Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Summary of Funded Status of Postretirement Benefit Plans and Presentation of Such Balances within Consolidated Balance Sheet

The following table provides a summary of the funded status of our postretirement benefit plans and the presentation of the funded status within our Consolidated Balance Sheet as of December 31, 2013 and 2012.

	2013									2012
	Pension			Other Benefits			Total			Pension			Other Benefits			Total
Fair value of plan assets	$	268.8		$	9.2		$	278.0		$	249.1		$	7.9		$	257.0
Projected benefit obligation	366.0			166.6			532.6			387.0			213.0			600.0
Funded status	$	(97.2	)	$	(157.4	)	$	(254.6	)	$	(137.9	)	$	(205.1	)	$	(343.0	)
Amounts reported within:
Non-current assets	$	1.9		$	—		$	1.9		$	—		$	—		$	—
Accrued liabilities	(4.8		)	(8.4		)	(13.2		)	(4.2		)	(8.5		)	(12.7		)
Non-current liabilities	(94.3		)	(149.0		)	(243.3		)	(133.7		)	(196.6		)	(330.3		)

Amount Recognized in Accumulated Other Comprehensive Income Loss

The following table provides a summary of amounts recorded within accumulated other comprehensive loss at December 31, 2013 and 2012.

	2013								2012
	Pension		Other Benefits			Total			Pension		Other Benefits			Total
Net actuarial loss	$	126.9	$	39.4		$	166.3		$	175.7	$	75.0		$	250.7
Prior service cost (benefit)	2.8		(22.2		)	(19.4		)	4.8		(3.7		)	1.1
Total	$	129.7	$	17.2		$	146.9		$	180.5	$	71.3		$	251.8

Changes in Projected Benefit Obligations of Pension and Other Employee-Related Defined Benefit Plans

The following table provides a rollforward of the projected benefit obligations for our U.S. and international pension plans for the years ended December 31, 2013 and 2012.

	2013									2012
	U.S.			Int’l			Total			U.S.			Int’l			Total
Change in benefit obligation
Benefit obligation – January 1	$	303.6		$	83.4		$	387.0		$	277.8		$	52.3		$	330.1
Service cost	4.9			1.7			6.6			4.8			1.0			5.8
Interest cost	12.1			2.5			14.6			12.9			2.5			15.4
Amendments	0.1			—			0.1			—			—			—
Actuarial (gain) loss	(22.9		)	(1.8		)	(24.7		)	24.2			14.8			39.0
Benefits and expenses paid	(16.6		)	(3.2		)	(19.8		)	(16.1		)	(3.1		)	(19.2		)
Assumed in acquisition	—			—			—			—			15.0			15.0
Foreign currency translation	—			2.2			2.2			—			0.9			0.9
Benefit obligation – December 31	$	281.2		$	84.8		$	366.0		$	303.6		$	83.4		$	387.0

Changes in Fair Value of Plan Assets of Pension Plans

The following table provides a rollforward of the pension plan assets and the funded status for our U.S. and international pension plans for the years ended December 31, 2013 and 2012.

	2013									2012
	U.S.			Int’l			Total			U.S.			Int’l			Total
Change in plan assets
Plan assets – January 1	$	247.1		$	2.0		$	249.1		$	182.3		$	2.0		$	184.3
Actual return on plan assets	35.4			0.1			35.5			22.6			0.1			22.7
Employer contributions	0.9			2.8			3.7			58.3			3.0			61.3
Benefits and expenses paid	(16.6		)	(2.9		)	(19.5		)	(16.1		)	(3.1		)	(19.2		)
Plan assets – December 31	$	266.8		$	2.0		$	268.8		$	247.1		$	2.0		$	249.1
Funded status at end of year	$	(14.4	)	$	(82.8	)	$	(97.2	)	$	(56.5	)	$	(81.4	)	$	(137.9	)

Changes in Fair Value of Plan Assets of Other Employee-Related defined Benefit Plan Assets

The following table provides a rollforward of the other employee-related defined benefit plan assets and the funded status for the years ended December 31, 2013 and 2012.

	2013			2012
Change in plan assets
Plan assets – January 1	$	7.9		$	7.5
Actual return on plan assets	1.3			0.4
Employer contributions	8.2			9.7
Benefits paid	(8.2		)	(9.7		)
Plan assets – December 31	$	9.2		$	7.9
Funded status at end of year	$	(157.4	)	$	(205.1	)

Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets

The following table provides information for pension plans with an accumulated benefit obligation in excess of plan assets.

	2013		2012
Projected benefit obligation	$	237.7	$	387.0
Accumulated benefit obligation	234.6		383.7
Fair value of plan assets	138.6		249.1

Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss)

The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2013, 2012 and 2011 as they pertain to our defined benefit pension plans.

	2013									2012									2011
	U.S.			Int’l			Total			U.S.			Int’l			Total			U.S.			Int’l			Total
Net periodic postretirement cost
Service cost	$	4.9		$	1.7		$	6.6		$	4.8		$	1.0		$	5.8		$	5.6		$	0.9		$	6.5
Interest cost	12.1			2.5			14.6			12.9			2.5			15.4			13.4			2.5			15.9
Expected return on plan assets	(19.5		)	(0.1		)	(19.6		)	(18.2		)	(0.1		)	(18.3		)	(18.9		)	(0.1		)	(19.0		)
Amortization of net actuarial loss (gain)	8.3			0.6			8.9			6.5			(0.2		)	6.3			3.7			(0.1		)	3.6
Amortization of prior service cost	0.8			—			0.8			0.9			—			0.9			1.2			—			1.2
Net periodic postretirement cost	6.6			4.7			11.3			6.9			3.2			10.1			5.0			3.2			8.2
Effect of curtailment / Special termination benefit	1.2			—			1.2			—			—			—			2.5			—			2.5
Total net periodic postretirement cost	7.8			4.7			12.5			6.9			3.2			10.1			7.5			3.2			10.7
Other changes in plan assets and benefit obligations recognized in other comprehensive loss
Net actuarial (gain) loss	(40.0		)	(1.8		)	(41.8		)	19.8			14.8			34.6			51.6			(1.1		)	50.5
Amortization of net actuarial (loss) gain	(8.3		)	(0.6		)	(8.9		)	(6.5		)	0.2			(6.3		)	(3.7		)	0.1			(3.6		)
Amortization of prior service cost	(0.8		)	—			(0.8		)	(0.9		)	—			(0.9		)	(2.8		)	—			(2.8		)
Foreign currency translation	—			0.5			0.5			—			0.4			0.4			—			—			—
Total change recognized in other comprehensive loss	(49.1		)	(1.9		)	(51.0		)	12.4			15.4			27.8			45.1			(1.0		)	44.1
Total impact from net periodic postretirement cost and changes in other comprehensive loss	$	(41.3	)	$	2.8		$	(38.5	)	$	19.3		$	18.6		$	37.9		$	52.6		$	2.2		$	54.8

Net Loss and Prior Service Cost that will be Amortized from Accumulated Other Comprehensive Income Loss

The following table provides the estimated net actuarial loss and prior service cost that is expected to be amortized from accumulated other comprehensive income into net periodic postretirement cost during 2014.

	Pension		Other Benefits			Total
Net actuarial loss	$	6.6	$	2.3		$	8.9
Prior service cost (credit)	0.6		(6.0		)	(5.4		)
Total	$	7.2	$	(3.7	)	$	3.5

Weighted Average Assumptions used to Determine Benefit Obligations

The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to our defined benefit pension plans.

	2013				2012
	U.S.		Int’l		U.S.		Int’l
Obligation Assumptions:
Discount rate	4.8	%	3.2	%	4.1	%	3.1	%
Rate of future compensation increase	N/A		3.4	%	N/A		3.2	%
Cost Assumptions:
Discount rate	4.1	%	3.1	%	4.8	%	4.8	%
Expected return on plan assets	8.0	%	4.7	%	8.0	%	4.7	%

Weighted Average Assumptions used to Determine Net Periodic Benefit Cost

The following table provides the weighted-average assumptions used to determine projected benefit obligations and net periodic postretirement cost, as they pertain to other employee-related defined benefit plans.

	2013		2012
Obligation Assumptions:
Discount rate	4.7	%	4.1	%
Cost Assumptions:
Discount rate	4.1	%	4.8	%
Expected return on plan assets	8.0	%	8.0	%

Actual Versus Expected Long Term Returns for Our Domestic Pension Plans

For postretirement plans that participate in the current master trust and participated in the master trust distributed to Exelis, the chart below shows actual returns compared to the expected long-term returns for our postretirement plans that were utilized in the calculation of the net periodic postretirement cost for each respective year.

	2013		2012		2011
Expected rate of return on plan assets	8.0	%	8.0	%	9.0	%
Actual rate of return on plan assets	14.2	%	11.1	%	(3.2	)%

Asset Allocation Range

The following table provides the allocation of plan assets held in the master investment trust by asset category, as of December 31, 2013 and 2012, and the related targeted asset allocation ranges by asset category.

	2013		2012		Target Allocation Range
U.S. equities	37	%	35	%	30-40 %
International equities	30	%	29	%	20-40 %
Fixed income	32	%	35	%	25-45 %
Cash and other	1	%	1	%	0-5 %

Fair Value of Plan Assets Held by Our Postretirement Benefits Plans

The following table provides the fair value of plan assets held by our postretirement benefit plans, at December 31, 2013 and 2012, by asset class.

	Pension				Other Benefits
2013	Total		Level 2		Total		Level 3
Equities:
U.S.	$	98.2	$	98.2	$	—	$	—
International	56.6		56.6		—		—
Emerging Markets	25.5		25.5		—		—
Fixed income	85.0		85.0		9.2		9.2
Cash and other	3.5		3.5		—		—
Total	$	268.8	$	268.8	$	9.2	$	9.2

	Pension				Other Benefits
2012	Total		Level 2		Total		Level 3
Equities:
U.S.	$	86.9	$	86.9	$	—	$	—
International	46.0		46.0		—		—
Emerging Markets	26.2		26.2		—		—
Fixed income	86.1		86.1		7.9		7.9
Cash and other	3.9		3.9		—		—
Total	$	249.1	$	249.1	$	7.9	$	7.9

Estimated Future Benefit Payments

The following table provides the projected timing of payments for benefits earned to date and the expectation that certain future service will be earned by current active employees for our pension and other employee-related benefit plans.

	U.S. Pension		Int’l Pension		Other Benefits
2014	$	16.3	$	5.0	$	10.5
2015	16.7		4.2		10.7
2016	17.2		4.0		10.9
2017	17.7		4.3		11.0
2018	18.1		4.1		11.0
2019 – 2022	95.4		22.1		53.2

Other Postretirement Benefit Plan, Defined Benefit [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Changes in Projected Benefit Obligations of Pension and Other Employee-Related Defined Benefit Plans

The following table provides a rollforward of the projected benefit obligations for our other employee-related defined benefit plans for the years ended December 31, 2013 and 2012.

	2013			2012
Change in benefit obligation
Benefit obligation – January 1	$	213.0		$	191.8
Service cost	2.9			2.5
Interest cost	8.3			9.5
Amendments	(19.0		)	(3.1		)
Actuarial (gain) loss	(30.4		)	22.0
Benefits paid	(8.2		)	(9.7		)
Benefit obligation – December 31	$	166.6		$	213.0

Other Changes in Plan Assets and Net Periodic Postretirement Cost Recognized in Other Comprehensive Income (Loss)

The following table provides the components of net periodic postretirement cost and other amounts recognized in other comprehensive loss for each of the years ended December 31, 2013, 2012 and 2011 as they pertain to other employee-related defined benefit plans.

	2013			2012			2011
Net periodic postretirement cost
Service cost	$	2.9		$	2.5		$	1.8
Interest cost	8.3			9.5			9.5
Expected return on plan assets	(0.6		)	(0.5		)	(0.6		)
Amortization of net actuarial loss	4.3			4.6			2.6
Amortization of prior service credit	(0.4		)	(0.1		)	(0.1		)
Total net periodic postretirement cost	14.5			16.0			13.2
Other changes in plan assets and benefit obligations recognized in other comprehensive loss
Net actuarial (gain) loss	(31.1		)	22.1			14.5
Prior service credit	(19.0		)	(3.1		)	—
Amortization of net actuarial loss	(4.3		)	(4.6		)	(2.6		)
Amortization of prior service credit	0.4			0.1			0.1
Total changes recognized in other comprehensive loss	(54.0		)	14.5			12.0
Total impact from net periodic postretirement cost and changes in other comprehensive loss	$	(39.5	)	$	30.5		$	25.2