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Other Postretirement Employee Benefit Plans
 12 Months Ended
Dec. 31, 2019
Defined Contribution Plan [Abstract]  
Other Postretirement Employee Benefit Plans OTHER POSTRETIREMENT EMPLOYEE BENEFIT PLANS
In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for some of its retired employees in the United States. Certain employees may become eligible for these benefits as they reach normal retirement age while working for the Company.
The following sets forth the funded status of the domestic plans as of the most recent actuarial valuations using measurement dates of December 31 ($ in millions):
 
2019
 
2018
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
(141.6
)
 
$
(155.1
)
Service cost
(0.4
)
 
(0.4
)
Interest cost
(5.3
)
 
(5.0
)
Amendments, curtailments and other
(0.1
)
 
(5.3
)
Actuarial (loss) gain
(4.2
)
 
8.4

Retiree contributions
(1.7
)
 
(2.6
)
Benefits paid
14.4

 
18.4

Benefit obligation at end of year
(138.9
)
 
(141.6
)
Change in plan assets:
 
 
 
Fair value of plan assets
—

 
—

Funded status
$
(138.9
)
 
$
(141.6
)

As of December 31, 2019 and 2018, $123 million and $129 million, respectively, of the total underfunded status of the plan was recognized as long-term accrued postretirement liability since it was not expected to be funded within one year.
Weighted average assumptions used to determine benefit obligations at date of measurement:
 
2019
 
2018
Discount rate
3.1
%
 
4.2
%
Medical trend rate – initial
5.7
%
 
6.0
%
Medical trend rate – grading period
18 years

 
19 years

Medical trend rate – ultimate
4.5
%
 
4.5
%

Effect of a one-percentage-point change in assumed health care cost trend rates:
($ in millions)
1% Increase
 
1% Decrease
Effect on the total of service and interest cost components
$
0.1

 
$
(0.1
)
Effect on postretirement medical benefit obligation
2.1

 
(1.8
)

The medical trend rate used to determine the postretirement benefit obligation was 5.7% for 2019. The rate decreases gradually to an ultimate rate of 4.5% in 2037 and remains at that level thereafter. The trend rate is a significant factor in determining the amounts reported.
Components of net periodic benefit cost:
($ in millions)
2019
 
2018
Service cost
$
(0.4
)
 
$
(0.4
)
Interest cost
(5.3
)
 
(5.0
)
Amortization of prior service credit
2.1

 
2.5

Net periodic benefit cost
$
(3.6
)
 
$
(2.9
)

In the first quarter of 2018, the Company adopted ASU No. 2017-07, which requires the Company to disaggregate the service cost component from other components of net periodic benefit costs and report the service cost component in the same line item as other compensation costs and the other components of net periodic benefit costs (which include interest costs, expected return on plan assets, amortization of prior service cost or credits and actuarial gains and losses) separately and outside a subtotal of operating income. As this ASU required application on a retrospective basis, the Company reclassified the prior period presentation of the other postretirement employee benefit plans for the adoption of this ASU. The net periodic benefit cost of the other postretirement employee benefit plans incurred during the years ended December 31, 2019, 2018 and 2017 are reflected in the following captions in the accompanying Consolidated Statements of Earnings ($ in millions):
 
Year Ended December 31
 
2019
 
2018
 
2017
Service cost:
 
 
 
 
 
Cost of sales
$
(0.1
)
 
$
(0.1
)
 
$
(0.1
)
Selling, general and administrative expenses
(0.3
)
 
(0.3
)
 
(0.6
)
Total service cost
(0.4
)
 
(0.4
)
 
(0.7
)
Other net periodic pension costs:
 
 
 
 
 
Nonoperating income (expense), net
(3.2
)
 
(2.5
)
 
(2.2
)
Total
$
(3.6
)
 
$
(2.9
)
 
$
(2.9
)

Included in accumulated other comprehensive income (loss) as of December 31, 2019 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service credits of $16 million ($12 million, net of tax) and unrecognized actuarial losses of $13 million ($9 million, net of tax). The unrecognized losses and prior service credits, net, is calculated as the difference between the actuarially determined projected benefit obligation and the value of the plan assets less accrued benefit costs as of December 31, 2019. The prior service credits included in accumulated other comprehensive income
(loss) and expected to be recognized in net periodic benefit costs during the year ending December 31, 2020 are $2 million ($2 million, net of tax). The actuarial losses included in accumulated other comprehensive income (loss) and expected to be recognized in net periodic benefit costs during the year ending December 31, 2020 are not material.
The following sets forth benefit payments, which reflect expected future service, as appropriate, expected to be paid in the periods indicated ($ in millions):
2020
$
15.8

2021
13.9

2022
12.6

2023
11.6

2024
10.9

2025 - 2029
47.0