Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2011

The following table summarizes changes in the benefit obligation, plan assets and the funded status of our significant pension and postretirement plans. We use a December 31 measurement date for all of our employee benefit plans.



	Pension Plans												Postretirement
	U.S. Plans						Non-U.S. Plans						Benefits
	2011			2010			2011			2010			2011			2010
Change in Benefit Obligation:
Beginning balance	$	(702.6	)	$	(702.2	)	$	(720.3	)	$	(711.3	)	$	(133.0	)	$	(134.6	)
Service cost	(12.8		)	(11.9		)	(15.4		)	(14.6		)	(2.0		)	(2.0		)
Interest cost	(32.6		)	(35.6		)	(39.7		)	(39.3		)	(6.4		)	(7.1		)
Actuarial (loss) gain	(89.9		)	(44.4		)	(21.5		)	(16.2		)	(1.9		)	2.1
Plan participant contributions	—			—			(2.5		)	(2.5		)	(4.0		)	(4.3		)
Benefits paid	83.9			92.6			42.1			40.1			14.1			13.5
Plan amendments	—			.2			4.6			—			—			—
Curtailments	.3			(1.3		)	—			—			(.2		)	—
Special termination benefits	—			—			—			(.1		)	—			—
Foreign currency changes and other	—			—			6.0			23.6			1.1			(.6		)
Ending balance	$	(753.7	)	$	(702.6	)	$	(746.7	)	$	(720.3	)	$	(132.3	)	$	(133.0	)
Change in Plan Assets:
Beginning balance	$	451.7		$	470.6		$	540.6		$	499.5		$	43.7		$	39.6
Actual return on plan assets	37.0			60.3			(.1		)	56.9			(1.1		)	4.1
Company contributions	88.6			13.4			38.4			32.9			10.1			9.2
Plan participant contributions	—			—			2.5			2.5			4.0			4.3
Benefits paid	(83.9		)	(92.6		)	(42.1		)	(40.1		)	(14.1		)	(13.5		)
Foreign currency changes and other	—			—			(2.9		)	(11.1		)	—			—
Ending balance	$	493.4		$	451.7		$	536.4		$	540.6		$	42.6		$	43.7
Funded Status:
Funded status at end of year	$	(260.3	)	$	(250.9	)	$	(210.3	)	$	(179.7	)	$	(89.7	)	$	(89.3	)
Amount Recognized in Balance Sheet:
Other assets	$	—		$	—		$	2.7		$	3.0		$	—		$	—
Accrued compensation	(7.9		)	(9.8		)	(12.7		)	(12.6		)	(4.6		)	(4.3		)
Employee benefit plans liability	(252.4		)	(241.1		)	(200.3		)	(170.1		)	(85.1		)	(85.0		)
Net amount recognized	$	(260.3	)	$	(250.9	)	$	(210.3	)	$	(179.7	)	$	(89.7	)	$	(89.3	)
Pretax Amounts Recognized in Accumulated Other Comprehensive Loss:
Net actuarial loss	$	489.6		$	445.8		$	294.6		$	250.0		$	52.3		$	50.8
Prior service credit	(1.0		)	(1.3		)	(14.9		)	(12.3		)	(53.0		)	(70.2		)
Transition obligation	—			—			.2			.3			—			—
Total pretax amount recognized	$	488.6		$	444.5		$	279.9		$	238.0		$	(.7	)	$	(19.4	)
Supplemental Information:
Accumulated benefit obligation	$	737.3		$	685.2		$	675.9		$	653.4		N/A			N/A
Plans with Projected Benefit Obligation in Excess of Plan Assets:
Projected benefit obligation	$	753.7		$	702.6		$	730.2		$	702.8		N/A			N/A
Fair value plan assets	493.4			451.7			517.1			520.2			N/A			N/A
Plans with Accumulated Benefit Obligation in Excess of Plan Assets:
Projected benefit obligation	$	753.7		$	702.6		$	720.1		$	693.3		N/A			N/A
Accumulated benefit obligation	737.3			685.2			675.9			653.4			N/A			N/A
Fair value plan assets	493.4			451.7			508.6			511.6			N/A			N/A

Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Income

Components of Net Periodic Benefit Cost and Other Amounts Recognized in Other Comprehensive Loss



	Pension Benefits
	U.S. Plans									Non-U.S. Plans									Postretirement Benefits
	2011			2010			2009			2011			2010			2009			2011			2010			2009
Net Periodic Benefit Cost:
Service cost	$	12.8		$	11.9		$	11.7		$	15.4		$	14.6		$	12.2		$	2.0		$	2.0		$	3.2
Interest cost	32.6			35.6			40.4			39.7			39.3			38.6			6.4			7.1			9.9
Expected return on plan assets	(36.2		)	(36.9		)	(43.0		)	(41.1		)	(37.7		)	(35.6		)	(2.2		)	(2.4		)	(2.5		)
Amortization of prior service credit	(.3		)	(.3		)	(.3		)	(1.6		)	(1.3		)	(1.3		)	(16.0		)	(17.0		)	(9.7		)
Amortization of actuarial losses	45.4			38.5			29.5			13.5			13.0			10.8			3.2			3.5			3.2
Amortization of transition obligation	—			—			—			.1			.1			.1			—			—			—
Settlements/curtailments	(.3		)	1.2			6.0			1.4			1.6			12.2			(.8		)	—			(.4		)
Other	—			—			—			.6			.6			.6			—			—			—
Net periodic benefit cost	$	54.0		$	50.0		$	44.3		$	28.0		$	30.2		$	37.6		$	(7.4	)	$	(6.8	)	$	3.7
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss:
Actuarial losses (gains)	$	89.2		$	20.9		$	(38.5	)	$	62.7		$	(3.0	)	$	17.1		$	5.2		$	(3.8	)	$	18.3
Prior service cost (credit)	—			(.2		)	(1.3		)	(4.6		)	—			1.6			17.0			17.0			(64.0		)
Amortization of prior service credit	.2			.3			.3			1.6			1.3			1.3			(3.2		)	(3.6		)	9.7
Amortization of actuarial losses	(45.4		)	(38.4		)	(29.5		)	(14.8		)	(14.5		)	(18.3		)	—			—			(3.2		)
Amortization of transition obligation	—			—			—			(.1		)	(.1		)	(.1		)	—			—			—
Settlements/curtailments	—			.2			.2			—			—			—			—			—			1.0
Foreign currency changes	—			—			—			(2.9		)	(9.5		)	18.9			(.3		)	.1			1.0
Total recognized in other comprehensive loss*	44.0			(17.2		)	(68.8		)	41.9			(25.8		)	20.5			18.7			9.7			(37.2		)
Total recognized in net periodic benefit cost and other comprehensive loss	$	98.0		$	32.8		$	(24.5	)	$	69.9		$	4.4		$	58.1		$	11.3		$	2.9		$	(33.5	)



*	Amounts represent the pre-tax effect included within other comprehensive loss. The net of tax amounts are included within the Consolidated Statements of Changes in Shareholders’ Equity.

Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Benefit Cost During Next Fiscal Year

The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost during 2012 are as follows:



	Pension Benefits
	U.S. Plans			Non-U.S. Plans			Postretirement Benefits
Net actuarial loss	$	47.4		$	17.3		$	4.1
Prior service credit	(0.3		)	(1.5		)	(13.3		)
Transition obligation	—			—			—

Weighted-Average Assumptions Used to Determine Benefit Obligations

Weighted-average assumptions used to determine benefit obligations recorded on the Consolidated Balance Sheets as of December 31 were as follows:



	Pension Benefits								Postretirement
	U.S. Plans				Non-U.S. Plans				Benefits
	2011		2010		2011		2010		2011		2010
Discount rate	4.10	%	4.80	%	5.30	%	5.60	%	4.66	%	5.28	%
Rate of compensation increase	4.00-6.00%		4.00-6.00%		4.13	%	3.98	%	N/A		N/A

Weighted-Average Assumptions Used to Determine Net Benefit Cost

Weighted-average assumptions used to determine net benefit cost recorded in the Consolidated Statements of Income for the years ended December 31 were as follows:



	Pension Benefits
	U.S. Plans						Non-U.S. Plans						Postretirement Benefits
	2011		2010		2009		2011		2010		2009		2011		2010		2009
Discount rate	4.80	%	5.35	%	6.05	%	5.60	%	6.04	%	6.42	%	5.28	%	5.83	%	6.23	%
Rate of compensation increase	4.00-6.00%		4.00-6.00%		4.00-6.00%		4.00	%	4.04	%	3.69	%	N/A		N/A		N/A
Rate of return on assets	8.00	%	8.00	%	8.00	%	7.16	%	7.31	%	7.38	%	N/A		N/A		N/A

Pension and Postretirement Plans Target and Weighted-Average Asset Allocations

Our U.S. and non-U.S. funded pension and postretirement plans target and weighted-average asset allocations at December 31, 2011 and 2010, by asset category were as follows:



	U.S. Pension Plan						Non-U.S. Pension Plans						U.S. Postretirement Plan
	% of Plan Assets						% of Plan Assets						% of Plan Assets
	Target		at Year End				Target		at Year End				Target		at Year End
Asset Category	2012		2011		2010		2012		2011		2010		2012		2011		2010
Equity securities	55-60%		57	%	55	%	55-65%		61	%	61	%	50	%	47	%	—	%
Debt securities	35-40		35		37		30-40		32		33		50		53		100
Real Estate	—		—		—		—		3		2		—		—		—
Other	0-10		8		8		0-10		4		4		—		—		—
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%

Fair Value Hierarchy For Pension And Postretirement Assets

The following tables present the fair value hierarchy for pension and postretirement assets measured at fair value on a recurring basis as of December 31, 2011:



	U.S. Pension and Postretirement Plans
Asset Category	Level 1		Level 2		Total
Equity Securities:
Domestic equity	$	—	$	193.3	$	193.3
International equity	—		64.4		64.4
Emerging markets	—		42.7		42.7
	—		300.4		300.4
Fixed Income Securities:
Corporate bonds	—		180.7		180.7
Government securities	—		53.3		53.3
	—		234.0		234.0
Cash	1.6		—		1.6
Total	$	1.6	$	534.4	$	536.0



	Non-U.S. Pension Plans
Asset Category	Level 1		Level 2		Level 3		Total
Equity Securities:
Domestic equity	$	14.7	$	104.4	$	—	$	119.1
International equity	—		206.2		—		206.2
	14.7		310.6		—		325.3
Fixed Income Securities:
Corporate bonds	—		64.3		—		64.3
Government securities	—		103.4		—		103.4
Other	—		7.9		—		7.9
	—		175.6		—		175.6
Other:
Cash	19.6		—		—		19.6
Real estate	—		—		14.6		14.6
Other	—		—		1.3		1.3
	19.6		—		15.9		35.5
Total	$	34.3	$	486.2	$	15.9	$	536.4

The following tables present the fair value hierarchy for pension and postretirement assets measured at fair value on a recurring basis as of December 31, 2010:



	U.S. Pension and Postretirement Plans
Asset Category	Level 1		Level 2		Total
Equity Securities:
Domestic equity	$	—	$	148.2	$	148.2
International equity	—		73.8		73.8
Emerging markets	—		31.1		31.1
	—		253.1		253.1
Fixed Income Securities:
Corporate bonds	—		188.7		188.7
Government securities	—		52.9		52.9
	—		241.6		241.6
Cash	.7		—		.7
Total	$	.7	$	494.7	$	495.4



	Non-U.S. Pension Plans
Asset Category	Level 1		Level 2		Level 3		Total
Equity Securities:
Domestic equity	$	—	$	108.5	$	—	$	108.5
International equity	16.6		211.0		—		227.6
	16.6		319.5		—		336.1
Fixed Income Securities:
Corporate bonds	—		75.2		—		75.2
Government securities	—		86.3		—		86.3
Other	—		8.2		—		8.2
	—		169.7		—		169.7
Other:
Cash	19.4		—		—		19.4
Real estate	—		—		13.7		13.7
Other	—		—		1.7		1.7
	19.4		—		15.4		34.8
Total	$	36.0	$	489.2	$	15.4	$	540.6

Reconciliation of Beginning and Ending Balance For Our Level 3 Investments

A reconciliation of the beginning and ending balances for our Level 3 investments was as follows:




	Amount
Balance as of January 1, 2010	$	14.2
Actual return on plan assets held	.7
Foreign currency changes	.5

Balance as of December 31, 2010	15.4
Actual return on plan assets held	.4
Foreign currency changes	.1

Balance as of December 31, 2011	$	15.9

Expected Benefit Payments

Total benefit payments expected to be paid from the plans are as follows:



	Pension Benefits
	U.S. Plans		Non-U.S. Plans		Total		Postretirement Benefits
2012	$	65.8	$	39.4	$	105.2	$	11.2
2013	62.3		39.3		101.6		9.5
2014	61.0		40.3		101.3		9.4
2015	55.6		43.2		98.8		9.3
2016	55.4		42.1		97.5		9.2
2017 - 2021	300.9		246.1		547.0		44.4

Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates

For 2011, the assumed rate of future increases in the per capita cost of health care benefits (the health care cost trend rate) was 7.7% for all claims and will gradually decrease each year thereafter to 5.1% in 2017 and beyond for our U.S. plan. A one-percentage point change in the assumed health care cost trend rates for all postretirement plans would have the following effects:



	1 Percentage Point Increase		1 Percentage Point Decrease
Effect on total of service and interest cost components	$	.3	$	(.2	)
Effect on postretirement benefit obligation	2.9		(2.5		)

Assets Held in Trust

We established a grantor trust to provide assets that may be used for the benefits payable under the SERP and SLIP. The trust is irrevocable and, although subject to creditors’ claims, assets contributed to the trust can only be used to pay such benefits with certain exceptions. The assets held in the trust are included in other assets and at December 31 consisted of the following:



	2011		2010
Corporate-owned life insurance policies	$	41.9	$	44.4
Cash and cash equivalents	0.7		1.4
Total	$	42.6	$	45.8