6		)	(20.3		)
Amortization of actuarial loss	0.6			0.8			0.7			1.0			2.0			2.3			2.0			3.2
Curtailment loss	—			—			—			—			—			—			—			7.7
Settlement loss	—			—			0.1			—			0.2			—			0.2			—
Net periodic benefit cost (credit)	$	—		$	0.3		$	(0.8	)	$	0.6		$	0.2		$	1.5		$	(2.4	)	$	10.1

The components of the Company’s net periodic other postretirement benefit cost are shown below (in millions):



	Three Months Ended												Nine Months Ended
	October 1, 2016						September 26, 2015						October 1, 2016						September 26, 2015
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Service cost	$	—		$	0.1		$	—		$	0.1		$	0.1		$	0.4		$	0.1		$	0.6
Interest cost	0.9			0.4			0.8			0.4			2.4			1.2			2.3			1.2
Amortization of actuarial (gain) loss	(0.3		)	0.1			(0.3		)	0.1			(0.9		)	0.2			(0.9		)	0.4
Amortization of prior service credit	—			(0.1		)	—			(0.1		)	—			(0.3		)	—			(0.2		)
Special termination benefits	—			—			—			—			—			0.3			—			—
Net periodic benefit cost	$	0.6		$	0.5		$	0.5		$	0.5		$	1.6		$	1.8		$	1.5		$	2.0

In the nine months ended September 26, 2015, the Company recognized pension benefit curtailment losses of $7.7 million related to its restructuring actions.

Contributions

Employer contributions to the Company’s domestic and foreign defined benefit pension plans in the nine months ended October 1, 2016, were $9.7 million. The Company expects contributions to its domestic and foreign defined benefit pension plans to be approximately $10 million to $15 million in 2016. The Company may elect to make contributions in excess of minimum funding requirements in response to investment performance or changes in interest rates or when the Company believes that it is financially advantageous to do so and based on its other cash requirements.

Subsequent Event

In September 2016, the Company announced a limited lump-sum payout offer to certain terminated vested plan participants of its U.S. defined benefit pension plans. This offer provides participants with the flexibility to receive their pension benefits early and reduces the Company's future administrative costs and risks related to its U.S. defined benefit pension plans. Under this offer, eligible plan participants may voluntarily elect an early payout of their pension benefits primarily in the form of a lump-sum payment equal to the present value of the participant’s pension benefits. Eligible plan participants have from October 4, 2016 through November 10, 2016, to make their election. Payments under this offer will be distributed in December 2016 from existing defined benefit pension plan assets.

In connection with this offer, the Company expects to recognize a non-cash settlement charge in the fourth quarter of 2016. Although the actual amount of the charge and the related impact on the funded status of the affected U.S. defined benefit pension plans will depend on, among other factors, the number of plan participants accepting the offer, the Company currently estimates that the offer will result in a pretax non-cash settlement charge of approximately $40 million to $55 million.