Pensions and Postretirement Benefits Other than Pensions

9 Months Ended

Sep. 30, 2023

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 non-contributory 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 nine months ended September 30 were as follows:

	Three months ended				Nine months ended
In millions	2023		2022		2023		2022
Service cost	$	9.0	$	11.8	$	26.5	$	35.7
Interest cost	30.2		17.4		90.1		52.8
Expected return on plan assets	(30.1)		(25.7)		(90.1)		(78.0)
Net amortization of:
Prior service costs (benefits)	0.9		0.9		2.6		2.9
Net actuarial (gains) losses	3.9		5.8		11.9		17.5
Net periodic pension benefit cost	13.9		10.2		41.0		30.9
Net curtailment and settlement losses	—		15.0		1.1		15.0
Net periodic pension benefit cost after net curtailment and settlement losses	$	13.9	$	25.2	$	42.1	$	45.9
Amounts recorded in continuing operations:
Operating income	$	7.9	$	10.7	$	23.3	$	32.4
Other income/(expense), net	4.4		13.5		14.0		10.6
Amounts recorded in discontinued operations	1.6		1.0		4.8		2.9
Total	$	13.9	$	25.2	$	42.1	$	45.9

The Company made contributions to its defined benefit pension plans of $88.5 million and $82.4 million during the nine months ended September 30, 2023 and 2022, respectively. The Company currently projects that it will contribute a total of approximately $97 million to its enterprise plans worldwide in 2023.

The Net curtailment and settlement losses are associated with lump sum distribution under supplemental benefit plans for officers and other key employees.

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 nine months ended September 30 were as follows:

	Three months ended				Nine months ended
In millions	2023		2022		2023		2022
Service cost	$	0.4	$	0.4	$	1.1	$	1.4
Interest cost	3.3		1.7		10.0		5.1
Net amortization of:
Prior service costs (benefits)	0.1		—		0.4		—
Net actuarial (gains) losses	(3.3)		(1.4)		(9.8)		(4.2)
Net periodic postretirement benefit cost	$	0.5	$	0.7	$	1.7	$	2.3
Amounts recorded in continuing operations:
Operating income	$	0.4	$	0.4	$	1.1	$	1.4
Other income/(expense), net	0.3		0.4		1.0		1.0
Amounts recorded in discontinued operations	(0.2)		(0.1)		(0.4)		(0.1)
Total	$	0.5	$	0.7	$	1.7	$	2.3