XML 62 R41.htm IDEA: XBRL DOCUMENT v3.10.0.1
EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 29, 2018
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)
2018

2017

2016
Multi-employer plan expense
$
7.3

 
$
7.2

 
$
5.1

Other defined contribution plan expense
$
12.9

 
$
27.5

 
$
15.4
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 2018 are as follows:
(Millions of Dollars)
2018
Current year actuarial loss
$
10.6

Amortization of actuarial loss
(14.8
)
Prior service cost from plan amendments
16.3

Settlement / curtailment loss
(0.7
)
Currency / other
(14.8
)
Total decrease recognized in accumulated other comprehensive loss (pre-tax)
$
(3.4
)
Changes in Pension and Other Post-retirement Benefit Obligations, Fair Value of Plan Assets
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)
2018

2017

2018

2017

2018

2017
Change in benefit obligation
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at end of prior year
$
1,365.3

 
$
1,359.0

 
$
1,446.1

 
$
1,359.8

 
$
52.3

 
$
54.2

Service cost
7.5

 
8.7

 
15.2

 
13.7

 
0.5

 
0.6

Interest cost
42.8

 
43.2

 
28.6

 
29.1

 
1.6

 
1.7

Settlements/curtailments
—

 
(16.7
)
 
(4.3
)
 
(35.9
)
 
—

 
—

Actuarial (gain) loss
(106.2
)
 
98.1

 
(64.1
)
 
11.4

 
(6.2
)
 
(2.1
)
Plan amendments
0.2

 
0.5

 
16.0

 
—

 
0.1

 
—

Foreign currency exchange rates
—

 
—

 
(77.0
)
 
136.0

 
(1.0
)
 
0.7

Participant contributions
—

 
—

 
0.3

 
0.3

 
—

 
—

Acquisitions, divestitures, and other
34.0

 
(7.0
)
 
3.4

 
(11.6
)
 
1.9

 
2.1

Benefits paid
(82.7
)
 
(120.5
)
 
(58.9
)
 
(56.7
)
 
(4.4
)
 
(4.9
)
Benefit obligation at end of year
$
1,260.9

 
$
1,365.3

 
$
1,305.3

 
$
1,446.1

 
$
44.8

 
$
52.3

Change in plan assets
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at end of prior year
$
1,114.1

 
$
1,067.1

 
$
1,099.2

 
$
1,015.3

 
$
—

 
$
—

Actual return on plan assets
(52.9
)
 
153.5

 
(18.6
)
 
63.5

 
—

 
—

Participant contributions
—

 
—

 
0.3

 
0.3

 
—

 
—

Employer contributions
19.4

 
37.6

 
20.9

 
24.0

 
4.4

 
4.9

Settlements
—

 
(16.7
)
 
(4.2
)
 
(35.9
)
 
—

 
—

Foreign currency exchange rate changes
—

 
—

 
(61.5
)
 
96.4

 
—

 
—

Acquisitions, divestitures, and other
22.8

 
(6.9
)
 
(2.9
)
 
(7.7
)
 
—

 
—

Benefits paid
(82.7
)
 
(120.5
)
 
(58.9
)
 
(56.7
)
 
(4.4
)
 
(4.9
)
Fair value of plan assets at end of plan year
$
1,020.7

 
$
1,114.1

 
$
974.3

 
$
1,099.2

 
$
—

 
$
—

Funded status — assets less than benefit obligation
$
(240.2
)
 
$
(251.2
)
 
$
(331.0
)
 
$
(346.9
)
 
$
(44.8
)
 
$
(52.3
)
Unrecognized prior service cost (credit)
4.3

 
5.2

 
(18.2
)
 
(37.0
)
 
(3.4
)
 
(4.8
)
Unrecognized net actuarial loss
272.0

 
264.9

 
270.8

 
294.7

 
(7.6
)
 
(1.7
)
Net amount recognized
$
36.1

 
$
18.9

 
$
(78.4
)
 
$
(89.2
)
 
$
(55.8
)
 
$
(58.8
)

 
U.S. Plans
 
Non-U.S. Plans
 
Other Benefits
(Millions of Dollars)
2018

2017

2018

2017
 
2018
 
2017
Amounts recognized in the Consolidated Balance Sheets
 
 
 
 
 
 
 
 
 
 
 
Prepaid benefit cost (non-current)
$
—

 
$
—

 
$
1.0

 
$
1.8

 
$
—

 
$
—

Current benefit liability
(7.7
)
 
(8.2
)
 
(9.1
)
 
(8.9
)
 
(4.8
)
 
(5.2
)
Non-current benefit liability
(232.5
)
 
(243.0
)
 
(322.9
)
 
(339.8
)
 
(40.0
)
 
(47.1
)
Net liability recognized
$
(240.2
)
 
$
(251.2
)
 
$
(331.0
)
 
$
(346.9
)
 
$
(44.8
)
 
$
(52.3
)
Accumulated other comprehensive loss (pre-tax):
 
 
 
 
 
 
 
 
 
 
 
Prior service cost (credit)
$
4.3

 
$
5.2

 
$
(18.2
)
 
$
(37.0
)
 
$
(3.4
)
 
$
(4.8
)
Actuarial loss (gain)
272.0

 
264.9

 
270.8

 
294.7

 
(7.6
)
 
(1.7
)
 
$
276.3

 
$
270.1

 
$
252.6

 
$
257.7

 
$
(11.0
)
 
$
(6.5
)
Net amount recognized
$
36.1

 
$
18.9

 
$
(78.4
)
 
$
(89.2
)
 
$
(55.8
)
 
$
(58.8
)
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)
2018
 
2017
 
2018
 
2017
Projected benefit obligation
$
1,260.9

 
$
1,365.3

 
$
1,301.7

 
$
1,445.1

Accumulated benefit obligation
$
1,257.6

 
$
1,358.4

 
$
1,252.7

 
$
1,395.1

Fair value of plan assets
$
1,020.7

 
$
1,114.1

 
$
969.7

 
$
1,096.5
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
The accumulated benefit obligation for all defined benefit pension plans was $2.513 billion at December 29, 2018 and $2.754 billion at December 30, 2017. Information regarding pension plans in which accumulated benefit obligations exceed plan assets follows:
 
 
U.S. Plans
 
Non-U.S. Plans
(Millions of Dollars)
2018

2017

2018

2017
Projected benefit obligation
$
1,260.9

 
$
1,365.3

 
$
1,275.7

 
$
1,415.9

Accumulated benefit obligation
$
1,257.6

 
$
1,358.4

 
$
1,228.6

 
$
1,368.7

Fair value of plan assets
$
1,020.7

 
$
1,114.1

 
$
945.0

 
$
1,068.5
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
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Weighted-average assumptions used to determine benefit obligations at year end:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.20
%
 
3.53
%
 
3.95
%
 
2.62
%
 
2.24
%
 
2.38
%
 
4.03
%
 
3.53
%
 
3.51
%
Rate of compensation increase
3.00
%
 
3.00
%
 
3.00
%
 
3.44
%
 
3.45
%
 
3.63
%
 
3.50
%
 
3.50
%
 
3.50
%
Weighted-average assumptions used to determine net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate - service cost
3.72
%
 
4.10
%
 
4.32
%
 
2.15
%
 
2.27
%
 
2.54
%
 
5.11
%
 
4.53
%
 
4.27
%
Discount rate - interest cost
3.16
%
 
3.30
%
 
3.39
%
 
2.20
%
 
2.31
%
 
2.94
%
 
3.77
%
 
2.93
%
 
2.94
%
Rate of compensation increase
3.00
%
 
3.00
%
 
6.00
%
 
3.45
%
 
3.63
%
 
3.24
%
 
3.50
%
 
3.50
%
 
3.50
%
Expected return on plan assets
6.25
%
 
6.25
%
 
6.50
%
 
4.37
%
 
4.41
%
 
4.68
%
 
—

 
—

 
—
Asset Allocations by Asset Category and Level of Valuation Inputs within Fair Value Hierarchy
The Company’s worldwide asset allocations at December 29, 2018 and December 30, 2017 by asset category and the level of the valuation inputs within the fair value hierarchy established by ASC 820 are as follows:
Asset Category (Millions of Dollars)
2018
 
Level 1
 
Level 2
Cash and cash equivalents
$
139.5

 
$
113.6

 
$
25.9

Equity securities
 
 
 
 
 
U.S. equity securities
248.7

 
83.4

 
165.3

Foreign equity securities
220.0

 
85.2

 
134.8

Fixed income securities
 
 
 
 
 
Government securities
642.3

 
205.5

 
436.8

Corporate securities
656.6

 
—

 
656.6

Insurance contracts
37.1

 
—

 
37.1

Other
50.8

 
—

 
50.8

Total
$
1,995.0

 
$
487.7

 
$
1,507.3

 
Asset Category (Millions of Dollars)
2017
 
Level 1
 
Level 2
Cash and cash equivalents
$
42.0

 
$
19.5

 
$
22.5

Equity securities
 
 
 
 
 
U.S. equity securities
342.8

 
103.5

 
239.3

Foreign equity securities
329.3

 
111.8

 
217.5

Fixed income securities
 
 
 
 
 
Government securities
707.8

 
213.3

 
494.5

Corporate securities
698.3

 
—

 
698.3

Insurance contracts
39.2

 
—

 
39.2

Other
53.9

 
—

 
53.9

Total
$
2,213.3

 
$
448.1

 
$
1,765.2
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
 
$
1,400.2

 
$
136.1

 
$
137.6

 
$
139.3

 
$
139.5

 
$
141.4

 
$
706.3
Pension Plans, Defined Benefit  
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)
2018

2017

2016
 
2018
 
2017
 
2016
Service cost
$
7.5

 
$
8.7

 
$
9.4

 
$
15.2

 
$
13.7

 
$
12.5

Interest cost
42.8

 
43.2

 
45.3

 
28.6

 
29.1

 
37.0

Expected return on plan assets
(68.7
)
 
(64.4
)
 
(67.9
)
 
(46.5
)
 
(45.5
)
 
(44.5
)
Amortization of prior service cost (credit)
1.1

 
1.1

 
5.2

 
(1.3
)
 
(1.2
)
 
0.3

Actuarial loss amortization
7.8

 
8.3

 
7.1

 
8.5

 
9.4

 
5.9

Settlement / curtailment loss
—

 
2.9

 
—

 
0.7

 
12.7

 
0.7

Net periodic pension (benefit) expense
$
(9.5
)
 
$
(0.2
)
 
$
(0.9
)
 
$
5.2

 
$
18.2

 
$
11.9
Other Postretirement Benefit Plans, Defined Benefit  
Defined Benefit Plans and Other Postretirement Benefit Plans [Line Items]  
Net Periodic Pension Expense
Approximately 15,000 participants are covered under these plans. Net periodic post-retirement benefit expense was comprised of the following elements:
 
Other Benefit Plans
(Millions of Dollars)
2018

2017

2016
Service cost
$
0.5

 
$
0.6

 
$
0.6

Interest cost
1.6

 
1.7

 
1.7

Amortization of prior service credit
(1.3
)
 
(1.4
)
 
(1.2
)
Net periodic post-retirement expense
$
0.8

 
$
0.9

 
$
1.1