Pension and Other Post-Retirement Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Pension obligations and plan assets and other post-retirement obligations

We use a December 31 measurement date for all of our plans. The following tables show pension obligations, plan assets, and other post-retirement obligations as of December 31 (in millions):

	2022 Pension Benefits		2021 Pension Benefits		2022 Retiree Health and Life		2021 Retiree Health and Life
Change in Benefit Obligation
Benefit obligation at beginning of year	$	481.9	$	508.6	$	19.9	$	22.9
Service cost	7.7		8.7		0.2		0.2
Interest cost	10.1		8.1		0.4		0.3
Actuarial gain	(103.4)		(3.1)		(3.2)		(2.0)
Benefits paid	(51.3)		(39.9)		(1.7)		(1.5)
Effect of foreign exchange rate changes	(3.2)		(0.5)		—		—
Benefit obligation at end of year	$	341.8	$	481.9	$	15.6	$	19.9
Change in Fair Value of Plan Assets
Plan assets at beginning of year	462.1		465.5		—		—
Actual return on plan assets	(97.4)		34.3		—		—
Effect of exchange rate changes	(4.1)		(0.5)		—		—
Company contributions	14.5		2.7		1.7		1.5
Benefits paid	(51.3)		(39.9)		(1.7)		(1.5)
Plan assets at end of year	$	323.8	$	462.1	$	—	$	—
Funded Status at end of year	$	(18.0)	$	(19.8)	$	(15.6)	$	(19.9)
Amount Recognized
Other liabilities and other assets (net)	$	(18.0)	$	(19.8)	$	(15.6)	$	(19.9)
Accumulated other comprehensive loss (income):
Net actuarial loss (gain)	69.7		75.8		(7.4)		(4.8)
Prior service credit	—		—		(0.6)		(0.8)
Accumulated other comprehensive loss (income)	69.7		75.8		(8.0)		(5.6)
Total recognized	$	51.7	$	56.0	$	(23.6)	$	(25.5)
After-tax amount recognized in accumulated other comprehensive loss (income)	$	52.2	$	56.7	$	(6.0)	$	(4.2)

The aggregate accumulated benefit obligation for the defined benefit pension plans was $331.1 million at December 31, 2022 and $458.1 million at December 31, 2021.

Pension plans with a projected benefit obligation in excess of plan assets

The following table shows our pension plans that have a projected benefit obligation in excess of plan assets as of December 31 (in millions):

	2022		2021
Projected benefit obligations	$	256.3	$	48.5
Fair value of plan assets	224.1		—

Pension plans with an accumulated benefit obligation in excess of plan assets

The following table shows our pension plans that have an accumulated benefit obligation in excess of plan assets as of December 31 (in millions):

	2022		2021
Accumulated benefit obligations	$	24.8	$	42.1
Fair value of plan assets	—		—

Components of pension and other post retirement benefit costs

The following table shows the components of net periodic cost for the years ended December 31 (in millions):

	2022 Pension Benefits		2021 Pension Benefits		2020 Pension Benefits		2022 Retiree Health and Life		2021 Retiree Health and Life		2020 Retiree Health and Life
Service cost	$	7.7	$	8.7	$	8.1	$	0.2	$	0.2	$	0.2
Interest cost	10.1		8.1		12.3		0.4		0.3		0.5
Expected return on plan assets	(15.6)		(18.6)		(20.4)		—		—		—
Settlement accounting adjustment	7.1		2.1		—		—		—		—
Amortization of (1):
Unrecognized prior service credit	—		—		—		(0.2)		(0.2)		(0.2)
Unrecognized net actuarial loss (gain)	8.6		13.3		12.7		(0.3)		(0.3)		(0.4)
Net periodic cost	$	17.9	$	13.6	$	12.7	$	0.1	$	—	$	0.1

Schedule of amounts in accumulated other comprehensive loss (gain) to be recognized over next fiscal year

We amortize the unrecognized prior service credit using a straight-line method over the average remaining service period of the employees we expect to receive benefits under the plan. We amortize the unrecognized net actuarial loss (gain), which is subject to certain averaging conventions, over the average remaining service period of active employees.

Expected long term return on assets and to measure the periodic cost

We use the following assumptions to measure the benefit obligation, compute the expected long-term return on assets, and measure the periodic cost for our defined benefit pension plans and other post-retirement benefit plans for the years ended December 31:

	2022		2021
Domestic defined benefit pension plans
Benefit Obligation at December 31:
Discount rate — salaried funded plans	5.15	%	2.81	%
Discount rate — salaried unfunded plans	4.94% - 5.11%		1.80% - 2.74%
Discount rate — hourly funded plan	5.24	%	3.03	%
Cash balance interest crediting rate — salaried funded plan	3.99	%	3.09	%
Rate of compensation increases — salaried funded and unfunded plans	3.00	%	3.00	%
Rate of compensation increases — hourly funded plans	n/a		n/a
Net Periodic Cost (Benefit) for the years ended December 31:
Discount rate — salaried funded and unfunded plans	2.81	%	2.41	%
Discount rate — hourly funded plan	3.04	%	2.74	%
Expected return on plan assets — salaried funded plan	4.50	%	5.20	%
Expected return on plan assets — hourly funded plan	3.40	%	4.30	%
Rate of compensation increases — salaried funded and unfunded plans	3.00	%	3.00	%
Rate of compensation increases — hourly funded plan	n/a		n/a
Foreign defined benefit pension plan
Benefit Obligation at December 31:
Discount rate	4.90	%	1.90	%
Rate of pension-in-payment increases	3.00	%	3.30	%
Net Periodic Cost (Benefit) for the years ended December 31:
Discount rate	1.90	%	1.20	%
Expected return on plan assets	1.70	%	2.70	%
Rate of pension-in-payment increases	3.30	%	2.90	%
Other post-retirement benefit plans
Benefit Obligation at December 31:
Discount rate - combined health	5.05	%	2.44	%
Discount rate - combined life insurance	5.16	%	2.85	%
Rate of compensation increases	n/a		n/a
Net Periodic Cost (Benefit) for the years ended December 31:
Discount rate - combined health	2.43	%	1.91	%
Discount rate - combined life insurance	2.85	%	2.45	%
Rate of compensation increases	n/a		n/a

Review of historical returns

We calculate the present value of expected future pension and post-retirement cash flows as of the measurement date using a discount rate. We base the discount rate on yields for high-quality, long-term bonds with durations similar to that of our projected benefit obligation. We base the expected return on our plan assets on current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. We routinely review our historical returns along with current market conditions to ensure our expected return assumption is reasonable and appropriate.

	2022		2021
Assumed Health Care Cost Trend Rates at December 31:
Health care cost trend assumed for next year
Medical claims - pre age 65	6.40	%	6.20	%
Medical claims - post age 65	5.75	%	5.46	%
Prescription drugs claims - pre age 65	7.50	%	8.04	%
Prescription drugs claims - post age 65	7.50	%	8.04	%
Post age 65 Medicare Advantage Part D	16.25	%	15.95	%
Rate to which the cost trend is expected to decline (the ultimate trend rate)
Medical claims	4.50	%	4.50	%
Prescription drugs claims	4.50	%	4.50	%
Year that rate reaches the ultimate trend rate
Medical claims	2032		2029
Prescription drugs claims	2031		2029

Pension plan assets fair value

The following table sets forth the fair value of our pension plan assets as of December 31 (in millions):

	2022		2021
Assets measured at net asset value (1):
Short-term investment collective trust fund	$	4.1	$	9.1
Common stock collective trust funds	97.9		154.6
Fixed income collective trust funds	213.1		289.8
Real estate collective trust funds	8.7		8.6
Total	$	323.8	$	462.1

Schedule of Expected Benefit Payments

The following table shows benefit payments, which reflect expected future service (in millions):

	Funded Plans		Unfunded Plans		Retiree Health and Life
2023	$	27.3	$	5.6	$	2.0
2024	27.3		2.3		1.9
2025	27.2		2.3		1.7
2026	27.0		2.2		1.6
2027	26.0		2.2		1.4
Years 2028-2032	124.2		10.4		5.5
Total	$	259.0	$	25.0	$	14.1

UNITED STATES

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Weighted-average asset allocations of domestic funded pension plans

Our investment policies require that asset allocations of domestic and foreign funded pension plans be maintained at certain targets. The following table shows our weighted-average asset allocations of our domestic funded pension plans at December 31, 2022 and 2021, and current target asset allocation for 2022, by asset category:

			Plan Assets for Salaried Employees at December 31
	Target		2022		2021
Asset Category
Equity securities	37.2	%	37.4	%	41.9	%
Debt securities	60.0	%	58.2	%	53.5	%
Real estate	2.8	%	3.2	%	2.2	%
Cash	—	%	1.2	%	2.4	%
	100.0	%	100.0	%	100.0	%

			Plan Assets for Hourly Employees at December 31
	Target		2022		2021
Asset Category
Equity securities	19.1	%	18.8	%	19.7	%
Debt securities	79.0	%	77.6	%	77.5	%
Real estate	1.9	%	2.0	%	1.5	%
Cash	—	%	1.6	%	1.3	%
	100.0	%	100.0	%	100.0	%

Foreign Plan [Member]

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Weighted-average asset allocations of domestic funded pension plans

The following table shows the weighted-average asset allocations of our foreign funded pension plan at December 31, 2022 and 2021, and current target asset allocation for 2022, by asset category:

			Plan Assets at December 31
	Target		2022		2021
Asset Category
Debt securities	100.0	%	98.9	%	100.0	%
Cash	—	%	1.1	%	—	%
	100.0	%	100.0	%	100.0	%