XML 115 R53.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Postretirement and Other Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of Net Funded Status The funded status of these plans as of December 31, 2019 and 2018 was as follows ($ in millions):
 
Pension Benefits
 
OPEB Benefits
 
United States
 
France
 
United States
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Change in Projected Benefit Obligation, or PBO:
 
 
 
 
 
 
 
 
 
 
 
PBO at beginning of year
$
112.3

 
$
124.1

 
$
29.5

 
$
30.5

 
$
1.2

 
$
1.4

Service cost
—

 
—

 
1.0

 
1.1

 
—

 
—

Interest cost
4.6

 
4.3

 
0.4

 
0.4

 
0.1

 
0.1

Actuarial loss (gain)
11.1

 
(8.2
)
 
3.2

 
0.9

 
0.1

 
(0.2
)
Participant contributions
—

 
—

 
0.7

 
1.0

 
0.1

 
0.1

Gross benefits paid
(8.1
)
 
(7.9
)
 
(2.3
)
 
(3.0
)
 
(0.1
)
 
(0.2
)
Currency translation effect
—

 
—

 
(0.6
)
 
(1.4
)
 
—

 
—

PBO at end of year
$
119.9

 
$
112.3

 
$
31.9

 
$
29.5

 
$
1.4

 
$
1.2

Change in Plan Assets:
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
113.1

 
$
128.7

 
$
2.1

 
$
3.2

 
$
—

 
$
—

Actual return on plan assets
20.8

 
(7.6
)
 
0.2

 
(0.7
)
 
—

 
—

Employer contributions
—

 
—

 
1.1

 
1.2

 
—

 
—

Participant contributions
—

 
—

 
—

 
—

 
0.1

 
0.2

Gross benefits paid
(8.1
)
 
(8.0
)
 
(2.3
)
 
(1.5
)
 
(0.1
)
 
(0.2
)
Currency translation effect
—

 
—

 
—

 
(0.1
)
 
—

 
—

Fair value of plan assets at end of year
$
125.8

 
$
113.1

 
$
1.1

 
$
2.1

 
$
—

 
$
—

Funded status at end of year
$
5.9

 
$
0.8

 
$
(30.8
)
 
$
(27.4
)
 
$
(1.4
)
 
$
(1.2
)
Schedule of Accumulated Benefit Obligations and PBO excess of Fair Value of Pension Plan Assets
The PBO, ABO and fair value of pension plan assets for the Company's U.S. and French defined benefit pension plans as of December 31, 2019 and 2018 as follows ($ in millions):
 
United States
 
France
 
2019
 
2018
 
2019
 
2018
PBO
$
119.9

 
$
112.3

 
$
31.9

 
$
29.5

ABO
119.9

 
112.3

 
31.9

 
24.9

Fair value of plan assets
125.8

 
113.1

 
1.1

 
2.1
Schedule of Defined Benefit Plan Amounts Recognized in Accumulated Other Comprehensive Income
As of December 31, 2019, the pre-tax amounts in accumulated other comprehensive income that have not been recognized as components of net periodic benefit cost for the U.S. and French pension plans and other postretirement benefit plans in the United States are as follows ($ in millions):
 
Pension Benefits
 
OPEB Benefits
 
United States
 
France
 
United States
Accumulated loss
$
23.3

 
$
15.2

 
$
0.2

Prior service credit
—

 
(2.6
)
 
—

Accumulated other comprehensive loss
$
23.3

 
$
12.6

 
$
0.2
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year
The amounts in accumulated other comprehensive loss at December 31, 2019, which are expected to be recognized as components of U.S. and French net periodic benefit cost in 2020 are as follows ($ in millions):
 
Pension Benefits
 
OPEB Benefits
 
United States
 
France
 
United States
Amortization of accumulated loss
$
(3.5
)
 
$
(1.2
)
 
$
—

Amortization of prior service credit
—

 
0.3

 
—

Total
$
(3.5
)
 
$
(0.9
)
 
$
—
Schedule of Assumptions Used The weighted average assumptions used to determine net periodic benefit costs for the years ended December 31, 2019, 2018 and 2017 were as follows:
 
Pension Benefits
 
OPEB Benefits
 
United States
 
France
 
United States
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Discount rate
4.29
%
 
3.60
%
 
4.11
%
 
1.28
%
 
1.28
%
 
1.14
%
 
4.30
%
 
3.59
%
 
4.09
%
Expected long-term rate of return on plan assets
5.14
%
 
5.00
%
 
5.56
%
 
3.00
%
 
3.00
%
 
3.00
%
 
—
%
 
—
%
 
—
%
Rate of compensation increase
—
%
 
—
%
 
—
%
 
1.96
%
 
1.75
%
 
1.75
%
 
3.50
%
 
3.50
%
 
3.50
%


The weighted average assumptions used to determine benefit obligations as of December 31, 2019 and 2018 were as follows:
 
Pension Benefits
 
OPEB Benefits
 
United States
 
France
 
United States
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Discount rate
3.20
%
 
4.29
%
 
0.53
%
 
1.28
%
 
3.21
%
 
4.30
%
Rate of compensation increase
—
%
 
—
%
 
1.96
%
 
1.75
%
 
3.50
%
 
3.50
%
Schedule of Net Benefit Costs
The components of net pension and OPEB benefit costs for U.S. employees and net pension benefit costs for French employees during the years ended December 31, 2019, 2018 and 2017 were as follows ($ in millions):
 
U.S. Pension Benefits
 
French Pension Benefits
 
U.S. OPEB Benefits
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost
$
—

 
$
—

 
$
—

 
$
1.0

 
$
1.1

 
$
1.1

 
$
—

 
$
—

 
$
—

Interest cost
4.6

 
4.3

 
4.8

 
0.4

 
0.4

 
0.4

 
0.1

 
0.1

 
0.1

Expected return on plan assets
(5.8
)
 
(5.8
)
 
(6.4
)
 
(0.1
)
 
(0.1
)
 
(0.2
)
 
—

 
—

 
—

Amortizations and other
2.0

 
3.2

 
3.2

 
0.9

 
1.1

 
1.4

 
—

 
0.1

 
0.2

Net periodic benefit cost
$
0.8

 
$
1.7

 
$
1.6

 
$
2.2

 
$
2.5

 
$
2.7

 
$
0.1

 
$
0.2

 
$
0.3
Schedule of Allocation of Plan Assets The U.S. and French pension plans' asset target allocations by asset category for 2020 and actual allocations by asset category at December 31, 2019 and 2018 were as follows:
 
United States
 
France
 
2020 Target
 
2019
 
2018
 
2019
 
2018
Asset Category
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
—
%
 
1
%
 
1
%
 
41
%
 
43
%
Equity securities*
 
 
 
 
 
 
 
 
 
Domestic large cap
9

 
5

 
5

 
31

 
28

Domestic small cap
5

 
3

 
3

 
—

 
—

International
10

 
15

 
14

 
—

 
—

Fixed income securities
76

 
76

 
77

 
26

 
27

Alternative investments**
—

 
—

 
—

 
2

 
2

Total
100
%
 
100
%
 
100
%
 
100
%
 
100
%

*
None of the Company's pension plan assets are targeted for investment in SWM stock, except that it is possible that one or more mutual funds held by the plan could hold shares of SWM.

**
Investments in this category under the U.S. pension plan only may include hedge funds, and may include real estate under the French pension plan.
The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2019 ($ in millions):
 
United States
 
France
Plan Asset Category
Total
 
Other*
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
Cash equivalents
$
0.9

 
$
—

 
$
0.9

 
$
—

 
$
—

 
$
0.4

 
$
0.4

 
$
—

Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Domestic large cap
6.8

 
6.8

 
—

 
—

 
—

 
0.3

 
0.3

 
—

   Domestic small cap
4.3

 
4.3

 
—

 
—

 
—

 
—

 
—

 
—

International
19.1

 
19.1

 
—

 
—

 
—

 
—

 
—

 
—

Fixed income securities
94.7

 
44.4

 
—

 
50.3

 
—

 
0.3

 
—

 
0.3

Alternative investments**
—

 
—

 
—

 
—

 
—

 
0.1

 
—

 
0.1

Total
$
125.8

 
$
74.6

 
$
0.9

 
$
50.3

 
$
—

 
$
1.1

 
$
0.7

 
$
0.4


The following table sets forth by level, within the fair value hierarchy, the U.S. and French pension plans' assets at fair value as of December 31, 2018 ($ in millions):
 
United States
 
France
Plan Asset Category
Total
 
Other*
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
Cash equivalents
$
1.0

 
$
—

 
$
1.0

 
$
—

 
$
—

 
$
0.9

 
$
0.9

 
$
—

Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Domestic large cap
5.7

 
5.7

 
—

 
—

 
—

 
0.6

 
0.6

 
—

   Domestic small cap
3.3

 
3.3

 
—

 
—

 
—

 
—

 
—

 
—

International
15.5

 
15.5

 
—

 
—

 
—

 
—

 
—

 
—

Fixed income securities
87.6

 
41.2

 
—

 
46.4

 
—

 
0.5

 
—

 
0.5

Alternative investments**
—

 
—

 
—

 
—

 
—

 
0.1

 
—

 
0.1

Total
$
113.1

 
$
65.7

 
$
1.0

 
$
46.4

 
$
—

 
$
2.1

 
$
1.5

 
$
0.6


*
Assets are measured at Net Asset Value ("NAV") as a practical expedient and not subject to hierarchy level classification disclosure.
**    Alternative investments include ownership interests in shares of registered investment companies.

Schedule of Changes in Plan Assets The following table shows the changes in Level 3 asset values ($ in millions):

Level 3 Asset Reconciliation
Alternative
Investments
Total
Beginning balance, January 1, 2018
$
0.1

Realized and unrealized gains
—

Purchases
—

Sales
(0.1
)
Ending balance, December 31, 2018
$
—

Realized and unrealized gains
—

Purchases
—

Sales
—

Ending balance, December 31, 2019
$
—
Schedule of Expected Benefit Payments
The Company expects the following estimated undiscounted future pension benefit payments for the United States and France and future postretirement healthcare and life insurance benefit payments for the United States, which are to be made from pension plan and employer assets, net of amounts that will be funded from retiree contributions, and which reflect expected future service, as appropriate ($ in millions):
 
United States
 
France
 
Pension
Benefits
 
Healthcare
and Life
Insurance
Benefits
 
Pension
Benefits
2020
$
8.5

 
$
0.2

 
$
1.6

2021
8.4

 
0.2

 
1.0

2022
8.4

 
0.1

 
0.6

2023
8.1

 
0.1

 
1.7

2024
8.0

 
0.1

 
1.3

2025 - 2029
37.6

 
0.3

 
8.0