XML 65 R39.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Pension and Other Retiree Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Amounts Recognized in Balance Sheet Net Funded Status
The following table sets forth our defined benefit pension and post-retirement plans funded status and the amounts recognized in our Consolidated Balance Sheets:
 
Pension
 
Post-retirement
 
U.S.
 
International
 
 
(in millions)
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Change in projected benefit obligation (PBO)
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
$
188.3

 
$
206.5

 
$
627.3

 
$
695.0

 
$
6.2

 
$
6.8

Service cost
1.3

 
1.6

 
1.3

 
1.9

 
—

 
0.1

Interest cost
7.4

 
6.7

 
13.4

 
12.9

 
0.2

 
0.2

Actuarial loss (gain)
25.2

 
(15.6
)
 
67.6

 
(26.6
)
 
(0.9
)
 
(0.3
)
Participants’ contributions
—

 
—

 
0.1

 
0.1

 
0.1

 
0.1

Benefits paid
(10.6
)
 
(10.9
)
 
(28.6
)
 
(26.9
)
 
(0.4
)
 
(0.4
)
Curtailment gain
—

 
—

 
—

 
(0.9
)
 
—

 
—

Settlement gain
—

 
—

 
(0.4
)
 
(2.0
)
 
—

 
—

Plan amendments
—

 
—

 
—

 
6.8

 
—

 
—

Foreign exchange rate changes
—

 
—

 
10.0

 
(35.3
)
 
0.1

 
(0.3
)
Other items
—

 
—

 
—

 
2.3

 
—

 
—

Projected benefit obligation at end of year
211.6

 
188.3

 
690.7

 
627.3

 
5.3

 
6.2

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
141.1

 
162.1

 
417.6

 
463.8

 
—

 
—

Actual return on plan assets
21.9

 
(15.8
)
 
45.5

 
(10.0
)
 
—

 
—

Employer contributions
5.6

 
5.7

 
14.1

 
14.9

 
0.3

 
0.3

Participants’ contributions
—

 
—

 
0.1

 
0.1

 
0.1

 
0.1

Benefits paid
(10.6
)
 
(10.9
)
 
(28.7
)
 
(26.9
)
 
(0.4
)
 
(0.4
)
Settlement gain
—

 
—

 
(0.4
)
 
(2.0
)
 
—

 
—

Foreign exchange rate changes
—

 
—

 
12.1

 
(24.6
)
 
—

 
—

Other items
—

 
—

 
—

 
2.3

 
—

 
—

Fair value of plan assets at end of year
158.0

 
141.1

 
460.3

 
417.6

 
—

 
—

Funded status (Fair value of plan assets less PBO)
$
(53.6
)
 
$
(47.2
)
 
$
(230.4
)
 
$
(209.7
)
 
$
(5.3
)
 
$
(6.2
)
Amounts recognized in the Consolidated Balance Sheets consist of:
 
 
 
 
 
 
 
 
 
 
 
Other non-current assets
$
—

 
$
—

 
$
1.2

 
$
1.4

 
$
—

 
$
—

Other current liabilities
—

 
—

 
6.8

 
6.7

 
0.5

 
0.6

Pension and post-retirement benefit obligations
53.6

 
47.2

 
224.8

 
204.4

 
4.8

 
5.6

Components of accumulated other comprehensive income, net of tax:
 
 
 
 
 
 
 
 
 
 
 
Unrecognized actuarial loss (gain)
74.1

 
64.7

 
129.8

 
97.1

 
(4.0
)
 
(3.5
)
Unrecognized prior service cost (credit)
1.4

 
1.5

 
4.9

 
5.0

 
(0.2
)
 
(0.2
)
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
The following table sets out information for pension plans with an accumulated benefit obligation in excess of plan assets:
 
U.S.
 
International
(in millions)
2019
 
2018
 
2019
 
2018
Accumulated benefit obligation
$
211.6

 
$
188.3

 
$
638.4

 
$
564.6

Fair value of plan assets
158.0

 
141.1

 
417.5

 
362.9
Schedule of Defined Benefit Plan, Plan with Projected Benefit Obligations in Excess of Plan Assets [Table Text Block]
The following table sets out information for pension plans with a projected benefit obligation in excess of plan assets:
 
U.S.
 
International
(in millions)
2019
 
2018
 
2019
 
2018
Projected benefit obligation
$
211.6

 
$
188.3

 
$
649.1

 
$
574.0

Fair value of plan assets
158.0

 
141.1

 
417.5

 
362.9
Components of Net Periodic Benefit (Income) Expense for Pension and Post-Retirement Plans
The components of net periodic benefit (income) expense for pension and post-retirement plans for the years ended December 31, 2019, 2018, and 2017, were as follows:
 
Pension
 
Post-retirement
 
U.S.
 
International
 
 
 
 
 
 
(in millions)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost
$
1.3

 
$
1.6

 
$
1.4

 
$
1.3

 
$
1.9

 
$
1.9

 
$
—

 
$
0.1

 
$
—

Interest cost
7.4

 
6.7

 
7.1

 
13.4

 
12.9

 
13.4

 
0.2

 
0.2

 
0.2

Expected return on plan assets
(11.7
)
 
(11.8
)
 
(12.3
)
 
(20.5
)
 
(22.7
)
 
(21.8
)
 
—

 
—

 
—

Amortization of net loss (gain)
2.2

 
2.7

 
2.0

 
3.3

 
3.4

 
3.0

 
(0.4
)
 
(0.4
)
 
(0.4
)
Amortization of prior service cost
0.4

 
0.4

 
0.4

 
0.3

 
—

 
—

 
—

 
(0.1
)
 
—

Curtailment gain
—

 
—

 
—

 
—

 
(0.6
)
 
—

 
—

 
—

 
—

Settlement loss
—

 
—

 
—

 
0.1

 
—

 
—

 
—

 
—

 
—

Net periodic benefit income(1)
$
(0.4
)
 
$
(0.4
)
 
$
(1.4
)
 
$
(2.1
)
 
$
(5.1
)
 
$
(3.5
)
 
$
(0.2
)
 
$
(0.2
)
 
$
(0.2
)


(1)
The components, other than service cost, are included in the line "Non-operating pension income" in the Consolidated Statements of Income
Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
Other changes in plan assets and benefit obligations that were recognized in accumulated other comprehensive income (loss) during the years ended December 31, 2019, 2018, and 2017 were as follows:
 
Pension
 
Post-retirement
 
U.S.
 
International
 
 
 
 
 
 
(in millions)
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Current year actuarial loss (gain)
$
15.0

 
$
12.0

 
$
5.9

 
$
43.3

 
$
5.3

 
$
14.3

 
$
(1.0
)
 
$
(0.3
)
 
$
—

Amortization of actuarial (loss) gain
(2.2
)
 
(2.7
)
 
(2.0
)
 
(3.3
)
 
(3.4
)
 
(3.0
)
 
0.4

 
0.4

 
0.4

Current year prior service cost
—

 
—

 
—

 
—

 
6.5

 
—

 
—

 
—

 
—

Amortization of prior service (cost) credit
(0.4
)
 
(0.4
)
 
(0.4
)
 
(0.3
)
 
0.3

 
—

 
—

 
0.1

 
—

Foreign exchange rate changes
—

 
—

 
—

 
3.4

 
(7.1
)
 
10.7

 
—

 
0.1

 
(0.2
)
Total recognized in other comprehensive income (loss)
$
12.4

 
$
8.9

 
$
3.5

 
$
43.1

 
$
1.6

 
$
22.0

 
$
(0.6
)
 
$
0.3

 
$
0.2

Total recognized in net periodic benefit cost (income) and other comprehensive income (loss)
$
12.0

 
$
8.5

 
$
2.1

 
$
41.0

 
$
(3.5
)
 
$
18.5

 
$
(0.8
)
 
$
0.1

 
$
—
Schedule of Assumptions Used
The weighted average assumptions used to determine benefit obligations for the years ended December 31, 2019, 2018, and 2017 were as follows:
 
Pension
 
Post-retirement
 
U.S.
 
International
 
 
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Discount rate
3.3
%
 
4.6
%
 
3.7
%
 
1.8
%
 
2.5
%
 
2.3
%
 
2.7
%
 
3.7
%
 
3.2
%
Rate of compensation increase
N/A

 
N/A

 
N/A

 
2.9
%
 
3.0
%
 
2.8
%
 
N/A

 
N/A

 
N/A


The weighted average assumptions used to determine net periodic benefit (income) expense for the years ended December 31, 2019, 2018, and 2017 were as follows:
 
Pension
 
Post-retirement
 
U.S.
 
International
 
 
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Discount rate
4.0
%
 
3.5
%
 
3.8
%
 
2.4
%
 
2.1
%
 
2.3
%
 
3.6
%
 
3.2
%
 
3.4
%
Expected long-term rate of return
7.4
%
 
7.4
%
 
7.8
%
 
5.0
%
 
5.0
%
 
5.5
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
N/A

 
N/A

 
N/A

 
3.0
%
 
2.8
%
 
3.1
%
 
N/A

 
N/A

 
N/A


The weighted average health care cost trend rates used to determine post-retirement benefit obligations and net periodic benefit (income) expense as of December 31, 2019, 2018, and 2017 were as follows:
 
Post-retirement
 
2019
 
2018
 
2017
Health care cost trend rate assumed for next year
7
%
 
7
%
 
7
%
Rate that the cost trend rate is assumed to decline (the ultimate trend rate)
4
%
 
5
%
 
5
%
Year that the rate reaches the ultimate trend rate
2027

 
2026

 
2025
Schedule of Allocation of Plan Assets
Our pension plan weighted average asset allocations as of December 31, 2019 and 2018 were as follows:
 
 
2019
 
2018
 
 
U.S.
 
International
 
U.S.
 
International
Asset category
 
 
 
 
 
 
 
Equity securities
56
%
 
13
%
 
58
%
 
16
%
Fixed income
33

 
46

 
27

 
20

Real estate
3

 
3

 
3

 
5

Other(2)
 
8

 
38

 
12

 
59

Total
100
%
 
100
%
 
100
%
 
100
%

(2)
Multi-strategy hedge funds, insurance contracts and cash and cash equivalents for certain of our plans.
Schedule of Expected Benefit Payments
The following table presents estimated future benefit payments to participants for the next ten fiscal years:
 
Pension
 
Post-retirement
(in millions)
Benefits
 
Benefits
2020
$
41.7

 
$
0.5

2021
42.3

 
0.5

2022
42.9

 
0.5

2023
43.5

 
0.4

2024
44.0

 
0.4

Years 2025 - 2029
228.1

 
1.0
Schedule of Multi-employer Plans Details regarding the plan are outlined in the table below.
 
 
 
 
Pension Protection Act Zone Status
 
FIP/RP Status Pending/Implemented
 
Contributions
 
 
 
Expiration Date of Collective-Bargaining Agreement
 
 
 
 
 
 
Year Ended December 31,
 
 
 
Pension Fund
 
EIN/Pension Plan Number
 
2019
 
2018
 
 
2019
 
2018
 
2017
 
Surcharge Imposed
 
PACE Industry Union-Management Pension Fund
 
11-6166763 / 001
 
Red
 
Red
 
Implemented
 
$
0.2

 
$
0.3

 
$
0.2

 
Yes
 
6/30/2023
U.S.  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets
U.S. Pension Plan Assets

The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2019 were as follows:
(in millions)
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Fair Value
as of
December 31,
2019
Mutual funds
$
103.2

 
$
—

 
$
—

 
$
103.2

Exchange traded funds
48.4

 
—

 
—

 
48.4

Common collective trust funds
—

 
1.5

 
—

 
1.5

Investments measured at net asset value(3)
 
 
 
 
 
 
 
Multi-strategy hedge funds
 
 
 
 
 
 
4.9

Total
$
151.6

 
$
1.5

 
$
—

 
$
158.0


(3)
Certain investments that are measured at fair value using the net asset value per share practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in these tables are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the table that presents our defined benefit pension and post-retirement plans funded status.

The fair value measurements of our U.S. pension plan assets by asset category as of December 31, 2018 were as follows:
(in millions)
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Fair Value
as of
December 31,
2018
Mutual funds
$
77.1

 
$
—

 
$
—

 
$
77.1

Exchange traded funds
54.0

 
—

 
—

 
54.0

Common collective trust funds
—

 
1.7

 
—

 
1.7

Investments measured at net asset value(3)
 
 
 
 
 
 
 
Multi-strategy hedge funds
 
 
 
 
 
 
8.3

Total
$
131.1

 
$
1.7

 
$
—

 
$
141.1
International  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Allocation of Plan Assets
International Pension Plans Assets

The fair value measurements of our international pension plans assets by asset category as of December 31, 2019 were as follows:
(in millions)
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Fair Value
as of
December 31,
2019
Cash and cash equivalents
$
1.4

 
$
—

 
$
—

 
$
1.4

Equity securities
59.9

 
—

 
—

 
59.9

Exchange traded funds
0.4

 
—

 
—

 
0.4

Corporate debt securities
—

 
79.3

 
—

 
79.3

Multi-strategy hedge funds
—

 
85.9

 
—

 
85.9

Insurance contracts
—

 
29.6

 
—

 
29.6

Real estate
—

 
3.9

 


 
3.9

Government debt securities
—

 
132.5

 
—

 
132.5

Investments measured at net asset value(3)
 
 
 
 
 
 
 
Multi-strategy hedge funds
 
 
 
 
 
 
57.0

Real estate
 
 
 
 
 
 
10.4

Total
$
61.7

 
$
331.2

 
$
—

 
$
460.3


The fair value measurements of our international pension plans assets by asset category as of December 31, 2018 were as follows:
(in millions)
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Fair Value
as of
December 31,
2018
Cash and cash equivalents
$
2.7

 
$
—

 
$
—

 
$
2.7

Equity securities
65.7

 
—

 
—

 
65.7

Exchange traded funds
0.3

 
—

 
—

 
0.3

Corporate debt securities
—

 
71.7

 
—

 
71.7

Multi-strategy hedge funds
—

 
196.3

 
—

 
196.3

Insurance contracts
—

 
25.4

 
—

 
25.4

Government debt securities
—

 
14.0

 
—

 
14.0

Investments measured at net asset value(3)
 
 
 
 
 
 
 
Multi-strategy hedge funds
 
 
 
 
 
 
21.0

Real estate
 
 
 
 
 
 
20.5

Total
$
68.7

 
$
307.4

 
$
—

 
$
417.6