XML 72 R68.htm IDEA: XBRL DOCUMENT v2.4.0.8
Employee Benefits, Defined Benefit Plans (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
Dec. 31, 2011
Postretirement Medical Obligations      
Accrued annual VEBA contribution $ 16.0 $ 20.0  
Benefit Obligations and Funded Status Additional Disclosure      
Net asset In respect of VEBAs 406.0 365.9  
Net liability in respect of VEBA 0 5.3  
Estimated future benefit payments      
Expected future benefit payments, 2014 27.6    
Expected future benefit payments, 2015 27.5    
Expected future benefit payments, 2016 27.2    
Expected future benefit payments, 2017 26.9    
Expected future benefit payments, 2018 26.6    
Expected future benefit payments, 2019-2023 125.9    
Components of Net Periodic Benefit Cost (Income)      
Net periodic benefit costs (income) (22.0) (11.5) (5.7)
Canadian pension plan
     
Assumptions used to determine benefit obligations      
Discount rate 4.90% 4.40%  
Rate of compensation increase 3.00% 3.00%  
Assumptions used to determine net periodic benefit cost (income)      
Discount rate 4.40% 5.60% 5.70%
Expected long-term return on plan assets 4.50% 4.60% 5.40%
Rate of compensation increase 3.00% 3.00% 3.50%
Change in Benefit Obligation:      
Obligation at beginning of year 7.0 5.4  
Foreign currency translation adjustment (0.5) 0.2  
Service cost 0.3 0.2 0.2
Interest cost 0.3 0.3 0.3
Actuarial (gain) loss (0.2) 1.1  
Plan participant contributions 0 0.1  
Benefits paid by Company (0.3) (0.3)  
Obligation at end of year 6.6 7.0 5.4
Change in Plan Assets:      
FMV of plan assets at beginning of year 5.7 4.9  
Foreign currency translation adjustment (0.4) 0.2  
Actual return on assets 0.7 0.3  
Plan participant contributions 0 0.1  
Employer/Company contributions 0.5 0.5  
Benefits paid by Company (0.3) (0.3)  
FMV of plan assets at end of year 6.2 5.7 4.9
Net Funded Status (0.4) (1.3)  
Net Funded Status      
Accumulated plan benefit obligation (5.8) (6.2)  
Plan assets 6.2 5.7 4.9
Net Funded Status (0.4) (1.3)  
Net benefits expected to be contributed in 2014 0.5    
Estimated future benefit payments      
Expected future benefit payments, 2014 0.2    
Expected future benefit payments, 2015 0.3    
Expected future benefit payments, 2016 0.3    
Expected future benefit payments, 2017 0.3    
Expected future benefit payments, 2018 0.3    
Expected future benefit payments, 2019-2023 2.0    
Accumulated other comprehensive (loss) income      
Accumulated net actuarial losses (1.8) (2.8)  
Transition assets 0.2 0.3  
Loss recognized in Accumulated other comprehensive (loss) (1.6) (2.5)  
Amounts in Accumulated other comprehensive (loss) income expected to be recognized in 2014      
Future amortization of prior service cost 0.1    
Components of Net Periodic Benefit Cost (Income)      
Service cost 0.3 0.2 0.2
Interest cost 0.3 0.3 0.3
Expected return on plan assets (0.3) (0.2) (0.3)
Amortization of prior service cost 0 0 0
Amortization of net actuarial loss 0.2 0.1 0.1
Net periodic benefit costs (income) 0.5 0.4 0.3
Canadian pension plan | London, Ontario Facility | Equity Securities
     
Defined Benefit Plan at the London, Ontario Facility, Information About Plan Assets      
Actual plan asset allocations 65.00%    
Asset mix target allocation on long-term investments 62.00%    
Canadian pension plan | London, Ontario Facility | Fixed Income Securities
     
Defined Benefit Plan at the London, Ontario Facility, Information About Plan Assets      
Actual plan asset allocations 31.00%    
Asset mix target allocation on long-term investments 34.00%    
VEBAs
     
Postretirement Medical Obligations      
Cash flow in determining VEBA obligation 20.0    
Change in Benefit Obligation:      
Obligation at beginning of year 384.1 446.9  
Foreign currency translation adjustment 0 0  
Service cost 2.5 3.4 2.2
Interest cost 14.6 17.9 17.4
Actuarial (gain) loss (7.3) [1] (66.2) [1]  
Plan participant contributions 0 0  
Benefits paid by VEBA (21.5) (20.8)  
Reimbursement from Retiree Drug Subsidy 2.3 [2] 2.9 [2]  
Obligation at end of year 374.7 384.1 446.9
Change in Plan Assets:      
FMV of plan assets at beginning of year 744.7 571.0  
Foreign currency translation adjustment 0 0  
Actual return on assets 39.2 63.0  
Plan participant contributions 0 0  
Employer/Company contributions 16.0 [3] 20.0 [3]  
Benefits paid by VEBA (21.5) (20.8)  
Reimbursement from Retiree Drug Subsidy 2.3 [2] 2.9 [2]  
FMV of plan assets at end of year 780.7 744.7 571.0
Net Funded Status 406.0 [4] 360.6 [4]  
Benefit Obligations and Funded Status Additional Disclosure      
Actuarial gain due to a decrease in discount rate 30.5    
Actuarial gain due to higher than expected mortality rate   16.2  
Actuarial loss resulting from an increase in existing benefits reimbursement rates 20.8    
Actuarial loss resulting from a decrease in discount rates used to determine benefit obligations   9.7  
Net Funded Status      
Accumulated plan benefit obligation (374.7) (384.1)  
Plan assets 780.7 744.7 571.0
Net Funded Status 406.0 [4] 360.6 [4]  
Estimated future benefit payments      
Expected future benefit payments, 2014 30.5 [5]    
Expected future benefit payments, 2015 30.5 [5]    
Expected future benefit payments, 2016 30.3 [5]    
Expected future benefit payments, 2017 30.1 [5]    
Expected future benefit payments, 2018 29.8 [5]    
Expected future benefit payments, 2019-2023 142.5 [5]    
Accumulated other comprehensive (loss) income      
Accumulated net actuarial losses (0.5) (3.2)  
Prior service cost (32.7) (36.9)  
Loss recognized in Accumulated other comprehensive (loss) (33.2) (40.1)  
Amounts in Accumulated other comprehensive (loss) income expected to be recognized in 2014      
Amounts in Accumulated other comprehensive (loss) income expected to be recognized in 2014 5.2    
Future amortization of prior service cost 4.1    
Future amortization of actuarial loss (1.1)    
Components of Net Periodic Benefit Cost (Income)      
Service cost 2.5 3.4 2.2
Interest cost 14.6 17.9 17.4
Expected return on plan assets (45.1) (40.4) (30.4)
Amortization of prior service cost 4.2 [6] 4.2 [6] 4.2 [6]
Amortization of net actuarial loss 1.3 3.0 0.6
Net periodic benefit costs (income) (22.5) (11.9) (6.0)
VEBAs | Maximum
     
Postretirement Medical Obligations      
Administrative expense obligation 0.3    
Variable cash contribution obligation to VEBAs 20.0    
VEBAs | Annual Cash Flows up to $20 Million
     
Postretirement Medical Obligations      
Postretirement medical plan contribution obligation percentage 10.00%    
VEBAs | Annual Cash Flows in Excess of $20 Million
     
Postretirement Medical Obligations      
Postretirement medical plan contribution obligation percentage 20.00%    
Union VEBA
     
Postretirement Medical Obligations      
Number of trustees 4    
Percent allocation of total contribution between VEBAs 85.50%    
Accrued annual VEBA contribution 13.7    
Assumptions used to determine benefit obligations      
Discount rate 4.70% 4.00%  
Initial medical trend rate 7.50% [7] 8.00% [7]  
Ultimate medical trend rate 5.00% [7],[8] 5.00% [7],[8] 5.00% [8]
Year that rate reaches ultimate trend rate 2019 2019 2019
Effect of one-percentage-point increase in medical trend rate on accumulated postretirement benefit obligation 27.8 41.1  
Effect of one-percentage-point decrease in medical trend rate on accumulated postretirement benefit obligation 22.7 33.4  
Assumptions used to determine net periodic benefit cost (income)      
Discount rate 4.00% 4.20% 5.25%
Expected long-term return on plan assets 6.25% [9] 7.25% [9] 6.00% [9]
Initial medical trend rate 8.00% [8] 8.50% [8] 9.00% [8]
Ultimate medical trend rate 5.00% [7],[8] 5.00% [7],[8] 5.00% [8]
Year that rate reaches ultimate trend rate 2019 2019 2019
Effect of one-percentage-point increase on service and interest cost components 2.0 2.5 2.7
Effect of one-percentage-point decrease on service and interest cost components 1.5 2.0 2.1
Change in Plan Assets:      
FMV of plan assets at beginning of year 685.3    
Sale of Company's common stock by Union VEBA 0 108.6  
FMV of plan assets at end of year 717.5 685.3  
Net Funded Status 404.8 365.9  
Benefit Obligations and Funded Status Additional Disclosure      
Actuarial gain due to lower than expected drug claim costs 54.9 42.2  
Actuarial gain due to higher than expected mortality rate 8.0    
Actuarial loss due to the addition of a new healthcare premium reimbursement benefit starting in 2014 63.8    
Actuarial loss due to changes in administrative costs 2.7    
Actuarial gain due to a change in participant marital status assumption   9.6  
Prescription drug benefit retiree drug subsidy percentage 28.00%    
Net Funded Status      
Accumulated plan benefit obligation (312.7) (319.4)  
Plan assets 717.5 685.3  
Net Funded Status 404.8 365.9  
Anticipated Retiree Drug Subsidy      
Anticipated Retiree Drug Subsidy, 2014 (3.1) [5]    
Anticipated Retiree Drug Subsidy, 2015 (3.3) [5]    
Anticipated Retiree Drug Subsidy, 2016 (3.4) [5]    
Anticipated Retiree Drug Subsidy, 2017 (3.5) [5]    
Anticipated Retiree Drug Subsidy, 2018 (3.5) [5]    
Anticipated Retiree Drug Subsidy, 2019-2023 (18.6) [5]    
Union VEBA | Company Appointed
     
Postretirement Medical Obligations      
Number of trustees 2    
Union VEBA | USW Appointed
     
Postretirement Medical Obligations      
Number of trustees 2    
Salaried VEBA
     
Postretirement Medical Obligations      
Percent allocation of total contribution between VEBAs 14.50%    
Accrued annual VEBA contribution 2.3    
Assumptions used to determine benefit obligations      
Discount rate 4.20% 3.40%  
Assumptions used to determine net periodic benefit cost (income)      
Discount rate 3.40% 3.75% 4.70%
Expected long-term return on plan assets 7.25% [9] 7.25% [9] 7.25% [9]
Change in Plan Assets:      
FMV of plan assets at beginning of year 59.4    
FMV of plan assets at end of year 63.2 59.4  
Net Funded Status 1.2 (5.3)  
Benefit Obligations and Funded Status Additional Disclosure      
Actuarial gain due to change in assumption for annual benefit utilization   11.0  
Net Funded Status      
Accumulated plan benefit obligation (62.0) (64.7)  
Plan assets 63.2 59.4  
Net Funded Status 1.2 (5.3)  
Variable cash contribution | VEBAs
     
Postretirement Medical Obligations      
Annual VEBA contribution paid $ 20.0    
[1] The actuarial gain relating to the VEBA plans in 2013 was primarily comprised of (i) a gain of $54.9 due to projected lower drug claim cost in the future because of lower than expected drug claim costs in 2013 in the Union VEBA, (ii) a gain of $30.5 due to a decrease in discount rates used to determine benefit obligations for both VEBAs, (iii) a gain of $8.0 primarily due to a higher than expected mortality rate in the Union VEBA, partially offset by (iv) a loss of $63.8 due to the addition of a new healthcare premium reimbursement benefit starting in 2014 in the Union VEBA, (v) a loss of $20.8 resulting from an increase in the existing benefits reimbursement rates starting in 2014 for plan participants in both VEBAs, and (vi) a loss of $2.7 primarily due to an increase in administrative cost in the Union VEBA. The actuarial gain relating to the VEBA plans in 2012 was primarily comprised of (i) a gain of $42.2 due to lower than expected prescription drug claim cost and a change in retiree drug subsidy assumption in 2012 in the Union VEBA, (ii) a gain of $16.2 due to changes in census data for both VEBA plans, (iii) a gain of $9.6 relating to a change in the participant marital status assumption in the Union VEBA and (iv) a gain of $11.0 relating to a change in the assumption for annual benefit utilization per participant in the Salaried VEBA, partially offset by a loss of $9.7 due to a decrease in discount rates used to determine benefit obligations for both VEBA plans.
[2] The Union VEBA is eligible for the retiree drug subsidy of the Medicare Modernization Act that went into effect January 1, 2006 equal to 28% of allowable drug costs. As a result, the Company has measured the Union VEBA’s obligations and costs to take into account this subsidy.
[3] The Company accrued a liability for a variable cash contribution of $16.0 to the VEBAs with respect to calendar year 2013, which will be paid in the first quarter of 2014. The Company accrued a liability for a variable cash contribution of $20.0 to the VEBAs with respect to calendar year 2012, which was paid in the first quarter of 2013.
[4] Prepaid benefit of $406.0 relating to the VEBAs at December 31, 2013 was presented as Net asset in respect of VEBAs on the Consolidated Balance Sheet. With respect to the Prepaid benefit of $360.6 relating to the VEBAs at December 31, 2012, $365.9 was included in Net asset in respect of VEBA and $5.3 was included in Net liability in respect of VEBA on the Consolidated Balance Sheets.
[5] Such amounts were obtained from the VEBAs. The Company's only financial obligations to the VEBAs are to pay the variable contributions, which may not exceed $20.0 annually, and certain administrative fees.
[6] The Company amortizes prior service cost on a straight-line basis over the average remaining years of service to full eligibility for benefits of the active plan participants.
[7] The medical trend rate assumptions used for the Union VEBA were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 at each of December 31, 2013 and December 31, 2012. A one-percentage-point increase in the assumed medical trend rates would increase the accumulated postretirement benefit obligation of the Union VEBA by $27.8 and $41.1 at December 31, 2013 and December 31, 2012, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the accumulated postretirement benefit obligation of the Union VEBA by $22.7 and $33.4 at December 31, 2013 and December 31, 2012, respectively.
[8] The medical trend rate assumptions used for the Union VEBA, which is currently paying certain prescription drug benefits, were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 for each of 2013, 2012 and 2011. A one-percentage-point increase in the assumed medical trend rates would increase the aggregate of the service and interest cost components of net periodic benefit costs by $2.0, $2.5 and $2.7 for 2013, 2012 and 2011, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the aggregate of the service and interest cost components of net periodic benefit costs by $1.5, $2.0, and $2.1 for 2013, 2012 and 2011, respectively.
[9] The expected long-term rate of return assumption is based on the targeted investment portfolios provided to the Company by the VEBAs’ trustees.