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Retirement Plans, Postretirement and Postemployment Benefits (Tables)
12 Months Ended
Dec. 31, 2019
Fair Values of Pension Plan Assets by Asset Class and Fair Value Hierarchy Level

The fair values of pension plan assets by asset class and fair value hierarchy level are as follows:

 

 

Fair Value Measurements

 

 

 

 

 

 

 

 

 

December 31

 

Quoted Prices

in Active

Markets

for Identical

Assets

(Level 1)

 

 

Significant

Observable

Inputs

(Level 2)

 

 

Significant

Unobservable

Inputs

(Level 3)

 

 

Net Asset

Value

 

 

Total Fair

Value

 

(in millions)

 

2019

 

Equity securities1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid-sized to large cap

 

$

 

 

$

 

 

$

 

 

$

262.5

 

 

$

262.5

 

Small cap, international and emerging growth funds

 

 

 

 

 

 

 

 

 

 

 

290.3

 

 

 

290.3

 

Debt securities1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core fixed income

 

 

 

 

 

 

 

 

 

 

 

242.9

 

 

 

242.9

 

Real estate

 

 

 

 

 

 

 

 

 

 

 

42.9

 

 

 

42.9

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

26.4

 

 

 

26.4

 

Cash equivalents

 

 

3.0

 

 

 

 

 

 

 

 

 

 

 

 

3.0

 

Total

 

$

3.0

 

 

$

 

 

$

 

 

$

865.0

 

 

$

868.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

Equity securities1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mid-sized to large cap

 

$

 

 

$

 

 

$

 

 

$

196.5

 

 

$

196.5

 

Small cap, international and emerging growth funds

 

 

 

 

 

 

 

 

 

 

 

210.4

 

 

 

210.4

 

Debt securities1:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core fixed income

 

 

 

 

 

 

 

 

 

 

 

228.2

 

 

 

228.2

 

Real estate

 

 

 

 

 

 

 

 

 

 

 

35.5

 

 

 

35.5

 

Hedge funds

 

 

 

 

 

 

 

 

 

 

 

44.4

 

 

 

44.4

 

Cash equivalents

 

 

2.9

 

 

 

 

 

 

 

 

 

 

 

 

2.9

 

Total

 

$

2.9

 

 

$

 

 

$

 

 

$

715.0

 

 

$

717.9

 

1

These investments are common collective investment trusts valued using the net asset value (NAV) unit price provided by the fund administrator. The NAV is based on the value of the underlying assets owned by the fund. 

Schedule of Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates at December 31 are:

 

 

 

2019

 

 

2018

 

Health care cost trend rate assumed for next year

 

6.75%

 

 

7.0%

 

Rate to which the cost trend rate gradually declines

 

4.75%

 

 

5.0%

 

Year the rate reaches the ultimate rate

 

2028

 

 

2023

 

Schedule of One Percentage-Point Change in Assumed Health Care Cost Trend Rates A one percentage-point change in assumed health care cost trend rates would have the following effects:  

 

 

One Percentage Point

 

(in millions)

 

Increase

 

 

(Decrease)

 

Total service and interest cost components

 

$

 

 

$

 

Postretirement benefit obligation

 

$

0.7

 

 

$

(0.6

)

 

Pension  
Schedule of Components of Net Periodic Benefit Cost (Credit)

The net periodic retirement benefit cost of defined benefit plans includes the following components:

 

years ended December 31

(in millions)

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

30.8

 

 

$

31.7

 

 

$

26.9

 

Interest cost

 

 

37.6

 

 

 

33.2

 

 

 

36.1

 

Expected return on assets

 

 

(47.9

)

 

 

(46.0

)

 

 

(39.8

)

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

 

 

 

 

0.1

 

 

 

0.3

 

Actuarial loss

 

 

16.0

 

 

 

12.8

 

 

 

14.1

 

Settlement charge

 

 

 

 

 

2.9

 

 

 

 

Net periodic benefit cost

 

$

36.5

 

 

$

34.7

 

 

$

37.6

 

Schedule of Recognized Comprehensive Earnings

The Company recognized the following amounts in consolidated comprehensive earnings:

 

years ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

 

2017

 

Actuarial loss

 

$

11.7

 

 

$

32.1

 

 

$

13.3

 

Net prior service cost

 

 

6.4

 

 

 

 

 

 

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

Prior service cost

 

 

 

 

 

(0.1

)

 

 

(0.3

)

Actuarial loss

 

 

(16.0

)

 

 

(12.8

)

 

 

(14.1

)

Settlement charge

 

 

 

 

 

(2.9

)

 

 

 

Total

 

$

2.1

 

 

$

16.3

 

 

$

(1.1

)

Schedule of Net Periodic Benefit Credit or Cost Not Yet Recognized

Accumulated other comprehensive loss includes the following amounts that have not yet been recognized in net periodic benefit cost:

 

December 31

 

2019

 

 

2018

 

(in millions)

 

Gross

 

 

Net of tax

 

 

Gross

 

 

Net of tax

 

Prior service cost

 

$

6.4

 

 

$

4.0

 

 

$

 

 

$

 

Actuarial loss

 

 

229.4

 

 

 

144.5

 

 

 

233.7

 

 

 

146.6

 

Total

 

$

235.8

 

 

$

148.5

 

 

$

233.7

 

 

$

146.6

 

Schedule of Change in Projected Benefit Obligation

The defined benefit plans’ change in projected benefit obligation is as follows:

 

years ended December 31

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

Net projected benefit obligation at beginning of year

 

$

847.9

 

 

$

879.3

 

Service cost

 

 

30.8

 

 

 

31.7

 

Interest cost

 

 

37.6

 

 

 

33.2

 

Actuarial loss (gain)

 

 

95.2

 

 

 

(54.6

)

Plan amendments

 

 

6.4

 

 

 

 

Gross benefits paid

 

 

(40.1

)

 

 

(41.7

)

Net projected benefit obligation at end of year

 

$

977.8

 

 

$

847.9

 

Schedule of Change In Plan Assets

The Company’s change in plan assets, funded status and amounts recognized on the Company’s consolidated balance sheets are as follows:

 

years ended December 31

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

Fair value of plan assets at beginning of year

 

$

717.9

 

 

$

638.1

 

Actual return on plan assets, net

 

 

131.3

 

 

 

(40.8

)

Employer contributions

 

 

58.9

 

 

 

162.3

 

Gross benefits paid

 

 

(40.1

)

 

 

(41.7

)

Fair value of plan assets at end of year

 

$

868.0

 

 

$

717.9

 

Schedule of Funded Status

December 31

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

Funded status of the plan at end of year

 

$

(109.8

)

 

$

(130.0

)

Accrued benefit cost

 

$

(109.8

)

 

$

(130.0

)

 

Schedule of Amounts Recognized on Consolidated Balance Sheets

December 31

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

Amounts recognized on consolidated balance sheets consist of:

 

 

 

 

 

 

 

 

Current liability

 

$

(6.4

)

 

$

(9.0

)

Noncurrent liability

 

 

(103.4

)

 

 

(121.0

)

Net amount recognized at end of year

 

$

(109.8

)

 

$

(130.0

)

 

Schedule of Accumulated Benefit Obligations in Excess of Plan Assets

Benefit obligations and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets are as follows:

 

December 31

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

Projected benefit obligation

 

$

107.1

 

 

$

98.7

 

Accumulated benefit obligation

 

$

96.4

 

 

$

85.5

 

Fair value of plan assets

 

$

0.6

 

 

$

0.6

 

Schedule of Weighted-Average Assumptions

Weighted-average assumptions used to determine benefit obligations as of December 31 are:

 

 

 

2019

 

 

2018

 

Discount rate

 

3.69%

 

 

4.38%

 

Rate of increase in future compensation levels

 

4.50%

 

 

4.50%

 

 

Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31 are:

 

 

 

2019

 

 

2018

 

 

2017

 

Discount rate

 

4.38%

 

 

3.76%

 

 

4.29%

 

Rate of increase in future compensation levels

 

4.50%

 

 

4.50%

 

 

4.50%

 

Expected long-term rate of return on assets

 

6.75%

 

 

6.75%

 

 

6.75%

 

Schedule of Target Assets Allocation

The target allocation for 2019 and the actual pension plan asset allocation by asset class are as follows:

 

 

Percentage of Plan Assets

 

 

 

2019

 

 

 

 

 

 

Target

 

 

December 31

 

Asset Class

 

Allocation

 

 

2019

 

 

2018

 

Equity securities

 

56%

 

 

64%

 

 

57%

 

Debt securities

 

30%

 

 

28%

 

 

32%

 

Hedge funds

 

4%

 

 

3%

 

 

6%

 

Real estate

 

10%

 

 

5%

 

 

5%

 

Total

 

100%

 

 

100%

 

 

100%

 

Schedule of Expected Benefit Payments

The expected benefit payments to be paid from plan assets for each of the next five years and the five-year period thereafter are as follows:

 

(in millions)

 

 

 

 

2020

 

$

43.5

 

2021

 

$

44.8

 

2022

 

$

46.2

 

2023

 

$

47.6

 

2024

 

$

50.9

 

Years 2025 - 2029

 

$

271.0

 

Postretirement Benefits  
Schedule of Components of Net Periodic Benefit Cost (Credit) The net periodic postretirement benefit credit for postretirement plans includes the following components:

years ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

 

2017

 

Service cost

 

$

0.1

 

 

$

0.1

 

 

$

0.1

 

Interest cost

 

 

0.6

 

 

 

0.5

 

 

 

0.7

 

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

Prior service credit

 

 

(0.8

)

 

 

(2.1

)

 

 

(1.7

)

Actuarial gain

 

 

(0.5

)

 

 

(0.2

)

 

 

(0.4

)

Total net periodic benefit credit

 

$

(0.6

)

 

$

(1.7

)

 

$

(1.3

)

 

Schedule of Recognized Comprehensive Earnings

The Company recognized the following amounts in consolidated comprehensive earnings:

 

years ended December 31

 

 

 

 

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

 

2017

 

Actuarial loss (gain)

 

$

1.0

 

 

$

(1.7

)

 

$

1.2

 

Net prior service credit

 

 

 

 

 

 

 

 

(3.9

)

Amortization of:

 

 

 

 

 

 

 

 

 

 

 

 

Prior service credit

 

 

0.8

 

 

 

2.1

 

 

 

1.7

 

Actuarial gain

 

 

0.5

 

 

 

0.2

 

 

 

0.4

 

Total

 

$

2.3

 

 

$

0.6

 

 

$

(0.6

)

Schedule of Net Periodic Benefit Credit or Cost Not Yet Recognized

Accumulated other comprehensive loss includes the following amounts that have not yet been recognized in net periodic benefit credit:

 

December 31

 

2019

 

 

2018

 

(in millions)

 

Gross

 

 

Net of tax

 

 

Gross

 

 

Net of tax

 

Prior service credit

 

$

(3.0

)

 

$

(1.9

)

 

$

(3.8

)

 

$

(2.4

)

Actuarial gain

 

 

(2.7

)

 

 

(1.7

)

 

 

(4.2

)

 

 

(2.7

)

Total

 

$

(5.7

)

 

$

(3.6

)

 

$

(8.0

)

 

$

(5.1

)

Schedule of Change in Projected Benefit Obligation

The postretirement health care plans’ change in benefit obligation is as follows:

 

years ended December 31

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

Net benefit obligation at beginning of year

 

$

13.3

 

 

$

15.3

 

Service cost

 

 

0.1

 

 

 

0.1

 

Interest cost

 

 

0.6

 

 

 

0.5

 

Participants’ contributions

 

 

1.2

 

 

 

0.3

 

Actuarial loss (gain)

 

 

1.0

 

 

 

(1.6

)

Gross benefits paid

 

 

(3.2

)

 

 

(1.3

)

Net benefit obligation at end of year

 

$

13.0

 

 

$

13.3

 

Schedule of Change In Plan Assets

The postretirement health care plans’ change in plan assets, funded status and amounts recognized on the Company’s consolidated balance sheets are as follows:

 

years ended December 31

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

Fair value of plan assets at beginning of year

 

$

 

 

$

 

Employer contributions

 

 

2.0

 

 

 

1.0

 

Participants’ contributions

 

 

1.2

 

 

 

0.3

 

Gross benefits paid

 

 

(3.2

)

 

 

(1.3

)

Fair value of plan assets at end of year

 

$

 

 

$

 

Schedule of Funded Status

December 31

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

Funded status of the plan at end of year

 

$

(13.0

)

 

$

(13.3

)

Accrued benefit cost

 

$

(13.0

)

 

$

(13.3

)

 

Schedule of Amounts Recognized on Consolidated Balance Sheets

December 31

 

 

 

 

 

 

 

 

(in millions)

 

2019

 

 

2018

 

Amounts recognized on consolidated balance sheets consist of:

 

 

 

 

 

 

 

 

Current liability

 

$

(2.0

)

 

$

(1.0

)

Noncurrent liability

 

 

(11.0

)

 

 

(12.3

)

Net amount recognized at end of year

 

$

(13.0

)

 

$

(13.3

)

 

Schedule of Weighted-Average Assumptions

Weighted-average assumptions used to determine the postretirement benefit obligation as of December 31 are:

 

 

 

2019

 

 

2018

 

Discount rate

 

3.29%

 

 

4.15%

 

 

Weighted-average assumptions used to determine net postretirement benefit credit for the years ended December 31 are:

 

 

 

2019

 

 

2018

 

 

2017

 

Discount rate

 

4.15%

 

 

3.47%

 

 

3.78%

 

Schedule of Expected Benefit Payments

The total expected benefit payments to be paid by the Company, net of participant contributions, for each of the next five years and the five-year period thereafter are as follows:

 

(in millions)

 

 

 

 

2020

 

$

2.0

 

2021

 

$

1.4

 

2022

 

$

1.4

 

2023

 

$

1.3

 

2024

 

$

1.2

 

Years 2025 - 2029

 

$

4.7