Employee Retirement Plans

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Employee Retirement Plans

Employee Retirement Plans

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

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in millions)
Expense Components
Service cost	$	—	$	—	$	—	$	0.1
Interest	3.8		5.0		11.2		14.8
Expected return on plan assets	(5.3)		(5.8)		(15.7)		(17.3)
Amortization of actuarial loss	1.5		1.2		4.5		3.4
Amortization of prior service cost	0.3		—		0.9		—
Net periodic benefit cost	0.3		0.4		0.9		1.0
Profit sharing	1.9		3.1		6.5		8.3
Net expense	$	2.2	$	3.5	$	7.4	$	9.3

We had no contributions to our defined benefit pension plans for all periods presented, and we do not anticipate any contributions in 2020. 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 the fourth quarter of 2020, which would then result in the Company no longer having any remaining funded pension plan obligations.

Upon settlement, we currently expect to recognize a pre-tax non-cash pension settlement charge totaling between $145 million and $160 million, which is inclusive of all actuarial losses currently recorded in AOCL. 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. We believe that our current pension assets will be sufficient to settle the Pension Plan liability. The actual amount of the settlement charge and any potential cash contribution or surplus will depend on interest rates, Pension Plan asset returns, the lump-sum election rate, and other factors.