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Pension Plans (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Weighted Average Assumptions

Weighted average assumptions used to determine pension benefit obligations are as follows:

DECEMBER 31	2018			2017			2016
U.S.
Discount rate - qualified plan		4.50	%		3.88	%		4.25	%
Discount rate - non-qualified plan		4.50	%		3.88	%		4.25	%
Cash balance interest crediting rate		3.50	%		3.50	%		3.50	%

The Company utilizes a measurement date of January 1^st to determine its periodic pension costs. Weighted average assumptions used to determine net periodic pension costs for the defined benefit plans are as follows:

YEARS ENDED DECEMBER 31	2018			2017			2016
U.S.Qualified plan
Discount rate		3.88	%		4.25	%		4.88	%
Expected return on plan assets		4.75	%		5.00	%		5.25	%
Cash balance interest crediting rate		3.50	%		3.50	%		3.50	%
U.S. Non-qualified plan
Discount rate		3.88	%		4.25	%		4.75	%

Summary of Plan Assets Investment Measured at Fair Value

The following tables present, for each hierarchy level, the U.S. qualified defined benefit plan’s investment assets that are measured at fair value at December 31, 2018 and 2017. Refer to Note 5 – “Fair Value” for a description of the different levels in the Fair Value Hierarchy.

DECEMBER 31	2018								2017
(in millions)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Fixed income securities:
Fixed maturities	$	35.1	$	9.3	$	—	$	25.8	$	38.8	$	13.1	$	—	$	25.7
Money market mutual funds		9.1		9.1		—		—		5.3		5.3		—		—
Mutual funds		36.3		36.3		—		—		42.6		42.6		—		—
Total investments at fair value	$	80.5	$	54.7	$	—	$	25.8	$	86.7	$	61.0	$	—	$	25.7

Schedule of Benefit Obligations, Plan Assets and Funded Status of Plans

The following table reflects the benefit obligations, fair value of plan assets and funded status of the U.S. plans at December 31, 2018 and 2017.

DECEMBER 31	U.S. Qualified Pension Plan						U.S. Non-Qualified Pension Plan
(in millions)	2018			2017			2018			2017
Change in benefit obligation:
Benefit obligation, beginning of period⁽¹⁾	$	501.2		$	506.8		$	36.6		$	38.0
Interest cost		18.4			20.4			1.4			1.5
Actuarial losses (gains)		(17.5	)		7.3			(1.3	)		0.1
Benefits paid		(32.6	)		(33.3	)		(2.9	)		(3.0	)
Benefit obligation, end of year⁽¹⁾		469.5			501.2			33.8			36.6
Change in plan assets:
Fair value of plan assets, beginning of period		460.1			453.3			—			—
Actual return on plan assets		(16.8	)		40.1			—			—
Contributions		40.0			—			2.9			3.0
Benefits paid		(32.6	)		(33.3	)		(2.9	)		(3.0	)
Fair value of plan assets, end of year		450.7			460.1			—			—
Funded status of the plans	$	(18.8	)	$	(41.1	)	$	(33.8	)	$	(36.6	)

(1)	The accumulated benefit obligation for these plans is equal to the projected benefit obligation.

Components of Net Periodic Pension Cost

The components of total net periodic pension cost are as follows:

YEARS ENDED DECEMBER 31	2018			2017			2016
(in millions)
Interest cost	$	19.8		$	21.9		$	24.9
Expected return on plan assets		(20.6	)		(21.4	)		(23.5	)
Recognized net actuarial loss		9.6			13.5			11.2
Net periodic pension cost	$	8.8		$	14.0		$	12.6

Accumulated Other Comprehensive (Income) Loss Related to Postretirement Benefit Plans

The following table reflects the total amounts recognized in accumulated other comprehensive income relating to the U.S. defined benefit pension plans as of December 31, 2018 and 2017.

DECEMBER 31	2018		2017
(in millions)
Net actuarial loss	$	109.7	$	100.8

Schedule of Expected Benefit Payments

The Company estimates that benefit payments over the next 10 years will be as follows:

YEARS ENDED DECEMBER 31	2019		2020		2021		2022		2023		2024-2028
(in millions)
U.S. qualified pension plan	$	38.5	$	37.4	$	38.7	$	37.3	$	37.1	$	163.7
U.S. non-qualified pension plan	$	3.1	$	3.0	$	3.0	$	2.9	$	2.7	$	12.4

Investments Net Asset Value [Member]

Retirement Plans [Line Items]

Schedule of Fair Values of Investments

The fair values of these investments are as follows:

DECEMBER 31	2018		2017
Fixed maturities	$	346.4	$	343.5
Equity securities:
Domestic		9.3		12.6
International		14.6		17.3
Total equity		23.9		29.9
Total investments carried at NAV	$	370.3	$	373.4

US [Member]

Retirement Plans [Line Items]

Summary of Target Allocations and Invested Asset Allocations

The following table provides 2018 target allocations and actual invested asset allocations for 2018 and 2017.

DECEMBER 31	2018 TARGET LEVELS			2018			2017
Fixed income securities:
Fixed maturities		83	%		85	%		83	%
Money market funds		2	%		2	%		1	%
Total fixed income securities		85	%		87	%		84	%
Equity securities:
Domestic		12	%		10	%		12	%
International		3	%		3	%		4	%
Total equity securities		15	%		13	%		16	%
Total plan assets		100	%		100	%		100	%

Summary of Assets Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs

The table below provides a reconciliation for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3).

YEAR ENDED DECEMBER 31	2018
(in millions)
Balance at beginning of period	$	25.7
Plus: Assets transferred from investments measured at fair value using NAV		2.1
Less: Assets transferred to Level 1 investments		(2.7	)
Actual return on plan assets related to assets still held		0.7
Balance at end of year	$	25.8

Chaucer Pension Plan [Member]

Retirement Plans [Line Items]

Schedule of Benefit Obligations, Plan Assets and Funded Status of Plans

The following table reflects the benefit obligations and fair value for the Chaucer plan as of December 31, 2017 and related changes in those balances, as well as the changes to those balances during 2018 prior to the plan’s disposition in conjunction with the sale of Chaucer on December 28, 2018.

DECEMBER 31	Chaucer Pension Plan
(in millions)	2018			2017
Change in benefit obligation:
Benefit obligation, beginning of period ⁽¹⁾	$	146.1		$	132.2
Plan amendment		0.3			—
Interest cost		3.7			3.9
Actuarial losses (gains)		(8.6	)		3.2
Benefits paid		(3.9	)		(5.8	)
Foreign currency translation		(8.3	)		12.6
Disposition of benefit obligations with the sale of Chaucer		(129.3	)		—
Benefit obligation, end of year ⁽¹⁾	—				146.1
Change in plan assets:
Fair value of plan assets, beginning of period		144.6			116.5
Actual return on plan assets		(5.8	)		14.4
Contributions		—			7.7
Benefits paid		(3.9	)		(5.8	)
Foreign currency translation		(8.1	)		11.8
Disposition of plan assets with the sale of Chaucer		(126.8	)		—
Fair value of plan assets, end of year	—				144.6
Funded status of the plans	$ —			$	(1.5	)

(1)

The accumulated benefit obligation for the plan is equal to the projected benefit obligation.