Pension and Other Postretirement Benefits

3 Months Ended

Mar. 31, 2015

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

Note 6.  Pension and Other Postretirement Benefits

Pension Plans

Substantially all active employees of the Company’s U.S. operations participate in defined benefit pension plans and/or defined contribution retirement plans. In addition, the Company maintains a SERP which is a non-qualified defined benefit plan. The Company provides benefits under the SERP to the extent necessary to fulfill the intent of its defined benefit retirement plans without regard to the limitations set by the Internal Revenue Code on qualified defined benefit plans. Neenah Germany has defined benefit plans designed to provide a monthly pension upon retirement for substantially all its employees in Germany. There is no legal or governmental obligation to fund Neenah Germany’s benefit plans and as such the Neenah Germany defined benefit plans are currently unfunded. As of March 31, 2015, Neenah Germany had investments of $1.7 million that were restricted to the payment of certain post-retirement employee benefits. As of March 31, 2015, $0.5 million and $1.2 million of such investments are classified as prepaid and other current assets and other assets, respectively, on the condensed consolidated balance sheet.

The following table presents the components of net periodic benefit cost:

Components of Net Periodic Benefit Cost

	Pension Benefits						Postretirement Benefits Other than Pensions
	Three Months Ended March 31,
	2015			2014			2015		2014
Service cost	$	1.5		$	1.3		$	0.3	$	0.4
Interest cost	3.4			3.8			0.4		0.5
Expected return on plan assets (a)	(4.6		)	(4.2		)	—		—
Recognized net actuarial loss	1.7			1.1			—		—
Amortization of prior service cost	0.1			0.1			—		—
Net periodic benefit cost	$	2.1		$	2.1		$	0.7	$	0.9

(a) The expected return on plan assets is determined by multiplying the fair value of plan assets at the prior year-end (adjusted for estimated current year cash benefit payments and contributions) by the expected long-term rate of return.

The Company expects to make aggregate contributions to qualified and nonqualified defined benefit pension trusts and to pay pension benefits for unfunded pension plans of approximately $7 million (based on exchange rates at March 31, 2015) in calendar 2015.  For the three months ended March 31, 2015, the Company made $0.6 million of such payments.