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Retirement and Other Benefit Programs (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Schedule of Defined Benefit Plans Disclosures
The benefit plan information is for the year ended December 31, 2016.
(In millions)
U.S. pensions
 
International pensions
 
OPEB
Benefit obligations
 

 
 

 
 

Beginning of period
$
—

 
$
—

 
$
—

Assumption of benefit obligations from Baxalta
441.6

 
503.8

 
23.5

Service cost
13.0

 
18.6

 
0.8

Interest cost
11.1

 
3.2

 
0.6

Participant contributions
—

 
3.2

 
—

Actuarial (gain) / loss
(10.6
)
 
(29.8
)
 
0.1

Benefit payments
(1.6
)
 
(9.1
)
 
—

Settlements
—

 
(3.2
)
 
—

Curtailments
(73.4
)
 
—

 
—

Foreign exchange
—

 
(18.3
)
 
—

Other
4.0

 
113.0

 
—

End of Period
$
384.1

 
$
581.4

 
$
25.0

 
 
 
 
 
 
Fair value of plan assets
 

 
 

 
 

Beginning of period
$
—

 
$
—

 
$
—

Assumption of plan assets from Baxalta
218.0

 
140.5

 
—

Actual return on plan assets
8.3

 
2.0

 
—

Employer contributions
0.4

 
12.3

 
—

Participant contributions
—

 
3.2

 
—

Benefit payments
(1.6
)
 
(9.1
)
 
—

Settlements
—

 
(3.2
)
 
—

Foreign exchange
—

 
(3.8
)
 
—

Other
3.3

 
56.0

 
—

End of period
228.4

 
197.9

 
—

Funded status at December 31, 2016
$
(155.7
)
 
$
(383.5
)
 
$
(25.0
)
 
 
 
 
 
 
Amounts recognized in the Consolidated Balance Sheets
 
 
 
 
 
Other current liabilities
$
(0.6
)
 
$
(8.8
)
 
$
(0.2
)
Other non-current liabilities
(155.1
)
 
(374.7
)
 
(24.8
)
Net liability recognized at December 31, 2016
$
(155.7
)
 
$
(383.5
)
 
$
(25.0
)
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
individual plans that have an ABO in excess of plan assets as of December 31, 2016.
(In millions)
December 31, 2016
U.S.
 

ABO
$
373.2

Fair value of plan assets
228.4

International
 

ABO
437.5

Fair value of plan assets
176.2
Schedule of Expected Benefit Payments
Expected Net Pension and OPEB Plan Payments for the Next 10 Years
(In millions)
U.S. pensions
 
International pensions
 
OPEB
2017
$
3.6

 
$
21.1

 
$
0.2

2018
5.7

 
18.6

 
0.3

2019
7.6

 
19.9

 
0.5

2020
9.7

 
20.1

 
0.6

2021
11.7

 
22.7

 
0.7

2022 through 2026
85.3

 
124.1

 
4.6

Total expected benefit payments for next 10 years
$
123.6

 
$
226.5

 
$
6.9
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
ollowing is a summary of the net of tax amounts recorded in OCI relating to the pension and OPEB plans during 2016:
(In millions)
U.S. pensions
 
International pensions
 
OPEB
Gain (loss) arising during the year, net of tax expense of $30.9 million for U.S. plans and $3.8 million for international plans
$
52.5

 
$
(14.2
)
 
$
—

Reclassification of gain to income statement, net of tax benefit of $25.9 million for U.S. plans
(43.5
)
 
—

 
—

Pension and other employee benefits gain (loss), net of tax
$
9.0

 
$
(14.2
)
 
$
—
Schedule of Net Benefit Costs
The net periodic benefit cost is from June 3, 2016, the date the Company assumed the obligations from Baxalta, through December 31, 2016:
 
June 3, 2016 through December 31, 2016
(In millions)
U.S. pensions
 
International pensions
 
OPEB
Net periodic benefit cost
 

 
 

 
 

Service cost
$
13.0

 
$
18.6

 
$
0.8

Interest cost
11.1

 
3.2

 
0.6

Expected return on plan assets
(8.9
)
 
(3.9
)
 
—

Curtailment and other
(69.4
)
 
20.0

 
—

Net periodic benefit cost
$
(54.2
)
 
$
37.9

 
$
1.4
Schedule of Assumptions Used
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
Mutual funds
 
Values are based on the net asset value of the units held in the respective fund which are obtained from active markets 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 active markets or based on the net asset value of the underlying assets of the fund provided by the fund manager
Other holdings
 
These primarily consist of insurance contracts whose value is based on the underlying assets and other holdings valued primarily based on reputable pricing vendors that typically use pricing matrices or models
Weighted-Average Assumptions Used in Determining Benefit Obligations at the Measurement Date
The following weighted-average assumptions were used in calculating the December 31, 2016 measurement date benefit obligations.
 
U.S. pensions
 
International pensions
 
OPEB
Discount rate
4.2
%
 
1.0
%
 
4.3
%
Rate of compensation increase
3.8
%
 
2.9
%
 
n/a

Annual rate of increase in the per-capita cost
n/a

 
n/a

 
6.3
%
Rate decreased to
n/a

 
n/a

 
5.0
%
by the year ended
n/a

 
n/a

 
2022

Weighted-Average Assumptions Used in Determining Net Periodic Benefit Cost
The following weighted-average assumptions were used in determining net periodic benefit cost for 2016.
 
U.S. pensions
 
International pensions
 
OPEB
Discount rate
4.1
%
 
1.0
%
 
4.2
%
Expected return on plan assets
7.0
%
 
4.5
%
 
n/a

Rate of compensation increase
3.8
%
 
3.2
%
 
n/a

Annual rate of increase in the per-capita cost
n/a

 
n/a

 
6.5
%
Rate decreased to
n/a

 
n/a

 
5.0
%
by the year ended
n/a

 
n/a

 
2022
Schedule of Allocation 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). Investments that are measured at fair value using the net asset value per share or its equivalent as a practical expedient are not classified in the fair value hierarchy.
U.S. pension plan assets
 
 
 
(In millions)
Balance as of December 31, 2016
 
Level 1
 
Level 2
 
Level 3
Assets
 

 
 

 
 

 
 

Fixed income
 

 
 

 
 

 
 

Cash equivalents
$
5.7

 
$
—

 
$
—

 
$
—

Collective trust funds
46.4

 
—

 
—

 
—

Mutual fund
11.4

 
—

 
—

 
—

Equity
 

 
 

 
 

 
 

Collective trust funds
100.4

 
—

 
—

 
—

Mutual fund
53.4

 
16.5

 
—

 
—

Hedge funds
11.1

 
—

 
—

 
—

Fair value of pension plan assets
$
228.4

 
$
16.5

 
$
—

 
$
—

 
International pension plan assets
 
 
 
(In millions)
Balance as of December 31, 2016
 
Level 1
 
Level 2
 
Level 3
Assets
 

 
 

 
 

 
 

Fixed income
 

 
 

 
 

 
 

Cash and cash equivalents
$
6.2

 
$
6.2

 
$
—

 
$
—

Government agency issues
0.6

 
0.6

 
—

 
—

Corporate bonds
21.1

 
21.1

 
—

 
—

Mutual funds
24.4

 
24.4

 
—

 
—

Equity
 

 
 

 
 

 
 

Common stock:
 

 
 

 
 

 
 

Large cap
19.9

 
19.9

 
—

 
—

Mid cap
1.6

 
1.6

 
—

 
—

Total common stock
21.5

 
21.5

 
—

 
—

Mutual funds
40.6

 
40.6

 
—

 
—

Real estate funds
12.1

 
8.4

 
—

 
—

Other holdings
71.4

 
—

 
71.4

 
—

Fair value of pension plan assets
$
197.9

 
$
122.8

 
$
71.4

 
$
—

 
Schedule of Net Funded Status
The table below details the funded status percentage of the Company’s pension plans as of December 31, 2016 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 %)
Qualified plan
 
Nonqualified plan
 
Funded plans
 
Unfunded plans
 
Total
Fair value of plan assets
$
228.4

 
n/a

 
$
197.9

 
n/a

 
$
426.3

PBO
352.8

 
31.3

 
413.7

 
167.7

 
965.5

Funded status percentage
65
%
 
n/a

 
48
%
 
n/a

 
44
%

U.S. Defined Contribution Plans
In addition to benefits provided under the pension and OPEB plans described above, the Company provides benefits under defined contribution plans. The Company's most significant defined contribution plans are in the United States. The Company recognized expenses related to U.S. defined contribution plans of $68.1 million, $38.9 million and $34.3 million during 2016, 2015 and 2014, respectively.