XML 52 R36.htm IDEA: XBRL DOCUMENT v3.6.0.2
Retirement and Other Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Defined Benefit Pension Plans And Defined Benefit Postretirement Plans Disclosure [Abstract]  
Schedule of Net Periodic Pension Expenses

Net periodic expense for our U.S. and European qualified and nonqualified defined benefit pension plans and our retirement savings plans for the three years ended December 31, 2016 is detailed in the table below.

 

(In millions)

 

2016

 

 

2015

 

 

2014

 

Defined benefit retirement plans

 

$

1.6

 

 

$

2.7

 

 

$

5.4

 

Union sponsored multi-employer pension plan

 

 

2.1

 

 

 

2.2

 

 

 

1.8

 

Retirement savings plans-matching contributions

 

 

7.9

 

 

 

4.2

 

 

 

2.9

 

Retirement savings plans-profit sharing contributions

 

 

10.6

 

 

 

9.7

 

 

 

6.0

 

Net periodic expense

 

$

22.2

 

 

$

18.8

 

 

$

16.1

 

 
Schedule of Net Periodic Cost of Defined Benefit Retirement and Postretirement Plans

Net periodic cost of our defined benefit retirement and postretirement plans for the three years ended December 31, 2016, were:

 

(In millions)

 

U.S. Plans

 

 

European Plans

 

Defined Benefit Retirement Plans

 

2016

 

 

2015

 

 

2014

 

 

2016

 

 

2015

 

 

2014

 

Service cost

 

$

1.2

 

 

$

1.1

 

 

$

1.1

 

 

$

0.8

 

 

$

0.8

 

 

$

0.8

 

Interest cost

 

 

0.6

 

 

 

0.5

 

 

 

0.7

 

 

 

5.4

 

 

 

6.1

 

 

 

7.0

 

Expected return on plan assets

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(7.6

)

 

 

(8.4

)

 

 

(9.6

)

Net amortization

 

 

0.3

 

 

 

1.0

 

 

 

2.0

 

 

 

0.6

 

 

 

0.8

 

 

 

0.7

 

Termination benefits and settlement losses

 

 

0.2

 

 

 

0.8

 

 

 

2.7

 

 

 

0.1

 

 

 

—

 

 

 

—

 

Net periodic pension cost (income)

 

$

2.3

 

 

$

3.4

 

 

$

6.5

 

 

$

(0.7

)

 

$

(0.7

)

 

$

(1.1

)

 

(In millions)

U.S. Postretirement Plans

 

2016

 

 

2015

 

 

2014

 

Interest cost

 

$

0.2

 

 

$

0.2

 

 

$

0.2

 

Net amortization and deferral

 

 

(0.7

)

 

 

(0.6

)

 

 

(0.7

)

Net periodic postretirement benefit income

 

$

(0.5

)

 

$

(0.4

)

 

$

(0.5

)

 
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

 

 

 

Defined Benefit Retirement Plans

 

 

 

 

 

 

U.S. Plans

 

 

European Plans

 

 

Postretirement Plans

 

(In millions)

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss (gain)

 

$

0.1

 

 

$

1.9

 

 

$

(5.0

)

 

$

(4.6

)

 

$

(0.9

)

 

$

(1.0

)

Amortization of actuarial (losses) gains

 

 

(0.3

)

 

 

(1.7

)

 

 

(0.7

)

 

 

(0.8

)

 

 

0.7

 

 

 

0.7

 

Effect of foreign exchange

 

 

—

 

 

 

—

 

 

 

(4.0

)

 

 

(2.1

)

 

 

—

 

 

 

—

 

Total recognized in other comprehensive income (pre-tax)

 

$

(0.2

)

 

$

0.2

 

 

$

(9.7

)

 

$

(7.5

)

 

$

(0.2

)

 

$

(0.3

)

 
Schedule of Benefit Obligation, Fair Value of Plan Assets, Funded Status and Amounts Recognized in the Consolidated Financial Statements

The benefit obligation, fair value of plan assets, funded status, and amounts recognized in the consolidated financial statements for our defined benefit retirement plans and postretirement plans, as of and for the years ended December 31, 2016 and 2015, were:

 

 

 

Defined Benefit Retirement Plans

 

 

 

 

 

 

U.S. Plans

 

 

European Plans

 

 

Postretirement Plans

 

(In millions)

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation - beginning of year

 

$

17.7

 

 

$

19.1

 

 

$

162.8

 

 

$

179.8

 

 

$

5.3

 

 

$

6.3

 

Service cost

 

 

1.2

 

 

 

1.1

 

 

 

0.8

 

 

 

0.8

 

 

 

—

 

 

 

—

 

Interest cost

 

 

0.6

 

 

 

0.5

 

 

 

5.4

 

 

 

6.1

 

 

 

0.2

 

 

 

0.2

 

Plan participants’ contributions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

0.1

 

Actuarial loss (gain)

 

 

0.2

 

 

 

1.9

 

 

 

27.7

 

 

 

(10.0

)

 

 

(1.0

)

 

 

(1.0

)

Termination benefits and settlements

 

 

0.2

 

 

 

(4.7

)

 

 

(0.2

)

 

 

—

 

 

 

—

 

 

 

—

 

Benefits and expenses paid

 

 

(0.2

)

 

 

(0.2

)

 

 

(5.1

)

 

 

(4.6

)

 

 

(0.2

)

 

 

(0.3

)

Currency translation adjustments

 

 

—

 

 

 

—

 

 

 

(27.3

)

 

 

(9.3

)

 

 

—

 

 

 

—

 

Benefit obligation - end of year

 

$

19.7

 

 

$

17.7

 

 

$

164.1

 

 

$

162.8

 

 

$

4.4

 

 

$

5.3

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets - beginning of year

 

$

—

 

 

$

—

 

 

$

160.4

 

 

$

165.6

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

 

—

 

 

 

—

 

 

 

40.3

 

 

 

3.0

 

 

 

—

 

 

 

—

 

Employer contributions

 

 

0.2

 

 

 

4.9

 

 

 

6.3

 

 

 

4.3

 

 

 

0.1

 

 

 

0.2

 

Plan participants’ contributions

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0.1

 

 

 

0.1

 

Benefits and expenses paid

 

 

(0.2

)

 

 

(0.2

)

 

 

(5.1

)

 

 

(4.6

)

 

 

(0.2

)

 

 

(0.3

)

Termination benefits and settlements

 

 

—

 

 

 

(4.7

)

 

 

(0.2

)

 

 

—

 

 

 

—

 

 

 

—

 

Currency translation adjustments

 

 

—

 

 

 

—

 

 

 

(30.3

)

 

 

(7.9

)

 

 

—

 

 

 

—

 

Fair value of plan assets - end of year

 

$

—

 

 

$

—

 

 

$

171.4

 

 

$

160.4

 

 

$

—

 

 

$

—

 

Amounts recognized in Consolidated Balance Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncurrent Assets

 

$

—

 

 

$

—

 

 

$

23.9

 

 

$

13.6

 

 

$

—

 

 

$

—

 

 

Current liabilities

 

$

1.1

 

 

$

0.7

 

 

$

0.4

 

 

$

0.4

 

 

$

0.5

 

 

$

0.6

 

Non-current liabilities

 

 

18.6

 

 

 

17.0

 

 

 

16.2

 

 

 

15.6

 

 

 

3.9

 

 

 

4.7

 

Total Liabilities

 

$

19.7

 

 

$

17.7

 

 

$

16.6

 

 

$

16.0

 

 

$

4.4

 

 

$

5.3

 

 

Amounts recognized in Accumulated Other Comprehensive Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial net (loss) gain

 

$

(3.8

)

 

$

(4.0

)

 

$

(22.1

)

 

$

(31.8

)

 

$

4.3

 

 

$

4.1

 

Prior service cost

 

 

—

 

 

 

—

 

 

 

(0.1

)

 

 

(0.1

)

 

 

—

 

 

 

—

 

Total amounts recognized in accumulated other comprehensive loss

 

$

(3.8

)

 

$

(4.0

)

 

$

(22.2

)

 

$

(31.9

)

 

$

4.3

 

 

$

4.1

 

 
Schedule of Expected Benefit Payments for the Plan

Benefit payments for the plans are expected to be as follows:

 

(In millions)

 

U.S. Plans

 

 

European
Plans

 

 

Postretirement
Plans

 

2017

 

$

1.1

 

 

$

5.1

 

 

$

0.5

 

2018

 

 

1.5

 

 

 

4.3

 

 

 

0.6

 

2019

 

 

1.0

 

 

 

4.5

 

 

 

0.5

 

2020

 

 

2.7

 

 

 

4.9

 

 

 

0.5

 

2021

 

 

5.8

 

 

 

6.5

 

 

 

0.5

 

2022-2026

 

 

15.3

 

 

 

35.2

 

 

 

1.8

 

 

 

$

27.4

 

 

$

60.5

 

 

$

4.4

 

 
Schedule of Pension Assets Measured at Fair Value

The following table presents pension assets measured at fair value at December 31, 2016 and 2015 utilizing the fair value hierarchy discussed in Note 19:

 

(In millions)

 

December 31,

 

 

Fair Value Measurements at
December 31, 2016

 

Description

 

2016

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Equity funds

 

$

53.8

 

 

$

—

 

 

$

53.8

 

 

$

—

 

Diversified growth funds

 

 

41.2

 

 

 

—

 

 

 

41.2

 

 

 

—

 

Index linked gilts

 

 

36.1

 

 

 

—

 

 

 

36.1

 

 

 

—

 

Liability driven investments

 

 

34.4

 

 

 

—

 

 

 

34.4

 

 

 

—

 

Insurance contracts

 

 

3.6

 

 

 

—

 

 

 

—

 

 

 

3.6

 

Diversified investment funds

 

 

2.1

 

 

 

—

 

 

 

—

 

 

 

2.1

 

Cash and cash equivalents

 

 

0.2

 

 

 

0.2

 

 

 

—

 

 

 

—

 

Total assets

 

$

171.4

 

 

$

0.2

 

 

$

165.5

 

 

$

5.7

 

 

 

 

December 31,

 

 

Fair Value Measurements at
December 31, 2015

 

Description

 

2015

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Equity funds

 

$

51.9

 

 

$

51.9

 

 

$

—

 

 

$

—

 

Diversified growth funds

 

 

44.2

 

 

 

22.3

 

 

 

21.9

 

 

 

—

 

Liability driven investments

 

 

35.9

 

 

 

35.9

 

 

 

—

 

 

 

—

 

Active corporate bond fund

 

 

14.0

 

 

 

14.0

 

 

 

—

 

 

 

—

 

Index linked gilts

 

 

8.4

 

 

 

8.4

 

 

 

—

 

 

 

—

 

Insurance contracts

 

 

3.5

 

 

 

—

 

 

 

—

 

 

 

3.5

 

Diversified investment funds

 

 

2.1

 

 

 

—

 

 

 

—

 

 

 

2.1

 

Cash and cash equivalents

 

 

0.4

 

 

 

0.4

 

 

 

—

 

 

 

—

 

Total assets

 

$

160.4

 

 

$

132.9

 

 

$

21.9

 

 

$

5.6

 

 

(In millions)

 

Balance at
January 1,
2016

 

 

Actual
return on
plan assets

 

 

Purchases,
sales and
settlements

 

 

Changes due
to exchange
rates

 

 

Balance at
December 31,
2016

 

Reconciliation of Level 3 Assets

 

 

 

 

 

 

 

 

 

 

Diversified investment funds

 

$

2.1

 

 

$

0.1

 

 

$

—

 

 

$

(0.1

)

 

$

2.1

 

Insurance contracts

 

 

3.5

 

 

 

0.2

 

 

 

—

 

 

 

(0.1

)

 

 

3.6

 

Total level 3 assets

 

$

5.6

 

 

$

0.3

 

 

$

—

 

 

$

(0.2

)

 

$

5.7

 

 

Reconciliation of Level 3 Assets

 

Balance at
January 1,
2015

 

 

Actual
return on
plan assets

 

 

Purchases,
sales and
settlements

 

 

Changes due
to exchange
rates

 

 

Balance at
December 31,
2015

 

Diversified investment funds

 

$

2.5

 

 

$

0.1

 

 

$

(0.2

)

 

$

(0.3

)

 

$

2.1

 

Insurance contracts

 

 

3.2

 

 

 

0.3

 

 

 

0.3

 

 

 

(0.3

)

 

 

3.5

 

Total level 3 assets

 

$

5.7

 

 

$

0.4

 

 

$

0.1

 

 

$

(0.6

)

 

$

5.6

 

 
Schedule of Actual Allocations for Pension Assets and Target Allocations by Asset Class

The actual allocations for the pension assets at December 31, 2016 and 2015, and target allocations by asset class, are as follows:  

 

 

Percentage
Of Plan Assets

 

 

Target
Allocations

 

 

Percentage
Of Plan Assets

 

 

Target
Allocations

 

Asset Class

 

2016

 

 

2016

 

 

2015

 

 

2015

 

Diversified growth funds

 

 

24.1

%

 

 

29.0

%

 

 

27.6

%

 

 

27.0

%

Index linked gilts

 

 

21.1

 

 

 

13.0

 

 

 

5.3

 

 

 

5.0

 

Liability driven investments

 

 

20.1

 

 

 

24.0

 

 

 

22.3

 

 

 

22.0

 

All Other Regions Equity Fund

 

 

18.7

 

 

 

34.0

 

 

 

19.3

 

 

 

20.0

 

U.K. Equity Fund

 

 

12.6

 

 

 

—

 

 

 

13.0

 

 

 

15.0

 

Diversified Investment Funds

 

 

1.2

 

 

 

—

 

 

 

1.3

 

 

 

—

 

Insurance Contracts

 

 

2.1

 

 

 

—

 

 

 

2.2

 

 

 

2.0

 

Active Corporate Bond Funds

 

 

—

 

 

 

—

 

 

 

8.7

 

 

 

9.0

 

Cash and cash equivalents

 

 

0.1

 

 

 

—

 

 

 

0.3

 

 

 

—

 

Total

 

 

100

%

 

 

100

%

 

 

100

%

 

 

100

%

 
Schedule of Assumptions Used to Estimate the Actuarial Present Value of Benefit Obligations

Assumptions used to estimate the actuarial present value of benefit obligations at December 31, 2016, 2015 and 2014 are shown in the following table. These year-end values are the basis for determining net periodic costs for the following year.

 

 

 

2016

 

2015

 

2014

 

U.S. defined benefit retirement plans:

 

 

 

 

 

 

 

Discount rates

 

3.1% - 3.6%

 

3.2% - 3.7%

 

3.2% - 3.4%

 

Rate of increase in compensation

 

3.0%

 

3.0%

 

3.0%

 

Expected long-term rate of return on plan assets

 

N/A

 

N/A

 

N/A

 

 

European defined benefit retirement plans:

 

 

 

 

 

 

 

Discount rates

 

1.25% - 2.95%

 

1.8% - 3.9%

 

1.9% - 3.7%

 

Rates of increase in compensation

 

2.75% - 3.0%

 

2.8% - 3.0%

 

2.8% - 3.0%

 

Expected long-term rates of return on plan assets

 

3.0% – 4.75%

 

3.0% – 5.25%

 

3.25% – 5.2%

 

 

Postretirement benefit plans:

 

 

 

 

 

 

 

Discount rates

 

3.3%

 

3.4%

 

3.2%

 

 
Schedule of Impact of One-Percentage-Point Change in Expected Long-term Rate of Return and Discount Rate on Pension Expense and Retirement Obligation

The following table presents the impact that a one-percentage-point increase and a one-percentage-point decrease in the expected long-term rate of return and discount rate would have on the 2017 pension expense, and the impact on our retirement obligation as of December 31, 2016 for a one-percentage-point change in the discount rate:

 

 

 

Non-Qualified

 

 

Retiree

Medical

 

 

U.K.

Retirement

 

(In millions)

 

Pension Plans

 

 

Plans

 

 

Plan

 

Periodic pension expense

 

 

 

 

 

 

 

 

 

 

 

 

One-percentage-point increase:

 

 

 

 

 

 

 

 

 

 

 

 

Expected long-term rate of return

 

$

N/A

 

 

$

N/A

 

 

$

(1.7

)

Discount rate

 

$

(0.1

)

 

$

—

 

 

$

0.5

 

One-percentage-point decrease:

 

 

 

 

 

 

 

 

 

 

 

 

Expected long-term rate of return

 

$

N/A

 

 

$

N/A

 

 

$

1.7

 

Discount rate

 

$

0.2

 

 

$

—

 

 

$

0.2

 

Retirement obligation

 

 

 

 

 

 

 

 

 

 

 

 

One-percentage-point increase in discount rate

 

$

(1.1

)

 

$

(0.2

)

 

$

(22.3

)

One-percentage-point decrease in discount rate

 

$

1.2

 

 

$

0.3

 

 

$

28.5