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Pension and Other Postretirement Benefit Plans
 12 Months Ended
Dec. 31, 2022
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, 2022 and 2021, is shown below (in millions):
 PensionOther Postretirement
 December 31, 2022December 31, 2021December 31, 2022December 31, 2021
 U.S.ForeignU.S.ForeignU.S.ForeignU.S.Foreign
Change in benefit obligation:
Benefit obligation at beginning of period$536.5 $479.9 $564.4 $529.2 $56.0 $24.5 $61.2 $27.4 
Service cost— 4.2 — 5.3 — — — — 
Interest cost15.5 11.2 14.5 10.5 1.5 0.7 1.4 0.7 
Actuarial gains(142.3)(98.3)(23.0)(32.8)(25.8)(4.8)(3.5)(2.4)
Benefits paid(21.8)(22.9)(19.4)(24.3)(2.6)(1.2)(3.1)(1.4)
Translation adjustment— (34.6)— (8.0)— (1.6)— 0.2 
Benefit obligation at end of period$387.9 $339.5 $536.5 $479.9 $29.1 $17.6 $56.0 $24.5 
Actuarial gains
As of December 31, 2022 and 2021, the decrease in pension and other postretirement benefit obligations attributable to actuarial gains relates to an increase in the discount rate used to determine the benefit obligations (see assumptions below). As of December 31, 2022, the decrease in the U.S. other postretirement benefit obligation attributable to actuarial gains also relates to per capita and demographic updates.
Plan Assets and Funded Status
A reconciliation of the change in plan assets for the years ended December 31, 2022 and 2021, and the funded status as of December 31, 2022 and 2021, is shown below (in millions):
 PensionOther Postretirement
 December 31, 2022December 31, 2021December 31, 2022December 31, 2021
 U.S.ForeignU.S.ForeignU.S.ForeignU.S.Foreign
Change in plan assets:
Fair value of plan assets at
beginning of period		$444.2 $392.5 $418.2 $383.0 $— $— $— $— 
Actual return on plan assets(77.1)(41.0)43.0 26.9 — — — — 
Employer contributions3.2 6.1 2.4 5.6 2.6 1.2 3.1 1.4 
Benefits paid(21.8)(22.9)(19.4)(24.3)(2.6)(1.2)(3.1)(1.4)
Translation adjustment— (27.7)— 1.3 — — — — 
Fair value of plan assets at end of period348.5 307.0 444.2 392.5 — — — — 
Funded status$(39.4)$(32.5)$(92.3)$(87.4)$(29.1)$(17.6)$(56.0)$(24.5)
A summary of amounts recognized in the consolidated balance sheets as of December 31, 2022 and 2021, is shown below (in millions):
 PensionOther Postretirement
 December 31, 2022December 31, 2021December 31, 2022December 31, 2021
 U.S.ForeignU.S.ForeignU.S.ForeignU.S.Foreign
Amounts recognized in the consolidated balance sheet:
Other long-term assets$— $62.3 $— $41.7 $— $— $— $— 
Accrued liabilities(2.9)(3.4)(3.3)(3.8)(2.6)(1.4)(4.0)(1.5)
Other long-term liabilities(36.5)(91.4)(89.0)(125.3)(26.5)(16.2)(52.0)(23.0)
Funded status$(39.4)$(32.5)$(92.3)$(87.4)$(29.1)$(17.6)$(56.0)$(24.5)
Accumulated Benefit Obligation
As of December 31, 2022 and 2021, the accumulated benefit obligation for all of the Company's pension plans was $720.5 million and $1,012.4 million, respectively.
As of December 31, 2022 and 2021, 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 31,20222021
Projected benefit obligation$482.7 $761.2 
Accumulated benefit obligation476.0 757.2 
Fair value of plan assets348.6 539.8 
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Loss
Pretax amounts recognized in other comprehensive income (loss) for the years ended December 31, 2022 and 2021, are shown below (in millions):
 PensionOther Postretirement
 December 31, 2022December 31, 2021December 31, 2022December 31, 2021
 U.S.ForeignU.S.ForeignU.S.ForeignU.S.Foreign
Actuarial gains (losses) recognized:
Reclassification adjustments$2.0 $4.1 $3.9 $6.0 $(1.2)$— $(1.1)$— 
Actuarial gain arising during the period41.3 42.2 42.5 40.1 25.8 4.8 3.5 2.4 
Effect of settlements0.4 (0.2)0.4 0.1 — — — — 
Prior service credit recognized:
Reclassification adjustments— — — — (0.1)— (0.1)— 
Translation adjustment— 7.3 — 1.4 — (0.1)— — 
$43.7 $53.4 $46.8 $47.6 $24.5 $4.7 $2.3 $2.4 
In addition, the Company recognized tax benefit (expense) in other comprehensive income (loss) related to its defined benefit plans of ($24.9) million, ($22.7) million and $18.5 million for the years ended December 31, 2022, 2021 and 2020, respectively.
Pretax amounts recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost as of December 31, 2022 and 2021, are shown below (in millions):
 PensionOther Postretirement
 December 31, 2022December 31, 2021December 31, 2022December 31, 2021
 U.S.ForeignU.S.ForeignU.S.ForeignU.S.Foreign
Net unrecognized actuarial gain (loss)$(58.9)$(60.7)$(102.6)$(114.0)$38.2 $4.1 $13.6 $(0.6)
Prior service credit (cost)— (0.5)— (0.6)1.0 0.1 1.1 0.1 
$(58.9)$(61.2)$(102.6)$(114.6)$39.2 $4.2 $14.7 $(0.5)
The Company uses the corridor approach when amortizing actuarial gains and losses. Under the corridor approach, net unrecognized actuarial gains and losses in excess of 10% of the greater of i) the projected benefit obligation or ii) the fair value of plan assets are amortized over future periods. For plans with little to no active participants, the amortization period is the remaining average life expectancy of the participants. For plans with active participants, the amortization period is the remaining average service period of the active participants. The amortization periods range from 3 to 32 years for the Company's defined benefit pension plans and from 7 to 16 years for the Company's other postretirement benefit plans.
Net Periodic Pension and Other Postretirement Benefit Cost (Credit)
The components of the Company's net periodic pension benefit cost (credit) are shown below (in millions):
 Year Ended December 31,
202220212020
PensionU.S.ForeignU.S.ForeignU.S.Foreign
Service cost$— $4.2 $— $5.3 $0.1 $5.0 
Interest cost15.5 11.2 14.5 10.5 16.4 12.2 
Expected return on plan assets(23.9)(17.2)(23.5)(19.6)(21.4)(19.6)
Amortization of actuarial loss2.0 4.1 3.9 6.1 2.3 5.2 
Settlement (gains) losses0.4 (0.2)0.4 — 0.3 13.0 
Net periodic benefit cost (credit)$(6.0)$2.1 $(4.7)$2.3 $(2.3)$15.8 
The components of the Company's net periodic other postretirement benefit cost (credit) are shown below (in millions):
 Year Ended December 31,
202220212020
Other PostretirementU.S.ForeignU.S.ForeignU.S.Foreign
Interest cost$1.5 $0.7 $1.4 $0.7 $1.7 $0.7 
Amortization of actuarial gain(1.2)— (1.1)— (1.6)— 
Amortization of prior service credit(0.1)— (0.1)— (0.2)— 
Net periodic benefit cost (credit)$0.2 $0.7 $0.2 $0.7 $(0.1)$0.7 
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").
Assumptions
The weighted average actuarial assumptions used in determining the benefit obligations are shown below:
 PensionOther Postretirement
December 31,2022202120222021
Discount rate:
Domestic plans5.5%3.0%5.5%2.8%
Foreign plans5.0%2.5%5.3%3.1%
Rate of compensation increase:  
Foreign plans2.5%3.5%N/AN/A
The weighted average actuarial assumptions used in determining the net periodic benefit cost (credit) are shown below:
For the year ended December 31,202220212020
Pension
Discount rate:
Domestic plans3.0 %2.6 %3.4 %
Foreign plans2.5 %2.0 %2.6 %
Expected return on plan assets:
Domestic plans5.5 %5.8 %5.8 %
Foreign plans4.6 %5.2 %5.4 %
Rate of compensation increase:
Foreign plans3.5 %3.3 %3.7 %
Other postretirement
Discount rate:
Domestic plans2.8 %2.4 %3.2 %
Foreign plans3.1 %2.5 %3.1 %
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, 2022 and 2021, 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, 2022, are shown below:
U.S. PlansForeign Plans
Initial healthcare cost trend rate6.5%4.5%
Ultimate healthcare cost trend rate4.5%4.0%
Year ultimate healthcare cost trend rate achieved20302040
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, 2022 and 2021, are shown below (in millions):
December 31, 2022
TotalLevel 1Level 2Level 3Valuation Technique
U.S. Plans:
Equity securities -
Equity funds$65.2 $52.1 $13.1 $— Market
Common stock54.9 39.8 15.1 — Market
Fixed income -
Fixed income funds79.1 79.1 — — Market
Corporate bonds63.4 — 63.4 — Market
Government obligations9.7 — 9.7 — Market
Preferred stock0.2 0.2 — — Market
Cash and short-term investments13.4 2.8 10.6 — Market
Assets at fair value285.9 $174.0 $111.9 $— 
Investments measured at net asset value -
Alternative investments62.6 
Assets at fair value$348.5 
Foreign Plans:
Equity securities -
Equity funds$55.2 $— $55.2 $— Market
Common stock32.9 32.9 — — Market
Fixed income -
Fixed income funds43.4 — 43.4 — Market
Corporate bonds15.9 — 15.9 — Market
Government obligations113.2 — 113.2 — Market
Cash and short-term investments13.3 3.2 10.1 — Market
Assets at fair value273.9 $36.1 $237.8 $— 
Investments measured at net asset value -
Alternative investments33.1 
Assets at fair value$307.0 
December 31, 2021
TotalLevel 1Level 2Level 3Valuation Technique
U.S. Plans:
Equity securities -
Equity funds$100.9 $80.0 $20.9 $— Market
Common stock87.1 56.3 30.8 — Market
Fixed income -
Fixed income funds95.1 95.1 — — Market
Corporate bonds83.8 — 83.8 — Market
Government obligations5.2 — 5.2 — Market
Preferred stock1.2 0.4 0.8 — Market
Cash and short-term investments8.5 2.1 6.4 — Market
Assets at fair value381.8 $233.9 $147.9 $— 
Investments measured at net asset value -
Alternative investments62.4 
Assets at fair value$444.2 
Foreign Plans:
Equity securities -
Equity funds$147.2 $— $147.2 $— Market
Common stock59.5 59.5 — — Market
Fixed income -
Fixed income funds63.3 — 63.3 — Market
Corporate bonds28.8 — 28.8 — Market
Government obligations51.8 — 51.8 — Market
Cash and short-term investments13.0 7.9 5.1 — Market
Assets at fair value363.6 $67.4 $296.2 $— 
Investments measured at net asset value -
Alternative investments28.9 
Assets at fair value$392.5 
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 20% — 60% of plan assets, a fixed income allocation of 30% — 70%, 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 2023, the Company's minimum required contributions to its domestic and foreign pension plans are expected to be approximately $1 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 2023, 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, 2022, 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):
 PensionOther Postretirement
YearU.S.ForeignU.S.Foreign
2023$22.8 $21.6 $2.6 $1.5 
202423.0 21.9 2.7 1.5 
202524.0 22.7 2.6 1.5 
202625.1 24.6 2.6 1.5 
202725.1 24.6 2.5 1.5 
Five years thereafter134.7 134.3 11.3 6.7 
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 July 21, 2024 and June 30, 2027.
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,
2021
Certification		December 31,
2020
Certification
FIP/RP (1)
Pending or
Implemented
SurchargeYear Ended December 31, 2022Year Ended December 31, 2021Year Ended December 31, 2020
51-6099782-001GreenGreenYesNo$0.8 $0.7 $0.6 
13-6130178-001RedRedYesNo0.4 0.4 0.5 
(1) Funding improvement plan or rehabilitation plan as defined by Employment Retirement Security Act of 1974.
For its plan years 2022 and 2021, 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, 2022, 2021 and 2020, the aggregate cost of the defined contribution plans was $18.2 million, $16.4 million and $17.1 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, 2022, 2021 and 2020, the Company recorded expense of $23.5 million, $20.4 million and $18.3 million, respectively, related to this program.