Pension Plans (Tables)

12 Months Ended

Dec. 31, 2018

Reconciliations of Plan Benefit Obligation, Fair Value of Plan Assets and Funded Status of Pension Plans

he following tables present reconciliations of plan benefit obligations, fair value of plan assets and the funded status of pension plans as of and for the years ended December 31, 2018 and 2017:



	2018			2018			2018			2017			2017			2017
In millions	U.K.			U.S./ other			Total			U.K.			U.S./ other			Total
Change in benefit obligations
Benefit obligation at January 1	$	369.7		$	53.1		$	422.8		$	334.8		$	48.6		$	383.4
Service cost	—			0.1			0.1			—			0.1			0.1
Interest cost	8.6			1.8			10.4			8.9			1.9			10.8
Actuarial (gain) / loss	(27.7		)	(5.9		)	(33.6		)	10.1			4.3			14.4
Exchange difference	(19.7		)	(0.1		)	(19.8		)	32.0			0.3			32.3
Benefits paid	(17.9		)	(2.2		)	(20.1		)	(16.1		)	(2.1		)	(18.2		)
Prior service cost	2.2			—			2.2			—			—			—
Benefit obligation at December 31	$	315.2		$	46.8		$	362.0		$	369.7		$	53.1		$	422.8
Change in plan assets
Fair value of plan assets at January 1	$	326.3		$	41.2		$	367.5		$	280.3		$	36.6		$	316.9
Actual return on assets	(13.0		)	(2.5		)	(15.5		)	27.7			4.8			32.5
Exchange difference	(17.8		)	—			(17.8		)	27.4			—			27.4
Contributions from employer	5.8			2.1			7.9			7.0			1.9			8.9
Benefits paid	(17.9		)	(2.2		)	(20.1		)	(16.1		)	(2.1		)	(18.2		)
Fair value of plan assets at December 31	$	283.4		$	38.6		$	322.0		$	326.3		$	41.2		$	367.5
Funded status
Benefit obligations in excess of the fair value of plan assets	$	(31.8	)	$	(8.2	)	$	(40.0	)	$	(43.4	)	$	(11.9	)	$	(55.3	)

Schedule of Net Benefit Costs

The amounts recognized in the consolidated statements of income in respect of the pension plans were as follows:



	2018			2018			2018			2017			2017			2017			2016			2016			2016
In millions	U.K.			U.S. / other			Total			U.K.			U.S. / other			Total			U.K.			U.S. / other			Total
In respect of defined benefit plans:
Current service cost	$	—		$	0.1		$	0.1		$	—		$	0.1		$	0.1		$	0.3		$	0.1		$	0.4
Interest cost	8.6			1.8			10.4			8.9			1.9			10.8			10.9			2.5			13.4
Expected return on assets	(14.5		)	(2.2		)	(16.7		)	(14.8		)	(1.8		)	(16.6		)	(14.1		)	(2.3		)	(16.4		)
Settlement loss	—			—			—			—			—			—			—			4.3			4.3
Amortization of net actuarial loss	2.3			0.4			2.7			2.5			0.3			2.8			1.9			0.4			2.3
Amortization of prior service credit	(0.5		)	—			(0.5		)	(0.5		)	—			(0.5		)	(0.5		)	—			(0.5		)
Total (credit) / charge for defined benefit plans	$	(4.1	)	$	0.1		$	(4.0	)	$	(3.9	)	$	0.5		$	(3.4	)	$	(1.5	)	$	5.0		$	3.5
In respect of defined contribution plans:
Total charge for defined contribution plans	$	2.1		$	2.3		$	4.4		$	1.9		$	2.1		$	4.0		$	1.6		$	2.1		$	3.7
Total (credit) / charge for pension plans	$	(2.0	)	$	2.4		$	0.4		$	(2.0	)	$	2.6		$	0.6		$	0.1		$	7.1		$	7.2

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

The following table shows other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) ("AOCI") during the years ended December 31:



In millions	2018			2017
Net actuarial gain	$	1.4		$	1.6
Amortization of net gain	2.7			2.8
Prior service cost	(2.2		)	—
Amortization of prior service credit	(0.5		)	(0.5		)
Total recognized in other comprehensive income	1.4			3.9
Total credit recognized in net periodic benefit cost and other comprehensive income	$	5.4		$	7.3

The following table shows the amounts included in AOCI that have not yet been recognized as components of net periodic benefit cost for the years ended December 31:



In millions	2018			2017
Net actuarial loss	$	(136.4	)	$	(140.5	)
Net prior service credit	12.7			15.5
Total included in AOCI not yet recognized in the statement of income	$	(123.7	)	$	(125.0	)

Schedule of Assumptions Used

The inflation rate is derived using a similar cash flow matched methodology as used for the discount rate but having regard to the difference between yields on fixed-interest and index-linked United Kingdom government gilts. The expected return on assets assumption is set having regard to the asset allocation and expected return on each asset class as at the balance sheet date.



	2018	2017
Other principal actuarial assumptions:	Years	Years
Life expectancy of male / female in the U.K. aged 65 at accounting date	21.4 / 24.1	21.6 / 24.6
Life expectancy of male / female in the U.K. aged 65 at 20 years after accounting date	22.8 / 25.7	23.3 / 26.5

The financial assumptions used in the calculations were:



	Projected Unit Credit Valuation
	U.K.			U.S.
	2018	2017	2016	2018	2017	2016
	%	%	%	%	%	%
Discount rate	2.90	2.40	2.60	4.20	3.60	4.20
Expected return on assets	4.90	4.80	5.20	6.20	6.00	6.30
Retail price inflation	3.30	3.10	3.20	n/a	n/a	n/a
Inflation related assumptions:
Salary inflation	n/a	n/a	n/a	n/a	n/a	n/a
Consumer price inflation	2.20	2.10	2.20	n/a	n/a	n/a
Pension increases—pre April 6, 1997	2.00	1.90	2.00	n/a	n/a	n/a
—1997 - 2005	2.20	2.10	2.20	n/a	n/a	n/a
—post April 5, 2005	1.80	1.70	1.80	n/a	n/a	n/a

Schedule of Allocation of Plan Assets

The fair value of plan assets were:



	2018		2018		2018		2017		2017		2017
In millions	U.K.		U.S./ other		Total		U.K.		U.S./ other		Total
Assets in active markets:
Equities and growth funds	$	173.1	$	20.6	$	193.7	$	203.4	$	22.9	$	226.3
Government bonds	46.7		—		46.7		49.9		—		49.9
Corporate bonds	63.6		18.0		81.6		72.7		18.3		91.0
Cash	—		—		—		0.3		—		0.3
Total fair value of plan assets	$	283.4	$	38.6	$	322.0	$	326.3	$	41.2	$	367.5

Schedule of Expected Benefit Payments

The following benefit payments are expected to be paid by the plans for the years ended December 31 as follows:



In millions	U.K. pension plans		U.S./ other pension plans
2019	$	17.6	$	2.3
2020	17.9		2.3
2021	18.3		2.3
2022	18.7		2.3
2023	19.1		2.3
Thereafter	102.2		11.7