Employee Retirement Plans

6 Months Ended

Jun. 30, 2020

The following table summarizes the components of our net retirement cost:


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
	(in millions)
Expense Components
Service cost	$	—	$	0.1	$	—	$	0.1
Interest	3.7		4.9		7.4		9.8
Expected return on plan assets	(5.2)		(5.8)		(10.4)		(11.5)
Amortization of actuarial loss	1.5		1.1		3.0		2.2
Amortization of prior service cost	0.3		—		0.6		—
Net periodic benefit cost	0.3		0.3		0.6		0.6
Profit sharing	1.9		3.0		4.6		5.2
Net expense	$	2.2	$	3.3	$	5.2	$	5.8

We contributed $0.2 million and $0.5 million to our defined benefit pension plans for the three and six months ended June 30, 2020, respectively. We had no contributions to our defined benefit pension plans for the three months ended June 30, 2019. We contributed $0.2 million to our defined benefit pension plans for the six months ended June 30, 2019. Total contributions for our defined benefit pension plans in 2020 are expected to be approximately $1.1 million. The non-service cost components of net periodic benefit cost in the table above are included in other, net (income) expense in our Consolidated Statements of Operations.

Planned Pension Plan Termination

On September 4, 2019, our Board of Directors approved the termination of the Trinity Industries, Inc. Consolidated Pension Plan (the "Pension Plan"), effective December 31, 2019. Except for retirees currently receiving payments under the Pension Plan, participants will have the choice of receiving a single lump sum payment or an annuity from a highly-rated insurance company that will pay and administer future benefit payments. The Pension Plan is expected to be settled in late 2020, which would then result in the Company no longer having any remaining funded pension plan obligations.

Upon settlement, we expect to recognize a pre-tax pension settlement charge totaling between $155 million and $185 million. The settlement charge is expected to be recognized in our Statement of Operations during the fourth quarter when payments are made to those participants electing to receive a lump sum distribution and when the annuity contracts are purchased to settle all remaining outstanding pension obligations. The range of the potential settlement charge includes: (1) a non-cash charge for the recognition of all pre-tax actuarial losses accumulated in AOCL related to the Pension Plan, which totaled approximately $170.1 million ($131.2 million, net of tax) as of December 31, 2019; and (2) a potential additional cash contribution to settle all of the Pension Plan’s obligations, which is not expected to exceed $15 million. The actual amount of the settlement charge and any potential cash contribution will depend on interest rates, Pension Plan asset returns, the lump-sum election rate, and other factors.