Employee Benefits

3 Months Ended

Mar. 31, 2016

Compensation And Retirement Disclosure [Abstract]

Employee Benefits

7. Employee Benefits

The components of the estimated net pension and other postretirement benefits plan income for the three months ended March 31, 2016 and 2015 were as follows:

	Three Months Ended
	March 31,
	2016			2015
Pension expense (income)
Service cost	$	0.3		$	0.6
Interest cost		36.9			44.8
Expected return on assets		(60.5	)		(61.6	)
Amortization, net		7.8			10.2
Net pension income	$	(15.5	)	$	(6.0	)
Other postretirement benefits plan expense (income)
Service cost	$	1.0		$	1.2
Interest cost		3.0			4.0
Expected return on plan assets		(3.4	)		(3.3	)
Amortization, net		(4.0	)		(6.7	)
Net other postretirement benefits plan income	$	(3.4	)	$	(4.8	)

During the fourth quarter of 2015, the Company changed the method used to estimate the interest cost components of net pension and other postretirement benefits plan expense for its defined benefit pension and other postretirement benefit plans. Historically, the interest cost components were estimated using a single weighted-average discount rate derived from the yield curve used to measure the projected benefit obligation at the beginning of the period. Beginning in the first quarter of 2016, the Company has elected to use a full yield curve approach in the estimation of these interest components of net pension and other postretirement benefits plan expense by applying the specific spot rates along the yield curve used in the determination of the projected benefit obligation to the relevant projected cash flows. The Company made this change to improve the correlation between projected benefit cash flows and the corresponding yield curve spot rates and to provide a more precise measurement of interest costs. This change does not affect the measurement and calculation of the Company’s total benefit obligations. The Company has accounted for this change prospectively as a change in estimate.

During the fourth quarter of 2015, the Company communicated to retirees the option to receive a lump-sum pension payment or annuity with payments beginning in the second quarter of 2016. To the extent eligible individuals elect the option to receive a lump-sum pension payment or annuity, the Company’s pension obligations will be reduced. The Company expects to record a significant non-cash settlement charge in the second quarter of 2016 in connection with the settlement payments. The amount of this charge will depend on how many individuals elect the option to receive a lump-sum pension payment or annuity, as well as the discount rate and asset values on the settlement date. The Company estimates a settlement charge of approximately $90.0 million to $100.0 million assuming 30% to 35% of individuals elect the option to receive a lump sum pension payment or annuity.