XML 26 R16.htm IDEA: XBRL DOCUMENT v3.20.2
Pensions and Postretirement Benefits Other than Pensions
 9 Months Ended
Sep. 30, 2020
Retirement Benefits, Description [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.
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.
In connection with completion of the Transaction, the Company transferred certain pension obligations for current and former employees of Ingersoll Rand Industrial to Gardner Denver. The transfer of these obligations reduced pension liabilities by $488.7 million, pension assets by $351.3 million and AOCI by $114.2 million.
The components of the Company’s net periodic pension benefit cost for the three and nine months ended September 30 were as follows:
Three months endedNine months ended
In millions2020201920202019
Service cost$10.3 $19.0 $44.0 $55.2 
Interest cost20.2 29.7 63.2 89.3 
Expected return on plan assets(29.8)(34.6)(91.3)(103.8)
Net amortization of:
Prior service costs1.3 1.2 4.0 3.6 
Net actuarial (gains) losses11.4 14.0 33.0 40.7 
Net periodic pension benefit cost$13.4 $29.3 $52.9 $85.0 
Net curtailment and settlement (gains) losses(0.1)0.8 (3.7)2.4 
Net periodic pension benefit cost after net curtailment and settlement (gains) losses$13.3 $30.1 $49.2 $87.4 
Amounts recorded in continuing operations:
      Operating income$9.2 $14.7 $38.7 $43.2 
      Other income/(expense), net3.7 8.0 6.8 23.1 
Amounts recorded in discontinued operations0.4 7.4 3.7 21.1 
Total$13.3 $30.1 $49.2 $87.4 
The Company made contributions to its defined benefit pension plans of $90.5 million and $59.3 million during the nine months ended September 30, 2020 and 2019, respectively. The current year contribution includes $24.4 million to fund Ingersoll Rand Industrial plans prior to the completion of the Transaction. The Company currently projects that it will contribute approximately $99 million to its enterprise plans worldwide in 2020.
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.
In connection with the completion of the Transaction, the Company transferred certain postretirement benefit obligations for current and former employees of Ingersoll Rand Industrial to Gardner Denver. The transfer of these obligations reduced postretirement plan liabilities by $29.8 million and increased AOCI by $4.1 million.
The components of net periodic postretirement benefit cost for the three and nine months ended September 30 were as follows:
Three months endedNine months ended
In millions2020201920202019
Service cost$0.7 $0.8 $1.8 $2.0 
Interest cost2.4 3.3 7.4 11.1 
Net amortization of:
Prior service gains— (0.1)— (0.3)
Net actuarial (gains) losses(2.2)(5.0)(4.3)(8.2)
Net periodic postretirement benefit cost$0.9 $(1.0)$4.9 $4.6 
Amounts recorded in continuing operations:
     Operating income$0.7 $0.7 $1.8 $1.9 
     Other income/(expense), net0.3 (0.9)2.3 2.1 
Amounts recorded in discontinued operations(0.1)(0.8)0.8 0.6 
Total$0.9 $(1.0)$4.9 $4.6