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Post Retirement Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2019
Post Retirement Benefit Plans  
Schedule of components of net periodic benefit costs

The Company records pension service cost within cost of sales, selling, general and administrative, and research and development expenses while non-service related pension costs are recorded within interest and other income (expense), net in the consolidated statements of income and comprehensive income. The components of

net periodic benefit costs for the years ended December 31, 2019, 2018 and 2017 were as follows (dollars in millions):

    

2019

    

2018

    

2017

Components of net periodic benefit costs:

Service cost

$

6.4

$

7.5

$

7.8

Interest cost

2.6

2.0

1.7

Expected return on plan assets

(2.0)

(1.9)

(1.7)

Amortization of net loss

2.0

3.8

4.8

Net periodic benefit costs

$

9.0

$

11.4

$

12.6

Schedule of changes in benefit obligations and plan assets, projected benefit obligation and funded status, for defined benefit pension plans The changes in benefit obligations and plan assets under the defined benefit pension plans, projected benefit obligation and funded status of the plans were as follows at December 31, (dollars in millions):

    

2019

    

2018

Change in benefit obligation:

Benefit obligation at beginning of year

$

216.7

$

228.0

Service cost

6.4

7.5

Interest cost

2.6

2.0

Plan participant contributions

4.8

4.3

Plan amendments

(1.3)

Plan settlements

(0.4)

Benefits paid

(2.8)

(2.0)

Actuarial loss (gain)

25.8

(16.2)

Premiums paid

(1.6)

(1.7)

Impact of foreign currency exchange rates

3.1

(3.5)

Benefit obligation at end of year

 

255.0

216.7

Change in plan assets:

Fair value of plan assets at beginning of year

 

124.6

120.3

Return on plan assets

 

(2.5)

(0.6)

Plan participant and employer contributions

 

11.6

10.2

Benefits paid

 

(2.8)

(2.2)

Plan settlements

(0.4)

Premiums paid

(1.7)

(1.5)

Impact of foreign currency exchange rates

 

2.2

(1.2)

Fair value of plan assets at end of year

 

131.4

124.6

Net under funded status

$

(123.6)

$

(92.1)

Schedule of amounts recognized in consolidated balance sheets

The following amounts were recognized in the accompanying consolidated balance sheets for the Company’s defined benefit plans at December 31, (dollars in millions):

    

2019

    

2018

Current liabilities

$

(1.6)

$

(1.6)

Non-current liabilities

(122.0)

 

(90.5)

Net benefit obligation

$

(123.6)

$

(92.1)

Schedule of pre-tax amounts recognized in accumulated other comprehensive income (loss)

The following pre-tax amounts were recognized in accumulated other comprehensive income for the Company’s defined benefit plans at December 31, (dollars in millions):

    

2019

    

2018

 

2017

Reconciliation of amounts recognized in the consolidated balance sheets:

Prior service cost

$

(6.0)

$

(6.9)

$

(9.7)

Net actuarial loss

(62.3)

(32.0)

(48.9)

Accumulated other comprehensive loss

(68.3)

(38.9)

(58.6)

Accumulated contributions in excess of net periodic benefit cost

(55.3)

(53.2)

(49.1)

Net amount recognized

$

(123.6)

$

(92.1)

$

(107.7)

Schedule of the range of assumptions used to determine the net periodic benefit costs and the projected benefit obligations

The range of assumptions used for defined benefit pension plans reflects the different economic environments within the various countries. The range of assumptions used to determine the net periodic benefit costs and the projected benefit obligations for the years ended December 31, are as follows:

    

2019

    

2018

    

2017

Discount rates

 

0.3%-2.3%

0.2%-2.3%

0.2%-2.1%

Expected return on plan assets

0.0%-3.0%

0.0%-3.0%

0.0%-3.0%

Expected rate of compensation increase

 

0.0%-3.0%

1.0%-3.0%

1.0%-3.0%

Schedule of the fair value of the Company's pension plan assets, by asset category and by level in the fair value hierarchy

The fair value of the Company’s pension plan assets at December 31, 2019 and 2018, by asset category and by level in the fair value hierarchy, is as follows (dollars in millions):

Quoted Prices in

Significant Other

Significant

Active Markets

Observable Inputs

Unobservable Inputs

December 31, 2019

    

Total

    

Available (Level 1)

    

(Level 2)

    

(Level 3)

Plan Assets:

Group BPCE Life (a)

$

0.5

$

$

0.5

$

Swiss Life Collective BVG Foundation (b)

 

130.9

 

130.9

Total plan assets

$

131.4

$

$

131.4

$

Quoted Prices in

Significant Other

Significant

Active Markets

Observable Inputs

Unobservable Inputs

December 31, 2018

    

Total

    

Available (Level 1)

    

(Level 2)

    

(Level 3)

Plan Assets:

Group BPCE Life (a)

$

0.8

$

$

0.8

$

Swiss Life Collective BVG Foundation (b)

 

123.8

 

 

123.8

Total plan assets

$

124.6

$

$

124.6

$

(a)The Company’s pension plan in France is invested in a larger fund that invests in a variety of instruments. The assets are not directly dedicated to the French pension plan. The Group BPCE Life fund invests in debt securities of foreign corporations and governments, equity securities of foreign government funds and private real estate funds.
(b)The Company’s pension plan in Switzerland is outsourced to Swiss Life AG, an outside insurance provider. Under the insurance contract, the plan assets are invested in Swiss Life Collective BVG Foundation (the Foundation), which is an umbrella fund for which the retirement savings and interest rates are guaranteed a minimum of 1.0% for the years ended December 31, 2019 and 2018 on the mandatory withdrawal portion, as defined by Swiss law, and 0.25% for the years ended December 31, 2019 and 2018 on the non-mandatory portion. The Foundation utilizes plan administrators and investment managers to oversee the investment allocation process, set long-term strategic targets and monitor asset allocations. The target allocations are 75% bonds, including cash, 5% equity investments and 20% real estate and mortgages. Should the Foundation yield a return greater than the guaranteed amounts, the Company, according to Swiss law, shall receive 90% of the additional return with Swiss Life AG retaining 10%. The withdrawal benefits and interest allocations are secured at all times by Swiss Life AG.
Schedule of estimated future benefit payments The estimated future benefit payments are based on the same assumptions used to measure the Company’s benefit obligation at December 31, 2019. The following benefit payments reflect future employee service as appropriate (dollars in millions):

2020

    

$

2.9

2021

3.3

2022

3.9

2023

4.6

2024

5.5

2025-2028

37.1