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Pension and Other Postretirement Benefit Plans
 12 Months Ended
Dec. 31, 2013
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. We have frozen the pension benefits provided to our salaried pension plan participants. This means that: (i) salaried pension plan participants will not earn any additional years of benefit service under the plan after December 31, 2013 for purposes of accruing an additional plan benefit; and (ii) no pay increases/decreases that salaried pension plan participants earn after December 31, 2013 will be taken into account in determining their Plan benefit. 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 AOCI as of December 31 consist of:
  
Pension Benefit
 
Other Benefit
(in millions)
2013
 
2012
 
2013
 
2012
Assets and liabilities:
 
 
 
 
 
 
 
Liabilities – current
$
(0.8
)
 
$
(0.8
)
 
$
—

 
$
(0.2
)
Liabilities – long term
$
(20.0
)
 
$
(37.1
)
 
$
(0.3
)
 
$
—

Accumulated other comprehensive income:
 
 
 
 
 
 
 
Prior service cost (credit)
$
1.1

 
$
0.8

 
$
—

 
$
(2.1
)
Net actuarial loss (gain)
$
22.8

 
$
41.7

 
$
—

 
$
(12.8
)

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 $0.9 million and ($0.2) million, respectively. Both the estimated net actuarial gain and prior service credit for the remaining other defined benefit postretirement plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next twelve months are not material.
The following table provides a reconciliation of the changes in the pension and postretirement plan benefit obligations and fair value of plan assets for 2013 and 2012:
  
Pension Benefit
 
Other Benefit
(in millions)
2013
 
2012
 
2013
 
2012
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of period
$
186.5

 
$
182.3

 
$
0.2

 
$
5.2

Service cost
2.2

 
2.4

 
—

 
—

Interest cost
6.8

 
7.2

 
—

 
0.1

Plan amendments
—

 
—

 
—

 
(3.5
)
Actuarial loss (gain)
(15.1
)
 
4.9

 
(0.1
)
 
(0.3
)
Benefit payments
(10.2
)
 
(11.0
)
 
(0.1
)
 
(0.4
)
Special termination benefits
—

 
0.2

 
—

 
—

Reclassification adjustment
—

 
—

 
0.3

 
—

Settlements
(1.6
)
 
—

 
—

 
(0.9
)
Curtailments
(3.8
)
 
—

 
—

 
—

Effect of changes in exchange rate
—

 
0.5

 
—

 
—

Benefit obligation at measurement date
$
164.8

 
$
186.5

 
$
0.3

 
$
0.2


Change in plan assets
 
 
 
 
 
 
 
Fair value at beginning of period
$
148.5

 
$
144.2

 
$
—

 
$
—

Actual return on plan assets
5.9

 
14.0

 
—

 
—

Employer contributions
1.7

 
1.3

 
0.1

 
0.4

Benefit payments
(10.2
)
 
(11.0
)
 
(0.1
)
 
(0.4
)
Settlements
(1.6
)
 
—

 
—

 
—

Effect of changes in exchange rate
(0.3
)
 
—

 
—

 
—

Fair value at measurement date
$
144.0

 
$
148.5

 
$
—

 
$
—


The changes in benefit obligation due to the "Curtailments" of $3.8 million in 2013 are related to curtailment of our defined benefit retirement plan for the domestic salaried employees. The related balance was also reversed from AOCI.
The changes in benefit obligation due to the "Settlements" of $1.6 million in 2013 are related to some of our benefit plans in Europe and India, where the lump sum benefit payments exceeded the sum of service cost and interest cost, triggering settlement accounting.
The changes in benefit obligation due to "Reclassification adjustment" of $0.3 million in 2013 are related to reclassification of our postretirement benefit in Europe due to a continued review of our employee related plans. Previously the liabilities associated with this plan were recorded in other current liabilities and other long-term liabilities on our Consolidated Balance Sheets.
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 AOCI, resulting in a total non-cash gain of $45.0 million on our Consolidated Statements of Operations. Due to the negative plan amendment, described in clause (2) of the second paragraph of this note above, we recorded increased amortization of net gains until December 31, 2013.
The accumulated benefit obligation for all defined benefit pension plans was $160.9 million and $177.4 million at December 31, 2013 and 2012, respectively.
Information for pension plans with an accumulated benefit obligation in excess of plan assets:
  
December 31,
(in millions)
2013
 
2012
Projected benefit obligation
$
162.8

 
$
184.2

Accumulated benefit obligation
$
159.3

 
$
175.9

Fair value of plan assets
$
142.3

 
$
146.9


Information for pension plans with a projected benefit obligation in excess of plan assets:
  
December 31,
(in millions)
2013
 
2012
Projected benefit obligation
$
164.8

 
$
186.5

Accumulated benefit obligation
$
160.9

 
$
177.4

Fair value of plan assets
$
144.0

 
$
148.5

Components of net periodic expense (benefit) during the year: 
  
 
Pension Benefits
 
Other Benefits
(in millions)
 
2013
 
2012
 
2013
 
2012
Service cost
 
$
2.2

 
$
2.4

 
$
—

 
$
—

Interest cost
 
6.8

 
7.2

 
—

 
0.1

Expected return on plan assets
 
(8.5
)
 
(8.4
)
 
—

 
—

Amortization of net loss (gain)
 
2.7

 
3.0

 
(12.9
)
 
(9.2
)
Amortization of unrecognized prior service costs
 
(0.2
)
 
(0.2
)
 
(2.1
)
 
(3.9
)
Curtailment and settlement gain
 
—

 
—

 
—

 
(45.0
)
Net periodic expense (benefit)
 
$
3.0

 
$
4.0

 
$
(15.0
)
 
$
(58.0
)

Additional Information
Assumptions
Weighted-average assumptions used to determine benefit obligations as of December 31;
 
  
Pension Benefits
 
Other Benefits
 
2013
 
2012
 
2013
 
2012
U.S.-Based Plans:
 
 
 
 
 
 
 
Discount rate
4.50
%
 
3.75
%
 
N/A

 
0.50
%
Rate of compensation increase
N/A

 
3.50
%
 
N/A

 
N/A

Europe-Based Plans:
 
 
 
 
 
 
 
Discount rate
2.75
%
 
2.75
%
 
2.25
%
 
N/A

Rate of compensation increase
3.00
%
 
3.00
%
 
N/A

 
N/A

India-Based Plans:
 
 
 
 
 
 
 
Discount rate
9.00
%
 
8.25
%
 
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
 
2013
 
2012
 
2013
 
2012
U.S.-Based Plans:
 
 
 
 
 
 
 
Discount rate
3.75
%
 
4.00
%
 
N/A
 
4.00
%
Expected long-term return on plan assets
6.00
%
 
6.00
%
 
N/A
 
N/A

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

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
8.25
%
 
8.60
%
 
N/A
 
N/A

Expected long-term return on plan assets
9.25
%
 
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.
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 primarily 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, 2013 and 2012 (See Note 13, “Fair Value Measurements”, for additional information):
 
Plan Assets at December 31, 2013
(in millions)
Total Fair Value Measurement
 
Quoted Prices in Active Markets (Level 1)
 
Significant Other Observable Inputs (Level 2)
 
Significant Unobservable Inputs (Level 3)
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
3.1

 
$
3.1

 
$
—

 
$
—

Mutual Funds:
 
 
 
 
 
 
 
U.S. large cap
18.2

 
18.2

 
—

 
—

U.S. small cap
12.3

 
12.3

 
—

 
—

International growth
15.0

 
15.0

 
—

 
—

Fixed Income Securities:
 
 
 
 
 
 
 
Corporate bonds
73.9

 
—

 
73.9

 
—

U.S. Treasury and Government bonds
10.0

 
10.0

 
—

 
—

U.S. state and political subdivision bonds
3.6

 
—

 
3.6

 
—

Other fixed income securities
5.7

 
—

 
5.7

 
—

Other:
 
 
 
 
 
 
 
India Government backed funds
2.2

 
2.2

 
—

 
—

Total
$
144.0

 
$
60.8

 
$
83.2

 
$
—


 
Plan Assets at December 31, 2012
(in millions)
Total Fair Value Measurement
 
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. Treasuries 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

 
$
—


 
We expect to make contributions of $0.2 million to our pension plans in 2014.

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
2014
$
10.5

 
$
—

2015
$
11.2

 
$
—

2016
$
11.0

 
$
—

2017
$
11.2

 
$
—

2018
$
12.4

 
$
—

Aggregate for 2019-2023
$
60.1

 
$
0.1


Defined Contribution Plan
We have a defined contribution retirement plan that covers substantially all domestic employees. The expense for this plan was $2.2 million, $2.4 million and $2.5 million in 2013, 2012 and 2011, respectively. Contributions were 100% funded from the proceeds obtained from the reversion of our former salaried pension plan.