Benefit Plans

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Benefit Plans

Benefit Plans

Pension and other post-retirement plans

We sponsor U.S. and non-U.S. defined-benefit pension and other post-retirement plans. Pension benefits are based principally on an employee’s years of service and/or compensation levels near retirement. In addition, we provide certain post-retirement health care and life insurance benefits. Generally, the post-retirement health care and life insurance plans require contributions from retirees.

Obligations and funded status

The following tables present reconciliations of plan benefit obligations, fair value of plan assets and the funded status of pension plans and other post-retirement plans as of and for the years ended December 31, 2023 and 2022:

	Pension plans				Other post-retirement plans
In millions	2023		2022		2023		2022
Change in benefit obligations
Benefit obligation beginning of year	$	90.5	$	116.1	$	9.0	$	11.3
Service cost	1.7		2.4		—		—
Interest cost	4.1		2.5		0.5		0.3
Actuarial loss (gain)	7.4		(22.6)		(0.8)		(1.3)
Foreign currency translation	1.1		(0.2)		—		—
Benefits paid	(7.3)		(7.7)		(1.1)		(1.3)
Benefit obligation end of year	$	97.5	$	90.5	$	7.6	$	9.0
Change in plan assets
Fair value of plan assets beginning of year	$	28.4	$	34.4	$	—	$	—
Actual return on plan assets	0.8		(5.8)		—		—
Company contributions	7.6		7.5		1.1		1.3
Foreign currency translation	1.0		—		—		—
Benefits paid	(7.3)		(7.7)		(1.1)		(1.3)
Fair value of plan assets end of year	$	30.5	$	28.4	$	—	$	—
Funded status
Benefit obligations in excess of the fair value of plan assets	$	(67.0)	$	(62.1)	$	(7.6)	$	(9.0)

The actuarial loss in 2023 was primarily due to declines in the discount rates to reflect economic conditions at December 31, 2023. The actuarial gain in 2022 was primarily due to increases in the discount rates to reflect economic conditions at December 31, 2022.

Amounts recorded in the Consolidated Balance Sheets were as follows:

	Pension plans				Other post-retirement plans
In millions	2023		2022		2023		2022
Current liabilities	$	(6.5)	$	(5.9)	$	(1.1)	$	(1.3)
Non-current liabilities	(60.5)		(56.2)		(6.5)		(7.7)
Benefit obligations in excess of the fair value of plan assets	$	(67.0)	$	(62.1)	$	(7.6)	$	(9.0)

The accumulated benefit obligation for our pension plans was $93.4 million and $88.7 million at December 31, 2023 and 2022, respectively.

Information for pension plans with an accumulated benefit obligation or projected benefit obligation in excess of plan assets as of December 31 was as follows:

	Projected benefit obligation exceeds the fair value of plan assets				Accumulated benefit  obligation exceeds the fair value of plan assets
In millions	2023		2022		2023		2022
Projected benefit obligation	$	97.5	$	88.1	$	83.5	$	78.0
Fair value of plan assets	30.5		25.9		18.8		16.5
Accumulated benefit obligation	N/A		N/A		81.9		77.7

Components of net periodic benefit expense for our pension plans for the years ended December 31 were as follows:

In millions	2023		2022		2021
Service cost	$	1.7	$	2.4	$	2.8
Interest cost	4.1		2.5		2.0
Expected return on plan assets	(0.8)		(0.7)		(0.5)
Net actuarial loss (gain)	7.1		(16.4)		(1.5)
Net periodic benefit expense (income)	$	12.1	$	(12.2)	$	2.8

Components of net periodic benefit expense and income for our other post-retirement plans for the years ended December 31, 2023, 2022 and 2021, were not material.

Assumptions

The following table provides the weighted-average assumptions used to determine benefit obligations and net periodic benefit cost as they pertain to our pension and other post-retirement plans.

	Pension plans						Other post-retirement plans
Percentages	2023		2022		2021		2023		2022		2021
Benefit obligation assumptions
Discount rate	4.26	%	4.77	%	2.21	%	4.84	%	5.11	%	2.34	%
Rate of compensation increase	3.70	%	3.80	%	3.61	%	N/A		N/A		N/A
Net periodic benefit expense assumptions
Discount rate	4.77	%	2.21	%	1.74	%	5.11	%	2.34	%	1.77	%
Expected long-term return on plan assets	4.76	%	2.89	%	2.60	%	N/A		N/A		N/A
Rate of compensation increase	3.80	%	3.61	%	3.62	%	N/A		N/A		N/A

Discount rates

The discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year based on our December 31 measurement date. The discount rate was determined by matching our expected benefit payments to payments from a stream of bonds rated AA or higher available in the marketplace. There are no known or anticipated changes in our discount rate assumptions that will impact our pension expense in 2024.

Expected rates of return

The expected rate of return is designed to be a long-term assumption that may be subject to considerable year-to-year variance from actual returns. In developing the expected long-term rate of return, we considered our historical returns, with consideration given to forecasted economic conditions, our asset allocations, input from external consultants and broader long-term market indices. Pension plan assets yielded a gain of 2.82% in 2023 and losses of 16.86% and 0.89% in 2022 and 2021, respectively.

Healthcare cost trend rates

The assumed healthcare cost trend rates for other post-retirement plans as of December 31 were as follows:

	2023		2022
Healthcare cost trend rate assumed for following year	6.1	%	5.5	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.0	%	4.0	%
Year the cost trend rate reaches the ultimate trend rate	2046		2043

Pension plans assets

Objective

The primary objective of our investment strategy is to meet the pension obligation to our employees at a reasonable cost to us. This is primarily accomplished through growth of capital and safety of the funds invested.

Asset allocation

Our actual overall asset allocation for our pension plans as compared to our investment policy goals as of December 31 was as follows:

	Actual				Target
Percentages	2023		2022		2023		2022
Fixed income	53	%	58	%	53	%	58	%
Alternative	47	%	42	%	47	%	42	%

Fair value measurement

The fair values of our pension plan assets and their respective levels in the fair value hierarchy as of December 31, 2023 and December 31, 2022 were as follows:

	December 31, 2023
In millions	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	0.2	$	—	$	—	$	0.2
Other investments	—		—		14.2		14.2
Total investments at fair value	$	0.2	$	—	$	14.2	$	14.4
Investments measured at NAV							16.1
Total							$	30.5

	December 31, 2022
In millions	Level 1		Level 2		Level 3		Total
Other investments	$	—	$	—	$	11.9	$	11.9
Investments measured at NAV							16.5
Total							$	28.4

 Valuation methodologies used for investments measured at fair value were as follows:

•Cash and cash equivalents — Cash consists of cash held in bank accounts and is considered a Level 1 investment.

•Other investments — Other investments include investments in commingled funds with diversified investment strategies. Investments in commingled funds that were valued based on unobservable inputs due to liquidation restrictions were classified as Level 3.

Activity for our Level 3 pension plan assets held during the years ended December 31, 2023 and 2022 was not material.

Cash flows

Contributions

Pension contributions totaled $7.6 million and $7.5 million in 2023 and 2022, respectively. We anticipate our 2024 pension contributions to be approximately $9.8 million. The 2024 expected contributions will equal or exceed our minimum funding requirements.

Estimated future benefit payments

The following benefit payments, which reflect expected future service or payout from termination, as appropriate, are expected to be paid by the plans in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows:

In millions	Pension plans		Other post- retirement plans
2024	$	8.4	$	1.1
2025	8.3		1.0
2026	8.1		0.9
2027	9.1		0.9
2028	9.0		0.8
2029 - 2033	39.0		2.8

Savings plan

We have a 401(k) plan (the “401(k) plan”) with an employee share ownership (“ESOP”) bonus component, which covers certain union and all non-union U.S. employees who met certain age requirements. Under the 401(k) plan, eligible U.S. employees may voluntarily contribute a percentage of their eligible compensation. We match contributions made by employees who met certain eligibility and service requirements. The 401(k) company match contribution is a dollar-for-dollar (100%) matching contribution on up to 5% of employee eligible earnings, contributed as before-tax contributions.

Our expense for the 401(k) plan, including the ESOP, was $19.5 million, $21.4 million and $19.0 million in 2023, 2022 and 2021, respectively.

Other retirement compensation

Total other accrued retirement compensation, primarily related to deferred compensation and supplemental retirement plans, was $32.7 million and $28.5 million as of December 31, 2023 and 2022, respectively, and is included in Pension and other post-retirement compensation and benefits and Other non-current liabilities in the Consolidated Balance Sheets.