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Retirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2011
Retirement Benefit Plans [Abstract]  
Components of net pension expense

The components of net pension expense for our defined benefit retirement plans are as follows (in millions):

 

                                                 
    U.S. and Puerto Rico     Non-U.S.  
For the Years Ended December 31,   2011     2010     2009     2011     2010     2009  

Service cost

   $ 11.4     $ 10.9     $ 12.3     $ 16.8     $ 14.6     $ 13.7  

Interest cost

     13.0       11.5       10.6       7.3       6.7       6.8  

Expected return on plan assets

     (21.9 )      (18.1 )      (16.4 )      (9.6 )      (8.0 )      (8.2 ) 

Curtailment

     –       –       0.4       –       –       –  

Amortization of prior service cost

     –       (0.1 )      0.1       (0.8 )      (0.7 )      (0.7 ) 

Amortization of unrecognized actuarial loss

     6.2       2.4       4.1       1.2       1.2       1.9  

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net periodic benefit cost

   $ 8.7     $ 6.6     $ 11.1     $ 14.9     $ 13.8     $ 13.5  

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
Weighted average actuarial assumptions used to determine net pension expense for our defined benefit retirement plans

The weighted average actuarial assumptions used to determine net pension expense for our defined benefit retirement plans were as follows:

 

                                                 
    U.S. and Puerto Rico     Non-U.S.  
For the Years Ended December 31,   2011     2010     2009     2011     2010     2009  

Discount rate

     5.82 %      6.26 %      5.79 %      2.82 %      3.19 %      3.40 % 

Rate of compensation increase

     3.81 %      3.80 %      3.84 %      2.64 %      2.63 %      2.39 % 

Expected long-term rate of return on plan assets

     7.75 %      7.50 %      7.75 %      4.01 %      4.12 %      4.16 % 
Changes in projected benefit obligations and plan assets

Changes in projected benefit obligations and plan assets were (in millions):

 

                                 
    U.S. and Puerto Rico     Non-U.S.  
For the Years Ended December 31,   2011     2010     2011     2010  

Projected benefit obligation – beginning of year

   $ 227.1     $ 187.6     $ 226.5     $ 197.3  

Service cost

     11.4       10.9       16.8       14.6  

Interest cost

     13.0       11.5       7.3       6.7  

Employee contributions

     –       –       15.9       12.6  

Benefits paid

     (4.5 )      (3.6 )      (36.7 )      (18.1 ) 

Actuarial loss

     43.0       20.7       0.4       0.2  

Prior service cost

     –       –       (1.6 )      –  

Expenses paid

     –       –       (0.1 )      –  

Translation loss

     –       –       6.6       13.2  

 

    

 

 

    

 

 

    

 

 

  

Projected benefit obligation – end of year

   $ 290.0     $ 227.1     $ 235.1     $ 226.5  

 

    

 

 

    

 

 

    

 

 

  

Plan assets at fair market value – beginning of year

   $ 244.9     $ 202.1     $ 206.0     $ 179.0  

Actual return on plan assets

     (2.1 )      23.2       (2.5 )      6.8  

Employer contributions

     36.8       23.2       16.0       14.0  

Employee contributions

     –       –       15.9       12.6  

Benefits paid

     (4.5 )      (3.6 )      (36.7 )      (18.1 ) 

Expenses paid

     –       –       (0.1 )      –  

Translation gain

     –       –       6.5       11.7  

 

    

 

 

    

 

 

    

 

 

  

Plan assets at fair market value – end of year

   $ 275.1     $ 244.9     $ 205.1     $ 206.0  

 

    

 

 

    

 

 

    

 

 

  

Funded status

   $ (14.9 )    $ 17.8     $ (30.0 )    $ (20.5 ) 

 

    

 

 

    

 

 

    

 

 

  

Amounts recognized in consolidated balance sheet:

                                

Prepaid pension

   $ –     $ 27.0     $ 4.3     $ 3.0  

Short-term accrued benefit liability

     (1.0 )      (0.7 )      –       –  

Long-term accrued benefit liability

     (13.9 )      (8.5 )      (34.3 )      (23.5 ) 

 

    

 

 

    

 

 

    

 

 

  

Net amount recognized

   $ (14.9 )    $ 17.8     $ (30.0 )    $ (20.5 ) 

 

    

 

 

    

 

 

    

 

 

  

Amounts recognized in accumulated other comprehensive income:

                                

Unrecognized prior service cost

   $ 0.6     $ 0.6     $ (6.7 )    $ (5.7 ) 

Unrecognized actuarial loss

     140.4       79.5       45.5       33.5  

 

    

 

 

    

 

 

    

 

 

  

Total amount recognized

   $ 141.0     $ 80.1     $ 38.8     $ 27.8  

 

    

 

 

    

 

 

    

 

 

  
Part of accumulated other comprehensive income

We estimate the following amounts recorded as part of accumulated other comprehensive income will be recognized as part of our net pension expense during 2012 (in millions):

 

                 
     U.S. and
Puerto Rico		     Non-U.S.  

Unrecognized prior service cost

   $ –     $ (0.9 ) 

Unrecognized actuarial loss

     13.0       2.0  

 

    

 

 

  
    $ 13.0     $ 1.1  

 

    

 

 

  
Weighted average actuarial assumptions used to determine projected benefit obligation for defined benefit retirement plans

The weighted average actuarial assumptions used to determine the projected benefit obligation for our defined benefit retirement plans were as follows:

 

                                                 
    U.S. and Puerto Rico     Non-U.S.  
For the Years Ended December 31,   2011     2010     2009     2011     2010     2009  

Discount rate

     5.05 %      5.82 %      6.26 %      2.49 %      2.82 %      3.25 % 

Rate of compensation increase

     3.81 %      3.80 %      3.80 %      2.76 %      2.61 %      2.46 % 
Plans with benefit obligations in excess of plan assets

Plans with projected benefit obligations in excess of plan assets were as follows (in millions):

 

                                 
    U.S. and Puerto Rico     Non-U.S.  
As of December 31,   2011     2010     2011     2010  

Projected benefit obligation

   $ 290.0     $ 9.2     $ 211.5     $ 200.7  

Plan assets at fair market value

     275.1       –       177.3       177.3  
Plans with accumulated benefit obligations in excess of plan assets

Plans with accumulated benefit obligations in excess of plan assets were as follows (in millions):

 

                                 
    U.S. and Puerto Rico     Non-U.S.  
As of December 31,   2011     2010     2011     2010  

Accumulated benefit obligation

   $ 22.4     $ 6.1     $ 190.4     $ 167.2  

Plan assets at fair market value

     13.0       –       168.7       154.1  
Summary of benefits expected to be paid out

The benefits expected to be paid out in each of the next five years and for the five years combined thereafter are as follows (in millions):

 

                 
For the Years Ending December 31,   U.S. and
Puerto Rico		     Non-U.S.  

2012

   $ 6.9     $ 16.1  

2013

     6.9       16.2  

2014

     8.4       15.8  

2015

     9.6       16.5  

2016

     11.1       15.7  

2017-2021

     81.1       103.0  
Fair value of U.S. and Puerto Rico pension plan assets

The fair value of our U.S. and Puerto Rico pension plan assets by asset category were as follows (in millions):

 

                                 
    As of December 31, 2011  
          Fair Value Measurements at Reporting Date Using:  
Asset Category   Total     Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)		     Significant
Other
Observable
Inputs
(Level 2)		    

Significant
Unobservable
Inputs

(Level 3)

  

Cash and cash equivalents

   $ 1.4     $ 1.4     $ –     $ –  

Equity securities:

                                

U.S. large-cap

     52.9       –       52.9       –  

U.S. small-cap

     17.4       –       17.4       –  

International

     50.0       –       50.0       –  

Real estate

     18.7       –       18.7       –  

Commodity-linked mutual funds

     25.0       –       25.0       –  

Intermediate fixed income securities

     109.7       –       109.7       –  

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 275.1     $ 1.4     $ 273.7     $ –  

 

    

 

 

    

 

 

    

 

 

  

 

                                 
    As of December 31, 2010  
          Fair Value Measurements at Reporting Date Using:  
Asset Category   Total    

Quoted Prices
in Active
Markets for
Identical
Assets

(Level 1)

     Significant
Other
Observable
Inputs
(Level 2)		    

Significant
Unobservable
Inputs

(Level 3)

  

Cash and cash equivalents

   $ 0.8     $ 0.8     $ –     $ –  

Equity securities:

                                

U.S. large-cap

     34.1       –       34.1       –  

U.S. small-cap

     12.3       –       12.3       –  

International

     43.8       –       43.8       –  

Real estate

     14.8       –       14.8       –  

Commodity-linked mutual funds

     25.7       –       25.7       –  

Intermediate fixed income securities

     113.4       –       113.4       –  

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 244.9     $ 0.8     $ 244.1     $ –  

 

    

 

 

    

 

 

    

 

 

  
Fair value of non-U.S. pension plan assets

The fair value of our non-U.S. pension plan assets were as follows (in millions):

 

                                 
    As of December 31, 2011  
          Fair Value Measurements at Reporting Date Using:  
Asset Category   Total    

Quoted Prices
in Active
Markets for
Identical

Assets

(Level 1)

     Significant
Other
Observable
Inputs
(Level 2)		    

Significant
Unobservable
Inputs

(Level 3)

  

Cash and cash equivalents

   $ 10.8     $ 10.8     $ –     $ –  

Equity securities:

                                

Energy

     1.9       1.9       –       –  

Materials

     2.0       2.0       –       –  

Industrials

     3.7       3.7       –       –  

Consumer discretionary

     2.1       2.1       –       –  

Consumer staples

     4.0       4.0       –       –  

Healthcare

     6.0       6.0       –       –  

Financials

     5.8       5.8       –       –  

Information technology

     2.3       2.3       –       –  

Telecommunication services

     1.0       1.0       –       –  

Utilities

     1.6       1.6       –       –  

Other

     28.9       26.6       2.3       –  

Fixed income securities:

                                

Government bonds

     42.5       –       42.5       –  

Corporate bonds

     35.5       –       35.5       –  

Asset-backed securities

     8.4       –       8.4       –  

Other debt

     1.1       –       1.1       –  

Other types of investments:

                                

Mortgage loans

     5.2       –       5.2       –  

Insurance contracts

     5.5       –       5.5       –  

Other investments

     5.0       –       5.0       –  

Real estate

     31.8       –       –       31.8  

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 205.1     $ 67.8     $ 105.5     $ 31.8  

 

    

 

 

    

 

 

    

 

 

  

 

                                 
    As of December 31, 2010  
          Fair Value Measurements at Reporting Date Using:  
Asset Category   Total    

Quoted Prices
in Active
Markets for
Identical

Assets

(Level 1)

     Significant
Other
Observable
Inputs
(Level 2)		    

Significant
Unobservable
Inputs

(Level 3)

  

Cash and cash equivalents

   $ 14.3     $ 14.3     $ –     $ –  

Equity securities:

                                

Energy

     2.0       2.0       –       –  

Materials

     1.6       1.6       –       –  

Industrials

     3.4       3.4       –       –  

Consumer discretionary

     2.5       2.5       –       –  

Consumer staples

     3.7       3.7       –       –  

Healthcare

     6.7       6.7       –       –  

Financials

     7.0       7.0       –       –  

Information technology

     2.8       2.8       –       –  

Telecommunication services

     1.0       1.0       –       –  

Utilities

     2.2       2.2       –       –  

Other

     27.1       24.2       2.9       –  

Fixed income securities:

                                

Government bonds

     33.0       –       33.0       –  

Corporate bonds

     41.0       –       41.0       –  

Asset-backed securities

     7.4       –       7.4       –  

Other debt

     1.1       –       1.1       –  

Other types of investments:

                                

Mortgage loans

     5.6       –       5.6       –  

Insurance contracts

     5.0       –       5.0       –  

Other investments

     7.1       –       7.1       –  

Real estate

     31.5       –       –       31.5  

 

    

 

 

    

 

 

    

 

 

  

Total

   $ 206.0     $ 71.4     $ 103.1     $ 31.5  

 

    

 

 

    

 

 

    

 

 

  
Reconciliation of the beginning and ending balances

The following table provides a reconciliation of the beginning and ending balances of our non-U.S. pension plan assets measured at fair value that used significant unobservable inputs (Level 3):

 

         
     December 31,
2011		  

Beginning Balance

     31.5  

Gains on assets sold

     0.2  

Change in fair value of assets

     0.7  

Net purchases and sales

     (1.5 ) 

Translation gain

     0.9  

 

  

Ending Balance

   $ 31.8