XML 71 R40.htm IDEA: XBRL DOCUMENT v2.4.0.8
Retirement Plans (Tables)
 12 Months Ended
Dec. 31, 2013
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

 

 

Other Postretirement Benefits

 

 

  

  2013  

 

 

2012

 

 

2011

 

 

  2013  

 

 

2012

 

 

2011

 

Service cost

  

$

2.2

  

 

$

5.9

  

 

$

86.6

  

 

$

7.3

  

 

$

6.6

  

 

$

8.2

  

Interest cost

  

 

178.2

  

 

 

189.2

  

 

 

192.0

  

 

 

16.2

  

 

 

18.4

  

 

 

22.7

  

Expected return on plan assets

  

 

(241.9

)  

 

 

(262.6

) 

 

 

(266.4

) 

 

 

(11.8

)  

 

 

(13.9

) 

 

 

(14.8

) 

Amortization of prior service credit

  

 

—

  

 

 

0.6

  

 

 

(4.4

) 

 

 

(19.7

)  

 

 

(19.7

) 

 

 

(12.5

) 

Amortization of actuarial loss (gain)

  

 

50.5

  

 

 

32.1

  

 

 

50.1

  

 

 

—

  

 

 

(0.1

) 

 

 

0.1

  

Curtailments

  

 

—

  

 

 

(3.7

) 

 

 

(38.7

) 

 

 

—

  

 

 

—

  

 

 

—

  

Settlements

  

 

0.7

  

 

 

1.1

  

 

 

—

  

 

 

—

  

 

 

—

  

 

 

—

  

Net periodic benefit (income) expense

  

 $

(10.3

)  

 

 $

(37.4

) 

 

 $

19.2

  

 

 $

(8.0

)  

 

 $

(8.7

) 

 

 $

3.7

  

Weighted average assumption used to calculate net periodic benefit expense:

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

  

 

4.2

% 

 

 

4.9

% 

 

 

5.5

% 

 

 

3.9

% 

 

 

4.8

% 

 

 

5.2

% 

Rate of compensation increase

  

 

0.3

% 

 

 

0.9

% 

 

 

4.0

% 

 

 

n/a

 

 

 

3.6

% 

 

 

3.6

% 

Expected return on plan assets

  

 

7.9

% 

 

 

8.4

% 

 

 

8.4

% 

 

 

7.3

% 

 

 

7.6

% 

 

 

7.6

% 

 
Reconciliation of Benefit Obligation, Plan Assets and Funded Status of Plans

 

 

  

Pension Benefits

 

 

Other Postretirement Benefits

 

 

  

2013

 

 

2012

 

 

2013

 

 

2012

 

Benefit obligation at beginning of year

  

$

4,368.8

  

  

$

3,923.6

  

 

$

430.2

  

  

$

403.1

  

Service cost

  

 

2.2

  

  

 

5.9

  

 

 

7.3

  

  

 

6.6

  

Interest cost

  

 

178.2

  

  

 

189.2

  

 

 

16.2

  

  

 

18.4

  

Plan participants’ contributions

  

 

0.5

  

  

 

1.2

  

 

 

14.5

  

  

 

14.4

  

Medicare reimbursements

  

 

—

  

  

 

—

  

 

 

2.7

  

  

 

3.3

  

Actuarial (gain) loss

  

 

(404.2

)  

  

 

411.2

  

 

 

(13.6

)  

  

 

27.6

  

Plan amendments and other

  

 

(0.1

)  

  

 

2.6

  

 

 

(30.6

)  

  

 

0.5

  

Curtailments and settlements

  

 

(9.0

)  

  

 

(6.5

) 

 

 

—

  

  

 

—

  

Foreign currency translation

  

 

(8.5

)  

  

 

17.5

  

 

 

(2.9

)  

  

 

1.1

  

Benefits paid

  

 

(175.2

)  

  

 

(175.9

) 

 

 

(41.5

)  

  

 

(44.8

) 

Benefit obligation at end of year

  

$

3,952.7

  

  

$

4,368.8

  

 

$

382.3

  

  

$

430.2

  

Fair value of plan assets at beginning of year

  

$

3,215.3

  

  

$

2,849.6

  

 

$

187.1

  

  

$

174.7

  

Actual return on assets

  

 

658.0

  

  

 

389.9

  

 

 

35.6

  

  

 

21.0

  

Settlements

  

 

(8.7

)  

  

 

(3.7

) 

 

 

—

  

  

 

—

  

Employer contributions

  

 

21.6

  

  

 

140.7

  

 

 

8.0

  

  

 

8.0

  

Medicare reimbursements

  

 

—

  

  

 

—

  

 

 

2.7

  

  

 

3.3

  

Plan participants’ contributions

  

 

0.5

  

  

 

1.2

  

 

 

14.5

  

  

 

14.4

  

Other

  

 

—

  

  

 

—

  

 

 

—

  

  

 

10.2

  

Foreign currency translation

  

 

(4.2

)  

  

 

13.5

  

 

 

0.4

  

  

 

0.3

  

Benefits paid

  

 

(175.2

)  

  

 

(175.9

) 

 

 

(41.5

)  

  

 

(44.8

) 

Fair value of plan assets at end of year

  

$

3,707.3

  

  

$

3,215.3

  

 

$

206.8

  

  

$

187.1

  

Funded status at end of year

  

$

(245.4

)  

  

$

(1,153.5

) 

 

$

(175.5

) 

  

$

(243.1

) 

 
Amounts Recognized on Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets as of December 31, 2013 and 2012 were as follows:

 

 

  

Pension Benefits

 

 

Other Postretirement Benefits

 

 

  

2013

 

 

2012

 

 

2013

 

 

2012

 

Prepaid pension cost (included in other noncurrent assets)

  

$

8.0

  

  

$

4.4

  

 

$

—

  

  

$

—

  

Accrued benefit cost (included in accrued liabilities)

  

 

(8.2

)  

  

 

(7.4

) 

 

 

(1.4

)  

  

 

(1.4

) 

Pension liabilities

  

 

(245.2

)  

  

 

(1,150.5

) 

 

 

—

  

  

 

—

  

Other postretirement benefits plan liabilities

  

 

—

  

  

 

—

  

 

 

(174.1

)  

  

 

(241.7

) 

Net liabilities recognized in the Consolidated Balance Sheets

  

$

(245.4

)  

  

$

(1,153.5

) 

 

$

(175.5

)  

  

$

(243.1

) 

 
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, 2013 and 2012 were as follows:

 

 

  

Pension Benefits

 

  

Other Postretirement Benefits

 

 

  

2013

 

 

2012

 

 

2013

 

 

2012

 

Accumulated other comprehensive (loss) income

  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Net actuarial (loss) gain

  

$

(957.5

)  

  

$

(1,828.9

)  

  

$

35.6

  

  

$

(1.6

)  

Net transition obligation

  

 

(0.2

)  

  

 

(0.2

)  

  

 

—

  

  

 

—

 

Net prior service credit

  

 

—

  

  

 

—

 

  

 

78.4

 

  

 

68.0

 

Total

  

$

(957.7

)  

  

$

(1,829.1

)  

  

$

114.0

  

  

$

66.4

 

 
Amounts Recognized in Other Comprehensive Income (Loss)

The pre-tax amounts recognized in other comprehensive income (loss) in 2013 as components of net periodic benefit costs were as follows:

 

 

  

Pension
Benefits

 

  

Other
Postretirement
Benefits

 

Amortization of:

  

 

 

 

  

 

 

 

Net actuarial loss

  

$

50.5

  

  

$

—

  

Net prior service credit

  

 

—

  

  

 

(19.7

)  

Amounts arising during the period:

  

 

 

 

 

 

 

 

Net actuarial gain

  

 

820.7

  

  

 

37.4

 

Net prior service credit

  

 

—

  

  

 

30.1

  

Settlements

 

 

0.7

 

 

 

—

 

Foreign currency loss

  

 

(0.5

)  

  

 

(0.2

)  

Total

  

$

871.4

 

  

$

47.6

  

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

Actuarial gains and losses in excess of 10.0% of the greater of the projected benefit obligation or the market-related value of plan assets were recognized as a component of net periodic benefit costs over the average remaining service period of a plan’s active employees. As a result of the plan freezes, the actuarial gains and losses are recognized as a component of net periodic benefit costs over the average remaining life of a plan’s active employees. Unrecognized prior service costs or credits are also recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees. The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit costs in 2014 are shown below:

 

 

  

Pension
Benefits

 

  

Other Postretirement
Benefits

 

Amortization of:

  

 

 

 

  

 

 

 

Net actuarial loss

  

$

31.4

  

  

$

—

  

Net prior service credit

  

 

—

  

  

 

(25.8

)  

Total

  

$

31.4

  

  

$

(25.8

)  

 
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

 

 

Other Postretirement
Benefits

 

 

  

2013

 

 

2012

 

 

2013

 

 

2012

 

Discount rate

  

 

5.0

% 

 

 

4.2

% 

 

 

4.5

% 

 

 

3.9

% 

Rate of compensation increase

  

 

n/a

  

 

 

n/a

  

 

 

n/a

 

 

 

3.6

% 

Health care cost trend:

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pre-Age 65

  

 

—

 

 

 

—

 

 

 

7.8

% 

 

 

7.4

% 

Post-Age 65

  

 

—

 

 

 

—

 

 

 

7.8

% 

 

 

7.4

% 

Ultimate

  

 

—

 

 

 

—

 

 

 

4.9

% 

 

 

5.8

% 

 
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, 2013 and 2012:

 

 

  

Pension Benefits

 

 

  

2013

 

  

2012

 

Projected benefit obligation

  

$

3,929.6

  

  

$

4,348.3

  

Fair value of plan assets

  

 

3,676.1

  

  

 

3,190.3

  

 
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, 2013 and 2012:

 

 

  

Pension Benefits

 

 

  

2013

 

  

2012

 

Accumulated benefit obligation

  

$

3,912.0

  

  

$

4,321.6

  

Fair value of plan assets

  

 

3,672.6

  

  

 

3,187.4

  

 
Effects of One-percentage Point Change in Assumed Health Care Cost Trend Rates

The current health care cost trend rate gradually declines through 2019 to the ultimate trend rate and remains level thereafter. A one-percentage point change in assumed health care cost trend rates would have the following effects:

 

 

  

1.0%
Increase

 

  

1.0%
Decrease

 

Other postretirement benefits obligation

  

$

5.5

  

  

$

(4.4

) 

Total other postretirement benefits service and interest cost components

  

 

0.6

  

  

 

(0.6

) 

 
Expected Benefit Payments

Benefit payments are expected to be paid as follows:

 

 

  

Pension
Benefits

 

  

Other
Postretirement
Benefits-Gross

 

  

Estimated Subsidy
Reimbursements

 

2014

  

$

193.6

  

  

$

33.8

  

  

$

3.8

  

2015

  

 

194.9

  

  

 

34.3

  

  

 

4.1

  

2016

  

 

200.9

  

  

 

34.8

  

  

 

4.3

  

2017

  

 

209.2

  

  

 

35.1

  

  

 

4.7

  

2018

  

 

216.3

  

  

 

35.6

  

  

 

5.0

  

2019-2023

  

 

1,222.5

  

  

 

176.6

  

  

 

31.0

  

 
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, 2012

  

$

30.1

  

Unrealized gains—net

  

 

5.8

  

Purchases, sales and settlements

  

 

3.0

  

Balance at December 31, 2012

  

$

38.9

  

Unrealized gains—net

  

 

8.7

  

Purchases, sales and settlements

  

 

(4.2

)  

Balance at December 31, 2013

  

$

43.4

  

 
Pension Plans, Defined Benefit
  
Allocation of Plan Assets

The fair values of the Company’s pension plan assets at December 31, 2013 and 2012, by asset category were as follows:

 

 

  

December 31, 2013

 

  

December 31, 2012

 

Asset Category

  

Total

 

  

Level 1

 

  

Level 2

 

  

Level 3

 

  

Total

 

  

Level 1

 

  

Level 2

 

  

Level 3

 

Cash and cash equivalents

  

$

79.6

  

  

$

51.6

  

  

$

28.0

  

  

$

—

  

  

$

56.9

  

  

$

27.4

  

  

$

29.5

  

  

$

—

  

Equity

  

 

2,658.7

  

  

 

1,839.3

  

  

 

819.4

  

  

 

—

  

  

 

2,169.0

  

  

 

1,887.4

  

  

 

281.6

  

  

 

—

  

Fixed income

  

 

795.3

  

  

 

255.0

  

  

 

540.3

  

  

 

—

  

  

 

828.0

  

  

 

240.5

  

  

 

587.5

  

  

 

—

  

Derivatives and other

  

 

3.9

  

  

 

3.4

  

  

 

0.5

  

  

 

—

  

  

 

8.9

  

  

 

0.5

  

  

 

8.4

  

  

 

—

  

Real estate

  

 

126.4

  

  

 

—

  

  

 

126.4

  

  

 

—

  

  

 

113.6

  

  

 

—

  

  

 

113.6

  

  

 

—

  

Private equity

  

 

43.4

  

  

 

—

  

  

 

—

  

  

 

43.4

  

  

 

38.9

  

  

 

—

  

  

 

—

  

  

 

38.9

  

Total

  

$

3,707.3

  

  

$

2,149.3

  

  

$

1,514.6

  

  

$

43.4

  

  

$

3,215.3

  

  

$

2,155.8

  

  

$

1,020.6

  

  

$

38.9

  

 
Other Postretirement Benefit Plans, Defined Benefit
  
Allocation of Plan Assets

The fair values of the Company’s other postretirement benefits plan assets at December 31, 2013 and 2012, all of which were determined to be Level 2 under the fair value hierarchy, by asset category were as follows:

 

Asset Category

  

2013

 

  

2012

 

Cash and cash equivalents

  

$

1.5

  

  

$

8.4

  

Equity

  

 

155.1

  

  

 

133.3

  

Fixed income

  

 

39.6

  

  

 

35.9

  

Derivatives and other

  

 

10.6

  

  

 

9.5

  

Total

  

$

206.8

  

  

$

187.1