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Pension and Other Benefit Programs
 6 Months Ended
Jun. 30, 2017
Compensation And Retirement Disclosure [Abstract]  
Pensions and Other Benefit Programs

NOTE 13. PENSIONS AND OTHER BENEFIT PROGRAMS

Following are the components of net periodic benefit (credits) costs:

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

June 30,

 

 

June 30,

 

 

 

2017

 

 

2016

 

 

2017

 

 

2016

 

U.S. defined-benefit plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost of benefits earned during the period

 

$

2.1

 

 

$

2.2

 

 

$

4.2

 

 

$

5.8

 

Interest cost on projected benefit obligation

 

 

12.4

 

 

 

16.5

 

 

 

24.9

 

 

 

36.9

 

Expected return on plan assets

 

 

(24.8

)

 

 

(26.2

)

 

 

(49.6

)

 

 

(58.2

)

Amortization of prior service cost

 

 

0.3

 

 

 

0.4

 

 

 

0.7

 

 

 

0.9

 

Amortization of net actuarial loss

 

 

4.3

 

 

 

11.4

 

 

 

8.5

 

 

 

25.4

 

Net periodic pension (credit) cost

 

$

(5.7

)

 

$

4.3

 

 

$

(11.3

)

 

$

10.8

 

Less: Discontinued operations

 

 

-

 

 

 

-

 

 

 

-

 

 

 

2.2

 

Net periodic pension (credit) cost, continuing operations

 

$

(5.7

)

 

$

4.3

 

 

$

(11.3

)

 

$

8.6

 

Retiree health and life insurance benefits

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost of benefits earned during the period

 

$

0.1

 

 

$

0.1

 

 

$

0.2

 

 

$

0.2

 

Interest cost on projected benefit obligation

 

 

0.8

 

 

 

1.0

 

 

 

1.5

 

 

 

2.8

 

Amortization of prior service credit

 

 

-

 

 

 

(0.1

)

 

 

-

 

 

 

(0.2

)

Amortization of net actuarial gain

 

 

(0.9

)

 

 

(1.3

)

 

 

(1.8

)

 

 

(3.6

)

Net periodic postretirement (credit)

 

$

-

 

 

$

(0.3

)

 

$

(0.1

)

 

$

(0.8

)

Less: Discontinued operations

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(0.2

)

Net periodic postretirement (credit), continuing operations

 

$

-

 

 

$

(0.3

)

 

$

(0.1

)

 

$

(0.6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-U.S. defined-benefit pension plans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost of benefits earned during the period

 

$

0.5

 

 

$

0.6

 

 

$

1.0

 

 

$

1.1

 

Interest cost on projected benefit obligation

 

 

1.3

 

 

 

1.8

 

 

 

2.6

 

 

 

3.5

 

Expected return on plan assets

 

 

(1.7

)

 

 

(2.0

)

 

 

(3.3

)

 

 

(4.0

)

Amortization of net actuarial loss

 

 

0.3

 

 

 

0.3

 

 

 

0.6

 

 

 

0.6

 

Net periodic pension cost

 

$

0.4

 

 

$

0.7

 

 

$

0.9

 

 

$

1.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The change in net periodic pension (credit) cost for the three and six months ended June 30, 2017 in comparison to the same periods in 2016 was primarily due to a decrease in amortization of net actuarial losses resulting from a reduction in active plan participants due to the separation of AFI.  During 2016, actuarial gains and losses were amortized into future earnings over the expected remaining service period of plan participants, which was approximately eight years for our U.S. defined-benefit pension plans.  For 2017, actuarial gains and losses are amortized over the remaining life expectancy of plan participants, which are approximately 20 years for our U.S. defined-benefit pension plans. 

Our U.S. defined benefit Retirement Income Plan (“RIP”) was amended to freeze accruals for salaried non-production employees, effective December 31, 2017.  The impact of this amendment resulted in a reduction to our December 31, 2016 projected benefit obligation with a corresponding increase to unrecognized loss, resulting in no curtailment gain or loss.  The impact of this amendment has been reflected in the net periodic pension credit for 2017.