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Pension and Other Postretirement Benefit Plans | 12 Months Ended
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Dec. 31, 2020
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 retirees. The Company does not fund its postretirement benefit obligation. Rather, payments are made as costs are incurred by covered retirees. Obligation A reconciliation of the change in benefit obligation for the years ended December 31, 2020 and 2019, is shown below (in millions):
| Pension |  |  | Other Postretirement
| December 31, 2020 |  | December 31, 2019 |  |  | December 31, 2020 |  | December 31, 2019
| U.S. |  | Foreign |  | U.S. |  | Foreign |  |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of period | $ | 500.8 |  |  | $ | 504.3 |  |  | $ | 438.0 |  |  | $ | 437.1 |  |  |  | $ | 55.4 |  |  | $ | 25.6 |  |  | $ | 52.4 |  |  | $ | 34.3 |
Service cost | 0.1 |  |  | 5.0 |  |  | 0.1 |  |  | 6.3 |  |  |  | — |  |  | — |  |  | — |  |  | 0.3 |
Interest cost | 16.4 |  |  | 12.2 |  |  | 18.6 |  |  | 14.7 |  |  |  | 1.7 |  |  | 0.7 |  |  | 2.1 |  |  | 1.3 |
Amendment | — |  |  | — |  |  | — |  |  | — |  |  |  | 0.4 |  |  | — |  |  | — |  |  | — |
Actuarial loss | 66.4 |  |  | 39.9 |  |  | 63.0 |  |  | 55.8 |  |  |  | 6.9 |  |  | 2.1 |  |  | 4.5 |  |  | 0.4 |
Benefits paid | (19.3) |  |  | (20.0) |  |  | (18.9) |  |  | (21.5) |  |  |  | (3.2) |  |  | (1.5) |  |  | (3.6) |  |  | (1.3) |
Benefits paid — settlements | — |  |  | (29.2) |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |
Curtailment | — |  |  | — |  |  | — |  |  | (2.4) |  |  |  | — |  |  | — |  |  | — |  |  | (10.9) |
Translation adjustment | — |  |  | 17.0 |  |  | — |  |  | 14.3 |  |  |  | — |  |  | 0.5 |  |  | — |  |  | 1.5 |
Benefit obligation at end of period | $ | 564.4 |  |  | $ | 529.2 |  |  | $ | 500.8 |  |  | $ | 504.3 |  |  |  | $ | 61.2 |  |  | $ | 27.4 |  |  | $ | 55.4 |  |  | $ | 25.6 |
Actuarial losses As of December 31, 2020, the increase in pension and other postretirement benefit obligations attributable to actuarial losses primarily relates to a decrease in the discount rate used to determine the benefit obligations (see assumptions below) and, to a lesser extent, changes in mortality assumptions for the Company's U.S. plans. With respect to the other postretirement benefit obligation, actuarial losses were offset by gains related to claims cost updates for the Company's foreign plans. As of December 31, 2019, the increase in pension and other postretirement benefit obligations attributable to actuarial losses primarily relates to a decrease in the discount rate used to determine the benefit obligations (see assumptions below). Plan Assets and Funded Status A reconciliation of the change in plan assets for the years ended December 31, 2020 and 2019, and the funded status as of December 31, 2020 and 2019, is shown below (in millions):
| Pension |  |  | Other Postretirement
| December 31, 2020 |  | December 31, 2019 |  |  | December 31, 2020 |  | December 31, 2019
| 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 | $ | 376.6 |  |  | $ | 396.8 |  |  | $ | 330.6 |  |  | $ | 351.8 |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Actual return on plan assets | 41.7 |  |  | 19.8 |  |  | 61.5 |  |  | 42.3 |  |  |  | — |  |  | — |  |  | — |  |  | — |
Employer contributions | 19.2 |  |  | 7.7 |  |  | 3.4 |  |  | 6.6 |  |  |  | 3.2 |  |  | 1.5 |  |  | 3.6 |  |  | 1.3 |
Benefits paid | (19.3) |  |  | (20.0) |  |  | (18.9) |  |  | (21.5) |  |  |  | (3.2) |  |  | (1.5) |  |  | (3.6) |  |  | (1.3) |
Benefits paid — settlements | — |  |  | (29.2) |  |  | — |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |
Translation adjustment | — |  |  | 7.9 |  |  | — |  |  | 17.6 |  |  |  | — |  |  | — |  |  | — |  |  | — |
Fair value of plan assets at end of period | $ | 418.2 |  |  | $ | 383.0 |  |  | $ | 376.6 |  |  | $ | 396.8 |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Funded status | $ | (146.2) |  |  | $ | (146.2) |  |  | $ | (124.2) |  |  | $ | (107.5) |  |  |  | $ | (61.2) |  |  | $ | (27.4) |  |  | $ | (55.4) |  |  | $ | (25.6) |
A summary of amounts recognized in the consolidated balance sheets as of December 31, 2020 and 2019, is shown below (in millions):
| Pension |  |  | Other Postretirement
| December 31, 2020 |  | December 31, 2019 |  |  | December 31, 2020 |  | December 31, 2019
| U.S. |  | Foreign |  | U.S. |  | Foreign |  |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Amounts recognized in the consolidated balance sheet: |  |  |  |  |  |  |  |  |
Other long-term assets | $ | — |  |  | $ | 9.1 |  |  | $ | 0.1 |  |  | $ | 23.8 |  |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Accrued liabilities | (2.5) |  |  | (3.2) |  |  | (2.6) |  |  | (3.3) |  |  |  | (4.0) |  |  | (1.5) |  |  | (3.9) |  |  | (1.4) |
Other long-term liabilities | (143.7) |  |  | (152.1) |  |  | (121.7) |  |  | (128.0) |  |  |  | (57.2) |  |  | (25.9) |  |  | (51.5) |  |  | (24.2) |
Accumulated Benefit Obligation As of December 31, 2020 and 2019, the accumulated benefit obligation for all of the Company’s pension plans was $1,079.6 million and $990.3 million, respectively. As of December 31, 2020 and 2019, 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, | 2020 |  | 2019
Projected benefit obligation | $ | 813.7 |  |  | $ | 726.3 |
Accumulated benefit obligation | 799.6 |  |  | 711.5 |
Fair value of plan assets | 512.2 |  |  | 470.8 |
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss Pretax amounts recognized in other comprehensive income (loss) for the years ended December 31, 2020 and 2019, are shown below (in millions):
| Pension |  |  | Other Postretirement
| December 31, 2020 |  | December 31, 2019 |  |  | December 31, 2020 |  | December 31, 2019
| U.S. |  | Foreign |  | U.S. |  | Foreign |  |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Actuarial gains (losses) recognized: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reclassification adjustments | $ | 2.3 |  |  | $ | 5.2 |  |  | $ | 1.8 |  |  | $ | 7.8 |  |  |  | $ | (1.6) |  |  | $ | — |  |  | $ | (2.3) |  |  | $ | — |
Actuarial loss arising during the period | (46.1) |  |  | (39.7) |  |  | (21.7) |  |  | (33.8) |  |  |  | (6.9) |  |  | (2.1) |  |  | (4.5) |  |  | — |
Effect of curtailment | — |  |  | — |  |  | — |  |  | 0.1 |  |  |  | — |  |  | — |  |  | — |  |  | — |
Effect of settlements | 0.3 |  |  | 13.0 |  |  | 0.1 |  |  | — |  |  |  | — |  |  | — |  |  | — |  |  | — |
Prior service credit recognized: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reclassification adjustments | — |  |  | — |  |  | — |  |  | — |  |  |  | (0.2) |  |  | — |  |  | (0.2) |  |  | (0.2) |
Prior service cost arising during the period | — |  |  | — |  |  | — |  |  | — |  |  |  | (0.4) |  |  | — |  |  | — |  |  | — |
Translation adjustment | — |  |  | (3.6) |  |  | — |  |  | (3.8) |  |  |  | — |  |  | — |  |  | — |  |  | — |
| $ | (43.5) |  |  | $ | (25.1) |  |  | $ | (19.8) |  |  | $ | (29.7) |  |  |  | $ | (9.1) |  |  | $ | (2.1) |  |  | $ | (7.0) |  |  | $ | (0.2) |
In addition, the Company recognized tax benefit (expense) in other comprehensive income (loss) related to its defined benefit plans of $18.5 million, $13.7 million and ($3.0) million for the years ended December 31, 2020, 2019 and 2018, respectively. Pretax amounts recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost as of December 31, 2020 and 2019, are shown below (in millions):
| Pension |  |  | Other Postretirement
| December 31, 2020 |  | December 31, 2019 |  |  | December 31, 2020 |  | December 31, 2019
| U.S. |  | Foreign |  | U.S. |  | Foreign |  |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Net unrecognized actuarial gain (loss) | $ | (149.4) |  |  | $ | (160.7) |  |  | $ | (105.9) |  |  | $ | (135.9) |  |  |  | $ | 11.2 |  |  | $ | (3.0) |  |  | $ | 19.6 |  |  | $ | (0.9) |
Prior service (cost) credit | — |  |  | (1.5) |  |  | — |  |  | (1.2) |  |  |  | 1.2 |  |  | 0.1 |  |  | 1.9 |  |  | 0.1 |
| $ | (149.4) |  |  | $ | (162.2) |  |  | $ | (105.9) |  |  | $ | (137.1) |  |  |  | $ | 12.4 |  |  | $ | (2.9) |  |  | $ | 21.5 |  |  | $ | (0.8) |
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 4 to 34 years for the Company's defined benefit pension plans and from 1 to 17 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 (credit) are shown below (in millions):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Pension | U.S. |  | Foreign |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Service cost | $ | 0.1 |  |  | $ | 5.0 |  |  | $ | 0.1 |  |  | $ | 6.3 |  |  | $ | 0.1 |  |  | $ | 6.9 |
Interest cost | 16.4 |  |  | 12.2 |  |  | 18.6 |  |  | 14.7 |  |  | 19.8 |  |  | 14.7 |
Expected return on plan assets | (21.4) |  |  | (19.6) |  |  | (20.2) |  |  | (20.9) |  |  | (27.3) |  |  | (23.0) |
Amortization of actuarial loss | 2.3 |  |  | 5.2 |  |  | 1.8 |  |  | 7.8 |  |  | 2.0 |  |  | 6.2 |
Curtailment (gain) loss | — |  |  | — |  |  | — |  |  | (2.3) |  |  | — |  |  | 0.4 |
Settlement losses | 0.3 |  |  | 13.0 |  |  | 0.1 |  |  | — |  |  | 5.7 |  |  | — |
Net periodic benefit cost (credit) | $ | (2.3) |  |  | $ | 15.8 |  |  | $ | 0.4 |  |  | $ | 5.6 |  |  | $ | 0.3 |  |  | $ | 5.2 |
The components of the Company’s net periodic other postretirement benefit cost (credit) are shown below (in millions):
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Other Postretirement | U.S. |  | Foreign |  | U.S. |  | Foreign |  | U.S. |  | Foreign
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 0.3 |  |  | $ | — |  |  | $ | 0.4 |
Interest cost | 1.7 |  |  | 0.7 |  |  | 2.1 |  |  | 1.3 |  |  | 1.9 |  |  | 1.4 |
Amortization of actuarial (gain) loss | (1.6) |  |  | — |  |  | (2.3) |  |  | — |  |  | (2.2) |  |  | 0.2 |
Amortization of prior service credit | (0.2) |  |  | — |  |  | (0.2) |  |  | (0.2) |  |  | (0.2) |  |  | (0.3) |
Curtailment gain | — |  |  | — |  |  | — |  |  | (10.6) |  |  | — |  |  | — |
Net periodic benefit cost (credit) | $ | (0.1) |  |  | $ | 0.7 |  |  | $ | (0.4) |  |  | $ | (9.2) |  |  | $ | (0.5) |  |  | $ | 1.7 |
For the year ended December 31, 2020, the Company recognized pension settlement losses of $12.9 million related to its restructuring actions (Note 5, "Restructuring"). 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 5, "Restructuring"). For the year ended December 31, 2018, the Company recognized pension settlement losses of $5.4 million related to its annuity purchase for certain terminated vested plan participants of its U.S. defined benefit pension plans. Assumptions The weighted average actuarial assumptions used in determining the benefit obligations are shown below:
| Pension |  | Other Postretirement
December 31, | 2020 |  | 2019 |  | 2020 |  | 2019
Discount rate: |  |  |  |  |  |  |
Domestic plans | 2.6% |  | 3.4% |  | 2.4% |  | 3.2%
Foreign plans | 2.0% |  | 2.6% |  | 2.5% |  | 3.1%
Rate of compensation increase: |  |  |  |  |  |  |
Foreign plans | 3.3% |  | 3.7% |  | 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, | 2020 |  | 2019 |  | 2018
Pension |  |  |  |  |
Discount rate: |  |  |  |  |
Domestic plans | 3.4 | % |  | 4.3 | % |  | 3.6 | %
Foreign plans | 2.6 | % |  | 3.4 | % |  | 3.1 | %
Expected return on plan assets: |  |  |  |  |
Domestic plans | 5.8 | % |  | 6.3 | % |  | 6.5 | %
Foreign plans | 5.4 | % |  | 5.9 | % |  | 5.9 | %
Rate of compensation increase: |  |  |  |  |
Foreign plans | 3.7 | % |  | 3.4 | % |  | 3.3 | %
Other postretirement |  |  |  |  |
Discount rate: |  |  |  |  |
Domestic plans | 3.2 | % |  | 4.2 | % |  | 3.5 | %
Foreign plans | 3.1 | % |  | 3.8 | % |  | 3.5 | %
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. As of December 31, 2020 and 2019, the weighted-average interest crediting rate used by one of the Company's U.S. pension plans was a minimum of 4.0%. Healthcare Trend Rate The assumed healthcare cost trend rates used to measure the postretirement benefit obligation as of December 31, 2020, are shown below:
| U.S. Plans |  | Foreign Plans
Initial healthcare cost trend rate | 6.5% |  | 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, 2020 and 2019, are shown below (in millions):
| December 31, 2020
| Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Valuation Technique
U.S. Plans: |  |  |  |  |  |  |  |  |
Equity securities - |  |  |  |  |  |  |  |  |
Equity funds | $ | 104.3 |  |  | $ | 85.9 |  |  | $ | 18.4 |  |  | $ | — |  |  | Market
Common stock | 85.2 |  |  | 53.9 |  |  | 31.3 |  |  | — |  |  | Market
Fixed income - |  |  |  |  |  |  |  |  |
Fixed income funds | 84.2 |  |  | 84.2 |  |  | — |  |  | — |  |  | Market
Corporate bonds | 66.7 |  |  | — |  |  | 66.7 |  |  | — |  |  | Market
Government obligations | 6.2 |  |  | — |  |  | 6.2 |  |  | — |  |  | Market
Preferred stock | 1.4 |  |  | 0.9 |  |  | 0.5 |  |  | — |  |  | Market
Cash and short-term investments | 11.9 |  |  | 2.8 |  |  | 9.1 |  |  | — |  |  | Market
Assets at fair value | 359.9 |  |  | $ | 227.7 |  |  | $ | 132.2 |  |  | $ | — |  |  |
Investments measured at net asset value - |  |  |  |  |  |  |  |  |
Alternative investments | 58.3 |  |  |  |  |  |  |  |  |
Assets at fair value | $ | 418.2 |  |  |  |  |  |  |  |  |
Foreign Plans: |  |  |  |  |  |  |  |  |
Equity securities - |  |  |  |  |  |  |  |  |
Equity funds | $ | 138.0 |  |  | $ | — |  |  | $ | 138.0 |  |  | $ | — |  |  | Market
Common stock | 60.9 |  |  | 60.9 |  |  | — |  |  | — |  |  | Market
Fixed income - |  |  |  |  |  |  |  |  |
Fixed income funds | 58.4 |  |  | — |  |  | 58.4 |  |  | — |  |  | Market
Corporate bonds | 30.8 |  |  | — |  |  | 30.8 |  |  | — |  |  | Market
Government obligations | 49.5 |  |  | — |  |  | 49.5 |  |  | — |  |  | Market
Cash and short-term investments | 15.1 |  |  | 7.0 |  |  | 8.1 |  |  | — |  |  | Market
Assets at fair value | 352.7 |  |  | $ | 67.9 |  |  | $ | 284.8 |  |  | $ | — |  |  |
Investments measured at net asset value - |  |  |  |  |  |  |  |  |
Alternative investments | 30.3 |  |  |  |  |  |  |  |  |
Assets at fair value | $ | 383.0 |  |  |  |  |  |  |  |  |
| 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 |  |  |  |  |  |  |  |  |
For further information on the GAAP fair value hierarchy, see Note 16, "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 2021, the Company's minimum required contributions to its domestic and foreign pension plans are expected to be approximately $5 million to $10 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 2021, 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, 2020, 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
2021 | $ | 20.9 |  |  | $ | 19.3 |  |  |  | $ | 4.0 |  |  | $ | 1.4 |
2022 | 22.8 |  |  | 20.5 |  |  |  | 4.0 |  |  | 1.5 |
2023 | 23.5 |  |  | 20.2 |  |  |  | 4.0 |  |  | 1.5 |
2024 | 23.5 |  |  | 21.0 |  |  |  | 4.0 |  |  | 1.5 |
2025 | 24.5 |  |  | 22.0 |  |  |  | 3.9 |  |  | 1.4 |
Five years thereafter | 130.8 |  |  | 127.9 |  |  |  | 17.7 |  |  | 6.8 |
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, which expire between January 31, 2021 and April 25, 2025. 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, 2020 Certification |  | December 31, 2019 Certification |  | FIP/RP Pending or Implemented |  | Surcharge |  | Year Ended December 31, 2020 |  | Year Ended December 31, 2019 |  | Year Ended December 31, 2018
51-6099782-001 | Green |  | Green |  | Yes |  | No |  | $ | 0.6 |  |  | $ | 0.5 |  |  | $ | 0.6 |
13-6130178-001 | Red |  | Red |  | Yes |  | No |  | 0.5 |  |  | 0.4 |  |  | 0.4 |
For its plan years 2020 and 2019, 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, 2020, 2019 and 2018, the aggregate cost of the defined contribution plans was $17.1 million, $14.0 million and $13.7 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, 2020, 2019 and 2018, the Company recorded expense of $18.3 million, $17.6 million and $21.5 million, respectively, related to this program.

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