XML 23 R13.htm IDEA: XBRL DOCUMENT v3.5.0.2
Pensions and Postretirement Benefits Other than Pensions
 6 Months Ended
Jun. 30, 2016
General Discussion of Pension and Other Postretirement Benefits [Abstract]  
Pensions and Postretirement Benefits Other than Pensions
Pensions and Postretirement Benefits Other than Pensions
The Company sponsors several U.S. defined benefit and defined contribution plans covering substantially all of the Company's U.S. employees. Additionally, the Company has many non-U.S. defined benefit and defined contribution plans covering eligible non-U.S. employees. Postretirement benefits other than pensions (OPEB) provide healthcare benefits, and in some instances, life insurance benefits for certain eligible employees.
At December 31, 2015, the Company refined the measurement approach used to calculate service and interest costs for both pension and OPEB obligations to utilize multiple specific spot rates, along the same hypothetical yield curve, that correlate with the timing of the relevant projected cash flows. The Company concluded that this refinement is a change in accounting estimate.
Pension Plans
The noncontributory defined benefit pension plans covering non-collectively bargained U.S. employees provide benefits on a final average pay formula while plans for most collectively bargained U.S. employees provide benefits on a flat dollar benefit formula or a percentage of pay formula. The non-U.S. pension plans generally provide benefits based on earnings and years of service. The Company also maintains additional other supplemental plans for officers and other key or highly compensated employees.
The components of the Company’s net periodic pension benefit cost for the three and six months ended June 30 were as follows:
 
Three months ended
 
Six months ended
In millions
2016
 
2015
 
2016
 
2015
Service cost
$
18.3

 
$
18.8

 
$
36.5

 
$
37.7

Interest cost
28.5

 
32.6

 
56.9

 
65.2

Expected return on plan assets
(36.1
)
 
(39.6
)
 
(72.2
)
 
(79.2
)
Net amortization of:
 
 
 
 
 
 
 
Prior service costs
1.2

 
0.8

 
2.4

 
1.6

Net actuarial losses
15.1

 
15.5

 
30.3

 
30.9

Net periodic pension benefit cost
$
27.0

 
$
28.1

 
$
53.9

 
$
56.2

Amounts recorded in continuing operations
$
24.5

 
$
25.4

 
$
48.9

 
$
50.9

Amounts recorded in discontinued operations
2.5

 
2.7

 
5.0

 
5.3

Total
$
27.0

 
$
28.1

 
$
53.9

 
$
56.2


The Company made contributions to its defined benefit pension plans of $11.6 million and $11.3 million during the six months ended June 30, 2016 and 2015, respectively. The Company currently projects that it will contribute approximately $56 million to its plans worldwide in 2016.
Postretirement Benefits Other Than Pensions
The Company sponsors several postretirement plans that provide for healthcare benefits, and in some instances, life insurance benefits that cover certain eligible employees. These plans are unfunded and have no plan assets, but are instead funded by the Company on a pay-as-you-go basis in the form of direct benefit payments. Generally, postretirement health benefits are contributory with contributions adjusted annually. Life insurance plans for retirees are primarily noncontributory.
The components of net periodic postretirement benefit cost for the three and six months ended June 30 were as follows:
 
Three months ended
 
Six months ended
In millions
2016
 
2015
 
2016
 
2015
Service cost
$
1.0

 
$
1.1

 
$
1.9

 
$
2.1

Interest cost
4.5

 
5.9

 
9.0

 
11.9

Net amortization of:
 
 
 
 
 
 
 
Prior service gains
(2.2
)
 
(2.2
)
 
(4.4
)
 
(4.4
)
Net actuarial losses
—

 
0.1

 
—

 
0.2

Net periodic postretirement benefit cost
$
3.3

 
$
4.9

 
$
6.5

 
$
9.8

Amounts recorded in continuing operations
$
2.2

 
$
3.0

 
$
4.3

 
$
6.0

Amounts recorded in discontinued operations
1.1

 
1.9

 
2.2

 
3.8

Total
$
3.3

 
$
4.9

 
$
6.5

 
$
9.8