XML 15 R46.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Retirement Benefits (Tables)
12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Change in benefit obligation
The following table sets forth the change in benefit obligation for our pension plans.
 
 
As of December 31,
(in millions)
 
2019
 
2018
 
2017
Benefit obligation, beginning of year
 
$
49.9

 
$
57.8

 
$
48.3

Service cost
 
1.7

 
1.8

 
1.6

Interest cost
 
2.1

 
2.0

 
2.0

Actuarial (gain) loss
 
8.8

 
(5.6
)
 
3.7

Benefits paid
 
(2.6
)
 
(2.0
)
 
(1.4
)
Cumulative translation adjustments
 
2.2

 
(4.1
)
 
3.6

Benefit obligation, end of year
 
$
62.1

 
$
49.9

 
$
57.8


Change in plan assets
The following table sets forth the change in plan assets for our pension plans.
 
 
As of December 31,
(in millions)
 
2019
 
2018
Fair value of plan assets, beginning of year
 
$
47.5

 
$
52.3

Actual return on plan assets
 
8.8

 
(0.9
)
Employer contributions
 
1.5

 
2.0

Benefits paid
 
(2.6
)
 
(2.0
)
Cumulative translation adjustments
 
2.1

 
(3.9
)
Fair value of plan assets, end of year
 
$
57.3

 
$
47.5


Funded status and amounts recognized in consolidated statement of financial position
The unfunded status of pension benefit obligations and the related amounts recognized on the Consolidated Statement of Financial Position were as follows:
 
 
As of December 31,
(in millions)
 
2019
 
2018
Unfunded status, end of year
 
$
(4.7
)
 
$
(2.4
)
Amounts recognized on the Consolidated Statement of Financial Position:
 
 
 
 
Other noncurrent liabilities
 
(4.7
)
 
(2.4
)
Net amounts recognized
 
(4.7
)
 
(2.4
)

Amounts recognized in accumulated other comprehensive income (loss)
The following amounts were recognized in accumulated other comprehensive loss on the Consolidated Statement of Financial Position.
 
 
As of December 31,
(in millions)
 
2019
 
2018
Net actuarial loss
 
$
(11.6
)
 
$
(9.3
)
Deferred income taxes
 
2.9

 
2.3

Net amount recognized in accumulated other comprehensive loss
 
$
(8.7
)
 
$
(7.0
)

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets
The information for the pension plans with an accumulated benefit obligation in excess of plan assets is set forth below.
 
 
As of December 31,
(in millions)
 
2019
 
2018
Projected benefit obligation
 
$
62.1

 
$
49.9

Accumulated benefit obligation
 
57.6

 
46.9

Fair value of plan assets
 
57.3

 
47.5



Schedule of Net Benefit Costs
The following tables present the components of net periodic pension cost and amounts recognized in other comprehensive income (loss).
 
 
As of December 31,
(in millions)
 
2019
 
2018
 
2017
Service cost
 
$
1.7

 
$
1.8

 
$
1.6

Interest cost
 
2.1

 
2.0

 
2.0

Expected return on plan assets
 
(2.4
)
 
(2.6
)
 
(2.3
)
Amortization of actuarial losses(a)
 
0.4

 
0.7

 
0.6

Amortization of transitional obligation
 

 

 
(0.1
)
Settlement cost
 

 
0.1

 

Net periodic pension cost
 
$
1.8

 
$
2.0

 
$
1.8


Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
(in millions)
 
Year Ended December 31, 2019
Actuarial gains
 
$
(2.3
)
Amortization of actuarial losses(a)
 
0.4

Cumulative translation adjustments
 
(0.4
)
 
 
(2.3
)
Deferred income taxes
 
0.6

Recognized in other comprehensive income, net of tax
 
$
(1.7
)

(a)
Reflects amounts reclassified from accumulated other comprehensive income (loss) to net income.
Weighted average assumptions used to determine benefit obligations and net periodic cost
 
 
As of and for the Year Ended December 31,
 
 
2019
 
2018
Weighted average assumptions used to determine benefit obligations:
 
 
 
 
Discount rate
 
3.0
%
 
4.0
%
Rate of compensation increase
 
3.0

 
3.0

Weighted average assumptions used to determine net periodic cost:
 
 
 
 
Discount rate
 
4.0

 
3.5

Expected long-term return on plan assets
 
5.0

 
5.1

Rate of compensation increase
 
3.0

 
3.0


Pension plan assets categorized according to the FASB fair value hierarchy
The following tables set forth our pension plan assets measured at fair value on a recurring basis as of December 31, 2019 and 2018. These assets have been categorized according to the three-level fair value hierarchy established by the FASB which prioritizes the inputs used in measuring fair value. Level 1 is based on quoted prices for the asset in active markets. Level 2 is based on inputs that are observable other than quoted market prices in active markets, such as quoted prices for the asset in inactive markets or quoted prices for similar assets. Level 3 is based on unobservable inputs that market participants would use in pricing the asset.
 
 
As of December 31, 2019
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Fixed income securities:
 
 
 
 
 
 
 
 
Corporate bonds(a)
 
$
0.8

 
$

 
$

 
$
0.8

Equity securities:
 
 
 
 
 
 
 
 
U.S. equity
 
0.8

 

 

 
0.8

International equity
 
0.3

 

 

 
0.3

Insurance contracts
 

 

 
3.7

 
3.7

Total assets in fair value hierarchy
 
$
1.9

 
$

 
$
3.7

 
$
5.6

Common collective funds measured at net asset value
 
 
 
 
 
 
 
51.7

Total assets
 
 
 
 
 
 
 
$
57.3

 
 
As of December 31, 2018
(in millions)
 
Level 1
 
Level 2
 
Level 3
 
Total
Fixed income securities:
 
 
 
 
 
 
 
 
Corporate bonds(a)
 
$
0.7

 
$

 
$

 
$
0.7

Equity securities:
 
 
 
 
 
 
 
 
U.S. equity
 
0.6

 

 

 
0.6

International equity
 
0.3

 

 

 
0.3

Insurance contracts
 

 

 
3.6

 
3.6

Total assets in fair value hierarchy
 
$
1.6

 
$

 
$
3.6

 
$
5.2

Common collective funds measured at net asset value
 
 
 
 
 
 
 
42.3

Total assets
 
 
 
 
 
 
 
$
47.5



(a)
Securities of diverse industries, substantially all investment grade.

Significant changes in Level 3 plan assets
Significant changes in Level 3 plan assets are as follows:
 
 
Year Ended December 31,
(in millions)
 
2019
 
2018
Insurance contracts:
 
 
 
 
Beginning of year
 
$
3.6

 
$
4.4

Payments
 
(0.4
)
 
(0.5
)
Actuarial loss
 
0.2

 
(0.1
)
Interest income
 
0.1

 
0.1

Cumulative translation adjustments
 
0.2

 
(0.3
)
End of year
 
$
3.7

 
$
3.6



Schedule of Expected Benefit Payments
(in millions)
 
2020
 
2021
 
2022
 
2023
 
2024
 
2025-2029
Estimated future benefit payments for pension plans
 
1.9
 
2.0
 
2.1
 
2.2
 
2.4
 
14.0