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Pension and Postretirement Plans
 3 Months Ended
Mar. 31, 2015
Pension and Postretirement Plans  
Pension and Postretirement Plans

 

13. Pension and Postretirement Plans

 

The company has a non-contributory qualified defined benefit pension plan covering the majority of its U.S. employees. The company also has U.S. non-contributory non-qualified defined benefit plans, which provide for benefits to employees in excess of limits permitted under its U.S. pension plans. On January 1, 2014, certain legacy Champion employees became eligible to participate in the U.S. qualified and non-qualified pension plans. Various international subsidiaries also have defined benefit pension plans. The company provides postretirement health care benefits to certain U.S. employees and retirees.

 

The components of net periodic pension and postretirement health care benefit costs for the first quarter ended March 31 are as follows:

 

 

 

 

 

 

 

 

 

 

 

U.S.

 

 

 

 

 

 

 

International

 

Postretirement

 

 

 

U.S. Pension

 

Pension

 

Health Care

 

(millions)

 

2015

 

2014

 

2015

 

2014

 

2015

 

2014

 

Service cost

 

$
19.1

 

$
16.6

 

$
8.5

 

$
8.4

 

$
0.9

 

$
1.1

 

Interest cost on benefit obligation

 
22.8

 
22.5

 
10.3

 
12.7

 
2.4

 
2.7

 

Expected return on plan assets

 
(33.2

)
(32.1

)
(14.1

)
(13.8

)
(0.2

)
(0.3

)

Recognition of net actuarial (gain) loss

 
12.1

 
5.9

 
4.0

 
1.9

 
(1.6

)
(2.0

)

Amortization of prior service cost (benefit)

 
(1.7

)
(1.7

)

—

 
0.1

 

—

 
(0.1

)

 

 

$
19.1

 

$
11.2

 

$
8.7

 

$
9.3

 

$
1.5

 

$
1.4

 

 

As of March 31, 2015, the company is in compliance with all funding requirements of its U.S. pension and postretirement health care plans.

 

During the first quarter of 2015, the company made payments of $3 million to its U.S. non-contributory non-qualified defined benefit plans, and estimates that it will make payments of approximately an additional $5 million to such plans during the remainder of 2015.

 

The company contributed $14 million to its international pension benefit plans during the first quarter of 2015. The company currently estimates that it will contribute approximately an additional $31 million to the international pension benefit plans during the remainder of 2015.

 

During the first quarter of 2015, the company made payments of $4 million to its U.S. postretirement health care benefit plans, and estimates that it will make payments of approximately an additional $14 million to such plans during the remainder of 2015.