Pension Plans (Tables)

12 Months Ended

Dec. 31, 2016


(in millions)	2016			2015			2014
Plan net pension (credit)/charge:
Service cost	$	1.0		$	1.5		$	1.7
Interest cost on PBO		20.7			27.7			34.7
Expected return on plan assets		(29.9	)		(33.4	)		(37.2	)
Amortization of prior service credit		(1.1	)		(1.2	)		(1.3	)
Amortization of actuarial net losses		2.6			5.2			5.4

	$	(6.7	)	$	(0.2	)	$	3.3

Plan assumptions at December 31, (%):
Discount rate		2.48			3.69			3.55
Inflation rate		2.25			2.15			2.15
Rate of return on plan assets – overall on bid-value		3.20			4.20			4.05
Rate of return on plan assets – equity securities		5.80			6.65			6.50
Rate of return on plan assets – debt securities		2.05			2.85			2.75

Plan asset allocation by category (%):
Equity securities		25			34			32
Debt securities		66			62			63
Cash		9			4			5

		100			100			100

Movements in PBO and Fair Value of Plan Assets

Movements in PBO and fair value of Plan assets are as follows:


(in millions)	2016			2015
Change in PBO:
Opening balance	$	739.7		$	817.1
Interest cost		20.7			27.7
Service cost		1.0			1.5
Benefits paid		(39.7	)		(42.9	)
Actuarial losses/(gains)		119.8			(21.8	)
Exchange effect		(131.3	)		(41.9	)

Closing balance	$	710.2		$	739.7

Fair value of plan assets:
Opening balance	$	795.2		$	862.3
Actual benefits paid		(39.7	)		(42.9	)
Actual contributions by employer		1.1			9.0
Actual return on assets		142.2			11.5
Exchange effect		(140.6	)		(44.7	)

Closing balance	$	758.2		$	795.2

Fair Value of Pension Assets

The fair values of pension assets by level of input 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)		Total
At December 31, 2016
Fixed income securities:
Debt securities issued by U.S. government and government agencies	$	0.2	$		$		$	0.2
Debt securities issued by non-U.S. governments and government agencies		139.3						139.3
Corporate debt securities		180.8						180.8
Other asset-backed securities
Equity securities:
Equity securities held for proprietary investment purposes		84.2						84.2
Real estate		57.1						57.1
Insurance contracts						152.9		152.9
Investments measured at net asset value ⁽¹⁾								51.7
Other assets				26.2				26.2

Total assets at fair value		461.6		26.2		152.9		692.4
Cash		65.8						65.8

Total plan assets	$	527.4	$	26.2	$	152.9	$	758.2

At December 31, 2015
Fixed income securities:
Debt securities issued by U.S. government and government agencies	$	0.4	$		$		$	0.4
Debt securities issued by non-U.S. governments and government agencies		132.1						132.1
Corporate debt securities		189.7						189.7
Other asset-backed securities		0.2						0.2
Equity securities:
Equity securities held for proprietary investment purposes		125.0						125.0
Real estate		64.7						64.7
Insurance contracts						171.9		171.9
Investments measured at net asset value ⁽¹⁾								47.6
Other assets				31.6				31.6

Total assets at fair value		512.1		31.6		171.9		763.2
Cash		32.0						32.0

Total plan assets	$	544.1	$	31.6	$	171.9	$	795.2

(1)

Certain investments that are measured at fair value using the net asset value per share (or its equivalent) have not been categorized in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

Reconciliation of Fair Value of Plan Assets Measured Using Significant Unobservable Inputs

The reconciliation of the fair value of the Plan assets measured using significant unobservable inputs was as follows:


(in millions)	Other Assets
Balance at December 31, 2014	$	0.0
Realized/unrealized gains/(losses):
Relating to assets still held at the reporting date		0.0
Relating to assets sold during the period		0.0
Purchases, issuances and settlements		171.9
Exchange effect		0.0

Balance at December 31, 2015		171.9

Realized/unrealized gains/(losses):
Relating to assets still held at the reporting date		16.8
Relating to assets sold during the period		0.0
Purchases, issuances and settlements		(6.7	)
Exchange effect		(29.1	)

Balance at December 31, 2016	$	152.9

Plan Net Pension Credit

The projected net pension credit for the year ending December 31, 2017 is as follows:


(in millions)
Service cost	$	0.9
Interest cost on PBO		14.6
Expected return on plan assets		(23.4	)
Amortization of prior service credit		(1.0	)
Amortization of actuarial net losses		4.8

	$	(4.1	)

Expected Benefit Payments

The following benefit payments are expected to be made:


(in millions)
2017	$	34.9
2018	$	35.4
2019	$	35.9
2020	$	36.4
2021	$	36.9
2022-2026	$	192.1

German Plan [Member]

Movements in PBO and Fair Value of Plan Assets

Movements in PBO of the German plan are as follows:


(in millions)	2016			2015
Change in PBO:
Opening balance	$	9.2		$	10.4
Service cost		0.2			0.2
Interest cost		0.2			0.2
Benefits paid		(0.2	)		(0.2	)
Actuarial losses/(gains)		1.0			(0.3	)
Exchange effect		(0.3	)		(1.1	)

Closing balance	$	10.1		$	9.2

Unfunded Defined Benefit Pension Plan


(in millions)	2016		2015		2014
Plan net pension charge:
Service cost	$	0.2	$	0.2	$	0.2
Interest cost on PBO		0.2		0.2		0.3
Amortization of actuarial net loss		0.2		0.3		0.1

	$	0.6	$	0.7	$	0.6

Plan assumptions at December 31, (%):
Discount rate		1.80		2.40		2.10
Inflation rate		1.75		1.75		1.75
Rate of increase in compensation levels		2.75		2.75		2.75