Pensions and Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2019

The following table details information regarding the Company’s pension plans at December 31:



	U.S.						NON-U.S.
In millions	2019			2018			2019			2018
Change in benefit obligations:
Benefit obligation at beginning of year	$	293.3		$	317.5		$	356.8		$	396.3
Service cost	6.5			8.6			1.7			3.3
Interest cost	11.7			10.4			8.8			8.4
Employee contributions	—			—			0.3			0.3
Amendments	—			—			(0.8		)	5.0
Actuarial losses (gains)	42.2			(25.4		)	45.7			(14.9		)
Benefits paid	(13.0		)	(16.5		)	(16.9		)	(19.4		)
Foreign exchange rate changes	—			—			13.9			(21.1		)
Curtailments and settlements	—			—			(5.0		)	(0.2		)
Acquisitions	—			—			—			0.5
Other, including expenses paid	0.3			(1.3		)	—			(1.4		)
Benefit obligation at end of year	$	341.0		$	293.3		$	404.5		$	356.8
Change in plan assets:
Fair value at beginning of year	$	259.4		$	283.2		$	352.2		$	398.4
Actual return on plan assets	50.4			(12.1		)	55.2			(9.8		)
Company contributions	6.0			6.1			10.6			5.4
Employee contributions	—			—			0.3			0.3
Benefits paid	(13.0		)	(16.5		)	(16.9		)	(19.4		)
Foreign exchange rate changes	—			—			15.2			(20.8		)
Curtailment and settlements	—			—			(6.2		)	(0.2		)
Other, including expenses paid	(1.3		)	(1.3		)	(1.4		)	(1.7		)
Fair value of assets at end of year	$	301.5		$	259.4		$	409.0		$	352.2
Funded status:
Plan assets (less than) exceeding benefit obligations	$	(39.5	)	$	(33.9	)	$	4.5		$	(4.6	)
Amounts included in the balance sheet:
Other noncurrent assets	$	—		$	—		$	29.3		$	21.1
Accrued compensation and benefits	(0.5		)	(0.3		)	(0.8		)	(1.1		)
Postemployment and other benefit liabilities	(39.0		)	(33.6		)	(24.0		)	(24.6		)
Net amount recognized	$	(39.5	)	$	(33.9	)	$	4.5		$	(4.6	)

The fair values of the Company’s U.S. pension plan assets at December 31, 2019, by asset category were as follows:



	Fair value measurements								Total
In millions	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Assets measured at NAV		Total
Cash, cash equivalents and short-term investments	$	—	$	—	$	—	$	4.7	$	4.7
Common collective trusts	—		—		—		262.5		262.5
Other^(a)	—		—		—		34.3		34.3
Total U.S. pension plan assets	$	—	$	—	$	—	$	301.5	$	301.5


(a)	Includes a group trust diversified credit fund and real estate investment trust.

The fair values of the Company’s U.S. pension plan assets at December 31, 2018, by asset category were as follows:



	Fair value measurements								Total
In millions	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Assets measured at NAV		Total
Cash, cash equivalents and short-term investments	$	—	$	3.1	$	—	$	—	$	3.1
Common collective trusts	—		—		—		237.6		237.6
Other^(a)	—		—		—		18.7		18.7
Total U.S. pension plan assets	$	—	$	3.1	$	—	$	256.3	$	259.4

(a)

The fair values of the Company’s non-U.S. pension plan assets at December 31, 2019, by asset category were as follows:



	Fair value measurements								Total
In millions	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Assets measured at NAV		Total
Cash, cash equivalents and short-term investments	$	0.9	$	—	$	—	$	56.9	$	57.8
Equity mutual funds	—		2.7		—		102.5		105.2
Corporate and non-U.S. bonds	—		118.0		—		70.1		188.1
Other^(a)	—		9.0		3.4		45.5		57.9
Total non-U.S. pension plan assets	$	0.9	$	129.7	$	3.4	$	275.0	$	409.0

(a) Primarily includes a core diversified credit fund and derivative contracts.

The fair values of the Company’s non-U.S. pension plan assets at December 31, 2018, by asset category were as follows:



	Fair value measurements								Total
In millions	Quoted prices in active markets for identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant unobservable inputs (Level 3)		Assets measured at NAV		Total
Cash, cash equivalents and short-term investments	$	1.3	$	36.1	$	—	$	—	$	37.4
Equity mutual funds	—		2.6		—		88.7		91.3
Corporate and non-U.S. bonds	—		109.4		—		31.7		141.1
Other^(a)	—		41.3		3.2		37.9		82.4
Total non-U.S. pension plan assets	$	1.3	$	189.4	$	3.2	$	158.3	$	352.2

(a) Primarily includes insurance contracts, mortgage-backed securities, real estate and derivative contract

The pretax amounts recognized in Accumulated other comprehensive loss were as follows:



	U.S.
In millions	Prior service cost			Net actuarial losses			Total
December 31, 2017	$	(1.8	)	$	(72.5	)	$	(74.3	)
Current year changes recorded to Accumulated other comprehensive loss	—			(1.1		)	(1.1		)
Amortization reclassified to earnings	0.3			4.0			4.3
December 31, 2018	$	(1.5	)	$	(69.6	)	$	(71.1	)
Current year changes recorded to Accumulated other comprehensive loss	—			(4.2		)	(4.2		)
Amortization reclassified to earnings	0.3			4.7			5.0
December 31, 2019	$	(1.2	)	$	(69.1	)	$	(70.3	)



	NON-U.S.
In millions	Prior service cost			Net actuarial losses			Total
December 31, 2017	$	0.1		$	(60.6	)	$	(60.5	)
Current year changes recorded to Accumulated other comprehensive loss	(5.0		)	(10.4		)	(15.4		)
Amortization reclassified to earnings	—			0.9			0.9
Currency translation and other	0.2			3.9			4.1
December 31, 2018	$	(4.7	)	$	(66.2	)	$	(70.9	)
Current year changes recorded to Accumulated other comprehensive loss	0.8			(4.8		)	(4.0		)
Amortization reclassified to earnings	0.2			1.3			1.5
Settlements/curtailments reclassified to earnings	—			2.3			2.3
Currency translation and other	(0.1		)	(2.4		)	(2.5		)
December 31, 2019	$	(3.8	)	$	(69.8	)	$	(73.6	)

Weighted-average assumptions used:



Net periodic pension cost for the year ended December 31,	2019		2018		2017
Discount rate:
U.S. plans	4.3	%	3.6	%	4.1	%
Non-U.S. plans	2.8	%	2.5	%	2.6	%
Rate of compensation increase:
U.S. plans	3.0	%	3.0	%	3.5	%
Non-U.S. plans	3.3	%	3.3	%	3.2	%
Expected return on plan assets:
U.S. plans	5.0	%	5.3	%	4.8	%
Non-U.S. plans	3.8	%	4.0	%	4.0	%

Weighted-average assumptions used:



Benefit obligations at December 31,	2019		2018
Discount rate:
U.S. plans	3.3	%	4.3	%
Non-U.S. plans	1.9	%	2.8	%
Rate of compensation increase:
U.S. plans	3.0	%	3.0	%
Non-U.S. plans	3.0	%	3.3	%

Information regarding pension plans with accumulated benefit obligations more than plan assets were:



	U.S.				NON-U.S.
In millions	2019		2018		2019		2018
Projected benefit obligation	$	341.0	$	293.3	$	34.0	$	34.5
Accumulated benefit obligation	332.4		284.8		29.1		29.6
Fair value of plan assets	$	301.5	$	259.4	$	9.5	$	8.8

Future pension benefit payments are expected to be paid as follows:

The components of the Company’s net periodic pension benefit costs for the years ended December 31 include the following:



	U.S.
In millions	2019			2018			2017
Service cost	$	6.5		$	6.8		$	7.1
Interest cost	11.7			10.5			10.5
Expected return on plan assets	(12.5		)	(14.4		)	(12.0		)
Administrative costs and other	1.7			1.6			1.6
Net amortization of:
Prior service costs	0.3			0.3			0.3
Plan net actuarial losses	4.7			4.1			4.8
Net periodic pension benefit cost	$	12.4		$	8.9		$	12.3



	NON-U.S.
In millions	2019			2018			2017
Service cost	$	1.7		$	1.7		$	1.5
Interest cost	8.8			8.4			8.9
Expected return on plan assets	(13.0		)	(15.4		)	(14.3		)
Administrative costs and other	1.3			1.8			2.5
Net amortization of:
Prior service costs	0.2			—			—
Plan net actuarial losses	1.4			0.9			1.9
Net curtailment and settlement losses	2.3			—			0.1
Net periodic pension benefit cost (income)	$	2.7		$	(2.6	)	$	0.6