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RETIREMENT PLANS (Tables)
12 Months Ended
Dec. 31, 2019
Pension and Postretirement Plans  
Financial information related to pension and postretirement health care plans

U.S.

International

U.S. Postretirement

 

Pension (a)

Pension

Health Care

 

(millions)

2019

2018

2019

2018

2019

2018

 

Accumulated benefit obligation, end of year

$2,535.9

$2,189.0

$1,585.5

$1,349.9

$165.7

$147.3

Projected benefit obligation

Projected benefit obligation, beginning of year

 

$2,241.0

$2,485.1

$1,436.7

$1,537.9

$147.3

$181.3

Service cost

 

72.8

74.5

30.2

33.2

1.4

2.7

Interest cost

 

89.0

83.1

31.2

29.1

5.6

5.6

Participant contributions

 

-

-

3.0

3.5

3.4

3.5

Medicare subsidies received

 

-

-

-

-

-

-

Curtailments and settlements

 

3.4

-

(18.6)

(22.8)

0.6

-

Plan amendments

 

-

(40.4)

0.1

-

-

(13.7)

Actuarial (gain) loss

 

336.4

(181.3)

235.8

(42.7)

22.2

(18.4)

Assumed through acquisitions

-

-

-

11.4

-

-

Other events

-

-

0.6

-

-

-

Benefits paid

 

(180.1)

(180.0)

(37.6)

(38.7)

(14.8)

(13.7)

Foreign currency translation

 

-

-

(13.8)

(74.2)

-

-

Projected benefit obligation, end of year (b)

 

$2,562.5

$2,241.0

$1,667.6

$1,436.7

$165.7

$147.3

Plan assets

Fair value of plan assets, beginning of year

$1,981.4

$2,226.4

$925.6

$981.1

$6.0

$7.6

Actual returns on plan assets

366.9

(70.7)

110.5

2.6

1.1

(0.2)

Company contributions

129.0

5.7

43.3

42.0

13.8

12.3

Participant contributions

-

-

3.0

3.5

-

-

Acquisitions

-

-

-

6.4

-

-

Curtailments and settlements

(4.3)

-

(17.6)

(22.8)

-

-

Benefits paid

(180.1)

(180.0)

(37.6)

(38.7)

(14.8)

(13.7)

Foreign currency translation

-

-

(0.1)

(48.5)

-

-

Fair value of plan assets, end of year (c)

$2,292.9

$1,981.4

$1,027.1

$925.6

$6.1

$6.0

Funded Status, end of year

$(269.6)

$(259.6)

$(640.5)

$(511.1)

$(159.6)

$(141.3)

Amounts recognized in the Consolidated Balance Sheet:

Other assets

$-

$-

$31.1

$39.0

$-

$-

Other current liabilities

(12.5)

(5.9)

(23.6)

(24.4)

(5.2)

(5.0)

Postretirement healthcare and pension benefits

(257.1)

(253.7)

(647.8)

(525.7)

(154.4)

(136.3)

Net liability

$(269.6)

$(259.6)

$(640.3)

$(511.1)

$(159.6)

$(141.3)

Amounts recognized in accumulated other comprehensive loss (income):

Unrecognized net actuarial loss (gain) (d)

$632.4

$539.2

$527.7

$368.0

$(10.5)

$(36.0)

Unrecognized net prior service costs (benefits)

(40.0)

(52.3)

0.6

(6.0)

(11.0)

(34.4)

Tax (benefit) expense

(149.1)

(194.4)

(129.6)

(92.7)

3.4

27.6

Accumulated other comprehensive loss (income), net of tax

$443.3

$292.5

$398.7

$269.3

$(18.1)

$(42.8)

Change in accumulated other comprehensive loss (income):

Amortization of net actuarial (gain) loss

$(23.5)

$(38.9)

$(17.3)

$(16.5)

$4.1

$1.9

Amortization of prior service costs

11.5

6.8

1.1

0.9

23.2

19.7

Current period net actuarial loss (gain)

119.0

51.2

185.8

17.9

21.4

(17.8)

Current period prior service costs

-

-

0.1

-

-

5.2

Curtailments and settlements

(1.5)

-

1.8

(2.3)

0.2

-

Tax (benefit) expense

(25.7)

5.1

(36.9)

5.7

(11.7)

2.4

Pension and postretirement benefits changes

-

(40.4)

-

-

-

(18.9)

Foreign currency translation

-

-

(5.2)

(19.2)

-

-

Other comprehensive loss (income)

$79.8

$(16.2)

$129.4

$(13.5)

$37.2

$(7.5)

(a)Includes qualified and non-qualified plans.
(b)Projected benefit obligation includes discontinued operations of $5.3 and $1.4 for the years ended December 31, 2019 and 2018, respectively.
(c)Fair value of the plan assets includes discontinued operations of $0.6 for the year ended December 31, 2019. There were no plan assets in discontinued operations for the year ended December 31, 2018.
(d)Accumulated other comprehensive includes discontinued operations of $2.9 and $(0.1) for the years ended December 31, 2019 and 2018, respectively.

Estimated amounts in accumulated other comprehensive loss expected to be reclassified to net period cost

Estimated amounts in accumulated other comprehensive loss expected to be reclassified to net period cost during 2020 are as follows:

U.S. Post-

 

U.S.

International

Retirement

(millions)

Pension (a)

Pension

Health Care

 

Net actuarial loss

$51.9

$25.5

$0.1

Net prior service benefits

(7.4)

(0.1)

(11.0)

Total

$44.5

$25.4

$(10.9)

(a)Includes qualified and non-qualified plans.
Aggregate projected benefit obligation, accumulated benefit obligation and fair value of pension plan assets for plans with accumulated benefit obligations in excess of plan assets

December 31, (millions)

    

2019

    

2018

Aggregate projected benefit obligation (a)

$3,970.3

$3,427.1

Accumulated benefit obligation (b)

 

3,877.4

 

3,308.4

Fair value of plan assets (c)

 

3,040.5

 

2,624.3

(a)Projected benefit obligation includes discontinued operations of $5.3 and $1.4 for the years ended December 31, 2019 and 2018, respectively.
(b)Accumulated benefit obligation includes discontinued operations of $1.1 for each year ended December 31, 2019 and 2018.
(c)Fair value of plan assets includes discontinued operations of $0.6 for the year ended December 31, 2019. There were no plan assets in discontinued operations for the year ended December 31, 2018.

Net periodic pension and postretirement health care benefit costs

U.S.

International

U.S. Postretirement

Pension (a)

Pension

Health Care

(millions)

2019

    

2018

    

2017

    

2019

    

2018

    

2017

    

2019

    

2018

    

2017

Service cost (b)

$72.8

$74.5

$70.2

$30.2

$33.2

$31.4

$1.4

$2.7

$2.6

Interest cost on benefit obligation

89.0

 

83.1

 

83.4

 

31.2

 

29.1

 

28.4

 

5.6

 

5.6

 

5.8

Expected return on plan assets

(149.5)

 

(161.9)

 

(149.9)

 

(59.9)

 

(63.2)

 

(56.3)

 

(0.4)

 

(0.4)

 

(0.5)

Recognition of net actuarial loss

(gain)

23.6

 

39.0

 

28.7

 

16.3

 

17.2

 

18.5

 

(4.1)

 

(1.9)

 

(2.4)

Amortization of prior service benefit

(11.5)

(6.8)

(6.8)

(0.9)

(0.9)

(0.7)

(23.2)

(19.7)

(16.7)

Curtailments and settlements

9.1

-

0.3

(1.9)

2.3

0.9

0.3

-

-

Total expense (benefit)

$33.5

$27.9

$25.9

$15.0

$17.7

$22.2

$(20.4)

$(13.7)

$(11.2)

(a)Includes qualified and non-qualified plans.
(b)Service cost includes discontinued operations of $7.8, $7.1 and $6.9 for the year ended December 31, 2019, 2018 and 2017, respectively.

Plan Assumptions

U.S.

International

U.S. Postretirement

Pension (a)

Pension

Health Care

(percent)

    

2019

2018

2017

    

2019

2018

2017

2019

2018

2017

Weighted-average actuarial assumptions

used to determine benefit obligations

as of year end:

Discount rate

3.20

%  

4.34

%

3.70

%

1.52

%  

2.49

%

2.17

%

3.16

%  

4.29

%

3.66

%

Projected salary increase

4.03

 

4.03

 

4.03

 

2.50

 

2.46

 

2.46

Weighted-average actuarial assumptions

used to determine net cost:

Discount rate

4.34

 

3.70

 

4.27

 

2.66

 

2.29

 

2.32

 

4.29

 

3.66

 

4.14

Expected return on plan assets

7.25

 

7.75

 

7.75

 

6.66

 

6.67

 

6.67

 

7.25

 

7.75

 

7.75

Projected salary increase

4.03

 

4.03

 

4.03

 

2.70

 

2.67

 

2.83

(a)Includes qualified and non-qualified plans.
Plan Assumptions

Estimated future benefits payments

    

    

(millions)

All Plans (a)

2020

$ 253

2021

 

232

2022

 

263

2023

 

239

2024

 

251

2025 - 2029

 

1,244

(a)Estimate of benefits expected to be paid includes discontinued operations of $2 as of December 31, 2019.

U.S. Pension and Postretirement Health Care Benefits  
Pension and Postretirement Plans  
Allocation and fair value of plan assets for defined benefit pension and postretirement health care benefit plans

The fair value of the Company’s U.S. plan assets for its defined benefit pension and postretirement health care benefit plans are as follows:

Fair Value as of

Fair Value as of

(millions)

December 31, 2019

December 31, 2018

    

Level 1

    

Level 2

    

Total

Level 1

    

Level 2

    

Total

Cash

$13.2

$-

$13.2

$7.1

$-

$7.1

Equity securities:

 

 

Large cap equity

 

 

785.9

-

785.9

 

683.5

-

 

683.5

Small cap equity

 

 

201.7

-

201.7

 

168.6

-

 

168.6

International equity

 

 

350.4

-

350.4

 

285.0

-

 

285.0

Fixed income:

Core fixed income

 

 

410.0

-

410.0

 

358.3

-

 

358.3

High-yield bonds

 

 

107.9

-

107.9

 

107.6

-

 

107.6

Emerging markets

 

 

41.7

-

41.7

 

39.4

-

 

39.4

Insurance company accounts

 

-

0.3

0.3

 

-

0.3

 

0.3

Total investments at fair value

 

1,910.8

0.3

 

1,911.1

 

1,649.5

0.3

 

1,649.8

Investments measured at NAV

 

 

387.9

 

 

337.6

Total

$1,910.8

$0.3

$2,299.0

$1,649.5

$0.3

$1,987.4

The Company had no level 3 assets as part of its U.S. plan assets as of December 31, 2019 or 2018.

The allocation of the Company’s U.S. plan assets for its defined benefit pension and postretirement health care benefit plans are as follows:

 

Target Asset

 

Asset Category

Allocation

Percentage

Percentage

of Plan Assets

December 31

    

2019

2018

    

2019

2018

Cash

-

%  

-

%

1

%  

-

%

Equity securities:

Large cap equity

34

34

34

34

Small cap equity

9

 

9

 

8

 

9

International equity

15

 

15

 

15

 

14

Fixed income:

Core fixed income

18

 

18

 

18

 

19

High-yield bonds

5

 

5

 

5

 

5

Emerging markets

2

 

2

 

2

 

2

Other:

Real estate

6

 

6

 

7

 

8

Private equity

8

 

8

 

7

 

7

Distressed debt

3

3

3

2

Total

100

%

100

%

100

%

100

%

International Pension  
Pension and Postretirement Plans  
Allocation and fair value of plan assets for defined benefit pension and postretirement health care benefit plans

Fair Value as of

 

Fair Value as of

(millions)

December 31, 2019

 

December 31, 2018

    

Level 1

    

Level 2

    

Total

   

Level 1

    

Level 2

    

Total

Cash

$7.7

$-

$7.7

$7.1

$-

$7.1

Equity securities:

International equity

-

418.1

418.1

-

412.1

412.1

Fixed income:

Corporate bonds

 

8.2

207.6

215.8

7.9

162.1

170.0

Government bonds

 

12.6

215.8

228.4

12.3

169.2

181.5

Insurance company accounts

-

144.2

144.2

-

140.5

140.5

Total investments at fair value

28.5

985.7

1,014.2

27.3

883.9

911.2

Investments measured at NAV

12.9

14.4

Total

$28.5

$985.7

$1,027.1

$27.3

$883.9

$925.6

The Company had no level 3 assets as part of its international plan assets as of December 31, 2019 or 2018.

The allocation of plan assets of the Company’s international plan assets for its defined benefit pension plans are as follows:

Percentage

Asset Category

of Plan Assets

December 31

2019

2018

Cash

1

%

1

%

Equity securities:

International equity

41

 

45

Fixed income:

Corporate bonds

21

 

18

Government bonds

22

 

20

Total fixed income

43

 

38

Other:

Insurance contracts

14

 

15

Real estate

1

1

Total

100

%

100

%