Retirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

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


	U.S. and Puerto Rico									Foreign
For the Years Ended December 31,	2014			2013			2012			2014			2013			2012
Service cost	$	10.9		$	11.9		$	11.4		$	14.7		$	16.1		$	15.0
Interest cost		15.5			13.2			13.3			9.2			5.6			6.1
Expected return on plan assets		(30.8	)		(28.7	)		(25.5	)		(11.0	)		(6.7	)		(7.6	)
Settlement		–			–			0.7			–			–			–
Amortization of prior service cost		(2.6	)		(2.6	)		(2.0	)		(1.3	)		(1.3	)		(0.9	)
Amortization of unrecognized actuarial loss		10.6			14.8			11.4			0.5			1.8			1.9

Net periodic benefit cost	$	3.6		$	8.6		$	9.3		$	12.1		$	15.5		$	14.5

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						Foreign
For the Years Ended December 31,	2014		2013		2012		2014		2013		2012
Discount rate		4.98%		4.32%		4.97%		2.46%		2.13%		2.58%
Rate of compensation increase		3.29%		3.29%		3.81%		1.48%		2.29%		2.77%
Expected long-term rate of return on plan assets		7.75%		7.75%		7.75%		2.88%		2.74%		3.51%

Changes in Projected Benefit Obligations and Plan Assets

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


	U.S. and Puerto Rico						Foreign
For the Years Ended December 31,	2014			2013			2014			2013
Projected benefit obligation – beginning of year	$	316.7		$	314.3		$	371.5		$	259.4
Service cost		10.9			11.9			14.7			16.1
Interest cost		15.5			13.2			9.2			5.6
Plan amendments		–			–			(7.0	)		118.9
Employee contributions		–			–			18.5			15.9
Benefits paid		(10.0	)		(10.4	)		(22.6	)		(29.4	)
Actuarial (gain) loss		53.5			(12.3	)		77.9			(17.7	)
Expenses paid		–			–			(0.2	)		(0.2	)
Translation (gain) loss		–			–			(38.3	)		2.9

Projected benefit obligation – end of year	$	386.6		$	316.7		$	423.7		$	371.5

Changes in Fair Value of Plan Assets

Plan assets at fair market value – beginning of year	$	398.6		$	363.0		$	372.3		$	231.6
Actual return on plan assets		10.9			25.2			38.0			9.7
Employer contributions		2.7			20.8			14.7			15.0
Employee contributions		–			–			18.5			15.9
Plan amendments		–			–			–			126.7
Benefits paid		(10.0	)		(10.4	)		(22.6	)		(29.4	)
Expenses paid		–			–			(0.2	)		(0.2	)
Translation gain (loss)		–			–			(35.3	)		3.0

Plan assets at fair market value – end of year	$	402.2		$	398.6		$	385.4		$	372.3

Funded status	$	15.6		$	81.9		$	(38.3	)	$	0.8

Summary of Amounts Recognized in Balance Sheet

Amounts recognized in consolidated balance sheet:
Prepaid pension	$	29.4		$	92.7		$	12.4		$	12.1
Short-term accrued benefit liability		(0.7	)		(0.7	)		(0.5	)		–
Long-term accrued benefit liability		(13.1	)		(10.1	)		(50.2	)		(11.3	)

Net amount recognized	$	15.6		$	81.9		$	(38.3	)	$	0.8

Summary of Amounts Recognized in Other Comprehensive Income Loss

Amounts recognized in accumulated other comprehensive income:
Unrecognized prior service cost	$	(9.4	)	$	(12.0	)	$	(12.8	)	$	(8.3	)
Unrecognized actuarial loss		176.1			113.3			68.7			15.5

Total amount recognized	$	166.7		$	101.3		$	55.9		$	7.2

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 2015 (in millions):


	U.S. and Puerto Rico			Foreign
Unrecognized prior service cost	$	(2.6	)	$	(1.9	)
Unrecognized actuarial loss		18.3			2.7

	$	15.7		$	0.8

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									Foreign
For the Years Ended December 31,	2014			2013			2012			2014			2013			2012
Discount rate		4.10	%		4.98	%		4.32	%		1.38	%		2.45	%		2.15	%
Rate of compensation increase		3.29	%		3.29	%		3.29	%		1.43	%		1.52	%		2.75	%

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				Foreign
As of December 31,	2014		2013		2014		2013
Projected benefit obligation	$	54.6	$	10.8	$	365.2	$	318.1
Plan assets at fair market value		40.8		–		315.0		307.4

Total Accumulated Benefit Obligations and Plans with Accumulated Benefit Obligations in Excess of Plan Assets

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


	U.S. and Puerto Rico				Foreign
As of December 31,	2014		2013		2014		2013
Total accumulated benefit obligations	$	337.5	$	273.8	$	413.1	$	362.1
Plans with accumulated benefit obligations in excess of plan assets:
Accumulated benefit obligation		32.8		8.8		358.6		308.9
Plan assets at fair market value		22.0		–		315.0		303.7

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		Foreign
2015	$	12.3	$	17.0
2016		13.3		16.5
2017		15.0		16.9
2018		16.5		17.0
2019		18.4		17.9
2020-2024		113.2		89.1

Reconciliation of Beginning and Ending Balances of Foreign Pension Plan Assets Measured at Fair Value

The following table provides a reconciliation of the beginning and ending balances of our foreign pension plan assets measured at fair value that used significant unobservable inputs (Level 3) (in millions):


	December 31, 2014
Beginning Balance	$	68.2
Gains on assets sold		0.3
Change in fair value of assets		1.7
Net purchases and sales		4.8
Translation loss		(6.4	)

Ending Balance	$	68.6

U.S. and Puerto Rico [Member]

Fair Value of Pension Plan Assets

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


	As of December 31, 2014
			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		83.7		–		83.7		–
U.S. small-cap		23.0		–		23.0		–
International		83.0		–		83.0		–
Real estate		49.1		–		49.1		–
Commodity-linked mutual funds		36.0		–		36.0		–
Intermediate fixed income securities		126.0		–		126.0		–

Total	$	402.2	$	1.4	$	400.8	$	–


	As of December 31, 2013
			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		79.6		–		79.6		–
U.S. small-cap		22.3		–		22.3		–
International		87.7		–		87.7		–
Real estate		43.4		–		43.4		–
Commodity-linked mutual funds		42.1		–		42.1		–
Intermediate fixed income securities		122.7		–		122.7		–

Total	$	398.6	$	0.8	$	397.8	$	–

Foreign-based Defined Benefit Plans [Member]

Fair Value of Pension Plan Assets

The fair value of our foreign pension plan assets was as follows (in millions):


	As of December 31, 2014
			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	$	31.0	$	31.0	$	–	$	–
Equity securities:
Energy		4.7		4.7		–		–
Materials		7.1		7.1		–		–
Industrials		7.5		7.5		–		–
Consumer discretionary		6.5		6.5		–		–
Consumer staples		7.5		7.5		–		–
Healthcare		6.8		6.8		–		–
Financials		16.3		16.3		–		–
Information technology		4.9		4.9		–		–
Telecommunication services		2.0		2.0		–		–
Utilities		3.4		3.4		–		–
Other		36.7		34.5		2.2		–
Fixed income securities:
Government bonds		72.5		–		72.5		–
Corporate bonds		58.9		–		58.9		–
Asset-backed securities		22.0		–		22.0		–
Other debt		1.7		–		1.7		–
Other types of investments:
Mortgage loans		9.2		–		9.2		–
Insurance contracts		6.1		–		6.1		–
Other investments		12.0		–		12.0		–
Real estate		68.6		–		–		68.6

Total	$	385.4	$	132.2	$	184.6	$	68.6


	As of December 31, 2013
			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	$	13.9	$	13.9	$	–	$	–
Equity securities:
Energy		4.7		4.7		–		–
Materials		5.7		5.7		–		–
Industrials		7.6		7.6		–		–
Consumer discretionary		5.2		5.2		–		–
Consumer staples		6.8		6.8		–		–
Healthcare		9.7		9.7		–		–
Financials		15.8		15.8		–		–
Information technology		5.8		5.8		–		–
Telecommunication services		2.6		2.6		–		–
Utilities		3.4		3.4		–		–
Other		35.7		33.2		2.5		–
Fixed income securities:
Government bonds		64.4		–		64.4		–
Corporate bonds		65.9		–		65.9		–
Asset-backed securities		24.0		–		24.0		–
Other debt		2.8		–		2.8		–
Other types of investments:
Mortgage loans		9.0		–		9.0		–
Insurance contracts		6.4		–		6.4		–
Other investments		14.7		–		14.7		–
Real estate		68.2		–		–		68.2

Total	$	372.3	$	114.4	$	189.7	$	68.2