Other Post-Employment Benefits and Other Employee Benefit Plans

12 Months Ended

Dec. 31, 2020

Other Post-Employment Benefits and Other Employee Benefit Plans

In addition to providing pension benefits, we maintain two Other Post-Employment Benefit Plans which provide a portion of healthcare, dental, vision and life insurance benefits for certain retired legacy employees. These plans are in the U.S. and Canada. Covered employees who retired on or after attaining age 55 and who had rendered at least 10 years of service were entitled to post-retirement healthcare, dental and life insurance benefits. These benefits are subject to deductibles, co-payment provisions and other limitations. The information below relates to these two plans.

Contributions made by us, net of Medicare Part D subsidies received in the U.S., are reported below as benefits paid. We may change the benefits at any time. The status of these plans, including a reconciliation of benefit obligations, a reconciliation of plan assets and the funded status of the plans, follows:


	December 31,
(In millions)	2020		2019
Change in benefit obligations:
Benefit obligation at beginning of period	$	43.5	$	46.4

Interest cost	1.0		1.6
Actuarial loss (gain)	2.4		(1.2)
Benefits paid, net	(3.5)		(3.3)



Benefit obligation at end of period	$	43.4	$	43.5
Change in plan assets:
Fair value of plan assets at beginning of period	$	—	$	—
Employer contribution	3.5		3.3
Benefits paid, net	(3.5)		(3.3)
Fair value of plan assets at end of period	$	—	$	—
Net amount recognized:
Underfunded status	$	(43.4)	$	(43.5)
Accumulated benefit obligation at end of year	$	43.4	$	43.5
Net amount recognized in consolidated balance sheets consists of:
Current liability	$	(5.1)	$	(5.3)
Non-current liability	(38.3)		(38.2)
Net amount recognized	$	(43.4)	$	(43.5)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss (gain)	$	1.9	$	(0.6)
Prior service credit	(2.3)		(2.6)
Total	$	(0.4)	$	(3.2)

Actuarial losses resulting in an increase to our projected benefit obligation for the year ended December 31, 2020 were primarily due to a reduction in the weighted average discount rate of 90 basis points. The accumulated post-retirement benefit obligations were determined using a weighted-average discount rate of 2.2% at December 31, 2020 and 3.1% at December 31, 2019.

The components of net periodic benefit cost were as follows:


	Year Ended December 31,
(In millions)	2020		2019		2018
Components of net periodic benefit cost:
Service cost	$	—	$	—	$	0.1
Interest cost	1.0		1.6		1.4
Amortization of net gain	(0.2)		(0.2)		(0.2)
Amortization of prior service credit	(0.3)		(0.3)		(0.3)
Net periodic benefit cost	$	0.5	$	1.1	$	1.0
Impact of settlement/curtailment	—		—		—
Total benefit cost for fiscal year	$	0.5	$	1.1	$	1.0

The amortization of any prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plan. Changes in benefit obligations that were recognized in AOCL for the years ended December 31, 2020 and December 31, 2019 were as follows:


	December 31, 2020						December 31, 2019
(In millions)	U.S.		International		Total		U.S.		International		Total
Current year actuarial loss (gain)	$	2.4	$	—	$	2.4	$	(1.0)	$	(0.2)	$	(1.2)
Amortization of actuarial gain	—		0.2		0.2		—		0.2		0.2
Amortization of prior service credit	0.3		—		0.3		0.3		—		0.3



Total	$	2.7	$	0.2	$	2.9	$	(0.7)	$	—	$	(0.7)

Healthcare Cost Trend Rates

The assumed healthcare cost trend rates have an effect on the amounts recognized in our Consolidated Statements of Operations for the healthcare plans. For the year ended December 31, 2020, healthcare cost trend rates were assumed to be 6.3% for the U.S. plan and 5.0% for the Canada plan. The trend rates assumed for 2021 are 6.5% and 5.0% for the U.S. and Canada plan, respectively. Rates are expected to decrease to 5.0% by 2028 for the U.S. plan, and remain unchanged in future years for the Canada plan.

Expected post-retirement benefits (net of Medicare Part D subsidies) for each of the next five years and succeeding five years are as follows:


Year	Amount (in millions)
2021	$	5.1
2022	4.6
2023	4.2
2024	3.8
2025	3.3
2026 to 2030 (combined)	11.4
Total	$	32.4