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Retirement Plans
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [Abstract]  
Retirement Plans —Retirement Plans
 
Defined Benefit Plans
 
The Company maintains defined benefit retirement plans, primarily for certain domestic employees, as presented below. All plans are frozen to new entrants, with the exception of the executive supplemental and director defined benefit pension plans. Benefits are based primarily on years of service and earnings of the employee.

The significant assumptions used in the measurement of the projected benefit obligation and net periodic benefit cost primarily include the discount rate, rate of compensation increase and expected long-term return on plan assets. Weighted‑average assumptions for the projected benefit obligation for the years ended December 31 follows:
 
 
2017
 
2016
Discount rate
 
3.49
%
 
3.86
%
Rate of compensation increase
 
3.81
%
 
3.82
%

 
Weighted‑average assumptions for net periodic benefit cost for the years ended December 31 follows:
 
 
2017
 
2016
 
2015
Discount rate
 
3.91
%
 
4.35
%
 
3.87
%
Rate of compensation increase
 
3.82
%
 
4.29
%
 
4.29
%
Expected long-term return on plan assets
 
6.30
%
 
6.20
%
 
6.30
%

 
The Company considers several factors in determining the long-term rate of return for plan assets. Asset-class return expectations are set using a combination of empirical and forward-looking analyses. Capital market assumptions for the composition of the Company’s asset portfolio are intended to capture the behavior of asset classes observed over several market cycles. The Company also looks to historical returns for reasonability and appropriateness.

The following table reconciles the change in the projected benefit obligation, the change in plan assets and the funded status for the years ended December 31 follows: 
(in millions)
 
2017
 
2016
Funded status
 
 
 
 
Projected benefit obligation
 
 
 
 
Beginning of year
 
$
172.5

 
$
174.3

Change in benefit obligation:
 
 

 
 

Service cost
 
2.6

 
3.4

Interest cost
 
5.3

 
5.4

Plan amendments
 
0.7

 
(0.1
)
Actuarial (gain)/loss
 
15.5

 
1.2

Benefits paid
 
(13.8
)
 
(11.7
)
End of year
 
$
182.8

 
$
172.5

Fair value of plan assets
 
 

 
 

Beginning of year
 
$
163.2

 
$
162.7

Change in plan assets:
 
 

 
 

Actual return on plan assets
 
14.9

 
11.2

Company contributions
 
1.4

 
1.0

Benefits paid
 
(13.8
)
 
(11.7
)
End of year
 
$
165.7

 
$
163.2

 
 
 
 
 
(Unfunded) status end of year
 
$
(17.1
)
 
$
(9.3
)
 
 
 
 
 
Accumulated benefit obligation at end of year
 
$
181.1

 
$
171.5


 
The Company’s projected benefit obligation includes approximately $22.3 million and $21.7 million related to the Company’s executive supplemental and director defined benefit pension plans as of December 31, 2017 and 2016, respectively. The Company’s accumulated benefit obligation includes approximately $20.7 million and $20.6 million related to the Company’s executive supplemental and director defined benefit pension plans as of December 31, 2017 and 2016, respectively. The executive supplemental and director defined benefit plans have no plan assets and the Company is not required to fund the obligations. The U.S. plans required to be funded by the Company were fully funded as of December 31, 2017 and 2016.
 
The net pension assets (liabilities) included in the Consolidated Balance Sheets as of December 31 follows:
(in millions)
 
2017
 
2016
Long-term assets
 
$
5.2

 
$
12.4

Current liabilities
 
(1.4
)
 
(1.4
)
Long-term liabilities
 
(20.9
)
 
(20.3
)
Net pension asset (liability)
 
$
(17.1
)
 
$
(9.3
)

 
The amounts included in accumulated other comprehensive as of December 31 follows:
(in millions)
 
2017
 
2016
Unrecognized actuarial losses (gross)
 
$
48.8

 
$
40.2

Unrecognized actuarial losses (net of tax)
 
38.0

 
25.3

Unrecognized prior service costs (gross)
 
1.3

 
0.9

Unrecognized prior service costs (net of tax)
 
1.1

 
0.5



The Company estimates that $0.3 million ($0.2 million net of tax) of prior service cost and $4.3 million ($3.4 million net of tax) of actuarial losses will be amortized from accumulated other comprehensive loss into net periodic benefit cost in 2018.
 
The components of net periodic benefit cost for the years ended December 31 follows: 
(in millions)
 
2017
 
2016
 
2015
Service cost
 
$
2.6

 
$
3.4

 
$
3.7

Interest cost
 
5.3

 
5.4

 
7.1

Expected return on plan assets
 
(10.2
)
 
(10.1
)
 
(10.2
)
Amortization of unrecognized net loss
 
2.3

 
2.1

 
4.1

Amortization of unrecognized prior service credit
 
0.2

 
0.2

 
0.2

Net periodic benefit cost
 
$
0.2

 
$
1.0

 
$
4.9


 
Disclosures on investment policies and strategies, categories of plan assets and the fair value measurements of plan assets are included below.
 
The Company employs a liability driven investment approach whereby plan assets are invested primarily in fixed income investments to match the changes in the projected benefit obligation of funded plans related to changes in interest rates. Risk tolerance is established through careful consideration of projected benefit obligations, plan funded status and the Company’s other obligations and strategic investments.
 
The established target allocation is 88% fixed income securities and 12% equity securities. Fixed income investments are diversified across core fixed income, long duration and high yield bonds. Equity investments are diversified across large capitalization U.S. and international stocks. Investment risk is measured and monitored on an ongoing basis through investment portfolio reviews, annual projected benefit liability measurements and asset/liability studies.
 
The fair value measurement of the plans’ assets by asset category as of December 31 follows:
 
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
(in millions)
 
2017
 
2016
Cash
 
$
0.6

 
$
0.6

Mutual funds:
 
 

 
 

Equity mutual funds (1)
 
$
19.4

 
$
20.6

Fixed income mutual funds (2)
 
145.6

 
142.0

Total
 
$
165.6

 
$
163.2

 
(1) 
This category is comprised of investments in mutual funds that invest in equity securities such as large publicly traded companies listed in the S&P 500 Index; small to medium sized companies with market capitalization in the range of the Russell 2500 Index; and foreign issuers in emerging markets.
(2) 
This category is comprised of investments in mutual funds that invest in U.S. corporate and government fixed income securities, including asset‑backed securities; high yield fixed income securities primarily rated BB, B, CCC, CC, C and D; and US dollar denominated debt securities of government, government related and corporate issuers in emerging market countries.
 
The Company made contributions of $1.4 million and $1.0 million during 2017 and 2016, respectively, which pertain to the Company’s executive supplemental and director defined benefit pension plans. This contribution covers current participant benefits as these plans have no plan assets. No minimum contributions to the pension plans were required in 2017 and 2016. During 2018, the Company expects to pay approximately $1.4 million in participant benefits under the executive supplemental and director plans. In light of the plans’ funded status, the Company does not expect to make discretionary contributions to its pension plans in 2018.

A summary of estimated future benefits to be paid for the Company’s defined benefit pension plans as of December 31, 2017, follows:
(in millions)
 
Estimated Benefit Payments
2018
 
$
13.7

2019
 
14.2

2020
 
14.4

2021
 
14.1

2022
 
14.2

2023-2027
 
69.2


Defined Contribution Plan
 
The Company maintains defined contribution savings plans covering a significant portion of its eligible employees. Participant contributions are matched by the Company up to a 4.0% maximum of eligible compensation, subject to compensation and contribution limits as defined by the Internal Revenue Service. Employer contributions for the savings plan were $14.8 million, $13.3 million and $12.2 million in 2017, 2016 and 2015, respectively.
 
Matching contributions are invested in funds as directed by participants. Eligible participants may also elect to invest up to 50.0% of the Company’s matching contribution in Company common stock. Common shares held by the contribution savings plan as of December 31 follows:
(in millions)
 
2017
 
2016
 
2015
Common shares held
 
1.1

 
1.2

 
1.3