Pension and Post-Employment Benefits

3 Months Ended

Mar. 31, 2021

Retirement Benefits [Abstract]

Pension and Post-Employment Benefits

NOTE 6 – PENSION AND POST EMPLOYMENT BENEFITS

The Company maintains a defined benefit pension plan (the “Plan”) covering a number of its current and former employees in the United Kingdom, although it does also have other much smaller pension arrangements in the U.S. and overseas. The Plan is closed to future service accrual but has a large number of deferred and current pensioners.

The net service cost for the three months ended March 31, 2021 was $0.4 million (three months ended March 31, 2020 – $0.3 million) and has been recognized in selling, general and administrative expenses within corporate costs. The following table shows the income statement effect recognized within other income, net:

	Three Months Ended March 31
(in millions)	2021			2020
Plan net pension credit/(charge):
Interest cost on projected benefit obligation	$	(1.9	)	$	(2.8	)
Expected return on plan assets		3.9			4.5
Amortization of prior service (cost)/credit		(0.1	)		0.2
Amortization of actuarial net losses		(0.4	)		(0.2	)
	$	1.5		$	1.7

The amortization of prior service credit and actuarial net losses is a reclassification out of accumulated other comprehensive loss into other income and expense.

The Company also maintains an unfunded defined benefit pension plan covering a number of its current and former employees in Germany (the “German plan”) within our Fuel Specialties segment. The German plan is closed to new entrants and has no assets. The net service cost for the German plan for the three months ended March 31, 2021 was $0.0 million (three months ended March 31, 2020 – $0.0 million) and has been recognized in selling, general and administrative expenses. The following table shows the income statement effect recognized within other income and expense:

		Three Months Ended March 31
(in millions)		2021				2020
Plan net pension charge:
Interest cost on projected benefit obligation		$	0.0			$	0.0
Amortization of actuarial net losses			(0.3	)			(0.2	)
	$	(0.3		)	$	(0.2		)

As at March 31, 2021, our Performance Chemicals segment has obligations for post-employment benefits in its European businesses with a liability of $5.1 million (December 31, 2020 – $5.3 million).