EMPLOYEE BENEFIT PLANS (Tables)
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12 Months Ended |
Dec. 31, 2016 |
|---|
| Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] |
|
| Expense for Defined Contribution Plans |
The expense for such defined contribution plans, aside from the earlier discussed ESOP plans, is as follows: | | | | | | | | | | | | | (Millions of Dollars) | 2016 |
| 2015 |
| 2014 | Multi-employer plan expense | $ | 5.1 |
| | $ | 4.0 |
| | $ | 4.0 |
| Other defined contribution plan expense | $ | 15.4 |
| | $ | 11.7 |
| | $ | 14.0 |
|
|
| Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income |
Changes in plan assets and benefit obligations recognized in accumulated other comprehensive loss in 2016 are as follows: | | | | | (Millions of Dollars) | 2016 | Current year actuarial loss | $ | 122.1 |
| Amortization of actuarial loss | (13.0 | ) | Prior service credit from plan amendments | (39.4 | ) | Amortization of prior service costs | (4.3 | ) | Settlement / curtailment loss | (0.8 | ) | Currency / other | (31.1 | ) | Total increase recognized in accumulated other comprehensive loss (pre-tax) | $ | 33.5 |
|
|
| Changes in Pension and Other Post-retirement Benefit Obligations, Fair Value of Plan Assets |
Information regarding pension plans in which projected benefit obligations (inclusive of anticipated future compensation increases) exceed plan assets follows: | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | (Millions of Dollars) | 2016 | | 2015 | | 2016 | | 2015 | Projected benefit obligation | $ | 1,359.0 |
| | $ | 1,385.7 |
| | $ | 1,359.0 |
| | $ | 921.7 |
| Accumulated benefit obligation | $ | 1,353.0 |
| | $ | 1,383.9 |
| | $ | 1,313.2 |
| | $ | 879.4 |
| Fair value of plan assets | $ | 1,067.1 |
| | $ | 1,081.5 |
| | $ | 1,014.4 |
| | $ | 591.9 |
|
The changes in the pension and other post-retirement benefit obligations, fair value of plan assets, as well as amounts recognized in the Consolidated Balance Sheets, are shown below. | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | | Other Benefits | (Millions of Dollars) | 2016 |
| 2015 |
| 2016 |
| 2015 |
| 2016 |
| 2015 | Change in benefit obligation | | | | | | | | | | | | Benefit obligation at end of prior year | $ | 1,385.7 |
| | $ | 1,460.5 |
| | $ | 1,374.2 |
| | $ | 1,540.4 |
| | $ | 61.0 |
| | $ | 69.8 |
| Service cost | 9.4 |
| | 7.0 |
| | 12.5 |
| | 14.4 |
| | 0.6 |
| | 0.5 |
| Interest cost | 45.3 |
| | 54.0 |
| | 37.0 |
| | 46.8 |
| | 1.7 |
| | 2.1 |
| Settlements/curtailments | — |
| | — |
| | (5.7 | ) | | (8.0 | ) | | — |
| | — |
| Actuarial loss (gain) | 41.5 |
| | (45.8 | ) | | 229.7 |
| | (86.7 | ) | | (0.7 | ) | | (2.1 | ) | Plan amendments | 1.8 |
| | 5.8 |
| | (40.4 | ) | | 0.2 |
| | (0.8 | ) | | — |
| Foreign currency exchange rates | — |
| | — |
| | (190.0 | ) | | (76.2 | ) | | 0.3 |
| | (1.5 | ) | Participant contributions | — |
| | — |
| | 0.3 |
| | 0.3 |
| | — |
| | — |
| Expenses paid from assets and other | (5.5 | ) | | (3.4 | ) | | (2.0 | ) | | (1.3 | ) | | — |
| | — |
| Benefits paid | (119.2 | ) | | (92.4 | ) | | (55.8 | ) | | (55.7 | ) | | (7.9 | ) | | (7.8 | ) | Benefit obligation at end of year | $ | 1,359.0 |
| | $ | 1,385.7 |
| | $ | 1,359.8 |
| | $ | 1,374.2 |
| | $ | 54.2 |
| | $ | 61.0 |
| Change in plan assets | | | | | | | | | | | | Fair value of plan assets at end of prior year | $ | 1,081.5 |
| | $ | 1,174.1 |
| | $ | 1,047.3 |
| | $ | 1,115.7 |
| | $ | — |
| | $ | — |
| Actual return on plan assets | 90.9 |
| | (19.3 | ) | | 169.4 |
| | 8.3 |
| | — |
| | — |
| Participant contributions | — |
| | — |
| | 0.3 |
| | 0.3 |
| | — |
| | — |
| Employer contributions | 19.4 |
| | 22.5 |
| | 29.5 |
| | 35.5 |
| | 7.9 |
| | 7.8 |
| Settlements | — |
| | — |
| | (5.5 | ) | | (6.4 | ) | | — |
| | — |
| Foreign currency exchange rate changes | — |
| | — |
| | (167.9 | ) | | (48.2 | ) | | — |
| | — |
| Expenses paid from assets and other | (5.5 | ) | | (3.4 | ) | | (2.0 | ) | | (2.2 | ) | | — |
| | — |
| Benefits paid | (119.2 | ) | | (92.4 | ) | | (55.8 | ) | | (55.7 | ) | | (7.9 | ) | | (7.8 | ) | Fair value of plan assets at end of plan year | $ | 1,067.1 |
| | $ | 1,081.5 |
| | $ | 1,015.3 |
| | $ | 1,047.3 |
| | $ | — |
| | $ | — |
| Funded status — assets less than benefit obligation | $ | (291.9 | ) | | $ | (304.2 | ) | | $ | (344.5 | ) | | $ | (326.9 | ) | | $ | (54.2 | ) | | $ | (61.0 | ) | Unrecognized prior service cost (credit) | 5.8 |
| | 9.1 |
| | (35.0 | ) | | 2.3 |
| | (6.2 | ) | | (6.6 | ) | Unrecognized net actuarial loss | 267.2 |
| | 255.8 |
| | 296.7 |
| | 233.5 |
| | 0.5 |
| | 1.4 |
| Unrecognized net transition obligation | — |
| | — |
| | 0.1 |
| | 0.1 |
| | — |
| | — |
| Net amount recognized | $ | (18.9 | ) | | $ | (39.3 | ) | | $ | (82.7 | ) | | $ | (91.0 | ) | | $ | (59.9 | ) | | $ | (66.2 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | | Other Benefits | (Millions of Dollars) | 2016 |
| 2015 |
| 2016 |
| 2015 | | 2016 | | 2015 | Amounts recognized in the Consolidated Balance Sheets | | | | | | | | | | | | Prepaid benefit cost (non-current) | $ | — |
| | $ | — |
| | $ | 0.2 |
| | $ | 2.9 |
| | $ | — |
| | $ | — |
| Current benefit liability | (25.8 | ) | | (11.0 | ) | | (10.0 | ) | | (7.9 | ) | | (5.9 | ) | | (6.7 | ) | Non-current benefit liability | (266.1 | ) | | (293.2 | ) | | (334.7 | ) | | (321.9 | ) | | (48.3 | ) | | (54.3 | ) | Net liability recognized | $ | (291.9 | ) | | $ | (304.2 | ) | | $ | (344.5 | ) | | $ | (326.9 | ) | | $ | (54.2 | ) | | $ | (61.0 | ) | Accumulated other comprehensive loss (pre-tax): | | | | | | | | | | | | Prior service cost (credit) | $ | 5.8 |
| | $ | 9.1 |
| | $ | (35.0 | ) | | $ | 2.3 |
| | $ | (6.2 | ) | | $ | (6.6 | ) | Actuarial loss | 267.2 |
| | 255.8 |
| | 296.7 |
| | 233.5 |
| | 0.5 |
| | 1.4 |
| Transition liability | — |
| | — |
| | 0.1 |
| | 0.1 |
| | — |
| | — |
| | $ | 273.0 |
| | $ | 264.9 |
| | $ | 261.8 |
| | $ | 235.9 |
| | $ | (5.7 | ) | | $ | (5.2 | ) | Net amount recognized | $ | (18.9 | ) | | $ | (39.3 | ) | | $ | (82.7 | ) | | $ | (91.0 | ) | | $ | (59.9 | ) | | $ | (66.2 | ) |
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| Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets |
The accumulated benefit obligation for all defined benefit pension plans was $2,666.7 million at December 31, 2016 and $2,714.0 million at January 2, 2016. Information regarding pension plans in which accumulated benefit obligations exceed plan assets follows: | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | (Millions of Dollars) | 2016 |
| 2015 |
| 2016 |
| 2015 | Projected benefit obligation | $ | 1,359.0 |
| | $ | 1,385.7 |
| | $ | 1,334.1 |
| | $ | 894.5 |
| Accumulated benefit obligation | $ | 1,353.0 |
| | $ | 1,383.9 |
| | $ | 1,290.7 |
| | $ | 855.5 |
| Fair value of plan assets | $ | 1,067.1 |
| | $ | 1,081.5 |
| | $ | 990.5 |
| | $ | 566.9 |
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|
| Assumptions used in Valuing Pension and Post-Retirement Plan Obligations and Net Costs |
The major assumptions used in valuing pension and post-retirement plan obligations and net costs were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Pension Benefits | | | | U.S. Plans | | Non-U.S. Plans | | Other Benefits | | 2016 | | 2015 | | 2014 | | 2016 | | 2015 | | 2014 | | 2016 | | 2015 | | 2014 | Weighted-average assumptions used to determine benefit obligations at year end: | | | | | | | | | | | | | | | | | | Discount rate | 4.00 | % | | 4.25 | % | | 3.75 | % | | 2.50 | % | | 3.25 | % | | 3.25 | % | | 3.50 | % | | 3.75 | % | | 3.25 | % | Rate of compensation increase | 3.00 | % | | 6.00 | % | | 6.00 | % | | 3.75 | % | | 3.25 | % | | 3.50 | % | | 3.50 | % | | 3.50 | % | | 3.50 | % | Weighted-average assumptions used to determine net periodic benefit cost: | | | | | | | | | | | | | | | | | | Discount rate | 4.25 | % | | 3.75 | % | | 4.50 | % | | 3.25 | % | | 3.25 | % | | 4.00 | % | | 3.75 | % | | 3.25 | % | | 4.00 | % | Rate of compensation increase | 6.00 | % | | 6.00 | % | | 6.00 | % | | 3.25 | % | | 3.50 | % | | 3.75 | % | | 3.50 | % | | 3.50 | % | | 3.50 | % | Expected return on plan assets | 6.50 | % | | 6.50 | % | | 7.00 | % | | 4.75 | % | | 5.25 | % | | 5.75 | % | | — |
| | — |
| | — |
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| Asset Allocations by Asset Category and Level of Valuation Inputs within Fair Value Hierarchy |
The Company’s worldwide asset allocations at December 31, 2016 and January 2, 2016 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows (in millions): | | | | | | | | | | | | | Asset Category | 2016 | | Level 1 | | Level 2 | Cash and cash equivalents | $ | 50.8 |
| | $ | 35.3 |
| | $ | 15.5 |
| Equity securities | | | | | | U.S. equity securities | 303.8 |
| | 100.7 |
| | 203.1 |
| Foreign equity securities | 254.1 |
| | 75.8 |
| | 178.3 |
| Fixed income securities | | | | | | Government securities | 687.0 |
| | 227.0 |
| | 460.0 |
| Corporate securities | 687.9 |
| |
|
| | 687.9 |
| Insurance contracts | 35.0 |
| |
|
| | 35.0 |
| Other | 63.8 |
| |
|
| | 63.8 |
| Total | $ | 2,082.4 |
| | $ | 438.8 |
| | $ | 1,643.6 |
|
| | | | | | | | | | | | | Asset Category | 2015 | | Level 1 | | Level 2 | Cash and cash equivalents | $ | 58.1 |
| | $ | 39.7 |
| | $ | 18.4 |
| Equity securities | | | | | | U.S. equity securities | 296.3 |
| | 50.4 |
| | 245.9 |
| Foreign equity securities | 269.0 |
| | 43.2 |
| | 225.8 |
| Fixed income securities | | | | | | Government securities | 696.7 |
| | 248.3 |
| | 448.4 |
| Corporate securities | 716.9 |
| | — |
| | 716.9 |
| Insurance contracts | 33.2 |
| | — |
| | 33.2 |
| Other | 58.6 |
| | — |
| | 58.6 |
| Total | $ | 2,128.8 |
| | $ | 381.6 |
| | $ | 1,747.2 |
|
|
| Expected Future Benefit Payments |
EXPECTED FUTURE BENEFIT PAYMENTS — Benefit payments, inclusive of amounts attributable to estimated future employee service, are expected to be paid as follows over the next 10 years: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Millions of Dollars) | | Total | | Year 1 | | Year 2 | | Year 3 | | Year 4 | | Year 5 | | Years 6-10 | Future payments | | $ | 1,451.4 |
| | $ | 187.9 |
| | $ | 139.4 |
| | $ | 137.3 |
| | $ | 139.5 |
| | $ | 141.6 |
| | $ | 705.7 |
|
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| Pension Plans, Defined Benefit |
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| Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] |
|
| Net Periodic Pension Expense |
The components of net periodic pension (benefit) expense are as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | U.S. Plans | | Non-U.S. Plans | (Millions of Dollars) | 2016 |
| 2015 |
| 2014 | | 2016 | | 2015 | | 2014 | Service cost | $ | 9.4 |
| | $ | 7.0 |
| | $ | 8.9 |
| | $ | 12.5 |
| | $ | 14.4 |
| | $ | 13.1 |
| Interest cost | 45.3 |
| | 54.0 |
| | 56.4 |
| | 37.0 |
| | 46.8 |
| | 59.3 |
| Expected return on plan assets | (67.9 | ) | | (74.9 | ) | | (72.1 | ) | | (44.5 | ) | | (56.5 | ) | | (61.0 | ) | Prior service cost amortization | 5.2 |
| | 1.8 |
| | 1.1 |
| | 0.3 |
| | 0.9 |
| | 0.3 |
| Actuarial loss amortization | 7.1 |
| | 7.2 |
| | 0.9 |
| | 5.9 |
| | 7.5 |
| | 7.0 |
| Settlement / curtailment loss | — |
| | — |
| | — |
| | 0.7 |
| | 1.5 |
| | 0.3 |
| Net periodic pension (benefit) expense | $ | (0.9 | ) | | $ | (4.9 | ) | | $ | (4.8 | ) | | $ | 11.9 |
| | $ | 14.6 |
| | $ | 19.0 |
|
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| Other Postretirement Benefit Plans, Defined Benefit |
|
| Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items] |
|
| Net Periodic Pension Expense |
Approximately 13,300 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following elements: | | | | | | | | | | | | | | Other Benefit Plans | (Millions of Dollars) | 2016 |
| 2015 |
| 2014 | Service cost | $ | 0.6 |
| | $ | 0.5 |
| | $ | 1.0 |
| Interest cost | 1.7 |
| | 2.1 |
| | 2.7 |
| Prior service credit amortization | (1.2 | ) | | (1.3 | ) | | (1.4 | ) | Actuarial loss amortization | — |
| | — |
| | (0.1 | ) | Net periodic post-retirement expense | $ | 1.1 |
| | $ | 1.3 |
| | $ | 2.2 |
|
|