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Pension and Other Postretirement Benefit Plans | 12 Months Ended
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Dec. 31, 2019
Retirement Benefits [Abstract] |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company has noncontributory defined benefit pension plans covering certain domestic employees and certain employees in foreign countries, principally Canada. The Company’s salaried pension plans provide benefits based on final average earnings formulas. The Company’s hourly pension plans provide benefits under flat benefit and cash balance formulas. The Company also has contractual arrangements with certain employees which provide for supplemental retirement benefits. In general, the Company’s policy is to fund its pension benefit obligation based on legal requirements, tax and liquidity considerations and local practices. The Company has postretirement benefit plans covering certain domestic and Canadian retirees. The Company’s postretirement benefit plans generally provide for the continuation of medical benefits for eligible participants who completed a specified number of years of service and retired from the Company at age 55 or older. The Company does not fund its postretirement benefit obligation. Rather, payments are made as costs are incurred by covered retirees. Obligation and Funded Status A reconciliation of the change in benefit obligation and the change in plan assets for the years ended December 31, 2019 and 2018, is shown below (in millions):
| Pension |  |  | Other Postretirement
| December 31, 2019 |  | December 31, 2018 |  |  | December 31, 2019 |  | December 31, 2018
| U.S. |  | Foreign |  | U.S. |  | Foreign |  |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of period | $ | 438.0 |  |  | $ | 437.1 |  |  | $ | 558.0 |  |  | $ | 490.6 |  |  |  | $ | 52.4 |  |  | $ | 34.3 |  |  | $ | 56.6 |  |  | $ | 41.2 |
Service cost | 0.1 |  |  | 6.3 |  |  | 0.1 |  |  | 6.9 |  |  |  | — |  |  | 0.3 |  |  | — |  |  | 0.4 |
Interest cost | 18.6 |  |  | 14.7 |  |  | 19.8 |  |  | 14.7 |  |  |  | 2.1 |  |  | 1.3 |  |  | 1.9 |  |  | 1.4 |
Amendments and settlements | — |  |  | — |  |  | — |  |  | 0.7 |  |  |  | — |  |  | — |  |  | — |  |  | — |
Actuarial (gain) loss | 63.0 |  |  | 55.8 |  |  | (43.1 | ) |  | (21.8 | ) |  |  | 4.5 |  |  | 0.4 |  |  | (1.8 | ) |  | (3.9 | )
Benefits paid | (18.9 | ) |  | (21.5 | ) |  | (23.6 | ) |  | (21.3 | ) |  |  | (3.6 | ) |  | (1.3 | ) |  | (4.3 | ) |  | (1.6 | )
Annuity purchase (1) | — |  |  | — |  |  | (73.2 | ) |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |
Curtailment | — |  |  | (2.4 | ) |  | — |  |  | 0.4 |  |  |  | — |  |  | (10.9 | ) |  | — |  |  | — |
Translation adjustment | — |  |  | 14.3 |  |  | — |  |  | (33.1 | ) |  |  | — |  |  | 1.5 |  |  | — |  |  | (3.2 | )
Benefit obligation at end of period | $ | 500.8 |  |  | $ | 504.3 |  |  | $ | 438.0 |  |  | $ | 437.1 |  |  |  | $ | 55.4 |  |  | $ | 25.6 |  |  | $ | 52.4 |  |  | $ | 34.3 |
| Pension |  |  | Other Postretirement
| December 31, 2019 |  | December 31, 2018 |  |  | December 31, 2019 |  | December 31, 2018
| U.S. |  | Foreign |  | U.S. |  | Foreign |  |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of period | $ | 330.6 |  |  | $ | 351.8 |  |  | $ | 438.2 |  |  | $ | 406.4 |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Actual return on plan assets | 61.5 |  |  | 42.3 |  |  | (13.7 | ) |  | (11.7 | ) |  |  | — |  |  | — |  |  | — |  |  | — |
Employer contributions | 3.4 |  |  | 6.6 |  |  | 2.9 |  |  | 7.3 |  |  |  | 3.6 |  |  | 1.3 |  |  | 4.3 |  |  | 1.6 |
Benefits paid | (18.9 | ) |  | (21.5 | ) |  | (23.6 | ) |  | (21.3 | ) |  |  | (3.6 | ) |  | (1.3 | ) |  | (4.3 | ) |  | (1.6 | )
Annuity purchase (1) | — |  |  | — |  |  | (73.2 | ) |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |
Translation adjustment | — |  |  | 17.6 |  |  | — |  |  | (28.9 | ) |  |  | — |  |  | — |  |  | — |  |  | — |
Fair value of plan assets at end of period | $ | 376.6 |  |  | $ | 396.8 |  |  | $ | 330.6 |  |  | $ | 351.8 |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Funded status | $ | (124.2 | ) |  | $ | (107.5 | ) |  | $ | (107.4 | ) |  | $ | (85.3 | ) |  |  | $ | (55.4 | ) |  | $ | (25.6 | ) |  | $ | (52.4 | ) |  | $ | (34.3 | )
| Pension |  |  | Other Postretirement
| December 31, 2019 |  | December 31, 2018 |  |  | December 31, 2019 |  | December 31, 2018
| U.S. |  | Foreign |  | U.S. |  | Foreign |  |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Amounts recognized in the consolidated balance sheet: |  |  |  |  |  |  |  |  |
Other long-term assets | $ | 0.1 |  |  | $ | 23.8 |  |  | $ | — |  |  | $ | 29.0 |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Accrued liabilities | (2.6 | ) |  | (3.3 | ) |  | (2.3 | ) |  | (2.9 | ) |  |  | (3.9 | ) |  | (1.4 | ) |  | (3.9 | ) |  | (1.5 | )
Other long-term liabilities | (121.7 | ) |  | (128.0 | ) |  | (105.1 | ) |  | (111.4 | ) |  |  | (51.5 | ) |  | (24.2 | ) |  | (48.5 | ) |  | (32.8 | )
(1) | See Annuity Purchase below for further discussion.
Accumulated Benefit Obligation As of December 31, 2019 and 2018, the accumulated benefit obligation for all of the Company’s pension plans was $990.3 million and $864.1 million, respectively. As of December 31, 2019 and 2018, the majority of the Company's pension plans had accumulated benefit obligations in excess of plan assets. Information related to pension plans with accumulated benefit obligations in excess of plan assets is shown below (in millions):
December 31, | 2019 |  | 2018
Projected benefit obligation | $ | 726.3 |  |  | $ | 635.0 |
Accumulated benefit obligation | 711.5 |  |  | 624.0 |
Fair value of plan assets | 470.8 |  |  | 414.2 |
Annuity Purchase In 2018, the Company entered into a purchase agreement for group annuity contracts ("Annuity Purchase") for certain terminated vested plan participants of its U.S. defined benefit pension plans. The transaction reduces the Company's future administrative costs and risks related to its U.S. defined benefit pension plans and irrevocably relieves the Company of responsibility for the pension benefit obligation for those plan participants. In connection with the Annuity Purchase, payments of $73.2 million were distributed from existing defined benefit pension plan assets, and the Company recognized pension settlement losses of $5.4 million. Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss Pretax amounts recognized in other comprehensive income (loss) for the years ended December 31, 2019 and 2018, are shown below (in millions):
| Pension |  |  | Other Postretirement
| December 31, 2019 |  | December 31, 2018 |  |  | December 31, 2019 |  | December 31, 2018
| U.S. |  | Foreign |  | U.S. |  | Foreign |  |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Actuarial gains (losses) recognized: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reclassification adjustments | $ | 1.8 |  |  | $ | 7.8 |  |  | $ | 2.0 |  |  | $ | 6.2 |  |  |  | $ | (2.3 | ) |  | $ | — |  |  | $ | (2.2 | ) |  | $ | 0.2 |
Actuarial gain (loss) arising during the period | (21.7 | ) |  | (33.8 | ) |  | 2.1 |  |  | (11.2 | ) |  |  | (4.5 | ) |  | — |  |  | 1.8 |  |  | 3.9 |
Effect of curtailment | — |  |  | 0.1 |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |
Effect of settlements | 0.1 |  |  | — |  |  | 5.7 |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |
Prior service credit recognized: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reclassification adjustments | — |  |  | — |  |  | — |  |  | — |  |  |  | (0.2 | ) |  | (0.2 | ) |  | (0.2 | ) |  | (0.3 | )
Prior service cost arising during the period | — |  |  | — |  |  | — |  |  | (0.6 | ) |  |  | — |  |  | — |  |  | — |  |  | — |
Translation adjustment | — |  |  | (3.8 | ) |  | — |  |  | 7.4 |  |  |  | — |  |  | — |  |  | — |  |  | 0.4 |
| $ | (19.8 | ) |  | $ | (29.7 | ) |  | $ | 9.8 |  |  | $ | 1.8 |  |  |  | $ | (7.0 | ) |  | $ | (0.2 | ) |  | $ | (0.6 | ) |  | $ | 4.2 |
In addition, the Company recognized tax (benefit) expense in other comprehensive income (loss) related to its defined benefit plans of ($13.7) million, $3.0 million and $1.5 million for the years ended December 31, 2019, 2018 and 2017, respectively. Pretax amounts recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost as of December 31, 2019 and 2018, are shown below (in millions):
| Pension |  |  | Other Postretirement
| December 31, 2019 |  | December 31, 2018 |  |  | December 31, 2019 |  | December 31, 2018
| U.S. |  | Foreign |  | U.S. |  | Foreign |  |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Net unrecognized actuarial gain (loss) | $ | (105.9 | ) |  | $ | (135.9 | ) |  | $ | (86.1 | ) |  | $ | (106.8 | ) |  |  | $ | 19.6 |  |  | $ | (0.9 | ) |  | $ | 26.6 |  |  | $ | (0.9 | )
Prior service (cost) credit | — |  |  | (1.2 | ) |  | — |  |  | (0.6 | ) |  |  | 1.9 |  |  | 0.1 |  |  | 1.9 |  |  | 0.3 |
| $ | (105.9 | ) |  | $ | (137.1 | ) |  | $ | (86.1 | ) |  | $ | (107.4 | ) |  |  | $ | 21.5 |  |  | $ | (0.8 | ) |  | $ | 28.5 |  |  | $ | (0.6 | )
Pretax amounts recorded in accumulated other comprehensive loss as of December 31, 2019, that are expected to be recognized as components of net periodic benefit cost in the year ending December 31, 2020, are shown below (in millions):
| Pension |  |  | Other Postretirement
| U.S. |  | Foreign |  |  | U.S. |  | Foreign
Net unrecognized actuarial gain (loss) | $ | (2.3 | ) |  | $ | (4.7 | ) |  |  | $ | 1.6 |  |  | $ | — |
Prior service credit | — |  |  | — |  |  |  | 0.2 |  |  | — |
| $ | (2.3 | ) |  | $ | (4.7 | ) |  |  | $ | 1.8 |  |  | $ | — |
The Company uses the corridor approach when amortizing actuarial gains and losses. Under the corridor approach, net unrecognized actuarial gains and losses in excess of 10% of the greater of i) the projected benefit obligation or ii) the fair value of plan assets are amortized over future periods. For plans with little to no active participants, the amortization period is the remaining average life expectancy of the participants. For plans with active participants, the amortization period is the remaining average service period of the active participants. The amortization periods range from 5 to 36 years for the Company's defined benefit pension plans and from 2 to 18 years for the Company's other postretirement benefit plans. Net Periodic Pension and Other Postretirement Benefit Cost (Credit) The components of the Company’s net periodic pension benefit cost are shown below (in millions):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Pension | U.S. |  | Foreign |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Service cost | $ | 0.1 |  |  | $ | 6.3 |  |  | $ | 0.1 |  |  | $ | 6.9 |  |  | $ | 0.1 |  |  | $ | 7.3 |
Interest cost | 18.6 |  |  | 14.7 |  |  | 19.8 |  |  | 14.7 |  |  | 21.8 |  |  | 15.0 |
Expected return on plan assets | (20.2 | ) |  | (20.9 | ) |  | (27.3 | ) |  | (23.0 | ) |  | (24.0 | ) |  | (22.9 | )
Amortization of actuarial loss | 1.8 |  |  | 7.8 |  |  | 2.0 |  |  | 6.2 |  |  | 2.6 |  |  | 5.1 |
Curtailment (gain) loss | — |  |  | (2.3 | ) |  | — |  |  | 0.4 |  |  | — |  |  | 0.9 |
Settlement losses | 0.1 |  |  | — |  |  | 5.7 |  |  | — |  |  | 0.2 |  |  | 0.8 |
Net periodic benefit cost | $ | 0.4 |  |  | $ | 5.6 |  |  | $ | 0.3 |  |  | $ | 5.2 |  |  | $ | 0.7 |  |  | $ | 6.2 |
The components of the Company’s net periodic other postretirement benefit cost (credit) are shown below (in millions):
| Year Ended December 31,
| 2019 |  | 2018 |  | 2017
Other Postretirement | U.S. |  | Foreign |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Service cost | $ | — |  |  | $ | 0.3 |  |  | $ | — |  |  | $ | 0.4 |  |  | $ | 0.1 |  |  | $ | 0.5 |
Interest cost | 2.1 |  |  | 1.3 |  |  | 1.9 |  |  | 1.4 |  |  | 2.4 |  |  | 1.5 |
Amortization of actuarial (gain) loss | (2.3 | ) |  | — |  |  | (2.2 | ) |  | 0.2 |  |  | (2.6 | ) |  | 0.3 |
Amortization of prior service credit | (0.2 | ) |  | (0.2 | ) |  | (0.2 | ) |  | (0.3 | ) |  | — |  |  | (0.4 | )
Curtailment gain | — |  |  | (10.6 | ) |  | — |  |  | — |  |  | — |  |  | — |
Special termination benefits | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 0.1 |
Net periodic benefit cost (credit) | $ | (0.4 | ) |  | $ | (9.2 | ) |  | $ | (0.5 | ) |  | $ | 1.7 |  |  | $ | (0.1 | ) |  | $ | 2.0 |
For the year ended December 31, 2019, the Company recognized an other postretirement curtailment gain of $10.6 million related to its restructuring actions (Note 4, "Restructuring"). For the year ended December 31, 2018, the Company recognized pension settlement losses of $5.4 million related to its Annuity Purchase described above. For the year ended December 31, 2017, the Company recognized pension curtailment and settlement losses of $1.7 million related to its restructuring actions (Note 4, "Restructuring"). Accounting Standards Update On January 1, 2018, the Company adopted ASU 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost." The new standard requires the classification of the non-service cost components of net periodic benefit cost in other (income) expense, net and the classification of the service cost component in the same line item as other current employee compensation costs. The provisions of the standard were applied retrospectively. As a result, the consolidated statement of income for the year ended December 31, 2016, was restated to reflect the non-cash settlement charge of $34.2 million related to the Company's Lump-Sum Payout as other (income) expense, net with corresponding decreases in cost of sales of $20.5 million and selling, general and administrative expenses of $13.7 million. The adoption of ASU 2017-07 did not impact the Company's financial statements for the year ended December 31, 2017. Assumptions The weighted average actuarial assumptions used in determining the benefit obligations are shown below:
| Pension |  | Other Postretirement
December 31, | 2019 |  | 2018 |  | 2019 |  | 2018
Discount rate: |  |  |  |  |  |  |
Domestic plans | 3.4% |  | 4.3% |  | 3.2% |  | 4.2%
Foreign plans | 2.6% |  | 3.4% |  | 3.1% |  | 3.8%
Rate of compensation increase: |  |  |  |  |  |  |
Foreign plans | 3.7% |  | 3.4% |  | N/A |  | N/A
The weighted average actuarial assumptions used in determining the net periodic benefit cost (credit) are shown below:
For the year ended December 31, | 2019 |  | 2018 |  | 2017
Pension |  |  |  |  |
Discount rate: |  |  |  |  |
Domestic plans | 4.3 | % |  | 3.6 | % |  | 4.1 | %
Foreign plans | 3.4 | % |  | 3.1 | % |  | 3.3 | %
Expected return on plan assets: |  |  |  |  |
Domestic plans | 6.3 | % |  | 6.5 | % |  | 7.3 | %
Foreign plans | 5.9 | % |  | 5.9 | % |  | 6.3 | %
Rate of compensation increase: |  |  |  |  |
Foreign plans | 3.4 | % |  | 3.3 | % |  | 3.3 | %
Other postretirement |  |  |  |  |
Discount rate: |  |  |  |  |
Domestic plans | 4.2 | % |  | 3.5 | % |  | 3.9 | %
Foreign plans | 3.8 | % |  | 3.5 | % |  | 3.9 | %
The expected return on plan assets is determined based on several factors, including adjusted historical returns, historical risk premiums for various asset classes and target asset allocations within the portfolio. Adjustments made to the historical returns are based on recent return experience in the equity and fixed income markets and the belief that deviations from historical returns are likely over the relevant investment horizon. Healthcare Trend Rate Assumed healthcare cost trend rates have a significant effect on the amounts reported for the postretirement benefit plans. As of December 31, 2019, the sensitivity to a 100 basis point ("bp") change in the assumed healthcare cost trend rates is shown below (in millions):
| Postretirement Benefit Obligation |  | Net Periodic Postretirement Cost
100 bp increase in healthcare cost trend rates | $ | 9.7 |  |  | $ | 0.5 |
100 bp decrease in healthcare cost trend rates | $ | (8.2 | ) |  | $ | (0.4 | )
The assumed healthcare cost trend rates used to measure the postretirement benefit obligation as of December 31, 2019, are shown below:
| U.S. Plans |  | Foreign Plans
Initial healthcare cost trend rate | 6.8% |  | 4.7%
Ultimate healthcare cost trend rate | 4.5% |  | 4.0%
Year ultimate healthcare cost trend rate achieved | 2028 |  | 2040
Plan Assets Fair value measurements and the related valuation techniques and fair value hierarchy level for the Company’s pension plan assets measured at fair value on a recurring basis as of December 31, 2019 and 2018, are shown below (in millions):
| December 31, 2019
| Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Valuation Technique
U.S. Plans: |  |  |  |  |  |  |  |  |
Equity securities - |  |  |  |  |  |  |  |  |
Equity funds | $ | 103.6 |  |  | $ | 81.5 |  |  | $ | 22.1 |  |  | $ | — |  |  | Market
Common stock | 77.4 |  |  | 45.5 |  |  | 31.9 |  |  | — |  |  | Market
Fixed income - |  |  |  |  |  |  |  |  |
Fixed income funds | 76.0 |  |  | 76.0 |  |  | — |  |  | — |  |  | Market
Corporate bonds | 53.9 |  |  | — |  |  | 53.9 |  |  | — |  |  | Market
Government obligations | 7.3 |  |  | — |  |  | 7.3 |  |  | — |  |  | Market
Preferred stock | 1.2 |  |  | 0.6 |  |  | 0.6 |  |  | — |  |  | Market
Cash and short-term investments | 14.0 |  |  | 8.4 |  |  | 5.6 |  |  | — |  |  | Market
Assets at fair value | 333.4 |  |  | $ | 212.0 |  |  | $ | 121.4 |  |  | $ | — |  |  |
Investments measured at net asset value - |  |  |  |  |  |  |  |  |
Alternative investments | 43.2 |  |  |  |  |  |  |  |  |
Assets at fair value | $ | 376.6 |  |  |  |  |  |  |  |  |
Foreign Plans: |  |  |  |  |  |  |  |  |
Equity securities - |  |  |  |  |  |  |  |  |
Equity funds | $ | 148.4 |  |  | $ | — |  |  | $ | 148.4 |  |  | $ | — |  |  | Market
Common stock | 66.7 |  |  | 66.7 |  |  | — |  |  | — |  |  | Market
Fixed income - |  |  |  |  |  |  |  |  |
Fixed income funds | 45.6 |  |  | — |  |  | 45.6 |  |  | — |  |  | Market
Corporate bonds | 31.5 |  |  | — |  |  | 31.5 |  |  | — |  |  | Market
Government obligations | 55.8 |  |  | — |  |  | 55.8 |  |  | — |  |  | Market
Cash and short-term investments | 10.9 |  |  | 7.7 |  |  | 3.2 |  |  | — |  |  | Market
Assets at fair value | 358.9 |  |  | $ | 74.4 |  |  | $ | 284.5 |  |  | $ | — |  |  |
Investments measured at net asset value - |  |  |  |  |  |  |  |  |
Alternative investments | 37.9 |  |  |  |  |  |  |  |  |
Assets at fair value | $ | 396.8 |  |  |  |  |  |  |  |  |
| December 31, 2018
| Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Valuation Technique
U.S. Plans: |  |  |  |  |  |  |  |  |
Equity securities - |  |  |  |  |  |  |  |  |
Equity funds | $ | 89.1 |  |  | $ | 74.4 |  |  | $ | 14.7 |  |  | $ | — |  |  | Market
Common stock | 61.2 |  |  | 33.6 |  |  | 27.6 |  |  | — |  |  | Market
Fixed income - |  |  |  |  |  |  |  |  |
Fixed income funds | 78.6 |  |  | 78.6 |  |  | — |  |  | — |  |  | Market
Corporate bonds | 47.7 |  |  | — |  |  | 47.7 |  |  | — |  |  | Market
Government obligations | 1.0 |  |  | — |  |  | 1.0 |  |  | — |  |  | Market
Preferred stock | 1.3 |  |  | 0.8 |  |  | 0.5 |  |  | — |  |  | Market
Cash and short-term investments | 4.2 |  |  | 0.2 |  |  | 4.0 |  |  | — |  |  | Market
Assets at fair value | 283.1 |  |  | $ | 187.6 |  |  | $ | 95.5 |  |  | $ | — |  |  |
Investments measured at net asset value - |  |  |  |  |  |  |  |  |
Alternative investments | 47.5 |  |  |  |  |  |  |  |  |
Assets at fair value | $ | 330.6 |  |  |  |  |  |  |  |  |
Foreign Plans: |  |  |  |  |  |  |  |  |
Equity securities - |  |  |  |  |  |  |  |  |
Equity funds | $ | 138.1 |  |  | $ | — |  |  | $ | 138.1 |  |  | $ | — |  |  | Market
Common stock | 58.3 |  |  | 58.3 |  |  | — |  |  | — |  |  | Market
Fixed income - |  |  |  |  |  |  |  |  |
Fixed income funds | 28.2 |  |  | — |  |  | 28.2 |  |  | — |  |  | Market
Corporate bonds | 32.9 |  |  | — |  |  | 32.9 |  |  | — |  |  | Market
Government obligations | 52.8 |  |  | — |  |  | 52.8 |  |  | — |  |  | Market
Cash and short-term investments | 7.4 |  |  | 4.0 |  |  | 3.4 |  |  | — |  |  | Market
Assets at fair value | 317.7 |  |  | $ | 62.3 |  |  | $ | 255.4 |  |  | $ | — |  |  |
Investments measured at net asset value - |  |  |  |  |  |  |  |  |
Alternative investments | 34.1 |  |  |  |  |  |  |  |  |
Assets at fair value | $ | 351.8 |  |  |  |  |  |  |  |  |
For further information on the GAAP fair value hierarchy, see Note 15, "Financial Instruments." Pension plan assets for the foreign plans relate to the Company’s pension plans primarily in Canada and the United Kingdom. The Company’s investment policies incorporate an asset allocation strategy that emphasizes the long-term growth of capital. The Company believes that this strategy is consistent with the long-term nature of plan liabilities and ultimate cash needs of the plans. For the domestic portfolio, the Company targets a return seeking asset (e.g., equity securities, equity mutual funds and exchange traded funds ("ETFs") and alternative investments) allocation of 45% — 65% and a risk mitigating asset (e.g., fixed income securities and fixed income mutual funds and ETFs) allocation of 35% — 55%. As the funding ratio for the defined benefit pension plans covering certain domestic employees changes, the proportion of return seeking assets will be adjusted accordingly. For the foreign portfolio, the Company targets an equity allocation of 45% — 65% of plan assets, a fixed income allocation of 25% — 45%, an alternative investment allocation of 0% — 25% and a cash allocation of 0% — 15%. Differences in the target allocations of the domestic and foreign portfolios are reflective of differences in the underlying plan liabilities. Diversification within the investment portfolios is pursued by asset class and investment management style. The investment portfolios are reviewed on a quarterly basis to maintain the desired asset allocations, given the market performance of the asset classes and investment management styles. Alternative investments are redeemable in the near term, generally with 90 days notice. The Company utilizes investment management firms to manage these assets in accordance with the Company’s investment policies. Excluding alternative investments, mutual funds and ETFs, retained investment managers are provided investment guidelines which restrict the use of certain assets, including commodities contracts, futures contracts, options, venture capital, real estate, interest-only or principal-only strips and investments in the Company’s own debt or equity. Derivative instruments are also prohibited without the specific approval of the Company. Investment managers are limited in the maximum size of individual security holdings and the maximum exposure to any one industry relative to the total portfolio. Fixed income managers are provided further investment guidelines that indicate minimum credit ratings for debt securities and limitations on weighted average maturity and portfolio duration. The Company evaluates investment manager performance against market indices which the Company believes are appropriate to the investment management style for which the investment manager has been retained. The Company’s investment policies incorporate an investment goal of aggregate portfolio returns which exceed the returns of the appropriate market indices by a reasonable spread over the relevant investment horizon. Contributions In 2020, the Company's minimum required contributions to its domestic and foreign pension plans are expected to be approximately $15.0 million to $20.0 million. 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. After 2020, the Company’s minimum funding requirements will depend on several factors, including investment performance and interest rates. The Company’s minimum funding requirements may also be affected by changes in applicable legal requirements. Benefit Payments As of December 31, 2019, the Company’s estimate of expected benefit payments in each of the five succeeding years and in the aggregate for the five years thereafter are shown below (in millions):
| Pension |  |  | Other Postretirement
Year | U.S. |  | Foreign |  |  | U.S. |  | Foreign
2020 | $ | 20.1 |  |  | $ | 22.0 |  |  |  | $ | 4.0 |  |  | $ | 1.4 |
2021 | 20.9 |  |  | 18.8 |  |  |  | 3.9 |  |  | 1.5 |
2022 | 22.6 |  |  | 20.2 |  |  |  | 3.9 |  |  | 1.5 |
2023 | 23.3 |  |  | 20.0 |  |  |  | 3.9 |  |  | 1.5 |
2024 | 23.3 |  |  | 20.7 |  |  |  | 3.9 |  |  | 1.5 |
Five years thereafter | 126.3 |  |  | 122.5 |  |  |  | 17.6 |  |  | 7.1 |
Multi-Employer Pension Plans The Company currently participates in two multi-employer pension plans, the U.A.W. Labor-Management Group Pension Plan (EIN 51-6099782-001) and UNITE Here National Retirement Fund (EIN 13-6130178-001), for certain of its employees. Contributions to these plans are based on four collective bargaining agreements. One of the agreements expires on April 24, 2020, two expire on July 3, 2020, and one expires on June 30, 2022. Detailed information related to these plans is shown below (amounts in millions):
| Pension Protection Act Zone Status |  |  |  |  |  | Contributions to Multiemployer Pension Plans
Employer Identification Number ("EIN") | December 31, 2019 Certification |  | December 31, 2018 Certification |  | FIP/RP Pending or Implemented |  | Surcharge |  | Year Ended December 31, 2019 |  | Year Ended December 31, 2018 |  | Year Ended December 31, 2017
51-6099782-001 | Green |  | Green |  | Yes |  | No |  | $ | 0.5 |  |  | $ | 0.6 |  |  | $ | 0.6 |
13-6130178-001 | Red |  | Red |  | Yes |  | No |  | 0.4 |  |  | 0.4 |  |  | 0.4 |
For its plan years 2019 and 2018, the Company's contributions to the U.A.W. Labor-Management Group Pension Plan represented more than 5% of the plan's total contributions. Defined Contribution Plan The Company also sponsors defined contribution plans and participates in government-sponsored programs in certain foreign countries. Contributions are determined as a percentage of each covered employee’s salary. For the years ended December 31, 2019, 2018 and 2017, the aggregate cost of the defined contribution plans was $14.0 million, $13.7 million and $15.0 million, respectively. The Company also has a defined contribution retirement program for its salaried employees. Contributions to this program are determined as a percentage of each covered employee’s eligible compensation. For the years ended December 31, 2019, 2018 and 2017, the Company recorded expense of $17.6 million, $21.5 million and $21.3 million, respectively, related to this program.

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