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Pension and Other Post-Employment Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Pensions PENSION AND OTHER POST-EMPLOYMENT PLANS
Defined Benefit Pension Plans
The Company and its subsidiaries sponsor two defined benefit pension plans covering certain salaried and hourly employees. These plans have been closed to new participants for a number of years. Benefits under these plans are primarily based on final average compensation and years of service as defined within the provisions of the individual plans. As a result of plan amendments, the latest of which was in 2008, the only new benefits that were being accrued through the end of 2016 were salary increases for a limited group of participants. Those benefits ceased at the end of 2016, at which point all existing plans became fully frozen.
On November 5, 2021, the Company purchased a group annuity contract from an insurance company, under which approximately $25 million of the projected benefit obligation of the U.S. benefit plan was transferred to the insurance company. In this transaction, the insurance company assumed responsibility for pension benefits and administration for approximately 800 retirees or their beneficiaries. The transaction was funded on November 15, 2021 with existing assets of the U.S. benefit plan. As a result, the Company recognized a pension settlement charge of $10.3 million in the year ended December 31, 2021.
The following table summarizes net periodic pension expense (benefit) for the U.S. and non-U.S. benefit plans:
 U.S. Benefit PlanNon-U.S. Benefit Plan
For the Years Ended December 31,For the Years Ended December 31,
(in millions)202120202019202120202019
Company-sponsored plans:
Service cost$— $— $— $0.2 $0.2 $0.2 
Interest cost4.9 5.8 6.8 0.7 1.0 1.4 
Expected return on plan assets(9.6)(9.2)(8.7)(2.0)(1.9)(2.0)
Amortization of prior service costs— — — 0.2 0.1 0.1 
Amortization of actuarial losses3.9 3.2 2.6 0.8 0.5 0.7 
Settlement charges10.3 — — — — — 
Net periodic pension expense (benefit)$9.5 $(0.2)$0.7 $(0.1)$(0.1)$0.4 
The items that comprise Net periodic pension expense (benefit), other than service cost and settlement charges, are included as a component of Other (income) expense, net on the Consolidated Statements of Operations.
The following table summarizes the weighted-average assumptions used in determining pension costs:
 U.S. Benefit PlanNon-U.S. Benefit Plan
For the Years Ended December 31,For the Years Ended December 31,
 202120202019202120202019
Discount rate2.8 %3.5 %4.4 %1.3 %2.0 %2.8 %
Expected long-term rate of return on plan assets7.4 %7.4 %7.0 %3.5 %3.6 %4.2 %
The following table summarizes the changes in the projected benefit obligation and plan assets:
 U.S. Benefit PlanNon-U.S. Benefit Plan
(in millions)2021202020212020
Benefit obligation, beginning of year$180.2 $169.4 $57.6 $52.3 
Service cost— — 0.2 0.2 
Interest cost4.9 5.8 0.7 1.0 
Actuarial loss(8.4)15.2 (1.8)5.1 
Benefits and expenses paid(9.3)(10.2)(3.4)(3.0)
Settlement payments(25.4)— — — 
Amendments— — — 0.2 
Foreign currency translation— — (0.5)1.8 
Benefit obligation, end of year$142.0 $180.2 $52.8 $57.6 
Accumulated benefit obligation, end of year$142.0 $180.2 $52.8 $57.6 

The following table summarizes the weighted-average assumptions used in determining benefit obligations:
 U.S. Benefit PlanNon-U.S. Benefit Plan
 2021202020212020
Discount rate3.1 %2.8 %1.8 %1.3 %
The following summarizes the changes in the fair value of plan assets:
 U.S. Benefit PlanNon-U.S. Benefit Plan
(in millions)2021202020212020
Fair value of plan assets, beginning of year$142.5 $131.6 $57.4 $55.2 
Actual return on plan assets (a)
10.5 16.1 1.9 2.2 
Company contribution1.9 5.0 1.2 1.3 
Benefits and expenses paid(9.3)(10.2)(3.4)(3.0)
Settlement payments(25.4)— — — 
Foreign currency translation— — (0.6)1.7 
Fair value of plan assets, end of year$120.2 $142.5 $56.5 $57.4 
(a)    Actual return on plan assets of the U.S. benefit plan for the years ended December 31, 2021 and 2020, was net of fees, commissions and other expenses paid from plan assets of $2.2 million and $2.0 million, respectively.
As more fully described within Note 18 – Fair Value Measurements, the Company uses a three-level fair value hierarchy that prioritizes the inputs used to measure fair value.
Following is a description of the valuation methodologies used for assets measured at fair value for the U.S. benefit plan:
•Cash and cash equivalents are comprised of cash on deposit and a money market fund, that invests principally in short-term instruments. The money-market fund is valued at the net asset value (“NAV”) of the shares in the fund.
•Equity investments represent domestic and foreign securities, including common stock, which are publicly traded on active exchanges and are valued based on quoted market prices. Certain equity securities, which are valued using a model that takes the underlying security’s “best” price, divides it by the applicable exchange rate and multiplies the result by a depository receipt factor, are categorized within Level 2 of the fair value hierarchy.
•Fixed income investments include corporate bonds, asset-backed securities and treasury bonds. Corporate bonds are valued using pricing models that include bids provided by brokers or dealers, benchmark yields, base spreads and reported trades. Asset-backed securities are valued using models with readily observable data as inputs. Treasury bonds are valued based on quoted market prices in active markets.
•Real estate investments include public real estate investment trusts (“REIT”) and exchange traded REIT funds, which are publicly traded on active exchanges and are valued based on quoted market prices.
Following is a description of the valuation methodologies used for assets measured at fair value for the non-U.S. benefit plan:
•Cash and cash equivalents are comprised of cash on deposit and a money market fund, that invests principally in short-term instruments. The money-market fund is valued at the NAV of the shares in the fund.
•Diversified investment funds and insurance-linked securities are valued based on a daily NAV per share measured by the fund sponsor and used as the basis for current transactions.
•Fixed income investments include corporate bonds and asset-backed securities. Corporate bonds are valued based on quoted market prices in active markets or other readily observable market data. Asset-backed securities are valued using models with readily observable data as inputs.
The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with 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.
The following summarizes the Company’s pension assets in a three-tier fair value hierarchy for its benefit plans:
 U. S. Benefit Plan
 20212020
(in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash and cash equivalents$3.6 $— $— $3.6 $4.4 $— $— $4.4 
Equity investments:
U.S. Large Cap14.2 0.1 — 14.3 36.3 — — 36.3 
U.S. Small and Mid Cap17.5 — — 17.5 24.6 — — 24.6 
Developed international7.0 3.1 — 10.1 10.2 9.5 — 19.7 
Emerging markets2.6 1.3 — 3.9 9.7 2.2 — 11.9 
Fixed income investments:
Government securities3.8 — — 3.8 4.9 — — 4.9 
Asset-backed securities— 0.3 — 0.3 — 3.8 — 3.8 
Corporate bonds— 66.2 — 66.2 — 31.3 — 31.3 
Mutual funds— — — — 5.0 — — 5.0 
Other investments:
Real estate— — — — 0.4 — — 0.4 
Total assets at fair value (a)
$48.7 $71.0 $— $119.7 $95.5 $46.8 $— $142.3 
(a)     Total assets at fair value in the table above exclude a net receivable of $0.5 million and $0.2 million at December 31, 2021 and 2020, respectively.
 Non-U. S. Benefit Plan
 20212020
(in millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash and cash equivalents$0.8 $4.6 $— $5.4 $0.4 $7.0 $— $7.4 
Diversified investment funds (a)
— 23.3 — 23.3 — 29.6 — 29.6 
Fixed income investments:
Asset-backed securities— 18.1 — 18.1 — — — — 
Corporate bonds— 5.1 — 5.1 — 15.9 — 15.9 
Other investments:
Insurance-linked securities— — 4.6 4.6 — — 4.5 4.5 
Total assets at fair value$0.8 $51.1 $4.6 $56.5 $0.4 $52.5 $4.5 $57.4 
(a)     These funds primarily invest in a diversified portfolio of equity securities and fixed income securities.
The Company maintains a structured investment strategy for its U.S. and non-U.S. benefit plans, which are designed to achieve certain target asset allocations depending on the plans’ relative funded status.
As of December 31, 2021, the target asset allocations for the U.S. benefit plan are (i) between 54% and 69% in fixed income investments, (ii) between 29% and 44% in equity investments and (iii) between 0% and 20% in cash and cash equivalents.
Plan assets for the non-U.S. benefit plan consist principally of a portfolio of diversified investment funds, corporate bonds and insurance-linked securities. As of December 31, 2021, the target asset allocations for the non-U.S. benefit plan assets are generally between 65% and 75% in fixed income investments and cash and cash equivalents, and between 25% and 35% in equity investments.
The following summarizes the funded status of the Company’s benefit plans:
 U.S. Benefit PlanNon-U.S. Benefit Plan
(in millions)2021202020212020
Fair value of plan assets, end of year$120.2 $142.5 $56.5 $57.4 
Benefit obligation, end of year142.0 180.2 52.8 57.6 
Funded status, end of year$(21.8)$(37.7)$3.7 $(0.2)
The following summarizes the amounts recognized within the Company’s Consolidated Balance Sheets:
 U.S. Benefit PlanNon-U.S. Benefit Plan
(in millions)2021202020212020
Amounts recognized in our Consolidated Balance Sheets include:
Deferred charges and other long-term assets$— $— $3.7 $— 
Long-term pension and other post-retirement benefit liabilities(21.8)(37.7)— (0.2)
Net (liability) asset recorded$(21.8)$(37.7)$3.7 $(0.2)
Amounts recognized in Accumulated other comprehensive loss include:
Actuarial losses$57.7 $81.3 $16.9 $19.6 
Prior service costs— — 2.4 2.6 
Net amount recognized, pre-tax$57.7 $81.3 $19.3 $22.2 
As the Company’s benefit plans are fully frozen, all plan participants are now considered to be inactive. As a result, the associated actuarial losses and prior service costs that are included in Accumulated other comprehensive loss are being amortized into net periodic benefit cost over the remaining average life expectancy of plan participants. The Company expects $2.8 million of the actuarial losses and $0.1 million of the prior service costs to be amortized from Accumulated other comprehensive loss into net periodic benefit cost in 2022.
The Company currently expects to contribute up to $1.0 million to the non-U.S. benefit plan in 2022. The Company does not currently expect to make any contributions to the U.S. benefit plan in 2022. Future contributions to the plans will be based on such factors as annual service cost, the financial return on plan assets, interest rate movements that affect discount rates applied to plan liabilities and the value of benefit payments made.
The following summarizes the benefits expected to be paid under the Company’s benefit plans in each of the next five years, and in aggregate for the five years thereafter:
(in millions)U.S. Benefit PlanNon-U.S. Benefit Plan
2022$7.8 $2.8 
20238.0 2.7 
20248.2 2.7 
20258.6 2.6 
20268.7 2.6 
2027-203143.4 12.5 
Defined Contribution Retirement Plan
The Company also sponsors a defined contribution retirement plan (the “401(k) plan”) covering a majority of its employees. Participation is via automatic enrollment and employees may elect to opt out of the 401(k) plan. Company contributions to the 401(k) plan are based on an employee’s years of service, as well as the percentage of employee contributions. The Company’s cost of the 401(k) plan was $8.9 million in 2021, $7.7 million in 2020 and $7.9 million in 2019.
Deferred Compensation Plan
The Company also provides a deferred compensation plan to certain employees. The deferred compensation plan is a non-qualified, unfunded defined contribution plan, which provides participants with benefits that would have been provided under the 401(k) plan, but could not be provided due to compensation limits for qualified plans under the Internal Revenue Code. At
December 31, 2021 and 2020, deferred compensation liabilities of $16.8 million and $13.8 million, respectively, were included on the Consolidated Balance Sheets, primarily within Long-term pension and other post-retirement benefit liabilities.
Multi-Employer Pension Plan
During the year ended December 31, 2021, the Company withdrew from the IAM National Pension Fund, a multi-employer pension plan that provided defined benefits to employees under a U.S. collective bargaining agreement. As a result, the Company incurred a $0.3 million withdrawal charge, which was recognized as a component of Other (income) expense, net on the Consolidated Statements of Operations. The withdrawal liability was settled in full during the year ended December 31, 2021. Following this withdrawal, the Company no longer participates in any multi-employer pension plans.
During the year ended December 31, 2020, the Company withdrew from the Sheet Metal Workers’ National Pension Fund, a multi-employer pension plan that provided defined benefits to employees under a U.S. collective bargaining agreement. As a result, the Company incurred a $2.3 million withdrawal charge, which was recognized as a component of Other (income) expense, net on the Consolidated Statements of Operations. The withdrawal liability was settled in full during the year ended December 31, 2020.