XML 54 R33.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
EMPLOYEE BENEFIT PLANS (Tables)
12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of Defined Benefit Plan Information The following table sets forth aggregated information related to the Company’s pension benefits and other postretirement benefits, including changes in the benefit obligations, changes in plan assets, funded status, amounts recognized in the balance sheet, amounts recognized in accumulated other comprehensive income, and actuarial assumptions that the Company considered in its determination of benefit obligations and plan costs. Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for the Company’s pension plans, and accumulated postretirement benefit obligations (APBO) for the Company’s other benefit plans.
(In millions)Pension BenefitsOther Benefits
 2019201820192018
Accumulated benefit obligation, end of year$176.5  $164.9  $8.3  $9.1  
Change in benefit obligation:    
Benefit obligation, beginning of year$168.9  $185.1  $9.1  $10.3  
Service cost0.7  0.6  —  —  
Interest cost5.8  5.4  0.3  0.3  
Actuarial (gain)/loss17.0  (9.5) (0.2) (0.5) 
Settlements paid(0.7) (0.3) —  —  
Benefits paid(10.3) (11.4) (0.9) (1.0) 
Foreign currency exchange(0.5) (1.0) —  —  
Benefit obligation, end of year$180.9  $168.9  $8.3  $9.1  
Change in plan assets:    
Fair value of assets, beginning of year$140.1  $153.3  $—  $—  
Actual return on plan assets20.0  (3.8) —  —  
Company contributions2.0  2.5  0.9  1.0  
Settlements paid(0.5) (0.3) —  —  
Benefits paid(10.3) (11.4) (0.9) (1.0) 
Foreign currency exchange(0.1) (0.2) —  —  
Plan assets, end of year$151.2  $140.1  $—  $—  
Funded status$(29.7) $(28.8) $(8.3) $(9.1) 
Amounts recognized in balance sheet:    
Current liabilities$(0.5) $(0.4) $(0.8) $(1.0) 
Noncurrent liabilities(29.2) (28.4) (7.5) (8.1) 
Net liability, end of year$(29.7) $(28.8) $(8.3) $(9.1) 
Amount recognized in accumulated other comprehensive income/(loss):    
Prior service cost$—  $—  $—  $—  
Net actuarial loss49.0  47.5  0.4  0.6  
Settlement0.6  0.4  —  —  
Total recognized in accumulated other comprehensive income/(loss)$49.6  $47.9  $0.4  $0.6  
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) The following table sets forth other changes in plan assets and benefit obligation recognized in other comprehensive income for 2019 and 2018:
(In millions)Pension BenefitsOther Benefits
 2019201820192018
Net actuarial (gain)/loss$5.2  $2.8  $(0.2) $(0.5) 
Amortization of:    
Net actuarial gain(2.2) (2.5) (0.1) (0.2) 
Prior service credit—  —  —  (0.1) 
Settlement recognition(0.6) (0.5) —  —  
Deferred tax asset(0.6) 0.1  0.1  0.2  
Foreign currency exchange(0.1) (0.1) —  —  
Total recognized in other comprehensive income$1.7  $(0.2) $(0.2) $(0.6) 
Weighted-Average Assumptions
Weighted-average assumptions used to determine domestic benefit obligations:

 Pension BenefitsOther Benefits
 2019201820192018
Discount rate3.12 %4.28 %2.98 %4.18 %
Rate of increase in future compensation— %*— %*
3.00 - 8.00%
(Graded)
3.00 - 8.00%
(Graded)

*No rate of increases in future compensation were used in the assumptions for 2019 and 2018, as the cash balance component of the domestic Pension Plan was frozen and the other domestic Pension Plan components do not base benefits on compensation.

Assumptions used to determine domestic periodic benefit cost:

 Pension BenefitsOther Benefits
 201920182017201920182017
Discount rate4.31 %3.64 %4.13 %4.18 %3.51 %3.91 %
Rate of increase in future compensation— %*— %*— %*
3.00 - 8.00%
(Graded)
3.00 - 8.00%
(Graded)
3.00 - 8.00%
(Graded)
Expected long-term rate of return on plan assets5.75 %5.90 %6.25 %— %— %— %
*No rate of increases in future compensation were used in the assumptions for 2019, 2018, and 2017, as the cash balance component of the domestic Pension Plan was frozen and the other domestic Pension Plan components do not base benefits on compensation.
Schedule of Aggregated Net Periodic Benefit Cost and Other Benefit Cost The following table sets forth the aggregated net periodic benefit cost for all defined benefit plans for 2019, 2018, and 2017:
(In millions)Pension BenefitsOther Benefits
 201920182017201920182017
Service cost$0.7  $0.6  $0.7  $—  $—  $—  
Interest cost5.8  5.4  5.6  0.3  0.3  0.3  
Expected return on assets(8.1) (8.5) (9.0) —  —  —  
Amortization of:
Transition obligation—  —  —  —  —  —  
Settlement cost—  —  —  —  —  —  
Prior service cost—  —  —  —  0.1  0.3  
Actuarial loss2.6  2.9  2.8  0.1  0.2  0.1  
Settlement cost—  —  —  —  —  —  
Net periodic benefit cost$1.0  $0.4  $0.1  $0.4  $0.6  $0.7  
Schedule of Allocation of Plan Assets As of December 31, 2019 and December 31, 2018, funds were invested in equity, fixed income, and other investments as follows:
Target PercentagePlan Asset Allocation at Year-End
Asset Categoryat Year-End 201920192018
Equity securities19 %19 %21 %
Fixed income securities77 %77 %75 %
Other%%%
Total100 %100 %100 %

The Company does not see any particular concentration of risk within the plans, nor any plan assets that pose difficulties for fair value assessment. The Company currently has no allocation to potentially illiquid or potentially difficult to value assets such as hedge funds, venture capital, private equity, and real estate.

The Company works with actuaries and consultants in making its determination of the asset rate of return assumption and also the discount rate assumption. 
Asset class assumptions are set using a combination of empirical and forward-looking analysis for long-term rate of return on plan assets.  A variety of models are applied for filtering historical data and isolating the fundamental characteristics of asset classes.  These models provide empirical return estimates for each asset class, which are then reviewed and combined with a qualitative assessment of long-term relationships between asset classes before a return estimate is finalized.  This provides an additional means for correcting for the effect of unrealistic or unsustainable short-term valuations or trends, opting instead for return levels and behavior that are more likely to prevail over long periods.  With that, the Company has assumed an expected long-term rate of return on plan assets of 4.90 percent for the 2020 net periodic benefit cost, down from 5.75 percent in the prior year. This decrease in the assumed long-term rate of return is primarily due to a higher percentage of assets in fixed income securities.

The Company uses the Aon Hewitt AA Above Median curve to determine the discount rate.  All cash flow obligations under the plan are matched to bonds in the Aon Hewitt universe of liquid, high-quality, non-callable / non-putable corporate bonds with outliers removed.  From that matching exercise, a discount rate is determined.

The Company’s German pension plans are funded by insurance contract policies whereby the insurance company guarantees a fixed minimum return.  Due to tax legislation, individual pension benefits can only be financed using direct insurance policies up to certain maximums.  These maximum amounts in respect of each member are paid into such an arrangement on a yearly basis.
 
The Company designated all equity and most domestic fixed income plan assets as Level 1, as they are mutual funds with prices that are readily available.  The U.S. Treasury securities and German plan assets are designated as Level 2 inputs. The fair value of the German plan assets are measured by the reserve that is supervised by the German Federal Financial Supervisory Authority. The U.S. Treasury securities are administered by the United States government.

The fair values of the Company’s pension plan assets for 2019 and 2018 by asset category are as follows:

(In millions)2019Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable
 Inputs
(Level 3)
Equity
International equity mutual funds$29.1  $29.1  $—  $—  
Fixed income
U.S. treasury and government agency securities17.5  —  17.5  —  
Fixed income mutual funds99.3  99.3  —  —  —  
Other
Insurance contracts4.5  —  4.5  —  
Cash and equivalents0.8  0.8  —  —  
Total$151.2  $129.2  $22.0  $—  
(In millions)2018Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Other Observable Inputs
(Level 2)
Significant Unobservable
 Inputs
(Level 3)
Equity
International equity mutual funds$28.9  $28.9  $—  $—  
Fixed income
U.S. treasury and government agency securities20.4  —  20.4  —  —  
Fixed income mutual funds85.1  85.1  —  —  
Other
Insurance contracts4.9  —  4.9  —  
Cash and equivalents0.8  0.8  —  —  
Total$140.1  $114.8  $25.3  $—  
Schedule of Expected Benefit Payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in accordance with the following schedule:

(In millions)Pension
Benefits
Other
Benefits
2020$11.3  $0.8  
202111.0  0.8  
202210.8  0.7  
202310.6  0.7  
202415.7  0.7  
Years 2025 through 202951.8  2.7  
Schedule of Company Contributions to Defined Contribution Plans
The following table sets forth Company contributions to the defined contribution plans:

(In millions)201920182017
Company contributions to the plans$7.4  $6.8  $6.7