DEFINED BENEFIT PLANS

The following sets forth the components of the Company’s net periodic benefit cost of the noncontributory defined benefit pension plans ($ in millions):



	Three Month Period Ended						Nine Month Period Ended
	September 30, 2016			October 2, 2015			September 30, 2016			October 2, 2015
U.S. Pension Benefits:
Service cost	$	2.2		$	2.4		$	6.8		$	5.4
Interest cost	22.3			25.3			67.7			73.9
Expected return on plan assets	(33.0		)	(34.0		)	(99.6		)	(100.2		)
Amortization of actuarial loss	6.3			7.9			18.3			20.9
Curtailment gain recognized	—			—			(0.7		)	—
Net periodic pension cost	$	(2.2	)	$	1.6		$	(7.5	)	$	—

Non-U.S. Pension Benefits:
Service cost	$	9.0		$	10.4		$	26.9		$	30.6
Interest cost	8.4			7.6			25.8			20.7
Expected return on plan assets	(9.9		)	(8.7		)	(30.8		)	(23.2		)
Amortization of actuarial loss	1.9			2.7			8.5			7.8
Amortization of prior service credit	(0.1		)	—			(0.3		)	(0.1		)
Settlement loss recognized	—			1.4			0.1			0.9
Net periodic pension cost	$	9.3		$	13.4		$	30.2		$	36.7

The following sets forth the components of the Company’s continuing operations net periodic benefit cost of the other postretirement employee benefit plans ($ in millions):



	Three Month Period Ended						Nine Month Period Ended
	September 30, 2016			October 2, 2015			September 30, 2016			October 2, 2015
Service cost	$	0.2		$	0.3		$	0.6		$	0.9
Interest cost	1.4			1.8			4.2			5.8
Amortization of actuarial (gain) loss	(0.1		)	(0.2		)	0.1			1.2
Amortization of prior service credit	(0.8		)	(0.8		)	(2.4		)	(2.4		)
Net periodic benefit cost	$	0.7		$	1.1		$	2.5		$	5.5

Net periodic pension and benefit costs are included in cost of sales and selling, general and administrative expenses in the accompanying Consolidated Condensed Statements of Earnings. In addition, there are $3 million and $9 million of net periodic pension and benefit costs in the three and nine month periods ended October 2, 2015, respectively, which are included in earnings from discontinued operations, net of tax (including $2 million and $6 million of expenses which were reclassified out of accumulated other comprehensive income (loss) in the three and nine month periods ended October 2, 2015, respectively).

Effective December 31, 2015, the Company changed its estimate of the service and interest cost components of net periodic benefit cost for its U.S. and non-U.S. pension and other postretirement benefit plans. Previously, the Company estimated the service and interest cost components utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The new estimate utilizes a full yield curve approach in the estimation of these components by applying the specific spot rates along the yield curve used in the determination of the benefit obligation to their underlying projected cash flows. The new estimate provides a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and their corresponding spot rates. The change does not affect the measurement of the Company’s U.S. and non-U.S. pension and other postretirement benefit obligations and it is accounted for as a change in accounting estimate that is inseparable from a change in accounting principle, which is applied prospectively. For 2016, the change in estimate is expected to reduce U.S. and non-U.S. pension and other postretirement net periodic benefit plan cost by approximately $25 million when compared to the prior method.

Employer Contributions

During 2016, the Company’s cash contribution requirements for its U.S. and non-U.S. defined benefit pension plans are expected to be approximately $40 million and $45 million, respectively. The ultimate amounts to be contributed depend upon, among other things, legal requirements, underlying asset returns, the plan’s funded status, the anticipated tax deductibility of the contribution, local practices, market conditions, interest rates and other factors.