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Retirement and Other Benefit Programs (Tables)
 9 Months Ended
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Summary of Fair Value of the Pension and OPEB-Related Balances
The following is a summary of the fair value of the pension and OPEB-related balances assumed as of June 3, 2016, the acquisition date.
(in millions)
U.S. pensions
 
International pensions
 
OPEB
Projected Benefit Obligation and Plan Assets Assumed
 

 
 

 
 

Projected benefit obligation
$
441.6

 
$
503.8

 
$
23.5

Plan assets
218.0

 
140.5

 
—

Funded status as of June 3, 2016
$
(223.6
)
 
$
(363.3
)
 
$
(23.5
)
 
 
 
 
 
 
Amounts Recognized in the Consolidated Balance Sheet
 

 
 

 
 

Other current liabilities
$
(0.2
)
 
$
(3.1
)
 
$
—

Other non-current liabilities
(223.4
)
 
(360.2
)
 
(23.5
)
Net liability recognized as of June 3, 2016
$
(223.6
)
 
$
(363.3
)
 
$
(23.5
)
Schedule of Amounts Recognized in Balance Sheet
The following is a summary of the fair value of the pension and OPEB-related balances assumed as of June 3, 2016, the acquisition date.
(in millions)
U.S. pensions
 
International pensions
 
OPEB
Projected Benefit Obligation and Plan Assets Assumed
 

 
 

 
 

Projected benefit obligation
$
441.6

 
$
503.8

 
$
23.5

Plan assets
218.0

 
140.5

 
—

Funded status as of June 3, 2016
$
(223.6
)
 
$
(363.3
)
 
$
(23.5
)
 
 
 
 
 
 
Amounts Recognized in the Consolidated Balance Sheet
 

 
 

 
 

Other current liabilities
$
(0.2
)
 
$
(3.1
)
 
$
—

Other non-current liabilities
(223.4
)
 
(360.2
)
 
(23.5
)
Net liability recognized as of June 3, 2016
$
(223.6
)
 
$
(363.3
)
 
$
(23.5
)
 
Information Relating to Individual Plans in Funded Status that have ABO in Excess of Plan Assets
The following is information relating to the individual plans as of June 3, 2016 in the funded status table above that have an ABO in excess of plan assets.
(in millions)
June 3, 2016
U.S.
 

ABO
$
369.2

Fair value of plan assets
218.0

International
 

ABO
364.9

Fair value of plan assets
118.2
Expected Net Pension and OPEB Plan Payments for Next 10 Years
Expected Net Pension and OPEB Plan Payments for the Next 10 Years
(in millions)
U.S. pensions
 
International pensions
 
OPEB
2016 (after June 3, 2016)
$
0.9

 
$
7.3

 
$
—

2017
3.6

 
14.7

 
0.2

2018
5.4

 
14.6

 
0.3

2019
7.3

 
16.2

 
0.4

2020
9.3

 
16.7

 
0.5

2021 through 2025
75.6

 
104.8

 
3.5

Total expected benefit payments for next 10 years
$
102.1

 
$
174.3

 
$
4.9
Net Periodic Benefit Cost
The net periodic benefit cost presented below is from the June 3, 2016 through September 30, 2016.
 
June 3, 2016 through September 30, 2016
(in millions)
U.S. pensions
 
International pensions
 
OPEB
Net periodic benefit cost
 

 
 

 
 

Service cost
$
7.4

 
$
10.5

 
$
0.5

Interest cost
6.4

 
1.8

 
0.3

Expected return on plan assets
(5.1
)
 
(2.2
)
 
—

Net periodic benefit cost
$
8.7

 
$
10.1

 
$
0.8


The net periodic benefit cost presented below is for the three months ended September 30, 2016.
 
Three months ended September 30, 2016
(in millions)
U.S. pensions
 
International pensions
 
OPEB
Net periodic benefit cost
 

 
 

 
 

Service cost
$
5.5

 
$
7.9

 
$
0.4

Interest cost
4.8

 
1.4

 
0.2

Expected return on plan assets
(3.8
)
 
(1.7
)
 
—

Net periodic benefit cost
$
6.5

 
$
7.6

 
$
0.6
Weighted Average Assumptions, Net Benefit Plan Obligations and Future Net Period Benefit Cost
The expected net benefit payments above reflected the Company’s share of the total net benefits expected to be paid from the
Schedule of Allocation and Fair Value of Plan Assets
The following pension assets are recorded at fair value on a recurring basis using quoted prices in active markets for identical assets (Level 1); significant other observable inputs (Level 2); and significant unobservable inputs (Level 3).
U.S. pension plan assets
 
 
 
(in millions)
Balance at June 3, 2016
 
Level 1
 
Level 2
 
Level 3
Assets
 

 
 

 
 

 
 

Fixed income
 

 
 

 
 

 
 

Cash equivalents*
$
4.4

 
$
—

 
$
—

 
$
—

Collective trust funds*
42.7

 
—

 
—

 
—

Mutual fund*
10.7

 
—

 
—

 
—

Equity
 

 
 

 
 

 
 

Collective trust funds*
96.5

 
—

 
—

 
—

Mutual fund*
53.0

 
17.0

 
—

 
—

Hedge funds*
10.7

 
—

 
—

 
—

Fair value of pension plan assets
$
218.0

 
$
17.0

 
$
—

 
$
—

 
*Investments that are measured at fair value using the net asset value per share or its equivalent as a practical expedient are not required to be classified in the fair value hierarchy.
The following tables summarize the bases used to measure the pension plan assets and liabilities that are carried at fair value on a recurring basis for the international funded plans. 
International pension plan assets
 
 
 
(in millions)
Balance at June 3, 2016
 
Level 1
 
Level 2
 
Level 3
Assets
 

 
 

 
 

 
 

Fixed income
 

 
 

 
 

 
 

Cash and cash equivalents
$
9.7

 
$
9.7

 
$
—

 
$
—

Government agency issues
1.5

 
1.5

 
—

 
—

Corporate bonds
30.1

 
30.1

 
—

 
—

Mutual funds
40.5

 
40.5

 
—

 
—

Equity
 

 
 

 
 

 
 

Common stock:
 

 
 

 
 

 
 

Large cap
15.7

 
15.7

 
—

 
—

Mid cap
1.6

 
1.6

 
—

 
—

Total common stock
17.3

 
17.3

 
—

 
—

Mutual funds
21.5

 
21.5

 
—

 
—

Real estate funds*
10.2

 
8.4

 
—

 
—

Other holdings
9.7

 
0.1

 
9.6

 
—

Fair value of pension plan assets
$
140.5


$
129.1


$
9.6


$
—

 
*Investments that are measured at fair value using the net asset value per share or its equivalent as a practical expedient are not required to be classified in the fair value hierarchy.
Valuation Methodologies in Calculation Pension Plans
The assets and liabilities of the Company’s pension plans are valued using the following valuation methods:
Investment category
Valuation methodology
Cash and cash equivalents
These largely consist of a short-term investment fund, U.S. dollars and foreign currency. The fair value of the short-term investment fund is based on the net asset value
Government agency issues
Values are based on quoted prices in an active market
Corporate bonds
Values are based on the valuation date in an active market
Common stock
Values are based on the closing prices on the valuation date in an active market on national and international stock exchanges
Mutual funds
Values are based on the net asset value of the units held in the respective fund which are obtained from national and international exchanges or as reported by the fund managers
Collective trust funds and hedge funds
Values are based on the net asset value of the units held at year end
Real estate funds
The value of these assets are either determined by the net asset value of the units held in the respective fund which are obtained from national and international exchanges or based on the net asset value of the underlying assets of the fund provided by the fund manager
Other holdings
The value of these assets vary by investment type and are primarily based on reputable pricing vendors that typically use pricing matrices or models
Funded Status Percentage Of Company's Pension Plans
The table below details the funded status percentage of the Company’s assumed pension plans from Baxalta as of the acquisition date, including certain plans that are unfunded in accordance with the guidelines of the Company’s funding policy outlined above.
 
United States
 
International
 
 

(in millions, except percentages)
Qualified plans
 
Nonqualified plans
 
Funded plans
 
Unfunded plans
 
Total
Fair value of plan assets
$
218.0

 
n/a

 
$
140.5

 
n/a

 
$
358.5

PBO
410.9

 
30.7

 
324.0

 
179.8

 
945.4

Funded status percentage
53
%
 
n/a

 
43
%
 
n/a

 
38
%