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Employee Retirement Plans and Postretirement Benefits
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Employee Retirement Plans and Postretirement Benefits Employee Retirement Plans and Postretirement Benefits
We maintain retirement plans for the majority of our employees. Depending on the location and benefit program, we provide either defined benefit pension or defined contribution pension plans to our employees. Each plan is managed locally and in accordance with respective local laws and regulations. We have defined benefit pension plans in the U.S., U.K., Canada and Japan. All active retirement plans for Corporate employees are defined contribution plans. Additionally, we offer OPEB plans to a portion of our Canadian, U.S., Corporate and Central European employees; these plans are not funded. BRI and BDL maintain defined benefit, defined contribution and postretirement benefit plans as well; however, those plans are excluded from this disclosure as BRI and BDL are equity method investments and not consolidated.
The U.S. participates in and makes contributions to multi-employer pension plans. Contributions to multi-employer pension plans were $7.9 million for both 2019 and 2018, and $7.7 million in 2017. Additionally, the U.S. postretirement health plan qualifies for the federal subsidy under the Medicare Prescription Drug Improvement and Modernization Act of 2003 (“the Act”) because the prescription drug benefits provided under the Company's postretirement health plan for Medicare eligible retirees generally require lower premiums from covered retirees and have lower co-payments and deductibles than the benefits provided in Medicare Part D and, accordingly, are actuarially equivalent to or better than the benefits provided under the Act. The benefits paid, including prescription drugs, were $37.6 million, $37.1 million and $36.6 million in 2019, 2018 and 2017, respectively. Subsidies of $0.1 million for 2019, and $0.3 million for both 2018 and 2017, were received.
Defined Benefit and OPEB Plans
Net Periodic Pension and OPEB Cost (Benefit)
 
For the years ended
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
 
Pension
 
OPEB
 
Consolidated
 
Pension
 
OPEB
 
Consolidated
 
Pension
 
OPEB
 
Consolidated
 
(In millions)
Service cost:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
4.0

 
$
7.0

 
$
11.0

 
$
5.5

 
$
9.3

 
$
14.8

 
$
7.7

 
$
10.9

 
$
18.6

Other pension and postretirement costs (benefits), net:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest cost
161.9

 
25.5

 
187.4

 
161.8

 
25.8

 
187.6

 
205.6

 
30.6

 
236.2

Expected return on plan assets, net of expenses
(217.3
)
 
0.5

 
(216.8
)
 
(232.8
)
 
0.5

 
(232.3
)
 
(287.9
)
 
0.4

 
(287.5
)
Amortization of prior service cost (benefit)
1.1

 
(0.7
)
 
0.4

 
0.7

 
(0.2
)
 
0.5

 
0.5

 
—

 
0.5

Amortization of net actuarial loss (gain)
10.4

 
(14.1
)
 
(3.7
)
 
7.6

 
(1.7
)
 
5.9

 
12.2

 
—

 
12.2

Curtailment, settlement or special termination benefit loss (gain)(1)
30.5

 
—

 
30.5

 
0.8

 
0.1

 
0.9

 
(5.4
)
 
(2.9
)
 
(8.3
)
Expected participant contributions
(0.7
)
 
—

 
(0.7
)
 
(0.8
)
 
—

 
(0.8
)
 
(0.5
)
 
—

 
(0.5
)
Total other pension and postretirement cost (benefits), net
$
(14.1
)
 
$
11.2

 
$
(2.9
)
 
$
(62.7
)
 
$
24.5

 
$
(38.2
)
 
$
(75.5
)
 
$
28.1

 
$
(47.4
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net periodic pension and OPEB cost (benefit)
$
(10.1
)
 
$
18.2

 
$
8.1

 
$
(57.2
)
 
$
33.8

 
$
(23.4
)
 
$
(67.8
)
 
$
39.0

 
$
(28.8
)

(1)
During the fourth quarter of 2019, we utilized plan assets to purchase buy-out annuity contracts for a portion of our Canadian pension plans and recognized a pension settlement charge of $29.8 million.

Obligations and Changes in Funded Status
 
For the year ended December 31, 2019
 
For the year ended December 31, 2018
 
Pension
 
OPEB
 
Total
 
Pension
 
OPEB
 
Total
 
(In millions)
Change in benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Prior year benefit obligation
$
4,904.7

 
$
672.1

 
$
5,576.8

 
$
5,584.4

 
$
803.6

 
$
6,388.0

Service cost, net of expected employee contributions
3.3

 
7.0

 
10.3

 
4.7

 
9.3

 
14.0

Interest cost
161.9

 
25.5

 
187.4

 
161.8

 
25.8

 
187.6

Actual employee contributions
0.5

 
—

 
0.5

 
0.6

 
—

 
0.6

Actuarial loss (gain)
533.4

 
7.4

 
540.8

 
(342.3
)
 
(108.8
)
 
(451.1
)
Amendments and special termination benefits
(1.4
)
 
—

 
(1.4
)
 
10.7

 
(3.2
)
 
7.5

Benefits paid
(350.6
)
 
(44.1
)
 
(394.7
)
 
(296.8
)
 
(44.1
)
 
(340.9
)
Curtailment and settlement
(192.9
)
 
(0.2
)
 
(193.1
)
 
(0.6
)
 
—

 
(0.6
)
Foreign currency exchange rate change
139.7

 
4.8

 
144.5

 
(217.8
)
 
(10.5
)
 
(228.3
)
Benefit obligation at end of year
$
5,198.6

 
$
672.5

 
$
5,871.1

 
$
4,904.7

 
$
672.1

 
$
5,576.8

Change in plan assets:
 
 
 
 
 
 
 
 
 
 
 
Prior year fair value of assets
$
5,217.3

 
$
—

 
$
5,217.3

 
$
5,897.7

 
$
—

 
$
5,897.7

Actual return on plan assets
712.2

 
—

 
712.2

 
(156.1
)
 
—

 
(156.1
)
Employer contributions
5.1

 
44.1

 
49.2

 
8.9

 
44.1

 
53.0

Actual employee contributions
0.5

 
—

 
0.5

 
0.6

 
—

 
0.6

Settlement
(192.9
)
 
—

 
(192.9
)
 
(0.6
)
 
—

 
(0.6
)
Benefits and plan expenses paid
(350.6
)
 
(44.1
)
 
(394.7
)
 
(296.8
)
 
(44.1
)
 
(340.9
)
Foreign currency exchange rate change
150.5

 
—

 
150.5

 
(236.4
)
 
—

 
(236.4
)
Fair value of plan assets at end of year
$
5,542.1

 
$
—

 
$
5,542.1

 
$
5,217.3

 
$
—

 
$
5,217.3

Funded status:
$
343.5

 
$
(672.5
)
 
$
(329.0
)
 
$
312.6

 
$
(672.1
)
 
$
(359.5
)
Amounts recognized in the Consolidated Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
Other non-current assets
$
434.3

 
$
—

 
$
434.3

 
$
416.7

 
$
—

 
$
416.7

Accounts payable and other current liabilities
(4.1
)
 
(42.6
)
 
(46.7
)
 
(4.5
)
 
(45.1
)
 
(49.6
)
Pension and postretirement benefits
(86.7
)
 
(629.9
)
 
(716.6
)
 
(99.6
)
 
(627.0
)
 
(726.6
)
Net amounts recognized
$
343.5

 
$
(672.5
)
 
$
(329.0
)
 
$
312.6

 
$
(672.1
)
 
$
(359.5
)
The accumulated benefit obligation for our defined benefit pension plans was approximately $5.2 billion and $4.9 billion as of December 31, 2019 and December 31, 2018, respectively. The $30.5 million decrease in the net underfunded status of our aggregate pension and OPEB plans from December 31, 2018 to December 31, 2019, was primarily driven by strong asset returns. Separately, as discussed above, in the fourth quarter of 2019 we purchased buy-out annuity contracts for a portion of our Canadian pension plans resulting in a decrease to our projected benefit obligation and a corresponding reduction to our plan assets.
As of December 31, 2019 and December 31, 2018, our defined benefit plan in the U.K. and certain defined benefit plans in the U.S. and Canada were overfunded as a result of our ongoing de-risking strategy. Information for our defined benefit plans that had aggregate accumulated benefit obligations and projected benefit obligations in excess of plan assets is as follows:
 
As of
 
December 31, 2019
 
December 31, 2018
 
(In millions)
Accumulated benefit obligation
$
793.6

 
$
742.1

Projected benefit obligation
$
794.0

 
$
742.4

Fair value of plan assets
$
703.2

 
$
638.3


Information for OPEB plans with an accumulated postretirement benefit obligation in excess of plan assets has been disclosed above in "Obligations and Changes in Funded Status" as all of our OPEB plans are unfunded.
Accumulated Other Comprehensive Income (Loss)
Amounts recognized in AOCI not yet recognized as components of net periodic pension and OPEB cost, pretax, were as follows:
 
As of December 31, 2019
 
As of December 31, 2018
 
Pension
 
OPEB
 
Total
 
Pension
 
OPEB
 
Total
 
(In millions)
Net actuarial loss (gain)
$
685.7

 
$
(167.5
)
 
$
518.2

 
$
687.8

 
$
(191.7
)
 
$
496.1

Net prior service cost (benefit)
7.1

 
(4.9
)
 
2.2

 
10.2

 
(5.6
)
 
4.6

Total not yet recognized
$
692.8

 
$
(172.4
)
 
$
520.4

 
$
698.0

 
$
(197.3
)
 
$
500.7


Changes in plan assets and benefit obligations recognized in OCI, pretax, were as follows:
 
Pension
 
OPEB
 
Total
 
(In millions)
Accumulated other comprehensive loss (income) as of December 31, 2017
$
646.9

 
$
(84.9
)
 
$
562.0

Amortization of prior service (costs) benefit
(0.7
)
 
0.2

 
(0.5
)
Amortization of net actuarial (loss) gain
(7.6
)
 
1.7

 
(5.9
)
Net prior service cost
9.8

 
(4.1
)
 
5.7

Settlement
—

 
(0.1
)
 
(0.1
)
Current year actuarial loss (gain)
46.8

 
(107.9
)
 
(61.1
)
Foreign currency exchange rate change
2.8

 
(2.2
)
 
0.6

Accumulated other comprehensive loss (income) as of December 31, 2018
$
698.0

 
$
(197.3
)
 
$
500.7

Amortization of prior service (costs) benefit
(1.1
)
 
0.7

 
(0.4
)
Amortization of net actuarial (loss) gain
(10.4
)
 
14.1

 
3.7

Net prior service cost
(2.0
)
 
—

 
(2.0
)
Settlement and curtailment
(29.8
)
 
(0.2
)
 
(30.0
)
Current year actuarial loss (gain)
38.5

 
7.4

 
45.9

Foreign currency exchange rate change
(0.4
)
 
2.9

 
2.5

Accumulated other comprehensive loss (income) as of December 31, 2019
$
692.8

 
$
(172.4
)
 
$
520.4




Assumptions
Periodic pension and OPEB cost is actuarially calculated annually for each individual plan based on data available and assumptions made at the beginning of each year. Assumptions used in the calculation include the settlement discount rate selected and disclosed at the end of the previous year as well as other assumptions detailed in the table below. The weighted-average rates used in determining the periodic pension and OPEB cost for the fiscal years 2019, 2018 and 2017 were as follows:
 
For the years ended
 
December 31, 2019
 
December 31, 2018
 
December 31, 2017
 
Pension
 
OPEB
 
Pension
 
OPEB
 
Pension
 
OPEB
Weighted-average assumptions:
 
 
 
 
 
 
 
 
 
 
 
Settlement discount rate
3.44%
 
3.92%
 
3.01%
 
3.34%
 
3.36%
 
3.76%
Rate of compensation increase
2.00%
 
N/A
 
2.00%
 
N/A
 
2.00%
 
N/A
Expected return on plan assets(1)
4.38%
 
N/A
 
4.10%
 
N/A
 
4.83%
 
N/A
Health care cost trend rate
N/A
 
Ranging ratably from 6.5% in 2019 to 4.5% in 2037
 
N/A
 
Ranging ratably from 6.75% in 2018 to 4.5% in 2037
 
N/A
 
Ranging ratably from 7.0% in 2017 to 4.5% in 2037

(1)
We develop our EROA assumptions annually with input from independent investment specialists including our actuaries, investment consultants, plan trustee and other specialists. Each EROA assumption is based on historical data, including historical returns, historical market rates and is calculated for each plan's individual asset class. The calculation includes inputs for interest, inflation, credit, and risk premium (active investment management) rates and fees paid to service providers. We consider our EROA to be a significant management estimate. Any material changes in the inputs to our methodology used in calculating our EROA could have a significant impact on our reported defined benefit pension plans' expense.
Benefit obligations are actuarially calculated annually at the end of each year based on the assumptions detailed in the table below. Obligations under the OPEB plans are determined by the application of the terms of medical, dental, vision and life insurance plans, together with relevant actuarial assumptions and heath care cost trend rates. The weighted-average rates used in determining the projected benefit obligation for defined pension plans and the accumulated postretirement benefit obligation for OPEB plans, as of December 31, 2019 and December 31, 2018, were as follows:
 
As of December 31, 2019
 
As of December 31, 2018
 
Pension
 
OPEB
 
Pension
 
OPEB
Weighted-average assumptions:
 
 
 
 
 
 
 
Settlement discount rate
2.55%
 
2.91%
 
3.44%
 
3.92%
Rate of compensation increase
2.00%
 
N/A
 
2.00%
 
N/A
Health care cost trend rate
N/A
 
Ranging ratably from 6.25% in 2020 to 3.57% in 2040
 
N/A
 
Ranging ratably from 6.5% in 2019 to 4.5% in 2037

The change to the weighted-average discount rates used for our defined benefit pension plans and postretirement plans as of December 31, 2019 from December 31, 2018, is primarily the result of declining interest rates during 2019.
Investment Strategy
The obligations of our defined benefit pension plans in the U.S., Canada and the U.K. are supported by assets held in trusts for the payment of future benefits. The business segments are obligated to adequately fund these asset trusts. The underlying investments within our defined benefit pension plans include: cash and short-term instruments, debt securities, equity securities, investment funds, and other investments including derivatives, hedge fund of funds and real estate. Investment allocations reflect the customized strategies of the respective plans.
The plans use liability driven investment strategies in managing defined pension benefits. For all defined benefit pension plan assets the plans have the following primary investment objectives:
(1)
optimize the long-term return on plan assets at an acceptable level of risk and manage projected future cash contributions;
(2)
maintain a broad diversification across asset classes and among investment managers; and
(3)
manage the risk level of the plans' assets in relation to the plans' liabilities.
Each plan's respective allocation targets promote optimal expected return and volatility characteristics given a focus on a long-term time horizon for fulfilling the plans' obligations. All assets are managed by external investment managers with a mandate to either match or outperform their benchmark. The plans used different asset managers in the U.S., U.K. and Canada and each plan's respective asset allocation could be impacted by a change in asset managers.
Our investment strategies for our defined benefit pension plans also consider the funding status for each plan. For defined benefit pension plans that are highly funded, assets are invested primarily in fixed income holdings that have a similar duration to the associated liabilities. For plans with lower funding levels, the fixed income component is managed in a similar manner to the highly funded plans. In addition to this liability-matching fixed income allocation, these plans also contain exposure to return generating assets including: equities, real estate, debt, and other investments held with the goal of producing higher returns, which may also have a higher risk profile. These investments are diversified by investing globally with limitations placed on issuer concentration.
Both our U.K. and Canadian plans hedge a portion of the foreign exchange exposure between plan assets that are not denominated in the local plan currency and the local currency as the Canadian and U.K. pension liabilities will be settled in CAD and GBP, respectively.
Target Allocations
The following compares target asset allocation percentages with actual asset allocations on a weighted-average asset basis as of December 31, 2019:
 
Target
allocations
 
Actual
allocations
Equities
9.7%
 
7.2%
Fixed income
64.6%
 
70.1%
Real estate
6.3%
 
5.5%
Annuities
15.0%
 
15.1%
Other
4.4%
 
2.1%

Significant Concentration Risks
We periodically evaluate our defined benefit pension plan assets for concentration risks. As of December 31, 2019, we did not have any individual underlying asset position that composed a significant concentration of each plan's overall assets. However, we currently have significant plan assets invested in U.K., U.S. and Canadian government fixed income holdings. A provisional credit rating downgrade for any of these governments could negatively impact the asset values.
Further, as our benefit plans maintain exposure to non-government investments, a significant system-wide increase in credit spreads would also negatively impact the reported plan asset values. In general, equity and fixed income risks have been mitigated by company-specific concentration limits and by utilizing multiple equity managers. We do have significant amounts of assets invested with individual fixed income and hedge fund managers, therefore, the plans use outside investment consultants to aid in the oversight of these managers and fund performance.
Valuation Techniques
We use a variety of industry accepted valuation techniques to value our plan assets. The techniques vary depending upon instrument type. Whenever possible, we prioritize the use of observable market data in our valuation processes. We use market, income and cost approaches to value our plan assets as of period end. See Note 1, "Basis of Presentation and Summary of Significant Accounting Policies" for additional information on our fair value methodologies and accounting policies. We have not changed our fair value techniques used to value plan assets this year.
Major Categories of Plan Assets
As of December 31, 2019, our major categories of plan assets included the following:
•
Cash and short-term instruments—Includes cash, trades awaiting settlement, bank deposits, short-term bills and short-term notes. Our "trades awaiting settlement" category includes payables and receivables associated with asset purchases and sales that are awaiting final cash settlement as of year-end due to the use of trade date accounting for our pension plans assets. These payables normally settle within a few business days of the purchase or sale of the respective asset. The respective assets are included in or removed from our year end plan assets and categorized in their respective asset categories in the fair value hierarchy below. We include these items in Level 1 of this hierarchy, as the values are derived from quoted prices in active markets. Short-term instruments are included in Level 2 of the fair value hierarchy as these are highly liquid instruments that are valued using observable inputs, but their asset values are not publicly quoted.
•
Debt securities—Includes various government and corporate fixed income securities, interest and inflation-linked assets such as bonds and swaps, collateralized securities, and other debt securities. The majority of the plans' fixed income assets trade on "over the counter" exchanges, which provides observable inputs that are the primary data used to determine each individual investment's fair value. We also use independent pricing vendors, as well as matrix pricing techniques. Matrix pricing uses observable data from other similar investments as the primary input to determine the individual security's fair value. Government and corporate fixed income securities are generally classified as Level 2 in the fair value hierarchy as they are valued using observable inputs. Assets included in our collateralized securities include mortgage backed securities and collateralized mortgage obligations, which are considered Level 3 due to the use of the significant unobservable inputs used in deriving these assets' fair values.
•
Equities—Includes publicly traded common and other equity-like holdings, primarily publicly traded common stock and real estate investment trusts. Equity assets are well diversified between international and domestic investments. We consider equities quoted on public exchanges as Level 1 while other assets that are not quoted on public exchanges but valued using significant observable inputs as Level 2 depending on the individual asset's characteristics.
•
NAV per share practical expedient—Includes our debt funds, equity funds, hedge fund of funds, infrastructure funds, real estate fund holdings and private equity funds. The market values for these funds are based on the net asset values multiplied by the number of shares owned.
•
Annuities—Includes non-participating annuity buy-in insurance policies purchased to cover a portion of the plan members. The fair value of non-participating contracts fluctuates based on changes in the obligation associated with covered plan members. These values are considered Level 3 due to the use of the significant unobservable inputs used in deriving these assets' fair values.
•
Other—Includes derivatives, repurchase agreements, recoverable taxes for taxes paid and awaiting reclaim due to the tax exempt nature of the pension plan, venture capital, and private equity. Derivatives are priced using observable inputs including yields, interest rate curves and spreads. Exchange traded derivatives are typically priced using the last trade price. Repurchase agreements are agreements where our plan has created an asset exposure using borrowed assets, creating a repurchase agreement liability, to facilitate the trade. The assets associated with the repurchase agreement and equity options are included in the other category in the fair value hierarchy, and the corresponding repurchase agreement liability is classified as Level 1 in the hierarchy, as the liability is valued using quoted prices in active markets. When determining the presentation of our target and asset allocations for repurchase agreements, we are viewing the asset type, as opposed to the investment vehicle, and accordingly include the associated assets within fixed income, specifically interest and inflation linked assets. We include recoverable tax items in Level 1 of this hierarchy, as these are cash receivables and the values are derived from quoted prices in active markets. Private equity is included in Level 3 as the values are based upon the use of unobservable inputs.
Fair Value Hierarchy
The following presents our fair value hierarchy for our defined benefit pension plan assets excluding investments using the NAV per share practical expedient (in millions)
 
 
 
Fair value measurements as of December 31, 2019
 
Total as of
December 31, 2019
 
Quoted prices
in active
markets
(Level 1)
 
Significant
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
Cash and cash equivalents
 
 
 
 
 
 
 
Cash
$
107.2

 
$
107.2

 
$
—

 
$
—

Trades awaiting settlement
17.2

 
17.2

 
—

 
—

Bank deposits, short-term bills and notes
16.4

 
—

 
16.4

 
—

Debt


 
 
 
 
 
 
Government securities
711.8

 
—

 
711.8

 
—

Corporate debt securities
272.3

 
—

 
272.3

 
—

Interest and inflation linked assets
948.1

 
—

 
938.8

 
9.3

Annuities


 
 
 
 
 
 
Buy-in annuities
748.1

 
—

 
—

 
748.1

Other


 
 
 
 
 
 
Equity options
6.3

 
6.3

 
—

 
—

Repurchase agreements
(923.2
)
 
(923.2
)
 
—

 
—

Recoverable taxes
0.5

 
0.5

 
—

 
—

Private equity
72.8

 
—

 
—

 
72.8

Total fair value of investments excluding NAV per share practical expedient
$
1,977.5


$
(792.0
)

$
1,939.3


$
830.2

The following presents our total fair value of plan assets including the NAV per share practical expedient for our defined benefit pension plan assets:
 
Total as of
December 31, 2019
 
(In millions)
Fair value of investments excluding NAV per share practical expedient
$
1,977.5

Fair value of investments using NAV per share practical expedient
 
Debt funds
1,636.7

Equity funds
1,820.5

Real estate funds
20.4

Private equity funds
87.0

Total fair value of plan assets
$
5,542.1

The following presents our fair value hierarchy for our defined benefit pension plan assets excluding investments using the NAV per share practical expedient (in millions):
 
 
 
Fair value measurements as of December 31, 2018
 
Total as of
December 31, 2018
 
Quoted prices
in active
markets
(Level 1)
 
Significant
observable
inputs
(Level 2)
 
Significant
unobservable
inputs
(Level 3)
Cash and cash equivalents
 
 
 
 
 
 
 
Cash
$
297.3

 
$
297.3

 
$
—

 
$
—

Trades awaiting settlement
(11.2
)
 
(11.2
)
 
—

 
—

Bank deposits, short-term bills and notes
34.6

 
—

 
34.6

 
—

Debt


 
 
 
 
 
 
Government securities
1,695.8

 
—

 
1,695.8

 
—

Corporate debt securities
1,235.5

 
—

 
1,235.5

 
—

Interest and inflation linked assets
1,112.4

 
—

 
1,065.8

 
46.6

Collateralized debt securities
7.2

 
—

 
—

 
7.2

Equities


 
 
 
 
 
 
Common stock
299.0

 
299.0

 
—

 
—

Investment funds
 
 
 
 
 
 
 
Private equity
23.8

 
—

 
—

 
23.8

Annuities
 
 
 
 
 
 
 
Buy-in annuities
481.1

 
—

 
—

 
481.1

Other


 
 
 
 
 
 
Repurchase agreements
(1,448.8
)
 
(1,448.8
)
 
—

 
—

Recoverable taxes
0.4

 
0.4

 
—

 
—

Private equity
137.0

 
—

 
—

 
137.0

Total fair value of investments excluding NAV per share practical expedient
$
3,864.1


$
(863.3
)

$
4,031.7


$
695.7



The following presents our fair value hierarchy including the NAV per share practical expedient for our defined benefit pension plan assets:
 
Total as of
December 31, 2018
 
(In millions)
Fair value of investments excluding NAV per share practical expedient
$
3,864.1

Fair value of investments using NAV per share practical expedient
 
Debt funds
818.8

Equity funds
420.9

Real estate funds
20.0

Private equity funds
93.5

Total fair value of plan assets
$
5,217.3


Fair Value: Level Three Rollforward
The following presents our Level 3 Rollforward for our defined pension plan assets excluding investments using the NAV per share practical expedient:
 
Amount
 
(In millions)
Balance as of December 31, 2017
$
469.0

Total gain or loss (realized/unrealized):
 
Realized gain (loss)
13.8

Unrealized gain (loss) included in AOCI
(18.8
)
Purchases, issuances, settlements
272.2

Foreign exchange translation (loss)/gain
(40.5
)
Balance as of December 31, 2018
$
695.7

Total gain or loss (realized/unrealized):
 
Realized gain (loss)
15.3

Unrealized gain (loss) included in AOCI
(19.6
)
Purchases, issuances, settlements
105.2

Foreign exchange translation (loss)/gain
33.6

Balance as of December 31, 2019
$
830.2


Expected Cash Flows
In 2020, we expect to make contributions to our defined benefit pension plans of approximately $5 million and benefit payments under our OPEB plans of approximately $43 million based on foreign exchange rates as of December 31, 2019. BRI and BDL contributions to their respective defined benefit pension plans are excluded here, as they are not consolidated in our financial statements. Plan funding strategies are influenced by employee benefits, tax laws and plan governance documents.
Expected future benefit payments for defined benefit pension and OPEB plans, based on foreign exchange rates as of December 31, 2019, are as follows:
Expected benefit payments
 
Pension
 
OPEB
 
 
(In millions)
2020
 
$
308.1

 
$
42.6

2021
 
$
308.7

 
$
42.8

2022
 
$
308.7

 
$
42.3

2023
 
$
309.5

 
$
41.7

2024
 
$
309.6

 
$
42.5

2025-2029
 
$
1,426.7

 
$
198.5


Defined Contribution Plans
We offer defined contribution pension plans for the majority of our U.S., Corporate, Canadian and U.K. employees. The investment strategy for defined contribution plans are determined by each individual participant from the options we have made available as the plan sponsor. U.S. non-union and Corporate employees are eligible to participate in qualified defined contribution plans which provide for employer contributions ranging from 5% to 11% of eligible compensation (certain employees were also eligible for additional employer contributions). Effective, December 29, 2017, the plans covering the U.S. non-union and Corporate employees were merged while retaining the contribution percentages previously indicated. U.S. union employees are eligible to participate in a qualified defined contribution plan which provides for employer contributions based on factors associated with various collective bargaining agreements. The employer contributions to the U.K. and Canadian plans range from 3% to 8.5% of employee compensation. Both employee and employer contributions were made in cash in accordance with participant investment elections.
We recognized costs associated with defined contribution plans of $80.0 million, $78.5 million and $80.5 million in 2019, 2018 and 2017, respectively.
In addition, we have other deferred compensation and nonqualified defined contribution plans. We have voluntarily funded these liabilities through rabbi trusts. These assets are invested in publicly traded mutual funds whose performance is expected to closely match changes in the plan liabilities. As of December 31, 2019, and December 31, 2018, the plan liabilities were equal to the plan assets and were included in other liabilities and other assets on our consolidated balance sheets, respectively.