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Retirement Plans (Tables)
12 Months Ended
Dec. 31, 2012
Components of Net Pension and Postretirement Benefits (Income) Expense And Total (Income) Expense

The components of the net periodic benefit (income) expense and total (income) expense were as follows:

 

     Pension Benefits     Postretirement Benefits  
     2012     2011     2010     2012     2011     2010  

Service cost

   $ 5.9      $ 86.6      $ 80.4      $ 6.6      $ 8.2      $ 12.2   

Interest cost

     189.2        192.0        184.0        18.4        22.7        28.4   

Expected return on plan assets

     (262.6     (266.4     (258.7     (13.9     (14.8     (15.5

Amortization of prior service credit

     0.6        (4.4     (1.9     (19.7     (12.5     (10.8

Amortization of actuarial loss (gain)

     32.1        50.1        29.7        (0.1     0.1        1.3   

Curtailments

     (3.7     (38.7     (0.4     —          —         —     

Settlements

     1.1        —          —          —          —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic benefit (income) expense

     (37.4     19.2        33.1        (8.7     3.7        15.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average assumption used to calculate net periodic benefit expense:

            

Discount rate

     4.9     5.5     6.0     4.8     5.2     5.7

Rate of compensation increase

     0.9     4.0     4.0     3.6     3.6     4.0

Expected return on plan assets

     8.4     8.4     8.3     7.6     7.6     7.6
Reconciliation of Benefit Obligation, Plan Assets and Funded Status of Plans
     Pension Benefits     Postretirement Benefits  
     2012     2011         2012             2011      

Benefit obligation at beginning of year

   $ 3,923.6      $ 3,583.1      $ 403.1      $ 490.3   

Service cost

     5.9        86.6        6.6        8.2   

Interest cost

     189.2        192.0        18.4        22.7   

Plan participants’ contributions

     1.2        1.2        14.4        17.8   

Medicare reimbursements

     —           —         3.3        3.3   

Actuarial loss (gain)

     411.2        306.4        27.6        (22.5

Plan amendments and other

     2.6        (0.5     0.5        (72.4

Curtailments and settlements

     (6.5     (61.6     —          —    

Foreign currency translation

     17.5        (5.4     1.1        (0.8

Benefits paid

     (175.9     (178.2     (44.8     (43.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Benefit obligation at end of year

   $ 4,368.8      $ 3,923.6      $ 430.2      $ 403.1   
  

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets at beginning of year

   $ 2,849.6      $ 3,029.6      $ 174.7      $ 191.9   

Actual return on assets

     389.9        (44.4     21.0        (4.7

Settlements

     (3.7     —         —           —    

Employer contributions

     140.7        44.7        8.0        13.2   

Medicare reimbursements

     —          —          3.3        —     

Plan participants’ contributions

     1.2        1.2        14.4        17.8   

Other

     —           —         10.2        —    

Foreign currency translation

     13.5        (3.3     0.3        —    

Benefits paid

     (175.9     (178.2     (44.8     (43.5
  

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets at end of year

   $ 3,215.3      $ 2,849.6      $ 187.1      $ 174.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

Funded status at end of year

   $ (1,153.5   $ (1,074.0   $ (243.1   $ (228.4
  

 

 

   

 

 

   

 

 

   

 

 

 
Amounts Recognized on Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets as of December 31, 2012 and 2011 were as follows:

 

     Pension Benefits     Postretirement Benefits  
     2012     2011         2012             2011      

Prepaid pension cost (included in other noncurrent assets)

   $ 4.4      $ 9.5      $ —         $ —    

Accrued benefit cost (included in accrued liabilities)

     (7.4     (7.2     (1.4     (1.1

Pension liabilities

     (1,150.5     (1,076.3     —           —    

Postretirement benefits

     —           —         (241.7     (227.3
  

 

 

   

 

 

   

 

 

   

 

 

 

Net liabilities recognized in the consolidated balance sheets

   $ (1,153.5   $ (1,074.0   $ (243.1   $ (228.4
  

 

 

   

 

 

   

 

 

   

 

 

 
Amounts In Accumulated Other Comprehensive Loss

The amounts included in accumulated other comprehensive loss in the Consolidated Balance Sheets, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost at December 31, 2012 and 2011 were as follows:

 

     Pension Benefits      Postretirement Benefits  
     2012      2011          2012             2011      

Accumulated other comprehensive loss (income)

          

Net actuarial loss (gain)

   $ 1,828.9       $ 1,574.3       $ 1.6      $ (9.1

Net transition obligation

     0.2         0.2         —           —    

Net prior service credit

     —            —          (68.0     (87.8
  

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 1,829.1       $ 1,574.5       $ (66.4   $ (96.9
  

 

 

    

 

 

    

 

 

   

 

 

 
Amounts Recognized In Other Comprehensive Income (Loss)

The pre-tax amounts recognized in other comprehensive income (loss) in 2012 as components of net periodic benefit costs were as follows:

 

     Pension
Benefits
    Postretirement
Benefits
 

Amortization of:

    

Net actuarial (loss) gain

   $ (32.1   $ 0.1   

Net prior service credit

     (0.6     19.7   

Amounts arising during the period:

    

Net actuarial loss

     283.9        10.5   

Net prior service credit

     0.6        —      

Foreign currency gain

     2.8        0.2   
  

 

 

   

 

 

 

Total

   $ 254.6      $ 30.5   
  

 

 

   

 

 

 
Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized Next Fiscal Year

The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2013 are shown below:

 

     Pension
Benefits
     Postretirement
Benefits
 

Amortization of:

     

Net actuarial loss

   $ 50.2       $ 0.1   

Net prior service credit

     —            (19.7
  

 

 

    

 

 

 

Total

   $ 50.2       $ (19.6
  

 

 

    

 

 

 
Weighted Average Assumptions Used to Determine Benefit Obligation

The weighted average assumptions used to determine the benefit obligation at the measurement date were as follows:

 

     Pension Benefits     Postretirement
Benefits
 
     2012     2011     2012     2011  

Discount rate

     4.2     4.9     3.9     4.8

Rate of compensation increase

     n/a       0.9     3.6     3.6

Health care cost trend:

        

Current

        

Pre-Age 65

     —           —         7.4     7.0

Post-Age 65

     —           —         7.4     7.0

Ultimate

     —           —         5.8     5.9
Summary of Projected Benefit Obligations in Excess of Plan Assets

The following table provides a summary of under-funded or unfunded pension benefit plans with projected benefit obligation in excess of plan assets as of December 31, 2012 and 2011:

 

     Pension Benefits  
     2012      2011  

Projected benefit obligation

   $ 4,348.3       $ 3,906.7   

Fair value of plan assets

     3,190.3         2,823.2   
Accumulated Benefit Obligations in Excess of Plan Assets

The following table provides a summary of pension plans with accumulated benefit obligations in excess of plan assets as of December 31, 2012 and 2011:

 

     Pension Benefits  
     2012      2011  

Accumulated benefit obligation

   $ 4,321.6       $ 3,881.6   

Fair value of plan assets

     3,187.4         2,818.7   
Effects of One-percentage Point Change in Assumed Health Care Cost Trend Rates

A one-percentage point change in assumed health care cost trend rates would have the following effects:

 

     1.0%
Increase
     1.0%
Decrease
 

Postretirement benefit obligation

   $ 6.8       $ (5.7

Total postretirement service and interest cost components

     0.5         (0.5
Expected Benefit Payments

Benefit payments are expected to be paid as follows:

 

     Pension
Benefits
     Postretirement
Benefits-Gross
     Estimated
Subsidy
Reimbursements
 

2013

   $ 189.3       $ 35.7       $ 5.9   

2014

     192.2         36.1         6.3   

2015

     195.6         36.6         6.8   

2016

     201.1         37.0         7.1   

2017

     210.3         37.3         7.6   

2018-2022

     1,178.8         188.0         44.1   
Changes in Fair Value of Level 3 Assets

The following table provides a summary of changes in the fair value of the Company’s Level 3 assets:

 

     Private
Equity
                

Balance at January 1, 2011

   $ 15.5            

Unrealized losses—net

     3.2            

Purchases, sales and settlements

     11.4            
  

 

 

          

Balance at December 31, 2011

   $ 30.1            
  

 

 

          

Unrealized gains—net

     5.8            

Purchases, sales and settlements

     3.0            
  

 

 

          

Balance at December 31, 2012

   $ 38.9            
  

 

 

          
Pension Plans, Defined Benefit
 
Allocation of Plan Assets

The fair values of the Company’s pension plan assets at December 31, 2012 and 2011, by asset category were as follows:

 

     December 31, 2012      December 31, 2011  

Asset Category

   Total      Level 1      Level 2      Level 3      Total      Level 1      Level 2      Level 3  

Cash and cash equivalents

   $ 56.9       $ 27.4       $ 29.5       $ —          $ 65.2       $ 43.4       $ 21.8       $ —     

Equity

     2,169.0         1,887.4         281.6         —            1,857.0         1,604.4         252.6         —     

Fixed income

     828.0         240.5         587.5         —            779.1         214.8         564.3         —     

Derivatives and other

     8.9         0.5         8.4         —            6.9         3.6         3.3         —     

Real estate

     113.6         —            113.6         —            111.3         7.1         104.2         —     

Private equity

     38.9         —            —            38.9         30.1         —           —           30.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 3,215.3       $ 2,155.8       $ 1,020.6       $ 38.9       $ 2,849.6       $ 1,873.3       $ 946.2       $ 30.1   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
Other Postretirement Benefit Plans, Defined Benefit
 
Allocation of Plan Assets

The fair values of the Company’s other postretirement benefit plan assets at December 31, 2012 and 2011, all of which were determined to be Level 2 under the fair value hierarchy, by asset category were as follows:

 

Asset Category

   2012      2011  

Cash and cash equivalents

   $ 8.4       $ 17.7   

Equity

     133.3         114.3   

Fixed income

     35.9         42.7   

Derivatives and other

     9.5         —     
  

 

 

    

 

 

 

Total

   $ 187.1       $ 174.7