Pension and Other Post-Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2020

Defined Contribution Plan Disclosure [Line Items]

Multiemployer Plan Table

Multi-employer Pension Plan

In connection with the collective bargaining agreement signed with the International Association of Machinists and Aerospace Workers (“IAM”), the Company contributes to a multi-employer defined benefit pension plan (“IAM National Pension Fund”). As of July 1, 2015, the level of contribution, as specified in the bargaining agreement was, in whole dollars, $1.75 per hour of employee service. The IAM bargaining agreement provided for a $0.05 per hour increase, in whole dollars, effective July 1 of each year through 2019. Effective July 1, 2019 the level of employer contribution increased to $1.95 per hour and will remain at $1.95 per hour through contract expiration. The IAM contract expires June 24, 2023.

The collective bargaining agreement with the United Automobile, Aerospace and Agricultural Workers of America (“UAW”) requires the Company to contribute a specified amount per hour of service to the IAM National Pension Fund. The specified amount was $1.70 per hour in 2019. Per the negotiated UAW collective bargaining agreement, the pension contributions, in whole dollars, was $1.70 per hour effective January 1, 2019 and will be $1.75 per hour effective January 1, 2020 through year 2025.

The risk of this multi-employer plan is different from single-employer plans in the following aspects:

1.Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.

2.If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

3.If the Company chooses to stop participating in the multi-employer plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

The following table summarizes the multi-employer plan to which the Company contributes. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2019 and 2020 is for the plan's year-end at December 31, 2019, and December 31, 2020, respectively. The zone status is based on information received from the plan.

		Pension Protection Act Zone Status										Expiration Date of Collective- Bargaining Agreement
				FIP/RP Status Pending/ Implemented	Contributions of the Company
	EIN/Pension Plan Number										Surcharge Imposed
Pension Fund		2019	2020		2018		2019		2020
IAM National Pension Fund	51-60321295	Red	Red	Yes	$	35.0	$	40.7	$	30.1	Yes	IAM June 24, 2023 UAW December 7, 2025
Pension Fund	Year Company Contributions to Plan Exceeded More Than 5 Percent of Total Contributions (as of December 31 of the Plan’s Year-End)
IAM National Pension Fund	2018, 2019, 2020

Change in projected benefit obligations

Obligations and Funded Status

The following tables reconcile the funded status of both pension and post-retirement medical benefits to the balance on the balance sheets for the fiscal years 2020 and 2019. Benefit obligation balances presented in the tables reflect the projected benefit obligation and accumulated benefit obligation for the Company’s pension plans, and accumulated post-retirement benefit obligations for the Company’s post-retirement medical plan. The Company uses an end of fiscal year measurement date of December 31 for the Company's U.S. pension and post-retirement medical plans. Special termination benefits for the periods ending December 31, 2020 and December 31, 2019 are related to a voluntary retirement programs offered by the Company in 2020 and 2019, respectively. The projected benefit obligation of the US based defined benefit plans as of December 31, 2020 remained largely flat compared to that as of December 31, 2019, reflecting offsetting underlying impacts. Voluntary retirement programs offered by the Company drove a net decrease to the projected benefit obligation through changes to plan settlements, special termination benefits, and curtailment loss. This was offset by an increase in liabilities that was driven by a decrease in the effective discount rate utilized in the actuarial valuation of the plans. Voluntary retirement programs offered by the Company drove a net increase to the projected benefit obligation of the US based Other Post-Retirement benefit plans through changes to special termination benefits and curtailment loss. The projected benefit obligation of the U.K. Prestwick Plan increased, driven by a decrease in the effective discount rate utilized in the actuarial valuation of the plan. The projected benefit obligation of the U.K. Belfast plans was acquired on October 30, 2020, as part of the Bombardier Acquisition.

	Pension Benefits						Other Post-Retirement Benefits
	Periods Ended December 31,						Periods Ended December 31,
U.S. Plans	2020			2019			2020			2019
Change in projected benefit obligation:
Beginning balance	$	1,096.6		$	997.0		$	41.8		$	40.3
Service cost	—			—			0.8			0.9
Employee contributions	—			—			1.2			0.9
Interest cost	24.4			36.5			1.0			1.2
Actuarial losses (gains)	124.8			141.1			(1.8)			1.8
Special termination benefits	31.0			5.2			12.0			3.9
Plan Curtailment	33.9			—			2.3
Plan Settlements	(175.5)			(49.9)			—			—
Benefits paid	(36.1)			(33.3)			(7.8)			(7.2)
Projected benefit obligation at the end of the period	$	1,099.1		$	1,096.6		$	49.5		$	41.8
Assumptions used to determine benefit obligation:
Discount rate	2.31		%	3.19		%	1.26		%	2.55		%
Rate of compensation increase	N/A			N/A			N/A			N/A
Medical assumptions:
Trend assumed for the year	N/A			N/A			5.56		%	5.90		%
Ultimate trend rate	N/A			N/A			4.50		%	4.50		%
Year that ultimate trend rate is reached	N/A			N/A			2038			2038
Change in fair value of plan assets:
Beginning balance	$	1,519.5		$	1,302.8		$	—		$	—
Actual return (loss) on assets	218.4			299.7			—			—
Employer contributions to plan	0.1			0.1			6.6			6.3
Employee contributions to plan	—			—			1.2			0.9
Plan Settlements	(175.5)			(49.9)			—			—
Benefits paid	(36.2)			(33.2)			(7.8)			(7.2)
Expenses paid	—			—			—			—
Ending balance	$	1,526.3		$	1,519.5		$	—		$	—
Reconciliation of funded status to net amounts recognized:
Funded status (deficit)	$	427.3		$	422.9		$	(49.5)		$	(41.8)
Net amounts recognized	$	427.3		$	422.9		$	(49.5)		$	(41.8)
Amounts recognized in the balance sheet:
Noncurrent assets	$	428.7		$	424.2		—			—
Current liabilities	(0.1)			(0.1)			(10.3)			(7.3)
Noncurrent liabilities	(1.3)			(1.2)			(39.2)			(34.5)
Net amounts recognized	$	427.3		$	422.9		$	(49.5)		$	(41.8)
Amounts not yet reflected in net periodic benefit cost and included in AOCI:
Accumulated other comprehensive (loss) income	$	(6.5)		$	(46.0)		$	19.3		$	22.6
Cumulative employer contributions in excess of net periodic benefit cost	433.8			468.9			(68.8)			(64.4)
Net amount recognized in the balance sheet	$	427.3		$	422.9		$	(49.5)		$	(41.8)
Information for pension plans with benefit obligations in excess of plan assets:
Projected benefit obligation	$	1.4		$	1.3		$	49.5		$	41.8
Accumulated benefit obligation	1.4			1.3			—			—

The US based defined benefit plans utilize a cash balance based formula for a subset of the plan participants. The weighted-average interest crediting rates used to determine the benefit obligation and net periodic benefit cost for all future years is 5.25%.

	Pension Benefits
	Periods Ended December 31,
U.K. Prestwick Plan	2020			2019
Change in projected benefit obligation:
Beginning balance	$	66.7		$	59.9
Service cost	0.9			0.9
Interest cost	1.2			1.6
Actuarial loss (gain)	12.2			5.5
Benefits paid	(0.8)			(0.8)
Expense paid	(0.9)			(0.9)
Plan settlements	(5.9)			(2.1)
Exchange rate changes	2.5			2.6
Projected benefit obligation at the end of the period	$	75.9		$	66.7
Assumptions used to determine benefit obligation:
Discount rate	1.45		%	2.10		%
Rate of compensation increase	3.10		%	3.15		%
Change in fair value of plan assets:
Beginning balance	$	91.6		$	79.6
Actual return (loss) on assets	15.1			11.1
Company contributions	1.7			1.7
Plan settlements	(6.9)			(2.6)
Expenses paid	(0.9)			(0.9)
Benefits paid	(0.8)			(0.8)
Exchange rate changes	3.3			3.5
Ending balance	$	103.1		$	91.6
Reconciliation of funded status to net amounts recognized:
Funded status	27.2			24.9
Net amounts recognized	$	27.2		$	24.9
Amounts recognized in the balance sheet:
Noncurrent assets	$	27.2		$	24.9
Noncurrent liabilities	—			—
Net amounts recognized	$	27.2		$	24.9
Amounts not yet reflected in net periodic benefit cost and included in AOCI:
Accumulated other comprehensive income (loss)	5.8			5.9
Prepaid pension cost	21.4			19.0
Net amount recognized in the balance sheet	$	27.2		$	24.9
Information for pension plans with benefit obligations in excess of plan assets:
Projected benefit obligation	$	—		$	—
Accumulated benefit obligation	—			—
Fair value of assets	$	—		$	—

	Pension Benefits						Other Post-Retirement Benefits
	Periods Ended December 31,						Periods Ended December 31,
U.K Belfast Plans	2020			2019			2020			2019
Change in projected benefit obligation:
Beginning balance	$	—		$	—		$	—		$	—
Net transfer in/(out) (including the effect of any business combination divestitures)	2,311.8			—			0.7			—
Service cost	6.3			—			—			—
Employee contributions	—			—			—			—
Interest cost	6.0			—			—			—
Actuarial losses (gains)	183.9			—			—			—
Special termination benefits	—			—			—			—
Exchange rate changes	161.6			—			0.1			—
Benefits paid	(8.2)			—			—			—
Projected benefit obligation at the end of the period	$	2,661.4		$	—		$	0.8		$	—
Assumptions used to determine benefit obligation:
Discount rate	1.45		%	—		%	1.45		%	—		%
Rate of compensation increase	2.90		%	—		%	N/A			—		%
Medical assumptions:
Trend assumed for the year	N/A			N/A			5.50		%	—		%
Ultimate trend rate	N/A			N/A			5.50		%	—		%
Year that ultimate trend rate is reached	N/A			N/A			NA			NA
Change in fair value of plan assets:
Beginning balance	$	—		$	—		$	—		$	—
Net transfer in/(out) (including the effect of any business combination divestitures)	2,003.7			—			—			—
Actual (loss) return on assets	125.9			—			—			—
Employer contributions to plan	3.8			—			—			—
Employee contributions to plan	0.1			—			—			—
Benefits paid	(8.2)			—			—			—
Expenses paid	137.4			—			—			—
Ending balance	$	2,262.7		$	—		$	—		$	—
Reconciliation of funded status to net amounts recognized:
Funded status (deficit)	$	(398.8)		$	—		$	(0.8)		$	—
Net amounts recognized	$	(398.8)		$	—		$	(0.8)		$	—
Amounts recognized in the balance sheet:
Noncurrent liabilities	(398.8)			—			(0.8)			—
Net amounts recognized	$	(398.8)		$	—		$	(0.8)		$	—
Amounts not yet reflected in net periodic benefit cost and included in AOCI:
Accumulated other comprehensive (loss) income	$	(404.7)		$	—		$	(0.8)		$	—
Cumulative employer contributions in excess of net periodic benefit cost	5.9			—			—			—
Net amount recognized in the balance sheet	$	(398.8)		$	—		$	(0.8)		$	—
Information for pension plans with benefit obligations in excess of plan assets:
Projected benefit obligation	$	2,661.5		$	—		$	—		$	—
Accumulated benefit obligation	2,594.5			—			—			—
Fair value of assets	2,262.7			—			—			—

Annual Expense

Annual Expense

The components of pension and other post-retirement benefit plans expense for the U.S. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2020, 2019, and 2018 are as follows:

	Pension Benefits									Other Post-Retirement Benefits
	Periods Ended December 31,									Periods Ended December 31,
U.S. Plans	2020			2019			2018			2020			2019			2018
Components of net periodic benefit cost (income):
Service cost	$	—		$	—		$	—		$	0.8		$	0.9		$	1.1
Interest cost	24.4			36.5			34.7			1.0			1.2			1.1
Expected return on plan assets	(64.2)			(66.7)			(66.9)			—			—			—
Amortization of net (gain) loss	0.2			0.5			—			(1.7)			(2.2)			(2.3)
Amortization of prior service costs	—			—			—			(0.9)			(0.9)			(0.9)
Settlement (gain) loss recognized(1)	9.8			3.4			—			—			—			—
Curtailment loss/(gain) (2)	33.9			—			—			(0.2)			—			—
Special termination benefits(2)	31.0			5.2			—			12.0			3.9			—
Net periodic benefit (income) cost	35.1			(21.1)			(32.2)			11.0			2.9			(1.0)
Other changes recognized in OCI:
Total recognized in other OCI (income) loss	$	(39.4)		$	(95.9)		$	52.3		$	1.0		$	4.9		$	0.8
Total recognized in other net periodic benefit and OCI (income) loss	$	(4.3)		$	(117.0)		$	20.1		$	12.0		$	7.8		$	(0.2)
Assumptions used to determine net periodic benefit costs:
Discount rate	3.19		%	4.21		%	3.59		%	2.55		%	3.74		%	3.03		%
Expected return on plan assets	4.50		%	5.00		%	4.80		%	N/A			N/A			N/A
Salary increases	N/A			N/A			N/A			N/A			N/A			N/A
Medical Assumptions:
Trend assumed for the year	N/A			N/A			N/A			5.90		%	6.24		%	6.59		%
Ultimate trend rate	N/A			N/A			N/A			4.50		%	4.50		%	4.50		%
Year that ultimate trend rate is reached	N/A			N/A			N/A			2038			2038			2038

(1) Due to settlement accounting, the Company remeasured the pension assets and obligations which resulted in a $39.4 and $95.9, respectively, impact to OCI that is included in the Company's Consolidated Statements of Comprehensive Income and a charge of $9.8 and $3.4, respectively, that was recorded to Other income (expense).

(2) Special termination benefits and curtailment loss as of December 31, 2020 and December 31, 2019 is a combination of pension value plan, post-retirement medical plan, offset by a reduction in the Company's net benefit obligation. The increase is due to 2020 voluntary retirement plan.

The adoption of ASU 2017-07 in 2018 requires the Company to record only the service component of net periodic benefit cost in operating profit and the non-service components of net periodic benefit cost (i.e., interest cost, expected return on plan assets, amortization of prior service cost, special termination benefits, and net actuarial gains or losses) as part of non-operating income.

The components of the pension benefit plan expense for the U.K. plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2020, 2019, and 2018 are as follows:

	Pension Benefits
	Periods Ended December 31,
U.K. Prestwick Plan	2020			2019			2018
Components of net periodic benefit cost (income):
Service cost	$	0.9		$	0.9		$	1.3
Interest cost	1.2			1.7			1.7
Expected return on plan assets	(1.7)			(2.4)			(2.8)
Settlement gain	(0.4)			(0.2)			(0.4)
Net periodic benefit cost (income)	$	—		$	—		$	(0.2)
Other changes recognized in OCI:
Total (income) recognized in OCI	$	(0.9)		$	(3.2)		$	(0.5)
Total recognized in net periodic benefit cost and OCI	$	(0.9)		$	(3.2)		$	(0.7)
Assumptions used to determine net periodic benefit costs:
Discount rate	2.10		%	3.00		%	2.60		%
Expected return on plan assets	2.00		%	3.10		%	3.10		%
Salary increases	3.15		%	3.40		%	3.35		%

The estimated net (gain) loss that will be amortized from other comprehensive income into net periodic benefit cost over the next fiscal year for the U.K. plan is zero.

The components of the pension benefit plan expense for the Belfast plans and the assumptions used to determine benefit obligations for each of the periods ended December 31, 2020, 2019, and 2018 are as follows:

	Pension Benefits
	Periods Ended December 31,
U.K. Belfast Plans	2020			2019			2018
Components of net periodic benefit cost (income):
Service cost	$	6.3		$	—		$	—
Interest cost	5.9			—			—
Expected return on plan assets	(14.0)			—			—
Net periodic benefit cost (income)	$	(1.8)		$	—		$	—
Other changes recognized in OCI:
Total (income) recognized in OCI	$	96.6		$	—		$	—
Total recognized in net periodic benefit cost and OCI	$	94.8		$	—		$	—
Assumptions used to determine net periodic benefit costs:
Discount rate	1.75		%	—		%	—		%
Expected return on plan assets	4.20		%	—		%	—		%
Salary increases	2.75		%	—		%	—		%

Assumptions

The Company sets the discount rate assumption annually for each of its retirement-related benefit plans as of the measurement date, based on a review of projected cash flow and a long-term high-quality corporate bond yield curve. The discount rate determined on each measurement date is used to calculate the benefit obligation as of that date, and is also used to calculate the net periodic benefit (income)/cost for the upcoming plan year. During 2015, the mortality assumption for the U.S. plans was updated to Mercer’s MRP-2007 generational mortality tables for non-annuitants and Mercer’s MILES-2010 generational tables for the Auto, Industrial Goods and Transportation group for annuitants both reflecting Mercer’s MMP-2007 improvement scale. In 2018, the Company incorporated the MMP-2018 improvement scale. MMP-2018 is a Mercer-developed scale that uses the same basic model as the Society of Actuaries MP-2018 scale, but with different parameters and adjustments for actual experience since 2006. In 2019, the Company incorporated the MMP-2019 improvement scale which was utilized in 2020. MMP-2019 is a Mercer-developed scale that uses the same basic model as the Society of Actuaries MP-2019 scale, but with different parameters and adjustments for actual experience since 2006. A blue collar adjustment is reflected for the hourly union participants and a white collar adjustment is reflected for all other participants. Actuarial gains and losses are amortized using the corridor method over the average working lifetimes of active participants/membership.

The pension expected return on assets assumption is derived from the long-term expected returns based on the investment allocation by class specified in the Company's investment policy. The expected return on plan assets determined on each measurement date is used to calculate the net periodic benefit (income)/cost of the upcoming plan year.

Assumed health care cost trend rates have a significant effect on the amounts reported for the health care plans. To determine the health care cost trend rates the Company considers national health trends and adjusts for its specific plan design and locations. The trend and aging assumptions were updated during 2016 to reflect more current trends. These assumptions were reviewed in 2020, and it was determined they were still reasonable and therefore were unchanged.

U.S. Plans Investment Objectives

The Company’s investment objective is to achieve long-term growth of capital, with exposure to risk set at an appropriate level. This objective shall be accomplished through the utilization of a diversified asset mix consisting of equities (domestic and international) and taxable fixed income securities. The allowable asset allocation range is:

Equities	20 - 50%
Fixed income	50 - 80%
Real estate	0 - 7%

Asset Category U.S.

The Company’s plans have asset allocations for the U.S., as of December 31, 2020 and December 31, 2019, as follows:

	2020		2019
Asset Category — U.S.
Equity securities — U.S.	26	%	25	%
Equity securities — International	3	%	4	%
Debt securities	69	%	69	%
Real estate	2	%	2	%
Total	100	%	100	%

U.K. Plans Investment Objecives

U.K. Prestwick Plan

The Trustee’s investment objective is to ensure that they can meet their obligation to the beneficiaries of the Plan. An additional objective is to achieve a return on the total Plan, which is compatible with the level of risk considered appropriate. The overall benchmark allocation of the Plan’s assets is:

Equity securities	19 - 20%
Debt securities	80%
Property	1%

Asset Category U.K.

The Plan has asset allocations as of December 31, 2020 and December 31, 2019, as follows:

	2020		2019
Asset Category — U.K. Prestwick
Equity securities	15	%	15	%
Debt securities	80	%	80	%
Other	5	%	5	%
Total	100	%	100	%

Total Benefits Expected To Be Paid Over Next Ten Years

The total benefits expected to be paid over the next ten years from the plans' assets or the assets of the Company, by country, are as follows:

U.S.	Pension Plans		Other Post-Retirement Benefit Plans
2021	$	41.3	$	10.3
2022	$	43.6	$	9.5
2023	$	45.4	$	8.0
2024	$	47.6	$	5.7
2025	$	49.5	$	3.9
2026-2030	$	269.5	$	11.8

U.K. Prestwick	Pension Plans
2021	$	0.9
2022	$	0.9
2023	$	0.9
2024	$	0.9
2025	$	1.0
2026-2030	$	5.1

U.K. Belfast	Pension Plans		Other Post-Retirement Benefit Plans
2021	$	61.1	$	0.1
2022	$	62.2	$	0.1
2023	$	63.2	$	0.1
2024	$	64.3	$	0.1
2025	$	65.4	$	0.1
2026-2030	$	344.2	$	5.0

Pension Plan Assets Measured at Fair Value on a Recurring Basis

Fair Value Measurements

The pension plan assets are valued at fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy.

Temporary Cash Investments — These investments consist of U.S. dollars and foreign currencies held in master trust accounts. Foreign currencies held are reported in terms of U.S. dollars based on currency exchange rates readily available in active markets. These temporary cash investments are classified as level 1 investments.

Collective Investment Trusts — These investments are public investment vehicles valued using market prices and performance of the fund. The trust allocates notional units to the policy holder based on the underlying notional unit buy (offer) price using the middle market price plus transaction costs. These investments are classified within level 2 of the valuation

hierarchy. In addition, the collective investment trust includes a real estate fund, which is classified within level 3 of the valuation hierarchy.

Commingled Equity and Bond Funds — These investments are valued at the closing price reported by the Plan Trustee. These investments are not being traded in an active market, but are backed by various investment securities managed by the Bank of New York. Fair value is being calculated using inputs that rely on the Bank of New York’s own assumptions, which are based on underlying investments that are traded on an active market and classified within level 2 of the valuation hierarchy.

As of December 31, 2020 and December 31, 2019, the pension plan assets measured at fair value on a recurring basis were as follows:

			At December 31, 2020 Using
Description	December 31, 2020 Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Temporary Cash Investments	$	6.4	$	6.4	$	—	$	—
Collective Investment Trusts	102.4		—		99.0		3.4
Commingled Equity and Bond Funds	3,735		—		3,735.0		—
	$	3,843.8	$	6.4	$	3,834.0	$	3.4

			At December 31, 2019 Using
Description	December 31, 2019 Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Temporary Cash Investments	$	0.7	$	0.7	$	—	$	—
Collective Investment Trusts	91.6		—		87.6		3.4
Commingled Equity and Bond Funds	1,519.5		—		1,519.5		—
	$	1,611.8	$	0.7	$	1,607.1	$	3.4

The increase in pension plan assets was primarily driven by the Bombardier Acquisition.

The table below sets forth a summary of changes in the fair value of the Plan’s level 3 investment assets and liabilities for the years ended December 31, 2020 and December 31, 2019:

	December 31, 2020
Description	Beginning Fair Value		Purchases		Gain (Loss)		Sales, Maturities, Settlements, Net		Exchange rate		Ending Fair Value
Collective Investment Trusts	$	3.4	$	—	$	(0.1)	$	—	$	0.1	$	3.4
	$	3.4	$	—	$	(0.1)	$	—	$	0.1	$	3.4

	December 31, 2019
Description	Beginning Fair Value		Purchases		Gain (Loss)		Sales, Maturities, Settlements, Net		Exchange rate		Ending Fair Value
Collective Investment Trusts	$	3.2	$	—	$	0.1	$	—	$	0.1	$	3.4
	$	3.2	$	—	$	0.1	$	—	$	0.1	$	3.4

Pension and Other Post Retirement Benefits Plans Belfast Investment Objectives

The Trustees' investment objective is to ensure that they can meet their obligation to the beneficiaries of the Plans. An additional objective is to achieve a return on the total Plan, which is compatible with the level of risk considered appropriate. The overall benchmark allocation of the Plan’s assets is:

Equity securities	32%
Fixed Income	36%
Indexed-Linked Gilts	15%
Real Return Assets	15%
Money Market	2%