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Pension and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
The funded status of our U.S. qualified and nonqualified defined benefit pension plans, our Germany, France, and Belgium defined benefit pension plans, plus our U.S. other postretirement healthcare and life insurance benefit plans for continuing operations, together with the associated balances and net periodic benefit cost recognized in our consolidated financial statements as of December 31, are shown in the tables below.
We are required to recognize in our consolidated balance sheets the overfunded and underfunded status of our defined benefit postretirement plans. The overfunded or underfunded status is defined as the difference between the fair value of plan assets and the projected benefit obligation. We are also required to recognize as a component of other comprehensive income the actuarial gains and losses and the prior service costs and credits that arise during the period.
Certain amounts have been adjusted to reflect the change in pension accounting method, as described in Note 1 to our consolidated financial statements.
The following table summarizes the weighted-average assumptions used to determine the benefit obligations at December 31 for the U.S. Plans:
Pensions and Other Benefits
December 31,
20222021
Discount rate qualified5.16 %2.84 %
Discount rate nonqualified plan4.99 %2.18 %
Discount rate other benefits5.03 %2.39 %
Rate of compensation increase3.10 %3.10 %
The following table summarizes the components of our defined benefit postretirement plans and reflect a measurement date of December 31:
Pensions
Other Benefits (1)
December 31,
(in Millions)2022202120222021
Change in projected benefit obligation
Projected benefit obligation at January 1$1,354.0 $1,450.3 $13.7 $15.3 
Service cost3.6 4.7 — — 
Interest cost29.3 24.5 0.3 0.3 
Actuarial loss (gain) (2)
(256.2)(38.6)(1.7)(0.6)
Foreign currency exchange rate changes and other(0.5)(0.5)— — 
Plan participants’ contributions— — 0.3 0.4 
Settlements(2.2)(2.5)— — 
Benefits paid(83.7)(83.9)(1.4)(1.7)
Projected benefit obligation at December 31$1,044.3 $1,354.0 $11.2 $13.7 
Change in plan assets
Fair value of plan assets at January 1$1,372.0 $1,484.6 $— $— 
Actual return on plan assets(245.3)(26.2)— — 
Foreign currency exchange rate changes3.1 (0.3)— — 
Company contributions3.5 3.8 1.0 1.3 
Plan participants’ contributions— — 0.3 0.4 
Settlements(5.5)(6.0)— — 
Benefits paid(83.7)(83.9)(1.4)(1.7)
Fair value of plan assets at December 31$1,044.1 $1,372.0 $(0.1)$— 
Funded Status
U.S. plans with assets$22.4 $50.4 $— $— 
U.S. plans without assets(14.6)(22.1)(11.3)(13.7)
Non-U.S. plans with assets(1.2)(2.8)— — 
All other plans(6.8)(7.5)— — 
Net funded status of the plan (liability)$(0.2)$18.0 $(11.3)$(13.7)
Amount recognized in the consolidated balance sheets:
Pension asset (3)
$22.4 $50.4 $— $— 
Accrued benefit liability (4)
(22.6)(32.4)(11.3)(13.7)
Total$(0.2)$18.0 $(11.3)$(13.7)
____________________
(1)Refer to Note 11 to the consolidated financial statements included within this Form 10-K for information on our discontinued postretirement benefit plans.
(2)The actuarial gains in 2022 and 2021 were primarily driven by the change in discount rate on the U.S. qualified plan. Additionally, the Society of Actuaries released an updated mortality table projection scale for measurement of retirement program obligations in 2021. Adoption of the most recent projection scale in 2021 increased the U.S. defined benefit obligations by approximately $3 million at December 31, 2021. The mortality assumption did not change in 2022.
(3)Recorded as "Other assets including long-term receivables, net" on the consolidated balance sheets.
(4)Recorded as "Accrued pension and other postretirement benefits, current" and "Accrued pension and other postretirement benefits, long-term" on the consolidated balance sheets.
The amounts in accumulated other comprehensive income (loss) that have not yet been recognized as components of net periodic benefit cost are as follows:
 Pensions
Other Benefits (1)
 December 31,
(in Millions)2022202120222021
Prior service (cost) credit$(0.3)$(0.5)$— $— 
Net actuarial (loss) gain(337.6)(328.4)4.9 4.0 
Accumulated other comprehensive income (loss) – pretax$(337.9)$(328.9)$4.9 $4.0 
Accumulated other comprehensive income (loss) – net of tax(252.7)(245.5)3.6 2.5 
____________________
(1)     Refer to Note 11 to the consolidated financial statements included within this Form 10-K for information on our discontinued postretirement benefit plans.

The accumulated benefit obligation for all pension plans was $1,036.7 million and $1,340.8 million at December 31, 2022 and 2021, respectively.
(in Millions)December 31
Information for pension plans with projected benefit obligation in excess of plan assets20222021
Projected benefit obligations$26.2 $36.2 
Accumulated benefit obligations26.2 36.2 
Fair value of plan assets3.6 3.8 
(in Millions)December 31
Information for pension plans with accumulated benefit obligation in excess of plan assets20222021
Projected benefit obligations$26.2 $36.2 
Accumulated benefit obligations26.2 36.2 
Fair value of plan assets3.6 3.8 

Other changes in plan assets and benefit obligations for continuing operations recognized in other comprehensive loss (income) are as follows:
 Pensions
Other Benefits (1)
 Year Ended December 31,
(in Millions)2022202120222021
Current year net actuarial loss (gain)$22.1 $22.1 $(1.7)$(0.6)
Amortization of net actuarial (loss) gain(12.4)(12.7)0.8 0.8 
Amortization of prior service (cost) credit(0.2)(0.2)— — 
Settlement loss(0.5)(1.0)— — 
Total recognized in other comprehensive (income) loss, before taxes$9.0 $8.2 $(0.9)$0.2 
Total recognized in other comprehensive (income) loss, after taxes7.2 6.3 (1.1)0.2 
____________________
(1)     Refer to Note 11 to the consolidated financial statements included within this Form 10-K for information on our discontinued postretirement benefit plans.
The following table summarizes the weighted-average assumptions used for and the components of net annual benefit cost (income):
 Year Ended December 31,
 Pensions
Other Benefits (1)
(in Millions, except for percentages)202220212020202220212020
Discount rate 2.84 %2.49 %3.22 %2.39 %1.91 %2.89 %
Expected return on plan assets2.50 %2.25 %3.00 %— — — 
Rate of compensation increase3.10 %3.10 %3.10 %— — — 
Components of net annual benefit cost:
Service cost$3.6$4.7$4.4$—$—$—
Interest cost29.324.536.70.30.30.4
Expected return on plan assets(33.1)(31.9)(39.2)———
Amortization of prior service cost0.20.20.2———
Amortization of net actuarial and other (gain) loss12.412.517.0(0.8)(0.8)(0.9)
Recognized (gain) loss due to settlement0.51.00.7———
Net annual benefit cost (income)$12.9$11.0$19.8$(0.5)$(0.5)$(0.5)
___________________
(1)     Refer to Note 11 to the consolidated financial statements included within this Form 10-K for information on our discontinued postretirement benefit plans.

Our U.S. qualified defined benefit pension plan ("U.S. Plan") holds the majority of our pension plan assets. The expected long-term rate of return on these plan assets was 2.50 percent for the year ended December 31, 2022, 2.25 percent for the year ended December 31, 2021, and 3.00 percent for the year ended December 31, 2020. The expected long-term rate of return on these plan assets increased by 0.25 percent in 2022 compared to 2021 primarily due to fluctuating yields on corporate bonds. In developing the assumption for the long-term rate of return on assets for our U.S. Plan, we take into consideration the technical analysis performed by our outside actuaries, including historical market returns, information on the assumption for long-term real returns by asset class, inflation assumptions and expectations for standard deviation related to these best estimates. Given an actively managed investment portfolio, the expected annual rates of return by asset class for our portfolio, assuming an estimated inflation rate of approximately 2.4 percent, is in line with our assumption for the rate of return on assets. The target asset allocation at December 31, 2022 by asset category continues to be 100 percent fixed income investments.
Our U.S. Plan has been fully funded for the last several years and as such, the primary investment strategy is a liability hedging approach with an objective of maintaining the funded status of the plan such that the volatility is minimized and the likelihood that we will be required to make significant contributions to the plan is also limited. The portfolio is comprised of 100 percent fixed income securities and cash. Investment performance and related risks are measured and monitored on an ongoing basis through monthly liability measurements, periodic asset liability studies, and quarterly investment portfolio reviews. As previously disclosed, we changed our method of accounting to the fair value approach for our liability-hedging asset class, which does not involve deferring the impact of excess plan asset gains or losses in the determination of these two components of net periodic benefit cost. This class of assets is comprised solely of fixed income securities and therefore, provides a natural hedge (liability-hedging assets) against the changes in the recorded amount of net periodic benefit cost. No change is being made to the accounting principle for the other classes of pension assets; however our U.S. qualified pension plan reached fully funded status during 2018 and since that point the portfolio has been invested 100 percent in fixed income securities and cash.
The following tables present our fair value hierarchy for our major categories of pension plan assets by asset class. See Note 19 to the consolidated financial statements included within this Form 10-K for the definition of fair value and the descriptions of Level 1, 2 and 3 in the fair value hierarchy.
(in Millions)December 31, 2022
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
Cash and short-term investments$22.8 $22.8 $— $— 
Fixed income investments:
Investment contracts116.4 — 116.4 — 
U.S. Government Securities207.4 207.4 — — 
Mutual funds29.3 29.3 — — 
Corporate debt instruments668.2 — 668.2 — 
Total assets$1,044.1 $259.5 $784.6 $— 
(in Millions)December 31, 2021Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)
Cash and short-term investments$32.7 $32.2 $0.5 $— 
Fixed income investments:
Investment contracts144.7 — 144.7 — 
U.S. Government Securities 309.5 309.5 — — 
Mutual funds 41.5 41.5 — — 
Corporate debt instruments843.6 — 843.6 — 
Total assets$1,372.0 $383.2 $988.8 $— 

We made the following contributions to our pension and other postretirement benefit plans:
  
Year Ended December 31,
(in Millions)20222021
U.S. qualified pension plan$— $— 
U.S. nonqualified pension plan3.4 3.8 
Non-U.S. plans0.1 0.2 
Other postretirement benefits1.0 1.3 
Total$4.5 $5.3 
The following table reflects the estimated future benefit payments for our pension and other postretirement benefit plans. These estimates take into consideration expected future service, as appropriate:
Estimated Net Future Benefit Payments
(in Millions)202320242025202620272028 - 2032
Pension Benefits$86.2 $86.8 $85.2 $85.0 $82.5 $390.5 
Other Benefits1.6 1.5 1.4 1.3 1.2 4.3 
FMC Corporation Savings and Investment Plan. The FMC Corporation Savings and Investment Plan is a qualified salary-reduction plan under Section 401(k) of the Internal Revenue Code in which substantially all of our U.S. employees may participate by contributing a portion of their compensation. For eligible employees participating in the Plan, except for those employees covered by certain collective bargaining agreements, the Company makes matching contributions of 80 percent of the portion of those contributions up to 5 percent of the employee’s compensation. Eligible employees participating in the Plan
that do not participate in the U.S. qualified pension plan are entitled to receive an employer contribution of 5 percent of the employee’s eligible compensation. Charges against income for all contributions were $17.5 million in 2022, $15.6 million in 2021, and $16.6 million in 2020.