Pension and Other Postretirement Benefit Plans

12 Months Ended

Dec. 31, 2012

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

Pension and Other Postretirement Benefit Plans

We have a defined benefit retirement plan that covers substantially all domestic employees; this plan was frozen to new hires after January 15, 2011. Pension benefits covering salaried employees generally provide benefits that are based on average earnings and years of credited service. Pension benefits covering hourly employees generally provide benefits of stated amounts for each year of service.

With regard to our retiree health care benefit plan, in the second quarter of 2012 we informed employees and current retirees that (1) effective May 1, 2012 we would no longer provide life insurance benefits to eligible current and future salaried retirees of the Company, (2) effective December 31, 2013, we would no longer provide pre-age 65 retiree group health care benefits to current salaried employees and current salaried retirees of the Company who could participate or who are currently participating in the Plan and (3) effective May 1, 2012, all current employees who have not satisfied the age and Company service requirements as of May 1, 2012, for eligibility and participation in the Plan providing pre-age 65 retiree group health care benefits, will no longer be eligible.

We use December 31 as the measurement date for determining pension and other postretirement benefits. Information regarding the funded status and net periodic benefit costs was reconciled to or stated as of the year ended December 31.

Amounts recognized for both pension and other postretirement benefit plans in the consolidated balance sheets and in accumulated other comprehensive income as of December 31 consist of:

	Pension Benefit						Other Benefit
(in millions)	2012			2011			2012			2011
Assets and liabilities:
Liabilities – current	$	(0.8	)	$	(0.9	)	$	(0.2	)	$	(0.6	)
Liabilities – long term	$	(37.1	)	$	(37.5	)	$	—		$	(4.9	)
Accumulated other comprehensive income:
Prior service cost (credit)	$	0.8		$	0.6		$	(2.1	)	$	(42.3	)
Net actuarial loss (gain)	$	41.7		$	45.4		$	(12.8	)	$	(26.0	)

The estimated net actuarial loss (gain) and prior service cost (credit) for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next twelve months are $2.7 million and ($0.2) million, respectively. The estimated net actuarial gain and prior service credit for the other defined benefit postretirement plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next twelve months is ($12.8) million and ($2.1) million, respectively.

In the fourth quarter of 2012, based on a detailed review of the provisions of our defined benefit plans in India, we have reclassified these plans from other postretirement benefit plans to pension benefit plans. We have reclassified the disclosures related to these plans for 2011 accordingly, to conform to classifications used at December 31, 2012. See Note 1, "Accounting Policies", for a discussion of the impact of this reclassification on our financial statements.

The following table provides a reconciliation of the changes in the pension and postretirement plan benefit obligations and fair value of plan assets for 2012 and 2011:

	Pension Benefit						Other Benefit
(in millions)	2012			2011			2012			2011
Change in benefit obligation
Benefit obligation at beginning of period	$	182.3		$	164.9		$	5.2		$	9.0
Service cost	2.4			2.2			—			0.1
Interest cost	7.2			8.3			0.1			0.4
Plan amendments	—			0.2			(3.5		)	(1.2		)
Actuarial loss (gain)	4.9			18.7			(0.3		)	(2.7		)
Benefit payments	(11.0		)	(11.4		)	(0.4		)	(0.4		)
Special termination benefits	0.2			0.4			—			—
Settlements	—			—			(0.9		)	—
Effect of changes in exchange rate	0.5			(1.0		)	—			—
Benefit obligation at measurement date	$	186.5		$	182.3		$	0.2		$	5.2

Change in plan assets
Fair value at beginning of period	$	144.2		$	145.8		$	—		$	—
Actual return on plan assets	14.0			9.0			—			—
Employer contributions	1.3			0.7			0.4			—
Benefit payments	(11.0		)	(10.9		)	(0.4		)	—
Effect of changes in exchange rate	—			(0.4		)	—			—
Fair value at measurement date	$	148.5		$	144.2		$	—		$	—

The changes in benefit obligation due to the "Plan amendments" of $3.5 million and "Settlements" of $0.9 million in 2012 are related to termination of our postretirement benefits in the second quarter of 2012. The related balance was also reversed from "Accumulated Other Comprehensive Income" ("AOCI"), resulting in a total non-cash gain of $45.0 million on our Consolidated Statement of Operations. Due to the negative plan amendment, described in clause (2) of the second paragraph of this note above, we will record increased amortization of net gains until December 31, 2013.

"Plan amendments" of $1.2 million in 2011, included in “Other Benefit” were due to the elimination of medical coverage for retirees over 65 and eligible for Medicare.

The accumulated benefit obligation for all defined benefit pension plans was $177.4 million and $176.2 million at December 31, 2012 and 2011, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets:

	December 31,
(in millions)	2012		2011
Projected benefit obligation	$	184.2	$	180.8
Accumulated benefit obligation	$	175.9	$	175.4
Fair value of plan assets	$	146.9	$	142.9

Information for pension plans with a projected benefit obligation in excess of plan assets:

	December 31,
(in millions)	2012		2011
Projected benefit obligation	$	186.5	$	182.3
Accumulated benefit obligation	$	177.4	$	176.2
Fair value of plan assets	$	148.5	$	144.2

Components of net periodic expense (benefit) during the year:

	Pension Benefits						Other Benefits
(in millions)	2012			2011			2012			2011
Service cost	$	2.4		$	2.2		$	—		$	0.1
Interest cost	7.2			8.3			0.1			0.4
Expected return on plan assets	(8.4		)	(8.0		)	—			—
Amortization of net loss (gain)	3.0			1.5			(9.2		)	(2.3		)
Amortization of unrecognized prior service costs	(0.2		)	(0.3		)	(3.9		)	(7.2		)
Curtailment and settlement gain	—			—			(45.0		)	—
Net periodic expense (benefit)	$	4.0		$	3.7		$	(58.0	)	$	(9.0	)

Additional Information

Assumptions

Weighted-average assumptions used to determine benefit obligations as of December 31;

	Pension Benefits				Other Benefits
	2012		2011		2012		2011
U.S.-Based Plans:
Discount rate	3.75	%	4.00	%	0.50	%	4.00	%
Rate of compensation increase	3.50	%	4.25	%	N/A		N/A
Europe-Based Plans:
Discount rate	2.75	%	3.80	%	N/A		N/A
Rate of compensation increase	3.00	%	3.00	%	N/A		N/A
India-Based Plans:
Discount rate	8.25	%	8.60	%	N/A		N/A
Rate of compensation increase	6.00	%	6.00	%	N/A		N/A

Weighted-average assumptions used to determine net periodic benefit costs for the years ended December 31:

	Pension Benefits				Other Benefits
	2012		2011		2012		2011
U.S.-Based Plans:
Discount rate	4.00	%	5.25	%	4.00	%	5.25	%
Expected long-term return on plan assets	6.00	%	5.90	%	N/A		N/A
Rate of compensation increase	4.25	%	4.25	%	N/A		N/A
Europe-Based Plans:
Discount rate	3.80	%	3.80	%	N/A		N/A
Expected long-term return on plan assets	N/A		N/A		N/A		N/A
Rate of compensation increase	3.00	%	3.00	%	N/A		N/A
India-Based Plans:
Discount rate	8.60	%	8.60	%	N/A		N/A
Expected long-term return on plan assets	9.40	%	9.40	%	N/A		N/A
Rate of compensation increase	6.00	%	6.00	%	N/A		N/A

The expected long-term return on assets was determined for each class of assets in which the plan is invested based on consultation with the company's investment advisers. That information is combined with the target asset allocation, where applicable, to determine our best estimate of future returns.

Assumed health care cost trend rates, at December 31, 2012 and 2011:

	2012	2011
Health care cost trend rate assumed for next year	N/A	8.4%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	N/A	5.0%
Year that the rate reaches the ultimate trend rate	N/A	2019

Plan Assets

Our primary investment objectives are 1) preservation of principal, 2) minimizing the volatility of our assets and liabilities from changes in interest rates and market conditions, and 3) providing liquidity to meet benefit payments and expenses. Our portfolio consists of fixed income obligations rated investment grade, i.e. “Baa3/BBB” or better by Moody’s or Standard & Poor’s, respectively, and international and domestic equities.

The following tables provide pension plan assets based on nature and risks as of December 31, 2012 and 2011 (See Note 13, “Fair Value Measurements”, for additional information):

	Plan Assets at
(in millions)	Total Fair Value Measurement at December 31, 2012		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	2.4	$	2.4	$	—	$	—
Mutual Funds:
U.S. large cap	17.3		17.3		—		—
U.S. small cap	11.8		11.8		—		—
International growth	14.8		14.8		—		—
Fixed Income Securities:
Corporate bonds	78.5		—		78.5		—
U.S. Treasury and Government bonds	13.1		13.1		—		—
U.S. state and political subdivision bonds	3.8		—		3.8		—
Other fixed income securities	4.4		—		4.4		—
Other:
India Government backed funds	2.4		2.4		—		—
Total	$	148.5	$	61.8	$	86.7	$	—

	Plan Assets at
(in millions)	Total Fair Value Measurement at December 31, 2011		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	$	21.7	$	21.7	$	—	$	—
Mutual Funds:
U.S. large cap	11.1		11.1		—		—
U.S. small cap	3.7		3.7		—		—
International growth	3.1		3.1		—		—
Fixed Income Securities:
Corporate bonds	71.7		—		71.7		—
U.S. Treasuries and Government bonds	22.8		22.8		—		—
U.S. state and political subdivision bonds	3.3		—		3.3		—
Other fixed income securities	4.7		—		4.7		—
Other:
India Government backed funds	2.1		2.1		—		—
Total	$	144.2	$	64.5	$	79.7	$	—

We expect to make contributions of $0.2 million to our pension plans in 2013.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

(in millions) Year	Projected Benefit Payments from Pension Plans		Projected Benefit  Payments From Postretirement Medical And Life Insurance Plans
2013	$	10.5	$	0.2
2014	$	10.7	$	—
2015	$	12.1	$	—
2016	$	11.4	$	—
2017	$	11.6	$	—
Aggregate for 2018-2022	$	63.4	$	—

Defined Contribution Plan

We have a defined contribution retirement plan that covers substantially all domestic employees. The expense for this plan was $2.4 million, $2.5 million and $2.3 million in 2012, 2011 and 2010, respectively. Contributions were 100% funded from the proceeds obtained from the reversion of our former Salaried pension plan.