XML 92 R23.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Benefit Plans | 12 Months Ended
--- | ---
Dec. 31, 2019
Benefit Plans [Abstract] |
Benefit Plans | Note 16. Benefit Plans Pension Plans and Other Postretirement Benefit Plans The Company and its subsidiaries have pension plans covering the majority of eligible employees on a contributory or non-contributory basis. Benefits under defined benefit plans are generally based on years of service and an employee's career earnings. Employees generally become fully vested after five years. The Company also provides postretirement health care and life insurance benefits for the majority of its U.S. retired employees. Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. The Company does not pre-fund these benefits and has the right to modify or terminate the plan in the future. The Company’s disclosures for the U.S. plans have been combined with those outside of the U.S. as the international plans do not have significantly different assumptions, and together represent less than 21% of our total benefit obligation. The following table set forth Company's pension obligation and funded status at December 31:
|  | Pension Benefits |  |  | Post-Retirement Benefits |
(millions of dollars) |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Change in benefit obligations: |  |  |  |  |  |  |  |  |  |  |  |
Beginning projected benefit obligation |  | $ | 416.3 |  |  | $ | 469.5 |  |  | $ | 5.7 |  |  | $ | 6.9 |
Service cost |  |  | 6.8 |  |  |  | 8.1 |  |  |  | 0.2 |  |  |  | 0.2 |
Interest cost |  |  | 14.0 |  |  |  | 13.0 |  |  |  | 0.2 |  |  |  | 0.2 |
Actuarial (gain)/loss |  |  | 63.9 |  |  |  | (40.5 | ) |  |  | 0.3 |  |  |  | (1.5 | )
Benefits paid |  |  | (18.6 | ) |  |  | (12.2 | ) |  |  | (0.5 | ) |  |  | (0.1 | )
Settlements |  |  | (0.5 | ) |  |  | (17.1 | ) |  |  | — |  |  |  | — |
Foreign exchange impact |  |  | 2.1 |  |  |  | (5.1 | ) |  |  | — |  |  |  | — |
Other |  |  | 0.4 |  |  |  | 0.6 |  |  |  | — |  |  |  | — |
Ending projected benefit obligation |  |  | 484.4 |  |  |  | 416.3 |  |  |  | 5.9 |  |  |  | 5.7 |
Change in plan assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning fair value |  |  | 296.7 |  |  |  | 320.2 |  |  |  | — |  |  |  | — |
Actual return on plan assets |  |  | 52.4 |  |  |  | (13.6 | ) |  |  | — |  |  |  | — |
Employer contributions |  |  | 7.7 |  |  |  | 24.2 |  |  |  | 0.5 |  |  |  | 0.1 |
Plan participants' contributions |  |  | 0.4 |  |  |  | 0.4 |  |  |  | — |  |  |  | — |
Benefits paid |  |  | (18.6 | ) |  |  | (12.2 | ) |  |  | (0.5 | ) |  |  | (0.1 | )
Settlements |  |  | (0.2 | ) |  |  | (18.2 | ) |  |  | — |  |  |  | — |
Foreign exchange impact |  |  | 1.6 |  |  |  | (4.1 | ) |  |  | — |  |  |  | — |
Ending fair value |  |  | 340.0 |  |  |  | 296.7 |  |  |  | — |  |  |  | — |
Funded status of the plan |  | $ | (144.4 | ) |  | $ | (119.6 | ) |  | $ | (5.9 | ) |  | $ | (5.7 | )
Amounts recognized in the consolidated balance sheet consist of:
| Pension Benefits |  | Post-Retirement Benefits |
(millions of dollars) | 2019 |  | 2018 |  | 2019 |  | 2018 |
Current liability |  | $ | (1.1 | ) |  | $ | (0.8 | ) |  | $ | (0.4 | ) |  | $ | (0.3 | )
Non-current liability |  |  | (143.3 | ) |  |  | (118.8 | ) |  |  | (5.5 | ) |  |  | (5.4 | )
Recognized liability |  | $ | (144.4 | ) |  | $ | (119.6 | ) |  | $ | (5.9 | ) |  | $ | (5.7 | )
The current portion of pension liabilities is included in accrued compensation and related items. Amounts recognized in accumulated other comprehensive income, net of related tax effects, consist of:
| Pension Benefits |  | Post-Retirement Benefits |
(millions of dollars) | 2019 |  | 2018 |  | 2019 |  | 2018 |
Net actuarial (gain) loss |  | $ | 99.6 |  |  | $ | 73.5 |  |  | $ | (3.7 | ) |  | $ | (4.1 | )
Prior service cost |  |  | 0.1 |  |  |  | 0.1 |  |  |  | — |  |  |  | — |
Amount recognized end of year |  | $ | 99.7 |  |  | $ | 73.6 |  |  | $ | (3.7 | ) |  | $ | (4.1 | )
The accumulated benefit obligation for all defined benefit pension plans was $450.5 million and $389.9 million at December 31, 2019 and 2018, respectively. Changes in the Plan assets and benefit obligations recognized in other comprehensive income:
|  | Pension Benefits |  |  | Post-Retirement Benefits |
(millions of dollars) |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Current year actuarial gain (loss) |  | $ | (23.0 | ) |  | $ | 6.8 |  |  | $ | (0.2 | ) |  | $ | 1.0 |
Amortization of actuarial (gain) loss |  |  | 7.7 |  |  |  | 10.4 |  |  |  | (0.6 | ) |  |  | (0.6 | )
Amortization of prior service credit (gain) loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.7 | )
Total recognized in other comprehensive income |  | $ | (15.3 | ) |  | $ | 17.2 |  |  | $ | (0.8 | ) |  | $ | (0.3 | )
The components of net periodic benefit costs are as follows:
|  | Pension Benefits |  |  | Post-Retirement Benefits |
(millions of dollars) |  | 2019 |  |  | 2018 |  |  | 2017 |  |  | 2019 |  |  | 2018 |  |  | 2017 |
Service cost |  | $ | 6.8 |  |  | $ | 8.1 |  |  | $ | 7.9 |  |  | $ | 0.2 |  |  | $ | 0.2 |  |  | $ | 0.3 |
Interest cost |  |  | 14.0 |  |  |  | 13.0 |  |  |  | 12.6 |  |  |  | 0.2 |  |  |  | 0.2 |  |  |  | 0.3 |
Expected return on plan assets |  |  | (18.2 | ) |  |  | (20.2 | ) |  |  | (18.7 | ) |  |  | — |  |  |  | — |  |  |  | — |
Amortization of prior service cost |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (0.9 | ) |  |  | (3.1 | )
Recognized net actuarial (gain) loss |  |  | 10.1 |  |  |  | 10.7 |  |  |  | 10.8 |  |  |  | (0.9 | ) |  |  | (0.8 | ) |  |  | (0.3 | )
Settlement/curtailment loss |  |  | (0.1 | ) |  |  | 4.4 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Net periodic benefit cost |  | $ | 12.6 |  |  | $ | 16.0 |  |  | $ | 12.6 |  |  | $ | (0.5 | ) |  | $ | (1.3 | ) |  | $ | (2.8 | )
Unrecognized prior service cost is amortized over the average remaining service period of each active employee. The Company's funding policy for U.S. plans generally is to contribute annually into trust funds at a rate that provides for future plan benefits and maintains appropriate funded percentages. Annual contributions to the U.S. qualified plans are at least sufficient to satisfy regulatory funding standards and are not more than the maximum amount deductible for income tax purposes. The funding policies for the international plans conform to local governmental and tax requirements. The plans' assets are invested primarily in stocks and bonds. The 2020 estimated amortization of amounts in other accumulated comprehensive income are as follows:
(millions of dollars) |  | Pension Benefits |  |  | Post-Retirement Benefits |
Amortization of net (gain) loss |  | $ | 11.7 |  |  | $ | (0.6 | )
Total cost to be recognized |  | $ | 11.7 |  |  | $ | (0.6 | )
Additional Information The weighted average assumptions used to determine net periodic benefit cost in the accounting for the pension benefit plans and other benefit plans for the years ended December 31, 2019, 2018 and 2017 are as follows:
| Year Ended December 31, |
| 2019 |  | 2018 |  | 2017 |
Discount rate |  |  | 3.75 | % |  |  | 3.16 | % |  |  | 3.56 | %
Expected return on plan assets |  |  | 6.43 | % |  |  | 6.40 | % |  |  | 6.61 | %
Rate of compensation increase |  |  | 3.01 | % |  |  | 3.01 | % |  |  | 3.01 | %
The weighted average assumptions used to determine benefit obligations for the pension benefit plans and other benefit plans at December 31, 2019, 2018 and 2017 are as follows:
| Year Ended December 31, |
| 2019 |  | 2018 |  | 2017 |
Discount rate |  |  | 2.75 | % |  |  | 3.75 | % |  |  | 3.16 | %
Rate of compensation increase |  |  | 2.99 | % |  |  | 3.01 | % |  |  | 3.01 | %
For 2019, 2018 and 2017, the discount rate was based on a Citigroup yield curve of high quality corporate bonds with cash flows matching our plans' expected benefit payments. The expected return on plan assets is based on our asset allocation mix and our historical return, taking into account current and expected market conditions. The actual return/(loss) on pension assets was approximately 15% in 2019, (5)% in 2018 and 11% in 2017. The Company maintains a self-funded health insurance plan for its retirees. This plan provided that the maximum health care cost trend rate would be 5%. Effective June 2010, the Company amended its plan to change the eligibility requirement for retirees and revised its plan so that increases in expected health care costs would be borne by the retiree. Plan Assets The Company's pension plan weighted average asset allocation percentages at December 31, 2019 and 2018 by asset category are as follows:
|  | December 31, |
|  | 2019 |  |  | 2018 |
Asset Category |  |  |  |  |  |
Equity securities |  |  | 55.1 | % |  |  | 54.9 | %
Fixed income securities |  |  | 29.1 | % |  |  | 38.3 | %
Real estate |  |  | 0.3 | % |  |  | 0.8 | %
Other |  |  | 15.5 | % |  |  | 6.0 | %
Total |  |  | 100.0 | % |  |  | 100.0 | %
The Company's pension plan fair values at December 31, 2019 and 2018 by asset category are as follows:
|  | December 31, |
(millions of dollars) |  | 2019 |  |  | 2018 |
Asset Category |  |  |  |  |  |
Equity securities |  | $ | 187.5 |  |  | $ | 162.8 |
Fixed income securities |  |  | 98.8 |  |  |  | 113.6 |
Real estate |  |  | 0.9 |  |  |  | 2.3 |
Other |  |  | 52.8 |  |  |  | 18.0 |
Total |  | $ | 340.0 |  |  | $ | 296.7 |
The following table presents domestic and foreign pension plan assets information at December 31, 2019, 2018 and 2017 (the measurement date of pension plan assets):
| U.S. Plans |  | International Plans |
(millions of dollars) | 2019 |  | 2018 |  | 2017 |  | 2019 |  | 2018 |  | 2017 |
Fair value of plan assets |  | $ | 261.5 |  |  | $ | 227.1 |  |  | $ | 241.9 |  |  | $ | 78.5 |  |  | $ | 69.6 |  |  | $ | 78.3 |
The following table summarizes our defined benefit pension plan assets measured at fair value as of December 31, 2019:
|  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Other Observable Inputs |  |  | Significant Unobservable Inputs |  |  |  |
(millions of dollars) |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Total |
Pension Assets Fair Value as of December 31, 2019 |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  |  |  |  |  |  |  |  |  |  |
US equities |  | $ | 169.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 169.7 |
Non-US equities |  |  | 17.8 |  |  |  | — |  |  |  | — |  |  |  | 17.8 |
Fixed income securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 82.6 |  |  |  | 16.2 |  |  |  | — |  |  |  | 98.8 |
Real estate and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate |  |  | — |  |  |  | — |  |  |  | 0.9 |  |  |  | 0.9 |
Other |  |  | 0.4 |  |  |  | 45.4 |  |  |  | 7.0 |  |  |  | 52.8 |
Total assets |  | $ | 270.5 |  |  | $ | 61.6 |  |  | $ | 7.9 |  |  | $ | 340.0 |
The following table summarizes our defined benefit pension plan assets measured at fair value as of December 31, 2018:
|  | Quoted Prices in Active Markets for Identical Assets |  |  | Significant Other Observable Inputs |  |  | Significant Unobservable Inputs |  |  |  |
(millions of dollars) |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |  |  | Total |
Pension Assets Fair Value as of December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  |  |  |  |  |  |  |  |  |  |
US equities |  | $ | 135.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 135.4 |
Non-US equities |  |  | 27.4 |  |  |  | — |  |  |  | — |  |  |  | 27.4 |
Fixed income securities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Corporate debt instruments |  |  | 80.9 |  |  |  | 32.7 |  |  |  | — |  |  |  | 113.6 |
Real estate and other |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate |  |  | — |  |  |  | — |  |  |  | 2.3 |  |  |  | 2.3 |
Other |  |  | 0.3 |  |  |  | — |  |  |  | 17.7 |  |  |  | 18.0 |
Total assets |  | $ | 244.0 |  |  | $ | 32.7 |  |  | $ | 20.0 |  |  | $ | 296.7 |
U.S. equities – This class included actively and passively managed common equity securities comprised primarily of large-capitalization stocks with value, core and growth strategies. Non-U.S. equities – This class included actively managed common equity securities comprised primarily of international large-capitalization stocks. Fixed income – This class included debt instruments issued by the US Treasury, and corporate debt instruments. Real Estate and other – This class includes assets related to real estate and other assets such as insurance contracts. Asset classified as Level 1 are valued using quoted prices on major stock exchange on which individual assets are traded. Our Level 2 assets are valued using net asset value. The net asset value is quoted on a private market that is not active; however, the unit price is based on the underlying investments that are traded on an active market. Our Level 3 assets are estimated at fair value based on the most recent financial information available for the underlying securities, which are not traded on active market, and represents significant unobservable input. The following is a reconciliation of changes in fair value measurement of plan assets using significant unobservable inputs (Level 3):
(millions of dollars) |  |  |
Beginning balance at December 31, 2017 |  | $ | 24.7 |
Purchases, sales, settlements |  |  | — |
Actual return on plan assets still held at reporting date |  |  | (4.4 | )
Foreign exchange impact |  |  | (0.3 | )
Ending balance at December 31, 2018 |  | $ | 20.0 |
Purchases, sales, settlements |  |  | — |
Actual return on plan assets still held at reporting date |  |  | 0.9 |
Foreign exchange impact |  |  | 0.1 |
Ending balance at December 31, 2019 |  | $ | 21.0 |
There were no transfers in or out of Level 3 during the year ended December 31, 2019 and 2018. Contributions The Company expects to contribute $11.4 million to its pension plans and $0.3 million to its other post-retirement benefit plan in 2020. Estimated Future Benefit Payments The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
(millions of dollars) |  | Pension Benefits |  |  | Other Benefits |
2020 |  | $ | 25.0 |  |  | $ | 0.4 |
2021 |  | $ | 25.3 |  |  | $ | 0.4 |
2022 |  | $ | 27.0 |  |  | $ | 0.4 |
2023 |  | $ | 27.2 |  |  | $ | 0.5 |
2024 |  | $ | 27.0 |  |  | $ | 0.5 |
2025-2029 |  | $ | 134.1 |  |  | $ | 2.3 |
Investment Strategies The investment strategy for pension plan assets is to maintain a broadly diversified portfolio designed to both preserve and grow plan assets to meet future plan obligations. The Company's average rate of return on assets from inception through December 31, 2019 was approximately 9%. The Company’s assets are strategically allocated among equity, debt and other investments to achieve a diversification level that dampens fluctuations in investment returns. The Company’s long-term investment strategy is an investment portfolio mix of approximately 55%-65% in equity securities, 30%-35% in fixed income securities and 0%-15% in other securities. Savings and Investment Plans The Company maintains a voluntary Savings and Investment Plan (a 401(k) plan) for most non-union employees in the U.S. Within prescribed limits, the Company bases its contribution to the Savings and Investment Plan on employee contributions. The Company's contributions amounted to $5.4 million, $5.4 million and $5.2 million for the years ended December 31, 2019, 2018 and 2017, respectively.

X
- References No definition available. + Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration