XML 51 R38.htm IDEA: XBRL DOCUMENT v3.10.0.1
Retirement and Other Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2018
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, 2018 is detailed in the table below.

 

(In millions)

 

2018

 

 

2017

 

 

2016

 

Defined benefit retirement plans

 

$

(1.6

)

 

$

0.6

 

 

$

1.6

 

Union sponsored multi-employer pension plan

 

2.1

 

 

1.9

 

 

2.1

 

Retirement savings plans-matching contributions

 

10.2

 

 

9.7

 

 

7.9

 

Retirement savings plans-profit sharing contributions

 

10.2

 

 

9.2

 

 

10.6

 

Net periodic expense

 

$

20.9

 

 

$

21.4

 

 

$

22.2

 

 
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, 2018, were:

 

(In millions)

 

U.S. Plans

 

 

European Plans

 

Defined Benefit Retirement Plans

 

2018

 

 

2017

 

 

2016

 

 

2018

 

 

2017

 

 

2016

 

Service cost

 

$

1.2

 

 

$

1.3

 

 

$

1.2

 

 

$

1.1

 

 

$

1.0

 

 

$

0.8

 

Interest cost

 

0.6

 

 

0.6

 

 

0.6

 

 

4.4

 

 

4.6

 

 

5.4

 

Expected return on plan assets

 

—

 

 

 

—

 

 

—

 

 

 

(9.4

)

 

 

(8.4

)

 

 

(7.6

)

Net amortization

 

0.2

 

 

0.4

 

 

 

0.3

 

 

0.3

 

 

0.3

 

 

0.6

 

Termination benefits and settlement losses

 

—

 

 

0.7

 

 

0.2

 

 

—

 

 

0.1

 

 

0.1

 

Net periodic pension cost (income)

 

$

2.0

 

 

$

3.0

 

 

$

2.3

 

 

$

(3.6

)

 

$

(2.4

)

 

$

(0.7

)

 

(In millions)

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Postretirement Plans

 

2018

 

 

2017

 

 

2016

 

Interest cost

 

$

0.1

 

 

$

0.1

 

 

$

0.2

 

Net amortization and deferral

 

 

(1.0

)

 

 

0.1

 

 

 

(0.7

)

Net periodic postretirement benefit (income) loss

 

$

(0.9

)

 

$

0.2

 

 

$

(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)

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Other Changes in Plan Assets and Benefit Obligations

   Recognized in Other Comprehensive Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (gain) loss

 

$

(0.7

)

 

$

0.1

 

 

$

(5.0

)

 

$

2.3

 

 

$

—

 

 

$

—

 

Amortization of actuarial (losses) gains

 

 

(0.3

)

 

 

(0.8

)

 

 

(0.4

)

 

 

(0.4

)

 

 

1.0

 

 

 

1.1

 

Prior service cost

 

—

 

 

—

 

 

 

1.3

 

 

—

 

 

—

 

 

—

 

Effect of foreign exchange

 

 

—

 

 

 

—

 

 

 

(1.2

)

 

 

2.5

 

 

 

—

 

 

 

—

 

Total recognized in other comprehensive income (pre-tax)

 

$

(1.0

)

 

$

(0.7

)

 

$

(5.3

)

 

$

4.4

 

 

$

1.0

 

 

$

1.1

 

 
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, 2018 and 2017, were:

 

 

 

Defined Benefit Retirement Plans

 

 

 

 

 

 

U.S. Plans

 

 

European Plans

 

 

Postretirement Plans

 

(In millions)

 

2018

 

 

2017

 

 

2018

 

 

2017

 

 

2018

 

 

2017

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation - beginning of year

 

$

21.4

 

 

$

19.7

 

 

$

189.5

 

 

$

164.1

 

 

$

4.1

 

 

$

4.4

 

Service cost

 

1.2

 

 

1.3

 

 

 

1.1

 

 

 

1.0

 

 

—

 

 

—

 

Interest cost

 

0.6

 

 

0.6

 

 

4.4

 

 

4.6

 

 

0.1

 

 

0.1

 

Plan participants’ contributions

 

—

 

 

—

 

 

1.3

 

 

—

 

 

—

 

 

0.2

 

Actuarial (gain) loss

 

 

(0.7

)

 

0.1

 

 

 

(20.4

)

 

6.8

 

 

 

(0.7

)

 

—

 

Plan amendments and Acquisitions

 

—

 

 

—

 

 

—

 

 

 

1.0

 

 

—

 

 

—

 

Termination benefits and settlements

 

—

 

 

 

0.2

 

 

 

(0.4

)

 

 

(0.6

)

 

—

 

 

—

 

Benefits and expenses paid

 

 

(4.3

)

 

 

(0.5

)

 

 

(5.2

)

 

 

(4.6

)

 

 

(0.2

)

 

 

(0.6

)

Currency translation adjustments

 

—

 

 

—

 

 

 

(9.4

)

 

 

17.2

 

 

—

 

 

—

 

Benefit obligation - end of year

 

$

18.2

 

 

$

21.4

 

 

$

160.9

 

 

$

189.5

 

 

$

3.3

 

 

$

4.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets - beginning of year

 

$

—

 

 

$

—

 

 

$

201.8

 

 

$

171.4

 

 

$

—

 

 

$

—

 

Actual return on plan assets

 

—

 

 

—

 

 

 

(6.0

)

 

12.9

 

 

—

 

 

—

 

Employer contributions

 

4.3

 

 

0.5

 

 

 

5.0

 

 

5.3

 

 

0.2

 

 

0.5

 

Plan participants’ contributions

 

—

 

 

—

 

 

—

 

 

—

 

 

—

 

 

0.2

 

Benefits and expenses paid

 

 

(4.3

)

 

 

(0.5

)

 

 

(5.2

)

 

 

(4.6

)

 

 

(0.2

)

 

 

(0.7

)

Termination benefits and settlements

 

—

 

 

—

 

 

 

(0.4

)

 

 

(0.6

)

 

—

 

 

—

 

Currency translation adjustments

 

—

 

 

—

 

 

 

(10.9

)

 

 

17.4

 

 

—

 

 

—

 

Fair value of plan assets - end of year

 

$

—

 

 

$

—

 

 

$

184.3

 

 

$

201.8

 

 

$

—

 

 

$

—

 

Amounts recognized in Consolidated Balance

   Sheets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current Assets

 

$

—

 

 

$

—

 

 

$

42.6

 

 

$

32.2

 

 

$

—

 

 

$

—

 

Current liabilities

 

$

0.9

 

 

$

4.5

 

 

$

0.4

 

 

$

0.3

 

 

$

0.5

 

 

$

0.5

 

Non-current liabilities

 

17.2

 

 

16.9

 

 

18.8

 

 

19.6

 

 

2.8

 

 

3.6

 

Total Liabilities

 

$

18.1

 

 

$

21.4

 

 

$

19.2

 

 

$

19.9

 

 

$

3.3

 

 

$

4.1

 

Amounts recognized in Accumulated Other

   Comprehensive Loss:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial net (loss) gain

 

$

(3.1

)

 

$

(3.1

)

 

$

(20.0

)

 

$

(26.6

)

 

$

3.0

 

 

$

3.3

 

Prior service cost

 

 

1.0

 

 

—

 

 

 

(1.4

)

 

 

(0.1

)

 

—

 

 

—

 

Total amounts recognized in accumulated other

   comprehensive loss

 

$

(2.1

)

 

$

(3.1

)

 

$

(21.4

)

 

$

(26.7

)

 

$

3.0

 

 

$

3.3

 

 
Schedule of Expected Benefit Payments for the Plan

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

 

 

 

 

 

 

 

European

 

 

Postretirement

 

(In millions)

 

U.S. Plans

 

 

Plans

 

 

Plans

 

2019

 

$

1.0

 

 

 

4.4

 

 

0.5

 

2020

 

 

3.2

 

 

4.5

 

 

0.5

 

2021

 

2.9

 

 

6.4

 

 

0.5

 

2022

 

1.2

 

 

5.5

 

 

0.4

 

2023

 

1.2

 

 

6.3

 

 

0.4

 

2024-2028

 

13.9

 

 

39.2

 

 

1.2

 

 

 

$

23.4

 

 

$

66.3

 

 

$

3.5

 

 
Schedule of Pension Assets Measured at Fair Value

The following table presents pension assets measured at fair value at December 31, 2018 and 2017 utilizing the fair value hierarchy discussed in Note 22:

 

 

 

 

 

 

 

Fair Value Measurements at

 

(In millions)

 

December 31,

 

 

December 31, 2018

 

Description

 

2018

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Equity funds

 

$

44.4

 

 

$

—

 

 

$

44.4

 

 

$

—

 

Diversified growth funds

 

 

44.5

 

 

—

 

 

44.5

 

 

—

 

Insurance contracts

 

4.2

 

 

—

 

 

—

 

 

4.2

 

Liability driven investments

 

31.7

 

 

—

 

 

31.7

 

 

—

 

Index linked gilts

 

 

57.0

 

 

—

 

 

 

57.0

 

 

—

 

Diversified investment funds

 

 

2.0

 

 

—

 

 

—

 

 

 

2.0

 

Cash and cash equivalents

 

0.5

 

 

0.5

 

 

—

 

 

—

 

Total assets

 

$

184.3

 

 

$

0.5

 

 

$

177.6

 

 

$

6.2

 

 

 

 

 

 

 

 

Fair Value Measurements at

 

 

 

December 31,

 

 

December 31, 2017

 

Description

 

2017

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Equity funds

 

$

56.3

 

 

—

 

 

$

56.3

 

 

—

 

Diversified growth funds

 

 

48.0

 

 

—

 

 

 

48.0

 

 

—

 

Insurance contracts

 

4.2

 

 

—

 

 

 

—

 

 

4.2

 

Liability driven investments

 

38.7

 

 

—

 

 

38.7

 

 

—

 

Index linked gilts

 

52.1

 

 

—

 

 

52.1

 

 

—

 

Diversified investment funds

 

2.3

 

 

—

 

 

—

 

 

2.3

 

Cash and cash equivalents

 

0.2

 

 

0.2

 

 

—

 

 

—

 

Total assets

 

$

201.8

 

 

$

0.2

 

 

$

195.1

 

 

$

6.5

 

 

The U.K. plan invests funds which are not exchange listed and are, therefore, classified as Level 2.

 

 

 

Balance at

 

 

Actual

 

 

Purchases,

 

 

Changes due

 

 

Balance at

 

(In millions)

 

January 1,

 

 

return on

 

 

sales and

 

 

to exchange

 

 

December 31,

 

Reconciliation of Level 3 Assets

 

2018

 

 

plan assets

 

 

settlements

 

 

rates

 

 

2018

 

Diversified investment funds

 

$

2.3

 

 

$

—

 

 

$

(0.2

)

 

$

(0.1

)

 

$

2.0

 

Insurance contracts

 

4.2

 

 

0.2

 

 

—

 

 

 

(0.2

)

 

4.2

 

Total level 3 assets

 

$

6.5

 

 

$

0.2

 

 

$

(0.2

)

 

$

(0.3

)

 

$

6.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at

 

 

Actual

 

 

Purchases,

 

 

Changes due

 

 

Balance at

 

 

 

January 1,

 

 

return on

 

 

sales and

 

 

to exchange

 

 

December 31,

 

Reconciliation of Level 3 Assets

 

2017

 

 

plan assets

 

 

settlements

 

 

rates

 

 

2017

 

Diversified investment funds

 

$

2.1

 

 

$

0.1

 

 

$

(0.2

)

 

$

0.3

 

 

$

2.3

 

Insurance contracts

 

3.6

 

 

0.2

 

 

 

(0.1

)

 

 

0.5

 

 

4.2

 

Total level 3 assets

 

$

5.7

 

 

$

0.3

 

 

$

(0.3

)

 

$

0.8

 

 

$

6.5

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

The actual allocations for the pension assets at December 31, 2018 and 2017, and target allocations by asset class, are as follows:  

 

 

 

Percentage

 

 

Target

 

 

Percentage

 

 

Target

 

 

 

of Plan Assets

 

 

Allocations

 

 

of Plan Assets

 

 

Allocations

 

Asset Class

 

2018

 

 

2018

 

 

2017

 

 

2017

 

Diversified growth funds

 

 

24.1

%

 

 

28.0

%

 

 

23.8

%

 

 

28.1

%

Index linked gilts

 

 

30.9

 

 

12.6

 

 

25.8

 

 

 

12.6

 

Liability driven investments

 

17.2

 

 

23.2

 

 

19.2

 

 

 

23.2

 

All Other Regions Equity Fund

 

14.4

 

 

 

19.7

 

 

16.6

 

 

 

19.6

 

U.K. Equity Fund

 

 

9.7

 

 

13.2

 

 

11.2

 

 

 

13.3

 

Diversified Investment Funds

 

1.1

 

 

1.1

 

 

1.2

 

 

 

1.2

 

Insurance Contracts

 

2.3

 

 

 

2.2

 

 

2.1

 

 

 

2.0

 

Cash and cash equivalents

 

0.3

 

 

 

—

 

 

0.1

 

 

 

—

 

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, 2018, 2017 and 2016 are shown in the following table. These year-end values are the basis for determining net periodic costs for the following year.

 

 

 

2018

 

 

2017

 

 

2016

 

U.S. defined benefit retirement plans:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rates

 

2.8% - 3.2%

 

 

2.8% - 3.2%

 

 

3.1% - 3.6%

 

Rate of increase in compensation

 

3.0%

 

 

3.0%

 

 

3.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

European defined benefit retirement plans:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rates

 

1.25% - 3.05%

 

 

1.20% - 2.55%

 

 

1.25% - 2.95%

 

Rates of increase in compensation

 

2.75% - 3.0%

 

 

2.75% - 3.0%

 

 

2.75% - 3.0%

 

Expected long-term rates of return on plan assets

 

2.0% – 4.75%

 

 

2.0% – 4.75%

 

 

3.0% – 4.75%

 

Postretirement benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

Discount rates

 

3.7%

 

 

3.0%

 

 

3.3%

 

 
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 2018 pension expense, and the impact on our retirement obligation as of December 31, 2018 for a one-percentage-point change in the discount rate:

 

 

 

Non-Qualified

 

 

U S Retiree

 

 

U.K.

 

(In millions)

 

Pension Plans

 

 

Medical Plans

 

 

Retirement Plan

 

U.S. Periodic pension expense

 

 

 

 

 

 

 

 

 

 

 

 

One-percentage-point increase:

 

 

 

 

 

 

 

 

 

 

 

 

Expected long-term rate of return

 

$

N/A

 

 

$

N/A

 

 

$

(1.8

)

Discount rate

 

$

—

 

 

$

—

 

 

$

0.5

 

One-percentage-point decrease:

 

 

 

 

 

 

 

 

 

 

 

 

Expected long-term rate of return

 

$

N/A

 

 

$

N/A

 

 

$

1.8

 

Discount rate

 

$

—

 

 

$

—

 

 

$

0.1

 

Retirement obligation

 

 

 

 

 

 

 

 

 

 

 

 

One-percentage-point increase in discount rate

 

$

(0.8

)

 

$

(0.2

)

 

$

(20.8

)

One-percentage-point decrease in discount rate

 

$

(0.9

)

 

$

0.2

 

 

$

26.5