XML 149 R41.htm IDEA: XBRL DOCUMENT v2.4.0.8
Pension and Other Post-Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2013
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Pension obligations and plan assets and other post-retirement obligations
We use a December 31 measurement date for all of our plans. The following tables show pension obligations, plan assets, and other post-retirement obligations as of December 31 (in millions):
 
 
 
 
2013 Pension
Benefits
 
2012 Pension
Benefits
 
2013 Retiree
Health
and Life
 
2012 Retiree
Health
and Life
Change in Benefit Obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
473.8

 
$
425.0

 
$
48.1

 
$
44.8

Service cost
6.7

 
5.7

 
0.2

 
0.2

Interest cost
18.4

 
19.7

 
1.6

 
2.0

Actuarial (gain) loss
(26.8
)
 
49.2

 
(6.2
)
 
4.9

Benefits paid
(30.3
)
 
(27.4
)
 
(3.3
)
 
(3.8
)
Effect of foreign exchange rate changes
0.9

 
1.6

 
—

 
—

Benefit obligation at end of year
$
442.7

 
$
473.8

 
$
40.4

 
$
48.1

Change in Fair Value of Plan Assets
 
 
 
 
 
 
 
Plan assets at beginning of year
409.1

 
377.5

 
—

 
—

Actual return on plan assets
65.9

 
55.3

 
—

 
—

Effect of exchange rate changes
0.7

 
1.6

 
—

 
—

Company contributions
2.4

 
2.1

 
3.3

 
3.8

Benefits paid
(30.3
)
 
(27.4
)
 
(3.3
)
 
(3.8
)
Plan assets at end of year
$
447.8

 
$
409.1

 
$
—

 
$
—

Funded Status at end of year   
$
5.1

 
$
(64.7
)
 
$
(40.4
)
 
$
(48.1
)
Amount Recognized
 
 
 
 
 
 
 
Other assets (liabilities), net
$
5.1

 
$
(64.7
)
 
$
(40.4
)
 
$
(48.1
)
Accumulative other comprehensive loss:
 
 
 
 
 
 
 
Net actuarial loss
127.6

 
207.4

 
0.6

 
6.8

Prior service (credit) cost
(3.1
)
 
(4.1
)
 
0.4

 
0.2

Accumulated other comprehensive loss
124.5

 
203.3

 
1.0

 
7.0

Total recognized
$
129.6

 
$
138.6

 
$
(39.4
)
 
$
(41.1
)
After-tax amount recognized in accumulated other comprehensive loss
$
77.6

 
$
126.8

 
$
0.6

 
$
4.3



The aggregate accumulated benefit obligation for the defined benefit pension plans was $426.3 million at December 31, 2013 and $453.7 million at December 31, 2012.
Pension plans with a projected benefit obligation in excess of plan assets
The following table shows our pension plans that have a projected benefit obligation in excess of plan assets as of December 31 (in millions):
 
2013
 
2012
Projected benefit obligations
$
67.8

 
$
473.8

Fair value of plan assets
40.0

 
409.1
Pension plans with an accumulated benefit obligation in excess of plan assets

The following table shows our pension plans that have an accumulated benefit obligation in excess of plan assets as of December 31 (in millions):
 
2013
 
2012
Accumulated benefit obligations
$
66.4

 
$
453.7

Fair value of plan assets
40.0

 
409.1
Components of pension and other post retirement benefit costs

The following table shows the components of net periodic cost (benefit) for the year ended December 31 (in millions):

 
 
 
 
2013 Pension
Benefits
 
2012 Pension
Benefits
 
2011 Pension
Benefits
 
2013 Retiree Health and Life
 
2012 Retiree Health and Life
 
2011 Retiree Health and Life
Service cost
$
6.7

 
$
5.7

 
$
5.4

 
$
0.2

 
$
0.2

 
$
0.2

Interest cost
18.4

 
19.7

 
20.7

 
1.6

 
2.0

 
2.2

Expected return on plan assets
(27.5
)
 
(29.6
)
 
(33.2
)
 
—

 
—

 
—

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
Unrecognized prior service credit
(1.0
)
 
(1.0
)
 
(1.0
)
 
(0.1
)
 
(0.1
)
 
(0.1
)
Unrecognized net actuarial loss (gain)
14.9

 
9.9

 
7.2

 
—

 
(0.1
)
 
(0.3
)
Net periodic cost (benefit)
$
11.5

 
$
4.7

 
$
(0.9
)
 
$
1.7

 
$
2.0

 
$
2.0
Schedule of amounts in accumulated other comprehensive loss (gain) to be recognized over next fiscal year
We amortize the unrecognized prior service credit using a straight-line method over the average remaining service period of the employees we expect to receive benefits under the plan. We amortize the unrecognized net actuarial loss (gain), which is subject to certain averaging conventions, over the average remaining service period of active employees.

The following table shows the amounts we expect to recognize as components of net periodic cost in 2014 from amounts recorded in accumulated comprehensive loss (gain) as of December 31, 2013 (in millions):
 
2014
 
Pension Benefits
 
Retiree Health and Life
Unrecognized net actuarial loss (gain)
$
10.3

 
$
(0.2
)
Unrecognized prior service credit
(1.0
)
 
(0.1
)
Expected long term return on assets and to measure the periodic cost
We use the following assumptions to measure the benefit obligation, compute the expected long-term return on assets, and measure the periodic cost for our defined benefit pension plans and other post-retirement benefit plans for the years ended December 31:
 
2013
 
2012
Domestic defined benefit pension plans
 
 
 
Benefit Obligation at December 31:
 
 
 
Discount rate — salaried funded and unfunded plans
4.80
%
 
3.95
%
Discount rate — hourly funded plan
4.90
%
 
4.05
%
Rate of compensation increases — salaried funded and unfunded plans
3.00
%
 
3.00
%
Rate of compensation increases — hourly funded plans
N/A

 
N/A

Net Periodic Cost (Benefit) for the years ended December 31:
 
 
 
Discount rate — salaried funded and unfunded plans
3.95
%
 
4.80
%
Discount rate — hourly funded plan
4.05
%
 
4.85
%
Expected return on plan assets — salaried funded plan
7.75
%
 
8.05
%
Expected return on plan assets — hourly funded plan
6.80
%
 
7.10
%
Rate of compensation increases — salaried funded and unfunded plans
3.00
%
 
3.00
%
Rate of compensation increases — hourly funded plan
N/A

 
N/A

Foreign defined benefit pension plan
 
 
 
Benefit Obligation at December 31:
 
 
 
Discount rate
4.40
%
 
4.25
%
Rate of pension-in-payment increases
3.40
%
 
3.00
%
Net Periodic Cost (Benefit) for the years ended December 31:
 
 
 
Discount rate
4.25
%
 
4.65
%
Expected return on plan assets
5.34
%
 
5.77
%
Rate of pension-in-payment increases
3.00
%
 
2.90
%
Other post-retirement benefit plans
 
 
 
Benefit Obligation at December 31:
 
 
 
Discount rate - salaried health
4.20
%
 
3.65
%
Discount rate - hourly health
4.60
%
 
3.60
%
Discount rate - salaried life insurance
4.75
%
 
3.90
%
Discount rate - hourly life insurance
4.40
%
 
3.45
%
Rate of compensation increases
N/A

 
N/A

Net Periodic Cost (Benefit) for the years ended December 31:
 
 
 
Discount rate - salaried health
3.65
%
 
4.50
%
Discount rate - hourly health
3.60
%
 
4.60
%
Discount rate - salaried life insurance
3.90
%
 
4.75
%
Discount rate - hourly life insurance
3.45
%
 
4.45
%
Rate of compensation increases
N/A

 
N/A
Review of historical returns
We calculate the present value of expected future pension and post-retirement cash flows as of the measurement date using a discount rate. We base the discount rate on yields for high-quality, long-term bonds with durations similar to that of our projected benefit obligation. We base the expected return on our plan assets on current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. We routinely review our historical returns along with current market conditions to ensure our expected return assumption is reasonable and appropriate.
 
2013
 
2012
Assumed Health Care Cost Trend Rates at December 31
 
 
 
Health care cost trend assumed for next year
 
 
 
Medical claims
8.00
%
 
7.00
%
Prescription drugs claims
7.00
%
 
6.50
%
Rate to which the cost trend is expected to decline (the ultimate trend rate)
 
 
 
Medical claims
5.00
%
 
5.00
%
Prescription drugs claims
5.00
%
 
5.00
%
Year that rate reaches the ultimate trend rate
 
 
 
Medical claims
2020

 
2019

Prescription drugs claims
2020

 
2017
Effect on the other post-retirement benefit cost and obligation
The health care cost trend, which is based on projected growth rates for medical and prescription drug claims, has a significant effect on our other post-retirement benefit costs and obligations. The following table shows the effects of a one percentage point change in the health care cost trend rate on service and interest costs for the year ended December 31, 2013 and the post-retirement benefit obligation as of December 31, 2013 (in millions) :
 
 
One Percentage Point
Increase
 
One Percentage Point
Decrease
Effect on total of service and interest cost
$
0.1

 
$
(0.1
)
Effect on post-retirement benefit obligation
2.4

 
(2.1
)
Pension plan assets fair value
The following tables set forth the fair value of our pension plan assets as of December 31 (in millions):
 
Total
December 31,
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Observable Inputs
(Level 2)
 
Significant Unobservable Inputs (Level 3)
 
2013
 
 
 
Assets
 
 
 
 
 
 
 
Short-term investment funds
$
1.3

 
$
1.3

 
$
—

 
$
—

Common stock


 


 


 
—

US equities
21.4

 
21.4

 
—

 
—

International equities
2.4

 
2.4

 
—

 
—

Common stock collective funds
263.0

 
—

 
263.0

 
—

Fixed income collective trust funds
138.0

 
—

 
138.0

 
—

Real estate collective trust funds
21.7

 
—

 
21.7

 
—

Total
$
447.8

 
$
25.1

 
$
422.7

 
$
—


 
Total
December 31,
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
 
Significant Observable Inputs
(Level 2)
 
Significant Unobservable Inputs (Level 3)
 
2012
 
 
 
Assets
 
 
 
 
 
 
 
Short-term investment funds
$
1.0

 
$
1.0

 
$
—

 
$
—

Common stock


 


 


 
—

US equities
8.7

 
8.7

 
—

 
—

International equities
1.6

 
1.6

 
—

 
—

Common stock collective funds
245.0

 
—

 
245.0

 
—

Fixed income collective trust funds
131.2

 
—

 
131.2

 
—

Real estate collective trust funds
21.6

 
—

 
21.6

 
—

Total
$
409.1

 
$
11.3

 
$
397.8

 
$
—
Schedule of Expected Benefit Payments

The following table shows benefit payments, which reflect expected future service, as appropriate, we expect the plan to pay (in millions):

 
Funded Plans
 
Unfunded Plans
 
Retiree Health and Life
2014
$
29.0

 
$
1.9

 
$
3.9

2015
29.1

 
1.8

 
3.8

2016
28.8

 
1.9

 
3.7

2017
30.1

 
2.0

 
3.5

2018
29.8

 
2.0

 
3.3

Years 2019-2023
148.5

 
11.5

 
14.2

 
$
295.3

 
$
21.1

 
$
32.4
Contributions to Multiemployer Benefit Plans
The following table shows our contributions to multiemployer benefit plans for the years indicated (in millions):
Multiemployer Plans
 

EIN and Pension Plan Number
 
Pension Protection Act Zone Status
 
GATX Contributions
 
Collective Bargaining Agreement Expiration Date
 
2013
 
2012
 
2011
 
American Maritime Officers Pension Plan (1)
 
13-1969709-001
 
Endangered-Yellow
 
$
1.4

 
$
1.5

 
$
2.1

 
January 15, 2017
Other multiemployer post-retirement plans
 
 
 
 
 
6.7

 
6.6

 
6.4

 
 
Total
 
 
 
 
 
$
8.1

 
$
8.1

 
$
8.5

 
 
__________________
(1)Our contributions represented more than 5% of the total contributions to the plan during each year and no surcharge was imposed for any year. The actuary for the American Maritime Officers Pension Plan certified that the plan is in endangered status (i.e. “yellow zone” as defined by the Pension Protection Act of 2006) for the plan year beginning October 1, 2013, because it has funding or liquidity problems, or both. A rehabilitation plan, as defined by the Employee Retirement Security Act of 1974, was instituted under which certain adjustable benefits were reduced or eliminated, and we are required to contribute at a negotiated rate per day worked by each employee.
Foreign Funded Pension Plans, Defined Benefit [Member]
  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Weighted-average asset allocations of domestic funded pension plans
The following table shows the weighted-average asset allocations of our foreign funded pension plan at December 31, 2013 and 2012, and current target asset allocation for 2014, by asset category:
 
 
 
 
 
Plan Assets at
December 31
 
Target
 
2013
 
2012
Asset Category
 
 
 
 
 
Equity securities
36.8
%
 
38.5
%
 
36.2
%
Debt securities
63.2
%
 
61.5
%
 
63.8
%
 
100.0
%
 
100.0
%
 
100.0
%
Domestic defined benefit pension plans [Member]
  
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Weighted-average asset allocations of domestic funded pension plans
Our investment policies require that asset allocations of domestic and foreign funded pension plans be maintained at certain targets. The following table shows our weighted-average asset allocations of our domestic funded pension plans at December 31, 2013 and 2012, and current target asset allocation for 2014, by asset category:
 
 
 
 
 
Plan Assets at
December 31
 
Target
 
2013
 
2012
Asset Category
 
 
 
 
 
Equity securities
65.9
%
 
66.7
%
 
65.3
%
Debt securities
29.1
%
 
27.8
%
 
28.9
%
Real estate
5.0
%
 
5.4
%
 
5.8
%
Cash
—
%
 
0.1
%
 
—
%
 
100.0
%
 
100.0
%
 
100.0
%