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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Compensation And Retirement Disclosure [Abstract]  
Reconciliation of the Beginning and Ending Balances of Projected Benefit Obligation and Fair Value of Plan Assets

The reconciliation of the beginning and ending balances of the projected benefit obligation and the fair value of plan assets for the years ended December 31, 2019 and 2018, and the funded status at December 31, 2019 and 2018, is as follows:

 

(in millions)

 

2019

 

 

2018

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

1,073.2

 

 

$

1,228.4

 

Interest cost

 

 

45.7

 

 

 

44.1

 

Benefits paid

 

 

(96.7

)

 

 

(110.4

)

Actuarial (gain) loss

 

 

106.5

 

 

 

(88.5

)

Other

 

 

0.1

 

 

 

(0.4

)

Benefit obligation at year end

 

$

1,128.8

 

 

$

1,073.2

 

Change in plan assets:

 

 

 

 

 

 

 

 

Fair value of plan assets at prior year end

 

$

874.9

 

 

$

998.3

 

Actual return on plan assets

 

 

112.1

 

 

 

(27.8

)

Employer contributions

 

 

9.7

 

 

 

15.2

 

Benefits paid

 

 

(96.7

)

 

 

(110.4

)

Other

 

 

—

 

 

 

(0.4

)

Fair value of plan assets at year end

 

$

900.0

 

 

$

874.9

 

Funded status at year end

 

$

(228.8

)

 

$

(198.3

)

 
Amounts Recognized for Pension Benefits

Amounts recognized in the consolidated balance sheets for pension benefits at December 31 are as follows:

 

(in millions)

 

2019

 

 

2018

 

Noncurrent assets

 

$

6.1

 

 

$

2.7

 

Current liabilities

 

 

1.0

 

 

 

0.8

 

Noncurrent liabilities

 

 

233.9

 

 

 

200.2

 
Amounts Recognized in Accumulated Other Comprehensive Loss

Amounts recognized in accumulated other comprehensive loss at December 31 consist of:

 

(in millions)

 

2019

 

 

2018

 

Net actuarial loss

 

$

406.1

 

 

$

368.9

 

Net prior service credit

 

 

(9.8

)

 

 

(10.3

)

Total

 

$

396.3

 

 

$

358.6

 
Information for Pension Plans with ABO in Excess of Plan Assets

Information for pension plans with an accumulated benefit obligation (“ABO”) in excess of plan assets and plan assets that exceed ABO at December 31, 2019 and 2018 is as follows:

 

 

 

At December 31, 2019

 

(in millions)

 

ABO Exceeds

Assets

 

 

Assets Exceed

ABO

 

 

Total

 

Projected benefit obligation

 

$

960.9

 

 

$

167.9

 

 

$

1,128.8

 

Accumulated benefit obligation

 

 

960.9

 

 

 

167.9

 

 

 

1,128.8

 

Fair value of plan assets

 

 

726.0

 

 

 

174.0

 

 

 

900.0

 

 

 

 

At December 31, 2018

 

(in millions)

 

ABO Exceeds

Assets

 

 

Assets Exceed

ABO

 

 

Total

 

Projected benefit obligation

 

$

927.6

 

 

$

145.6

 

 

$

1,073.2

 

Accumulated benefit obligation

 

 

927.6

 

 

 

145.6

 

 

 

1,073.2

 

Fair value of plan assets

 

 

726.6

 

 

 

148.3

 

 

 

874.9

 

 
Schedule of Assumptions Used

Weighted average actuarial assumptions used to determine benefit obligations at December 31:

 

 

 

2019

 

 

2018

 

Discount rate

 

 

3.56

%

 

 

4.44

%

 

Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31:

 

 

 

2019

 

 

2018

 

 

2017

 

Discount rate

 

 

4.44

%

 

 

3.77

%

 

 

4.27

%

Expected rate of return on assets

 

 

7.0

%

 

 

7.0

%

 

 

7.0

%

Mortality table(a)

 

Pri-2012

(MP-2019 Scale, Custom)

 

 

RP-2014

(MP-2016 Scale, Custom)

 

 

RP-2014

(MP-2016 Scale, Custom)

 

 

(a)

The 2019, 2018 and 2017 mortality tables were based on a custom mortality improvement scale to reflect expectations of underlying plan participants.
Schedule of Asset Allocation and Targeted Long Term Asset Allocation

Our asset allocation as of December 31, 2019 and 2018, and targeted long-term asset allocation for the plans are as follows:

 

 

 

2019

 

 

2018

 

 

Target

 

Equities

 

 

33.0

%

 

 

39.0

%

 

 

38.0

%

Debt Securities

 

 

30.0

%

 

 

24.0

%

 

 

30.0

%

Absolute Return

 

 

37.0

%

 

 

37.0

%

 

 

32.0

%
Schedule of Expected Benefit Payments

Expected benefit payments from our qualified and non-qualified defined benefit pension plans for each of the next five years and the total benefit payments for the following five years ended December 31 are as follows:

 

(in millions)

 

2020

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

2025-2029

 

Expected benefit payments

 

$

89.4

 

 

$

85.8

 

 

$

84.3

 

 

$

80.6

 

 

$

80.1

 

 

$

370.1

 
Schedule of Costs of Retirement Plans

The components of our net periodic pension cost, other post-retirement costs and other amounts recognized in other comprehensive loss (income) for the years ended December 31, 2019, 2018 and 2017 were as follows:

 

(in millions)

 

2019

 

 

2018

 

 

2017

 

Net periodic benefit cost:

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

—

 

 

$

—

 

 

$

5.4

 

Interest cost

 

 

45.7

 

 

 

44.1

 

 

 

51.1

 

Expected return on plan assets

 

 

(57.3

)

 

 

(60.0

)

 

 

(59.3

)

Amortization of prior net losses

 

 

12.8

 

 

 

14.6

 

 

 

15.5

 

Amortization of prior net service credit

 

 

(0.4

)

 

 

(0.4

)

 

 

—

 

Settlement adjustment

 

 

1.8

 

 

 

10.9

 

 

 

7.6

 

Net periodic pension cost

 

$

2.6

 

 

$

9.2

 

 

$

20.3

 

Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income):

 

 

 

 

 

 

 

 

 

 

 

 

Net actuarial gains (losses) and other adjustments

 

$

51.9

 

 

$

(0.9

)

 

$

(43.7

)

Net prior service credit

 

 

—

 

 

 

—

 

 

 

(10.7

)

Settlement adjustment

 

 

(1.8

)

 

 

(10.9

)

 

 

(7.6

)

Amortization of prior net losses

 

 

(12.8

)

 

 

(14.6

)

 

 

(15.5

)

Amortization of prior net service credit

 

 

0.4

 

 

 

0.4

 

 

 

—

 

Total recognized in other comprehensive loss (income)

 

 

37.7

 

 

 

(26.0

)

 

 

(77.5

)

Total recognized in net periodic benefit cost and other comprehensive loss (income)

 

$

40.3

 

 

$

(16.8

)

 

$

(57.2

)
Pension Assets at Fair Value

The tables below detail by level, within the fair value hierarchy, the pension assets at fair value as of December 31, 2019 and December 31, 2018:

 

 

 

Pension Assets at Fair Value as of December 31, 2019

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Equities

 

$

67.0

 

 

$

66.6

 

 

$

0.4

 

 

$

—

 

Private equities

 

 

36.4

 

 

 

—

 

 

 

—

 

 

 

36.4

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and other

 

 

29.0

 

 

 

2.2

 

 

 

18.4

 

 

 

8.4

 

Government

 

 

204.2

 

 

 

53.3

 

 

 

150.9

 

 

 

—

 

Interest bearing

 

 

27.2

 

 

 

15.0

 

 

 

12.2

 

 

 

—

 

Investments measured at NAV(a)

 

 

536.2

 

 

 

 

 

 

 

 

 

 

 

 

 

Total plan assets

 

$

900.0

 

 

$

137.1

 

 

$

181.9

 

 

$

44.8

 

 

 

 

Pension Assets at Fair Value as of December 31, 2018

 

(in millions)

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Equities

 

$

67.7

 

 

$

65.5

 

 

$

2.2

 

 

$

—

 

Private equities

 

 

43.4

 

 

 

—

 

 

 

—

 

 

 

43.4

 

Fixed income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and other

 

 

24.8

 

 

 

7.7

 

 

 

16.2

 

 

 

0.9

 

Government

 

 

177.1

 

 

 

67.2

 

 

 

109.9

 

 

 

—

 

Interest bearing

 

 

25.1

 

 

 

(10.5

)

 

 

35.6

 

 

 

—

 

Investments measured at NAV(a)

 

 

536.8

 

 

 

 

 

 

 

 

 

 

 

 

 

Total plan assets

 

$

874.9

 

 

$

129.9

 

 

$

163.9

 

 

$

44.3

 

 

(a)

Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been categorized in the fair value hierarchy.
Assets Measured at Fair Value on a Recurring Basis (Level 3)

The table below presents the activity of our assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

(in millions)

 

Private Equities

 

 

Fixed income

 

 

Total Level 3

 

Balance at December 31, 2017

 

$

46.6

 

 

$

6.0

 

 

$

52.6

 

Purchases

 

 

—

 

 

 

0.6

 

 

 

0.6

 

Sales

 

 

(0.3

)

 

 

—

 

 

 

(0.3

)

Unrealized losses

 

 

(2.9

)

 

 

(5.7

)

 

 

(8.6

)

Balance at December 31, 2018

 

$

43.4

 

 

$

0.9

 

 

$

44.3

 

Purchases

 

 

—

 

 

 

8.1

 

 

 

8.1

 

Sales

 

 

(16.7

)

 

 

(0.8

)

 

 

(17.5

)

Realized gains

 

 

1.9

 

 

 

—

 

 

 

1.9

 

Unrealized gains

 

 

7.8

 

 

 

0.2

 

 

 

8.0

 

Balance at December 31, 2019

 

$

36.4

 

 

$

8.4

 

 

$

44.8

 
Level 3 Assets Using NAV

 


The following table sets forth a summary of the assets for which a reported NAV is used to estimate the fair value as of December 31, 2019:

 

 

 

Fair value estimated using Net Asset Value per Share

(in millions)

 

Fair Value

 

 

Unfunded

Commitments

 

 

Redemption

Frequency

 

Redemption Notice

Period

Private equities(a)

 

$

127.0

 

 

$

1.7

 

 

Redemptions not permitted

Fixed income(b)

 

 

231.4

 

 

 

4.1

 

 

Redemptions not permitted

Equities(c)

 

 

81.9

 

 

 

—

 

 

Daily, Monthly

 

0-30 days

Absolute return(d)

 

 

95.9

 

 

 

—

 

 

Monthly, Quarterly

 

3-75 days

Total

 

$

536.2

 

 

 

 

 

 

 

 

 

(a)

Consists of private equity investments in pharmaceuticals and companies primarily in the technology and healthcare sectors.

(b)

Primarily consists of investments in royalty payments from marketers of pharmaceuticals and related debt securities.

(c)

Consists of public equity investments in U.S. and non-U.S. markets.

(d)

Consists of investments in global markets, including derivative securities of equity and fixed income indexes, commodities and interest rates.

The following table sets forth a summary of the assets for which a reported NAV is used to estimate the fair value as of December 31, 2018:

 

 

 

Fair value estimated using Net Asset Value per Share

(in millions)

 

Fair Value

 

 

Unfunded

Commitments

 

 

Redemption

Frequency

 

Redemption Notice

Period

Private equities(a)

 

$

155.2

 

 

$

2.8

 

 

Redemptions not permitted

Fixed income(b)

 

 

189.2

 

 

 

0.5

 

 

Redemptions not permitted

Equities(c)

 

 

84.0

 

 

 

—

 

 

Monthly

 

3-30 days

Absolute return(d)

 

 

108.4

 

 

 

—

 

 

Monthly, Quarterly

 

2-45 days

Total

 

$

536.8

 

 

 

 

 

 

 

 

 

 

(a)

Consists of private equity investments in pharmaceuticals and companies primarily in the technology and healthcare sectors.

(b)

Primarily consists of investments in royalty payments from marketers of pharmaceuticals and related debt securities.

(c)

Consists of public equity investments in U.S. and non-U.S. markets.

(d)

Consists of investments in global markets, including derivative securities of equity and fixed income indexes, commodities and interest rates.
Schedule of Multiemployer Plans

We expensed the following amounts related to these plans for the years ended December 31:

 

(in millions)

 

2019

 

 

2018

 

 

2017

 

Health and welfare

 

$

503.5

 

 

$

499.3

 

 

$

482.6

 

Pension

 

 

127.6

 

 

 

115.5

 

 

 

98.1

 

Total

 

$

631.1

 

 

$

614.8

 

 

$

580.7

 

The following table provides additional information related to our participation in individually significant multi-employer pension plans for the year ended December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

Expiration Date

 

 

 

 

 

 

 

 

Funding

 

 

 

of Collective-

 

 

 

 

Pension Protection Zone Status(b)

 

Improvement or

 

Employer

 

Bargaining

Pension Fund(a)

 

EIN Number

 

2019

 

2018

 

Rehabilitation Plan

 

Surcharge Imposed

 

Agreement

Central States, Southeast and Southwest Areas Pension Fund

 

36-6044243

 

Critical and

Declining

 

Critical and

Declining

 

Yes

 

No

 

3/31/2024

Teamsters National 401(k) Savings Plan(c)

 

52-1967784

 

N/A

 

N/A

 

N/A

 

No

 

3/31/2024

Road Carriers Local 707 Pension Fund

 

51-6106510

 

Critical and

Declining

 

Critical and

Declining

 

Yes

 

No

 

3/31/2024

Teamsters Local 641 Pension Fund

 

22-6220288

 

Critical and

Declining

 

Critical and

Declining

 

Yes

 

No

 

3/31/2024

 

(a)

The determination of individually significant multi-employer plans is based on our contributions to the plans relative to our total contributions over the periods presented, as well as our contributions to the plans relative to the total contributions that the individual plans received during the periods presented.

(b)

The Pension Protection Zone Status indicated herein is based on information that the Company obtained from the plans’ Forms 5500.  Unless otherwise noted, the most recent PPA zone status available for 2019 and 2018 is for the plan’s year-end during calendar years 2018 and 2017, respectively.  Among other factors, plans in the critical or critical and declining zone are generally less than 65 percent funded, plans in the endangered zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded.

(c)

The policies of the Western Conference of Teamsters Pension Trust precluded the Company from reentering the plan on June 1, 2011. The plan did not assess a withdrawal liability and has not done so since June 1, 2011. Contributions related to the employees previously covered by this plan are now being made to the Teamsters National 401(k) Plan.
Pension Amounts Contributed by Fund The following table provides the pension amounts contributed by fund for those funds that are considered to be individually significant:

 

(in millions)

 

2019

 

 

2018

 

 

2017

 

Central States, Southeast and Southwest Areas Pension Plan

 

$

77.7

 

 

$

70.7

 

 

$

58.8

 

Teamsters National 401(k) Savings Plan

 

 

19.0

 

 

 

14.7

 

 

 

13.1

 

Road Carriers Local 707 Pension Fund

 

 

2.5

 

 

 

2.2

 

 

 

2.2

 

Teamsters Local 641 Pension Fund

 

 

2.1

 

 

 

1.8

 

 

 

1.5