(18) Employee Benefit Plans

The Company sponsors employee benefit plans for certain of its employees.

Defined Benefit Pension Plans

The Company sponsors defined benefit pension plans, including certain unfunded supplemental retirement plans, covering certain active and retired employees for its operations in the U.S., U.K., Germany, Mexico, France and Korea (the “Defined Benefit Pension Plans”).

The straight-line method is used to amortize prior service amounts and unrecognized net actuarial (gains) losses.

Changes in projected benefit obligations and plan assets for the years ended December 31 were as follows:

	2016						2015
	U.S.			Non-U.S.			U.S.			Non-U.S.
	(In millions)
Accumulated benefit obligation at the end of the year	$	32.1			52.9			32.8			49.6
Change in projected benefit obligation:
Beginning projected benefit obligation	$	32.8			52.1			36.6			56.8
Service cost		—			1.2			—			1.2
Interest cost		1.3			1.7			1.3			1.7
Actuarial (gain) loss		0.3			8.3			(1.3	)		(2.9	)
Benefits paid		(1.4	)		(1.7	)		(1.2	)		(2.0	)
Effect of settlements		(0.9	)		—			(2.6	)		—
Other adjustments		—			—			—			1.7
Exchange rate changes		—			(6.5	)		—			(4.4	)
Ending projected benefit obligation		32.1			55.1			32.8			52.1
Change in plan assets:
Beginning fair value of plan assets	$	23.9			27.6			27.3			29.2
Actual return on plan assets		1.1			3.4			(0.3	)		0.1
Employer contributions		—			1.5			0.7			1.8
Benefits paid		(1.4	)		(1.7	)		(1.2	)		(2.0	)
Effect of settlements		(0.9	)		—			(2.6	)		—
Exchange rate changes		—			(4.6	)		—			(1.5	)
Ending fair value of plan assets	$	22.7			26.2			23.9			27.6

Amounts recognized on the consolidated balance sheets as of December 31 were as follows:

	2016						2015
	U.S.			Non-U.S.			U.S.			Non-U.S.
	(In millions)
Amounts recognized in liabilities:
Current liabilities	$	—			(0.4	)		—			(0.4	)
Noncurrent liabilities		(9.4	)		(28.6	)		(8.9	)		(24.2	)
Funded status		(9.4	)		(29.0	)		(8.9	)		(24.6	)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss		4.2			9.7			3.7			4.0
Total recognized on the consolidated balance sheets	$	(5.2	)		(19.3	)		(5.2	)		(20.6	)

The current portion of the above retirement benefit liabilities is recognized in accrued liabilities and the noncurrent portion is recognized in other long-term liabilities.

Changes in accumulated other comprehensive income for the years ended December 31 were as follows:

	2016					2015
	U.S.		Non-U.S.			U.S.		Non-U.S.
	(In millions)
Beginning accumulated other comprehensive income	$	3.7		4.0			3.5		5.7
Current period (gain) loss		0.5		6.5			0.2		(1.1	)
Exchange rate changes		—		(0.8	)		—		(0.6	)
Ending accumulated other comprehensive income	$	4.2		9.7			3.7		4.0

The amounts in accumulated other comprehensive income that are expected to be recognized as components of net periodic benefit cost in 2017 are de minimis for the U.S. plans and $0.3 million for the non-U.S. plans.

Weighted average assumptions used to determine the benefit obligations as of December 31 were as follows:

	2016				2015
	U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate		3.94%		2.53%		4.10%		3.46%
Rate of compensation increase	Not applicable			4.47	Not applicable			4.65

Weighted average assumptions used to determine net periodic benefit cost for the periods ended of December 31 were as follows:

	2016				2015				2014
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate		4.10%		3.46%		3.77%		3.22%		4.04%		4.26%
Expected long-term return of plan assets		7.25		6.34		7.25		6.80		7.25		6.77
Rate of compensation increase	Not applicable			4.65	Not applicable			4.46	Not applicable			4.80

The discount rate used was determined based upon available yields for high quality corporate and government bonds of the plan countries, utilizing similar durations/terms and currencies of the plan liabilities. The non-U.S. country specific rates are weighted by projected benefit obligation to arrive at a single weighted average rate.

The expected long-term rate of return for the plans’ total assets is based on the expected return of each of the below asset categories, weighted based on the target allocation for each class. Equity securities and growth assets are expected to return 6% to 8% over the long-term, while debt securities and liability matching assets are expected to return between 2% and 4%.

The rate of compensation increase for the U.S. plans is not applicable as the plans’ benefits are based upon credited years of service.

Net periodic benefit cost for the periods ended of December 31 was as follows:

	2016						2015						2014
	U.S.			Non-U.S.			U.S.			Non-U.S.			U.S.			Non-U.S.
	(In millions)
Service cost	$	—			1.2			—			1.2			0.1			1.2
Interest cost		1.3			1.7			1.3			1.7			0.8			2.1
Expected return on plan assets		(1.4	)		(1.6	)		(1.6	)		(1.9	)		(1.0	)		(1.8	)
Amortization of net actuarial gain (loss)		0.1			—			—			0.1			—			—
Effect of settlement		0.1			—			0.4			—			—			—
Net periodic benefit cost	$	0.1			1.3			0.1			1.1			(0.1	)		1.5

The weighted average asset allocations as of December 31 were as follows:

	2016						2015
	U.S.			Non-U.S.			U.S.			Non-U.S.
Asset category:
Equity securities		52	%		75	%		51	%		77	%
Fixed income securities		40			22			39			16
Real estate		8			—			10			—
Cash		—			2			—			4
Other		—			1			—			3
Total		100	%		100	%		100	%		100	%

Certain policies are established to provide for growth of capital with a moderate level of volatility by investing assets per the target allocations. The plans’ asset allocation percentages at December 31, 2016 and 2015 approximated the target asset allocation ranges. The targeted asset allocations and the investment policies are reviewed periodically to determine if the policies should be changed.

Fair value measurements for plan assets as of December 31, 2016 were as follows:

	Total		Level 1		Level 2		Level 3
	(In millions)
Asset category:
U.S. Plans
Mutual funds:
Equity securities	$	11.8		—		11.8		—
Fixed income securities		9.1		—		9.1		—
Real estate		1.8		—		0.4		1.4
Total	$	22.7		—		21.3		1.4
Non-U.S. Plans
Cash and cash equivalents	$	0.5		0.5		—		—
Mutual funds (non-U.S.):
Equity securities		18.5		—		18.5		—
Fixed income securities		5.9		—		5.9		—
Mixed asset mutual funds (equity/fixed income)		1.3		—		1.3		—
Total	$	26.2		0.5		25.7		—

Fair value measurements for plan assets as of December 31, 2015 were as follows:

	Total		Level 1		Level 2		Level 3
	(In millions)
Asset category:
U.S. Plans
Mutual funds:
Equity securities	$	12.1		—		12.1		—
Fixed income securities		9.3		—		9.3		—
Real estate		2.5		—		1.2		1.3
Total	$	23.9		—		22.6		1.3
Non-U.S. Plans
Cash and cash equivalents	$	1.0		1.0				—
Mutual funds (non-U.S.):
Equity securities		21.4		—		21.4		—
Fixed income securities		4.3		—		4.3		—
Mixed asset mutual funds (equity/fixed income)		0.9		—		0.9		—
Total	$	27.6		1.0		26.6		—

Level 1 assets include cash and cash equivalents and are valued at cost. Level 2 assets include investments in mutual funds and are valued using observable market inputs. Level 3 assets include investments in real estate and are valued using unobservable inputs that are significant to the overall fair value measurement.

The following table summarizes the changes in Level 3 assets:

	(In millions)
Balance as of December 31, 2015	$	1.3
Return on plan assets		0.1
Purchases		0.1
Sales		(0.1	)
Balance as of December 31, 2016	$	1.4

Contributions to the U.S. plans and the non-U.S. plans in 2017 are estimated to be $0.3 and $0.8 million, respectively. Contributions are expected to meet or exceed the minimum funding requirements of the relevant governmental authorities. Contributions may be made in excess of the minimum funding requirements in response to the plans’ investment performance, to achieve funding levels required by defined benefit plan arrangements or when deemed to be financially advantageous to do so based on their other cash requirements.

The following payments, which reflect expected future service, as appropriate, are expected to be paid by the plans:

	U.S.		Non-U.S.
	(In millions)
December 31:
2017	$	1.8		1.5
2018		1.5		1.6
2019		1.5		1.6
2020		1.6		1.7
2021		1.7		1.9
2022–2026		9.4		10.5

Defined Contribution Plans

The Company sponsors a number of qualified defined contribution personal savings plans for U.S. hourly and salaried employees. These plans allow eligible employees to contribute a portion of their compensation into the plans and generally provide employer matching contributions. In addition to the employer match, for certain of the plans, a contribution is made for each participant based on a dollar amount per hour worked. Contributions were $6.4 million for 2016, $7.6 million for 2015, and $6.7 million for 2014 .