XML 43 R33.htm IDEA: XBRL DOCUMENT v2.4.0.8
Retirement and Deferred Compensation Plans (Tables)
12 Months Ended
Dec. 31, 2013
Defined Benefit Pension Plans [Member]
 
Defined Benefit Plan Disclosure [Line Items]  
Reconciliation of changes in benefit obligations and fair value of plan assets and funded status of plans
We sponsor several qualified and nonqualified pension plans covering permanent employees. The reconciliation of the changes in the plans’ benefit obligations and the fair value of plan assets and the funded status of the plans are as follows:
              
  United States Plans Non-United States Plans 
Year Ended December 31  2013  2012  2013  2012 
Change in Benefit Obligation             
Benefit obligation, beginning of year $61.9    $57.5 $315.2    $264.7 
Service cost      8.7  10.4 
Interest cost  2.2  2.6  12.6  12.5 
Curtailments      (3.4)  
Transfers      (0.3) (0.1)
Actuarial (gain) loss  (5.9) 6.0  (0.6) 20.4 
Plan participant contributions      0.4  2.2 
Benefits paid  (4.4) (4.2) (6.7) (5.6)
Currency exchange rate changes      5.7  10.7 
Benefit obligation, end of year $53.8 $61.9 $331.6 $315.2 
              
  United States Plans Non-United States Plans 
Year Ended December 31  2013  2012  2013  2012 
Change in Plan Assets             
Fair value of plan assets, beginning of year $36.0    $34.7 $296.4    $250.4 
Actual return on plan assets  4.6  2.8  (4.2) 21.2 
Plan participant contributions      0.4  2.2 
Company contributions  2.9  2.7  15.0  17.7 
Benefits paid  (4.4) (4.2) (6.7) (5.6)
Currency exchange rate changes      4.9  10.5 
Fair value of plan assets, end of year $39.1 $36.0 $305.8 $296.4 
Funded Status at End of Year             
Funded status, end of year $(14.7)$(25.9)$(25.8)$(18.8)
Amounts Recognized             
Noncurrent assets $17.2 $11.6 $30.8 $31.4 
Current liabilities  (2.9) (2.9) (0.2) (0.3)
Noncurrent liabilities  (29.0) (34.6) (56.4) (49.9)
Net amount recognized $(14.7)$(25.9)$(25.8)$(18.8)
Amounts recognized in accumulated other comprehensive income (loss), net of tax
Amounts recognized in accumulated other comprehensive income, net of tax, consist of: 
              
  United States Plans Non-United States Plans 
December 31  2013  2012  2013  2012 
Net loss $9.5    $15.8 $25.3    $14.8 
Prior service cost  0.1  0.1  4.8  6.3 
Total $9.6 $15.9 $30.1 $21.1 
Plans with accumulated benefit obligations in excess of fair value of plan assets
The accumulated benefit obligation for our plans that have plan assets was $291.7 and $272.8 as of December 31, 2013 and 2012, respectively. The accumulated benefit obligation for certain of our plans exceeded the fair value of plan assetsas follows: 
        
December 31  2013  2012 
Accumulated benefit obligation $10.3    $9.2 
Plan assets  9.8  8.5 
Plans with projected benefit obligation in excess of fair value of plan assets
The projected benefit obligation for certain of our plans exceeded the fair value of plan assets as follows:
        
December 31  2013  2012 
Projected benefit obligation $53.4    $16.7 
Plan assets  44.8  12.4 
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Loss (Income)
The components of the net periodic benefit cost and other amounts recognized in other comprehensive loss for all plans were as follows:
           
Year Ended December 31  2013  2012  2011 
Service cost $8.7    $10.4    $9.9 
Interest cost  14.8  15.1  15.5 
Expected return on assets  (13.2) (14.7) (15.2)
Curtailment and settlement  (2.3)   (1.0)
Net loss (gain)  3.3  1.1  (0.2)
Prior service cost  0.5  0.7  0.7 
Net periodic benefit cost  11.8  12.6  9.7 
Other Changes in Plan Assets and Benefit Obligations          
Recognized in Other Comprehensive Loss          
Net loss  6.8  15.4  11.6 
Prior service credit  (1.1)    
Amortization of net (loss) gain  (3.3) (1.1) 0.2 
Amortization of prior service cost  (0.5) (0.7) (0.7)
Total recognized in other comprehensive loss  1.9  13.6  11.1 
Total recognized in net periodic benefit cost and other comprehensive loss $13.7 $26.2 $20.8 
Weighted-average assumptions used in measurement of benefit obligation and net periodic benefit cost
The weighted-average assumptions used in the measurement of the benefit obligation were as follows:
      
  United States Plans Non-United States Plans 
Year Ended December 31  2013  2012  2013  2012 
Discount rate  4.6 3.7%    4.1 4.2%
Rate of compensation increase  3.0% 3.0% 3.8% 3.6%
 
The weighted-average assumptions used in the measurement of the net periodic benefit cost were as follows:
            
  United States Plans Non-United States Plans 
Year Ended December 31  2013  2012  2011  2013  2012  2011 
Discount rate  3.7 4.6% 5.1%    4.2 4.7% 5.1%
Expected long-term return on plan assets  6.0% 6.3% 7.0% 4.0% 4.7% 5.3%
Rate of compensation increase  3.0% 3.0% 4.0% 3.6% 4.0% 4.3%
Fair value of plan assets by asset category
The fair value of our pension plan assets are primarily determined by using market quotes and other relevant information that is generated by market transactions involving identical or comparable assets, except for the insurance contract that is measured at the present value of expected future benefit payments using the Deutsche National Bank interest curve. The fair value of our pension plan assets by asset category was as follows:
                          
   United States Plans  Non-United States Plans 
   Fair Value Measurements Using  Fair Value Measurements Using 
   December 31,
2013
  Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
  Significant
Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
  December 31,
2013
  Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
  Significant
Other
Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
 
Asset Category                         
Cash and cash equivalents(1)   $0.9   $0.9   $   $   $1.7   $1.7   $   $ 
Equity securities:                         
United States companies  15.5  15.5             
International companies          36.6  36.6     
Fixed income securities:                         
Government bonds(2)  22.7    22.7           
Guaranteed insurance contracts          44.8    44.8   
Annuity contract          33.4    33.4   
Other types of investments:                         
Unitized funds(3)          101.3  101.3     
Insurance contract          80.9      80.9 
Real estate funds          7.1    7.1    
  $39.1 $16.4 $22.7 $ $305.8 $139.6 $85.3 $80.9 
 
(1)This category includes a prime obligations money market portfolio.
  
(2)This category includes United States Treasury/Federal agency securities and foreign government securities.
  
(3)This category includes investments in approximately 80% fixed income securities and 20% equity.
 
                          
  United States Plans Non-United States Plans 
  Fair Value Measurements Using Fair Value Measurements Using 
  December 31,
2013
 Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 Significant
Other
Observable
Inputs
(Level 2)
 Significant
Unobservable
Inputs
(Level 3)
 December 31,
2013
 Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 Significant
Other
Observable
Inputs
(Level 2)
 Significant
Unobservable
Inputs
(Level 3)
 
Asset Category                         
Cash and cash equivalents(1)   $1.8   $1.8   $   $   $2.6   $2.6   $   $ 
Equity securities:                         
United States companies  16.1  16.1             
International companies          72.8  72.8     
Fixed income securities:                         
Government bonds(2)  18.1    18.1           
Guaranteed insurance contracts          112.9    112.9   
Other types of investments:                         
Unitized funds(3)          101.3  101.3     
Real estate funds          6.8    6.8   
  $36.0 $17.9 $18.1 $ $296.4 $176.7 $119.7 $ 
 
(1)This category includes a prime obligations money market portfolio.
  
(2)This category includes United States Treasury/Federal agency securities and foreign government securities.
  
(3)This category includes investments in approximately 80% fixed income securities and 20% equity.
Changes in fair value of insurance contract
The following table summarizes the changes in fair value of the insurance contract, which is measured using Level 3 inputs. These contracts were purchased upon amendment of our Dutch pension plan effective as of January 1, 2013. We determine that transfers between fair-value-measurement levels occur on the date of the event that caused the transfer.
 
Year Ended December 31  2013 
Balance, beginning of year $ 
Transfers into Level 3  85.9 
Unrealized loss  (7.7)
Purchases, sales and settlements, net  (0.6)
Currency exchange rate changes  3.3 
Balance, end of year $80.9 
Retiree Health Care Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]  
Reconciliation of changes in benefit obligations and fair value of plan assets and funded status of plans
We provide medical and dental benefits to certain eligible retired employees in the United States. Due to the nature of the plan, there are no plan assets. The reconciliation of the changes in the plan’s benefit obligation and the statement of the funded status of the plan were as follows:
         
Year Ended December 31 2013  2012 
Change in Benefit Obligation        
Benefit obligation, beginning of year $31.5  $28.5 
Service cost     0.1 
Interest cost  1.1   1.3 
Actuarial (gain) loss  (0.9)  3.2 
Benefits paid  (2.3)  (1.9)
Plan participant contributions  0.2   0.2 
Retiree drug subsidy reimbursement  0.1   0.1 
Plan amendment  (11.2)   
Benefit obligation, end of year $18.5  $31.5 
Funded Status at End of Year        
Funded status, end of year $(18.5) $(31.5)
Amounts Recognized        
Current liabilities $(2.0) $(1.8)
Noncurrent liabilities  (16.5)  (29.7)
Net amount recognized $(18.5) $(31.5)
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Loss (Income)
The components of net periodic benefit cost for this plan were as follows:
           
Year Ended December 31 2013  2012 2011 
Net Periodic Benefit Cost           
Service cost $  $0.1 $0.1 
Interest cost  1.1   1.3  1.3 
Net loss  0.3      
Prior service credit  (0.2)     
Net periodic benefit cost  1.2   1.4  1.4 
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)           
Net (gain) loss  (0.9)  3.2  3.3 
Prior service credit  (11.2)     
Amortization of net (loss) gain  (0.3)     
Amortization of prior service credit  0.2      
Total recognized in other comprehensive income (loss)  (12.2)  3.2  3.3 
Total recognized in net periodic benefit cost and other comprehensive income (loss) $(11.0) $4.6 $4.7 
Effect of one-percentage-point change in assumed health care cost trend rates
The health care cost trend rate was assumed to be 7.5% for 2013, decreasing gradually to an ultimate rate of 5.0% in 2020. Assumed health care cost trend rates have a significant effect on the amounts reported. A one-percentage point change in the assumed health care cost trend rate would have the following effects:
        
  1% Increase 1% Decrease 
Effect on total of service and interest cost components $0.1 $(0.1)
Effect on benefit obligation  0.2  (0.2)
Defined Benefit Pension Plans and Retiree Health Care Plan [Member]
 
Defined Benefit Plan Disclosure [Line Items]  
Projected future benefit payments
During 2014, we plan to contribute $13.3 to our pension plans and to fund our retiree health care payments as incurred. Projected benefit payments from the plans as of December 31, 2013 were estimated as follows:
        
Year Pension Plans Retiree Health
Care Plan
 
2014 $11.6 $1.9 
2015  12.2  1.6 
2016  12.6  1.6 
2017  13.9  1.5 
2018  14.2  1.5 
2019 – 2023  83.5  6.5 
Total projected benefit payments $148.0 $14.6