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Pension And Other Benefit Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Pension and Other Benefit Plans PENSION AND OTHER BENEFIT PLANS
Certain of the Company’s employees participate in defined benefit pension plans and under certain of these plans, benefit accruals continue. In general, the Company’s policy is to fund these plans based on considerations relating to legal requirements, underlying asset returns, the plan’s funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates and other factors.
In connection with the Company’s restructuring activities (see Note 20), the Company had a reduction in participants in certain plans, which contributed to the change in the funded status through plan settlements and curtailments.
The following sets forth the funded status of the Company’s plans as of the most recent actuarial valuations using measurement dates of December 31 ($ in millions):
Pension Benefits
20212020
Change in pension benefit obligation:
Benefit obligation at beginning of year$(171.6)$(169.6)
Service cost(7.3)(9.7)
Interest cost(1.2)(1.6)
Employee contributions(3.1)(4.0)
Benefits and other expenses paid3.3 4.4 
Actuarial gain (loss)13.0 (7.4)
Amendments, settlements and curtailments33.2 27.6 
Foreign exchange rate impact4.6 (11.3)
Benefit obligation at end of year(129.1)(171.6)
Change in plan assets:
Fair value of plan assets at beginning of year104.1 105.4 
Actual return on plan assets5.8 5.9 
Employer contributions6.0 7.5 
Employee contributions3.1 4.0 
Amendments and settlements(32.8)(21.7)
Benefits and other expenses paid(3.3)(4.4)
Foreign exchange rate impact(2.3)7.4 
Fair value of plan assets at end of year80.6 104.1 
Funded status$(48.5)$(67.5)

Weighted average assumptions used to determine benefit obligations at date of measurement:
December 31,
20212020
Discount rate1.5 %0.8 %
Rate of compensation increase2.2 %1.3 %
Components of net periodic pension cost:
December 31,
($ in millions)202120202019
Service cost$(7.3)$(9.7)$(8.5)
Interest cost(1.2)(1.6)(2.0)
Expected return on plan assets3.3 3.7 3.1 
Amortization of prior service credit and initial net obligation0.4 0.4 — 
Amortization of actuarial loss(0.7)(1.4)(0.2)
Net settlement and curtailment gain (loss)0.8 (1.4)1.2 
Net periodic pension cost$(4.7)$(10.0)$(6.4)

The service cost and other net periodic benefit costs of the defined benefit pension plans incurred during the years ended December 31, 2021, 2020 and 2019 are primarily reflected in selling, general, and administrative expenses and other income (expense), respectively. ($ in millions):
202120202019
Service cost$(7.3)$(9.7)$(8.5)
Other net periodic pension costs:
Other income (expense)2.6 (0.3)2.1 
Total$(4.7)$(10.0)$(6.4)
Weighted average assumptions used to determine net periodic pension cost at date of measurement: 
December 31,
20212020
Discount rate1.0 %1.0 %
Expected long-term return on plan assets3.2 %3.5 %
Rate of compensation increase1.3 %1.3 %

The discount rate reflects the market rate on December 31 of the prior year for high-quality fixed-income investments with maturities corresponding to the Company’s benefit obligations and is subject to change each year. The rates appropriate for each plan are determined based on investment grade instruments with maturities approximately equal to the average expected benefit payout under the plan. The Company periodically updates the mortality assumptions used to estimate the projected benefit obligation.

Included in accumulated other comprehensive loss as of December 31, 2021 are the following amounts that have not yet been recognized in net periodic pension cost: unrecognized prior service credits of $1.6 million ($1.4 million, net of tax) and unrecognized actuarial losses of $4.1 million ($3.6 million, net of tax). The unrecognized actuarial losses and prior service credits, net, are calculated as the difference between the actuarially determined projected benefit obligation and the value of the plan assets less accrued pension costs as of December 31, 2021. The amounts included in accumulated comprehensive loss and expected to be recognized in net periodic pension costs during the year ending December 31, 2022 is a prior service credit of $0.3 million ($0.2 million, net of tax) and an actuarial gain of $0.1 million ($0.1 million, net of tax), respectively. No plan assets are expected to be returned to the Company during the year ending December 31, 2022.
Selection of Expected Rate of Return on Assets
The expected rate of return reflects the asset allocation of the plans and is based primarily on contractual earnings rates included in existing insurance contracts as well as on broad, publicly-traded equity and fixed-income indices and forward-looking estimates of active portfolio and investment management. Long-term rate of return on asset assumptions for the plans were determined on a plan-by-plan basis based on the composition of assets and ranged from 1.8% and 5.3% in 2021 and 2.8% and 5.8% in 2020, with a weighted average rate of return assumption of 3.2% and 3.5% in 2021 and 2020, respectively.
Plan Assets
Plan assets are invested in various insurance contracts, equity and debt securities as determined by the administrator of each plan.
The Company has some investments that are valued using Net Asset Value (“NAV”) as a practical expedient. In addition, some of the investments valued using NAV as a practical expedient may only allow redemption monthly, quarterly, semiannually or annually and require up to 90 days prior written notice. These investments valued using NAV primarily consist of mutual funds which allow the Company to diversify the portfolio.
The fair values of the Company’s pension plan assets as of December 31, 2021, by asset category, were as follows ($ in millions):
Quoted Prices in
Active Market
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Cash and cash equivalents$0.3 $— $— $0.3 
Insurance contracts— — 50.1 50.1 
Total$0.3 $— $50.1 $50.4 
Investments measured at NAV (a):
Mutual funds30.2 
Total assets at fair value$80.6 
______________
(a)The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total plan assets.
The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended December 31, 2021 (in millions):
Fair Value at January 1Return on Plan AssetsNet Purchases/(Settlements)Transfers Into/(Out of) Level 3Fair Value at December 31
Insurance contracts$77.2 $(0.6)$(26.5)$— $50.1 
The fair values of the Company’s pension plan assets as of December 31, 2020, by asset category, were as follows ($ in millions):
Quoted Prices in
Active Market
(Level 1)		Significant
Other
Observable
Inputs
(Level 2)		Significant
Unobservable
Inputs
(Level 3)		Total
Cash and cash equivalents$0.3 $— $— $0.3 
Insurance contracts— — 77.2 77.2 
Total$0.3 $— $77.2 $77.5 
Investments measured at NAV (a):
Mutual funds26.6 
Total assets at fair value$104.1 
______________
(a)The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total plan assets.
The following table summarizes the changes in Level 3 pension plan assets measured at fair value on a recurring basis for the year ended December 31, 2020 (in millions):
Fair Value at January 1Return on Plan AssetsNet Purchases/(Settlements)Transfers Into/(Out of) Level 3Fair Value at December 31
Insurance contracts$80.7 $10.0 $(13.5)$— $77.2 
Insurance contracts are valued based upon the quoted prices of the underlying investments of the insurance company. Mutual funds are valued using the NAV based on the information provided by the asset fund managers, which reflects the plan’s share of the fair value of the net assets of the investment.
The methods described above may produce a fair value estimate that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes the valuation methods are appropriate and consistent with the methods used by other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.
Expected Contributions
During 2021, the Company contributed $6.0 million to its defined benefit pension plans. During 2022, the Company’s cash contribution requirements for its defined benefit pension plans are expected to be approximately $5.5 million.
The following sets forth benefit payments, which reflect expected future service, as appropriate, at December 31, 2021, are expected to be paid by the plans in the periods indicated ($ in millions):
2022$5.6 
2023$5.1 
2024$4.8 
2025$4.8 
2026$4.5 
2027 - 2031$22.6 
Other Matters
U.S. employees not covered by defined benefit plans are generally covered by defined contribution plans, which provide for Company funding based on a percentage of compensation. The Company provides eligible employees the opportunity to participate in defined contribution savings plans (commonly known as 401(k) plans), which permit contributions on a before-tax basis. Employees may contribute to various investment alternatives. In most of these plans, the Company matches a portion of the employees’ contributions. The Company’s contributions to these plans amounted to $18.0 million, $11.0 million and $18.0 million for the years ended December 31, 2021, 2020 and 2019, respectively.
A limited number of the Company’s subsidiaries, primarily outside of the United States, participate in multiemployer defined benefit plans that require the Company to periodically contribute funds to the plan. Multi-employer pension plans are designed to cover employees from multiple employers. These plans allow multiple employers to pool their pension resources and realize efficiencies associated with the daily administration of the plan. The risks of participating in a multiemployer plan differ from the risks of participating in a single-employer plan in the following respects: (1) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, (2) if a participating employer ceases contributing to the plan, the unfunded obligations of the plan may be required to be borne by the remaining participating employers and (3) if the Company elects to stop participating in the plan, the Company may be required to pay the plan an amount based on the unfunded status of the plan.The Company’s expense for multiemployer pension plans totaled $3.9 million, $8.2 million and $5.9 million for the years ended December 31, 2021, 2020 and 2019, respectively.