XML 68 R50.htm IDEA: XBRL DOCUMENT v3.8.0.1
Employee Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]  
Schedule of components of period benefit costs

The components of period benefit costs for the years ended December 31, 2017, 2016 and 2015 are as follows:

 

 

 

US Pension Plans

 

 

Non-US Pension Plans

 

 

Postretirement Health

and Other

 

(in millions)

 

2017

 

 

2016

 

 

2015

 

 

2017

 

 

2016

 

 

2015

 

 

2017

 

 

2016

 

 

2015

 

Service cost - benefits earned

   during the year

 

$

 

 

$

 

 

$

 

 

$

1.9

 

 

$

1.7

 

 

$

2.6

 

 

$

0.3

 

 

$

0.3

 

 

$

0.4

 

Interest cost of projected

   benefit obligation

 

 

5.3

 

 

 

6.8

 

 

 

9.4

 

 

 

2.1

 

 

 

2.5

 

 

 

8.9

 

 

 

1.0

 

 

 

1.7

 

 

 

2.0

 

Expected return on assets

 

 

(4.9

)

 

 

(5.7

)

 

 

(9.0

)

 

 

(1.5

)

 

 

(1.8

)

 

 

(7.4

)

 

 

 

 

 

 

 

 

 

Amortization of prior service

   cost

 

 

 

 

 

 

 

 

 

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

(1.4

)

 

 

 

 

 

 

Amortization of actuarial net

   loss (gain)

 

 

3.2

 

 

 

3.6

 

 

 

5.1

 

 

 

1.6

 

 

 

1.0

 

 

 

2.3

 

 

 

0.4

 

 

 

 

 

 

0.1

 

Curtailment gain recognized

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net periodic benefit cost

 

$

3.6

 

 

$

4.7

 

 

$

5.5

 

 

$

4.2

 

 

$

3.5

 

 

$

6.5

 

 

$

0.3

 

 

$

2.0

 

 

$

2.5

 

Weighted average

   assumptions:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

4.2

%

 

 

4.5

%

 

 

4.1

%

 

 

2.1

%

 

 

2.9

%

 

 

3.3

%

 

 

3.8

%

 

 

4.2

%

 

 

3.7

%

Expected return on plan assets

 

 

4.7

%

 

 

5.5

%

 

 

5.8

%

 

 

3.4

%

 

 

4.0

%

 

 

3.6

%

 

N/A

 

 

N/A

 

 

N/A

 

Rate of compensation

   increase

 

N/A

 

 

N/A

 

 

N/A

 

 

 

2.6

%

 

 

2.4

%

 

 

3.9

%

 

N/A

 

 

N/A

 

 

 

1.5

%

 

Reconciliation of the Changes in Benefit Obligation, the Changes in Plan Assets, and the Funded Status

The following is a reconciliation of the changes in benefit obligation, the changes in plan assets, and the funded status as of December 31, 2017 and 2016:

 

 

 

US Pension Plans

 

 

Non-US Pension Plans

 

 

Postretirement

Medical and Other

 

(in millions)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Change in Benefit Obligation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation, beginning of year

 

$

155.6

 

 

$

218.5

 

 

$

82.8

 

 

$

252.5

 

 

$

41.6

 

 

$

51.8

 

Distribution of MFS

 

 

 

 

 

(62.4

)

 

 

 

 

 

(170.4

)

 

 

 

 

 

(10.1

)

Service cost

 

 

 

 

 

 

 

 

1.9

 

 

 

1.7

 

 

 

0.3

 

 

 

0.3

 

Interest cost

 

 

5.3

 

 

 

6.8

 

 

 

2.1

 

 

 

2.5

 

 

 

1.0

 

 

 

1.7

 

Participant contributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.4

 

 

 

1.9

 

Medicare subsidies received

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.2

 

Plan amendments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(13.8

)

 

 

 

Net transfer out

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial (gain) loss

 

 

10.0

 

 

 

0.9

 

 

 

(2.2

)

 

 

11.0

 

 

 

2.9

 

 

 

1.8

 

Currency translation adjustment

 

 

 

 

 

 

 

 

9.2

 

 

 

(9.9

)

 

 

 

 

 

 

Benefits paid

 

 

(8.6

)

 

 

(8.2

)

 

 

(4.3

)

 

 

(4.6

)

 

 

(4.5

)

 

 

(6.0

)

Benefit obligation, end of year

 

$

162.3

 

 

$

155.6

 

 

$

89.5

 

 

$

82.8

 

 

$

28.9

 

 

$

41.6

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets, beginning of year

 

$

108.6

 

 

$

143.9

 

 

$

41.8

 

 

$

196.9

 

 

$

 

 

$

 

Distribution of MFS

 

 

 

 

 

(34.1

)

 

 

 

 

 

(147.8

)

 

 

 

 

 

 

Actual return on plan assets

 

 

11.5

 

 

 

6.4

 

 

 

1.1

 

 

 

2.7

 

 

 

 

 

 

 

Employer contributions

 

 

4.7

 

 

 

0.6

 

 

 

2.1

 

 

 

2.2

 

 

 

3.1

 

 

 

3.9

 

Participant contributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.4

 

 

 

1.9

 

Medicare subsidies received

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.2

 

Currency translation adjustment

 

 

 

 

 

 

 

 

4.4

 

 

 

(7.6

)

 

 

 

 

 

 

Net transfer out

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefits paid

 

 

(8.6

)

 

 

(8.2

)

 

 

(4.3

)

 

 

(4.6

)

 

 

(4.5

)

 

 

(6.0

)

Fair value of plan assets, end of year

 

 

116.2

 

 

 

108.6

 

 

 

45.1

 

 

 

41.8

 

 

 

 

 

 

 

Funded status

 

$

(46.1

)

 

$

(47.0

)

 

$

(44.4

)

 

$

(41.0

)

 

$

(28.9

)

 

$

(41.6

)

Amounts recognized in the Consolidated

   Balance sheet at December 31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension asset

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

Pension obligation

 

 

(46.1

)

 

 

(47.0

)

 

 

(44.4

)

 

 

(41.0

)

 

 

 

 

 

 

Postretirement medical and other benefit

   obligations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(28.9

)

 

 

(41.6

)

Net amount recognized

 

$

(46.1

)

 

$

(47.0

)

 

$

(44.4

)

 

$

(41.0

)

 

$

(28.9

)

 

$

(41.6

)

Weighted-Average Assumptions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

3.6

%

 

 

4.2

%

 

 

2.2

%

 

 

2.1

%

 

 

3.3

%

 

 

3.8

%

Expected return on plan assets

 

 

4.7

%

 

 

5.5

%

 

 

3.4

%

 

 

4.0

%

 

N/A

 

 

N/A

 

Rate of compensation increase

 

N/A

 

 

N/A

 

 

 

2.6

%

 

 

2.4

%

 

N/A

 

 

N/A

 

 

Amounts Recognized in Accumulated Other Comprehensive Income

Amounts recognized in accumulated other comprehensive income as of December 31, 2017 and 2016, consist of the following:

 

 

 

Pensions

 

 

Postretirement

Medical and Other

 

(in millions)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Net actuarial gain (loss)

 

$

(64.2

)

 

$

(65.1

)

 

$

(7.6

)

 

$

(5.1

)

Prior service credit

 

 

(0.6

)

 

 

(0.6

)

 

 

12.5

 

 

 

 

Total amount recognized

 

$

(64.8

)

 

$

(65.7

)

 

$

4.9

 

 

$

(5.1

)

 

Summary of the Sensitivity of Retirement Obligations and Retirement Benefit Costs of Plans to Changes in the Key Assumptions

The following table summarizes the sensitivity of our December 31, 2017 retirement obligations and 2017 retirement benefit costs of our plans to changes in the key assumptions used to determine those results (in millions):

 

Change in assumption:

 

Estimated

increase

(decrease) in

2018 pension

cost

 

 

Estimated

increase

(decrease) in

Projected

Benefit

Obligation

for the

year ended

December

31, 2017

 

 

Estimated

increase

(decrease) in

2018 Other

Postretirement

Benefit

costs

 

 

Estimated

increase

(decrease) in

Other

Postretirement

Benefit

Obligation for

the year ended

December 31,

2017

 

0.50% increase in discount rate

 

$

(0.9

)

 

$

(15.0

)

 

$

(0.1

)

 

$

(0.9

)

0.50% decrease in discount rate

 

 

0.9

 

 

 

16.2

 

 

 

0.1

 

 

 

0.9

 

0.50% increase in long-term return on assets

 

 

(0.8

)

 

N/A

 

 

N/A

 

 

N/A

 

0.50% decrease in long-term return on assets

 

 

0.8

 

 

N/A

 

 

N/A

 

 

N/A

 

1% increase in medical trend rates

 

N/A

 

 

N/A

 

 

 

0.3

 

 

 

1.4

 

1% decrease in medical trend rates

 

N/A

 

 

N/A

 

 

 

(0.3

)

 

 

(1.3

)

 

Schedule of the Actual Allocations for the Pension Assets and Target Allocations by Asset Class

The actual allocations for the pension assets at December 31, 2017, and target allocations by asset class, are as follows:

 

 

 

Target Allocations

 

Weighted Average Asset

Allocations

 

 

 

U.S. Plans

 

 

International

Plans

 

U.S. Plans

 

 

International

Plans

 

Equity Securities

 

 

50

%

 

0 - 25%

 

 

48.0

%

 

 

35.6

%

Debt Securities

 

 

50

%

 

0 - 100%

 

 

48.3

%

 

 

31.6

%

Other

 

 

%

 

0 - 100%

 

 

3.7

%

 

 

32.8

%

 

Schedule of Plan Assets Using the Fair Value Hierarchy

The following table presents our plan assets using the fair value hierarchy as of December 31, 2017 and 2016.  The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs, and Level 3 includes fair values estimated using significant non-observable inputs.

 

 

 

December 31, 2017

 

Assets (in millions)

 

Quoted

Prices in

Active

Markets for

Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Unobservable

Inputs

(Level 3)

 

 

Net Asset Value ("NAV")

 

 

Total

 

Cash

 

$

4.7

 

 

$

 

 

$

 

 

$

 

 

$

4.7

 

Insurance group annuity contracts

 

 

 

 

 

 

 

 

14.4

 

 

 

 

 

 

14.4

 

Common/collective trust funds — Government, corporate and other non-government debt

 

 

 

 

 

 

 

 

 

 

 

70.4

 

 

 

70.4

 

Common/collective trust funds — Corporate equity

 

 

 

 

 

 

 

 

 

 

 

71.8

 

 

 

71.8

 

Total

 

$

4.7

 

 

$

 

 

$

14.4

 

 

$

142.2

 

 

$

161.3

 

 

 

 

December 31, 2016

 

Assets (in millions)

 

Quoted

Prices in

Active

Markets for

Identical

Assets

(Level 1)

 

 

Significant

Other

Observable

Inputs

(Level 2)

 

 

Unobservable

Inputs

(Level 3)

 

 

Net Asset Value ("NAV")

 

 

Total

 

Cash

 

$

0.9

 

 

$

 

 

$

 

 

$

 

 

$

0.9

 

Insurance group annuity contracts

 

 

 

 

 

 

 

 

14.5

 

 

 

 

 

 

14.5

 

Common/collective trust funds — Government, corporate and other non-government debt

 

 

 

 

 

 

 

 

 

 

 

93.7

 

 

 

 

Common/collective trust funds — Corporate equity

 

 

 

 

 

 

 

 

 

 

 

41.3

 

 

 

 

Total

 

$

0.9

 

 

$

 

 

$

14.5

 

 

$

135.0

 

 

$

150.4

 

 

Reconciliation of the Fair Values Measurements of Plan Assets Using Significant Unobservable Inputs (Level 3) from the Beginning of the Year to the End of the Year

A reconciliation of the fair values measurements of plan assets using significant unobservable inputs (Level 3) from the beginning of the year to the end of the year is as follows:

 

 

 

Insurance Contracts

Year Ended December 31,

 

(in millions)

 

2017

 

 

2016

 

Beginning Balance

 

$

14.5

 

 

$

106.5

 

Distribution of MFS

 

 

 

 

 

(89.9

)

Actual return on assets

 

 

 

 

 

2.0

 

Benefit payments

 

 

(1.5

)

 

 

(1.4

)

Foreign currency impact

 

 

1.3

 

 

 

(2.7

)

Ending Balance

 

$

14.4

 

 

$

14.5

 

 

Schedule of Projected Benefit Payments from the Plans

Projected benefit payments from the plans as of December 31, 2017 are estimated as follows:

 

(in millions)

 

U.S Pension

Plans

 

 

Non-U.S.

Pension

Plans

 

 

Postretirement

Health and

Other

 

2018

 

$

9.8

 

 

$

2.9

 

 

$

3.5

 

2019

 

 

10.0

 

 

 

3.1

 

 

 

3.4

 

2020

 

 

10.2

 

 

 

3.4

 

 

 

3.2

 

2021

 

 

10.2

 

 

 

3.7

 

 

 

3.1

 

2022

 

 

10.1

 

 

 

3.8

 

 

 

2.6

 

2023 — 2027

 

 

49.7

 

 

 

21.3

 

 

 

10.1

 

 

Schedule of Fair Value of Plan Assets for which the Accumulated Benefit Obligation is in Excess of Plan Assets

The fair value of plan assets for which the accumulated benefit obligation is in excess of the plan assets as of December 31, 2017 and 2016 is as follows:

 

 

 

U.S Pension Plans

 

 

Non U.S. Pension Plans

 

(in millions)

 

2017

 

 

2016

 

 

2017

 

 

2016

 

Projected benefit obligation

 

$

162.3

 

 

$

155.6

 

 

$

85.6

 

 

$

79.1

 

Accumulated benefit obligation

 

 

162.3

 

 

 

155.6

 

 

 

82.1

 

 

 

76.2

 

Fair value of plan assets

 

 

116.2

 

 

 

108.6

 

 

 

41.6

 

 

 

38.4

 

 

U.S. Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of the Weighted-Average Asset Allocations of the Pension Plans

The weighted-average asset allocations of the U.S. pension plans at December 31, 2017 and 2016, by asset category are as follows:

 

 

 

2017

 

 

2016

 

Equity

 

 

48.0

%

 

 

25.0

%

Fixed income

 

 

48.3

%

 

 

74.4

%

Other

 

 

3.7

%

 

 

0.6

%

 

 

 

100.0

%

 

 

100.0

%

 

Non-US Pension Plans  
Defined Benefit Plan Disclosure [Line Items]  
Schedule of the Weighted-Average Asset Allocations of the Pension Plans

The weighted-average asset allocations of the Non-U.S. pension plans at December 31, 2017 and 2016, by asset category are as follows:

 

 

 

2017

 

 

2016

 

Equity

 

 

35.6

%

 

 

33.7

%

Fixed income

 

 

31.6

%

 

 

31.1

%

Other

 

 

32.8

%

 

 

35.2

%

 

 

 

100.0

%

 

 

100.0

%