XML 47 R34.htm IDEA: XBRL DOCUMENT v3.7.0.1
Pensions and Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Summary of change in defined benefit and postretirement benefit plans
The following tables set forth the changes in benefit obligation, plan assets, funded status and amounts recognized in the consolidated balance sheet for the defined benefit pension and postretirement benefit plans as of December 31, 2016 and 2015:
 
Pension Benefits
 
Postretirement Benefits
 
2016
 
2015
 
2016
 
2015
 
(In millions)
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
58.4

 
$
61.1

 
$
13.5

 
$
17.0

Service cost
2.4

 
2.6

 
—

 
—

Interest cost
1.8

 
2.3

 
0.3

 
0.5

Actuarial losses (gains)
0.5

 
(3.0
)
 
(2.6
)
 
(2.7
)
Benefits and expenses paid, net of contributions
(4.6
)
 
(4.6
)
 
(1.2
)
 
(1.3
)
Benefit obligation at end of year
$
58.5

 
$
58.4

 
$
10.0

 
$
13.5

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
117.3

 
$
125.7

 
$
—

 
$
—

Actual return on plan assets
8.3

 
(2.9
)
 
—

 
—

Company contributions
—

 
—

 
1.2

 
1.3

Cash transfer to fund postretirement benefit payments
(0.8
)
 
(0.9
)
 
—

 
—

Benefits and expenses paid, net of contributions
(4.6
)
 
(4.6
)
 
(1.2
)
 
(1.3
)
Fair value of plan assets at end of year
$
120.2


$
117.3

 
$
—

 
$
—

Funded (underfunded) status of the plans
$
61.7

 
$
58.9

 
$
(10.0
)
 
$
(13.5
)
 
Amounts recognized in the consolidated balance sheets consist of:
 
Pension Benefits
 
Postretirement Benefits
 
2016
 
2015
 
2016
 
2015
 
(In millions)
Pension assets
$
61.7

 
$
58.9

 
$
—

 
$
—

Other current liabilities
—

 
—

 
1.2

 
1.4

Other long-term liabilities
—

 
—

 
8.8

 
12.1

 
$
61.7

 
$
58.9

 
$
10.0

 
$
13.5

Amounts recognized in Accumulated other comprehensive loss
 
 
 
 
 
 
 
Net actuarial loss
$
25.8

 
$
25.2

 
$
1.7

 
$
4.4

Net prior service cost (credit)
0.3

 
0.3

 
(0.2
)
 
(0.3
)
Accumulated other comprehensive loss
$
26.1

 
$
25.5

 
$
1.5

 
$
4.1
Summary of Pension Plan Weighted-Average Asset Allocation
The pension plan weighted-average asset allocation at December 31, 2016 and 2015 and target allocation for 2017 are as follows:
 
 
 
Plan Assets
 
Target 2017
 
2016
 
2015
Asset Category
 
 
 
 
 
Equity securities
45-75%
 
61.9
%
 
62.7
%
Debt securities
20-40%
 
24.6
%
 
25.4
%
Other
    0-20%
 
13.5
%
 
11.9
%
 
100%
 
100
%
 
100
%
Schedule of Fair Value Hierarchy of Pension Plans Assets
The following table sets forth, by level within the fair value hierarchy, the pension plans assets:
 
2016
 
2015
 
Level 1
 
Total (at Fair Value)
 
Level 1
 
Total (at Fair Value)
 
(In millions)
Common stock
$
40.0

 
$
40.0

 
$
38.3

 
$
38.3

Equity Funds
29.0

 
29.0

 
29.1

 
29.1

Foreign Stock
5.4

 
5.4

 
5.7

 
5.7

U.S. Government obligations
8.1

 
8.1

 
7.4

 
7.4

Fixed income funds
14.1

 
14.1

 
14.6

 
14.6

Corporate Bonds
6.3

 
6.3

 
6.8

 
6.8

Cash and Cash Equivalents
3.3

 
3.3

 
1.2

 
1.2

Total
$
106.2

 
 
 
$
103.1

 
 
Investments measured at net asset value:
 
 
 
 
 
 
 
Common collective trust
 
 
1.1

 
 
 
1.5

Hedge funds
 
 
12.9

 
 
 
12.7

Total assets at fair value
 
 
$
120.2

 
 
 
$
117.3
Summary of Assumptions Used in the valuation of pension and postretirement benefit obligations
The following tables summarize the assumptions used in the valuation of pension and postretirement benefit obligations at December 31 and the measurement of the net periodic benefit cost in the following year.
 
Weighted-Average assumptions as of December 31,
 
Pension Benefits
 
Postretirement Benefits
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Discount rate
3.91
%
 
4.13
%
 
3.82
%
 
3.63
%
 
3.80
%
 
3.60
%
Expected return on plan assets
8.25
%
 
8.25
%
 
8.25
%
 
N/A

 
N/A

 
N/A

Rate of compensation increase
3.00
%
 
3.00
%
 
3.00
%
 
N/A

 
N/A

 
N/A

Medical health care benefits rate increase
N/A

 
N/A

 
N/A

 
6.50
%
 
6.75
%
 
7.00
%
Medical drug benefits rate increase
N/A

 
N/A

 
N/A

 
6.50
%
 
6.75
%
 
7.00
%
Ultimate health care cost trend rate
N/A

 
N/A

 
N/A

 
5.00
%
 
5.00
%
 
5.00
%
Year of ultimate trend rate
N/A

 
N/A

 
N/A

 
2025

 
2022

 
2022
Summary of Components of Net Periodic Benefit Cost
 
Pension Benefits
 
Postretirement Benefits
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
(In millions)
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
Service costs
$
2.4

 
$
2.6

 
$
2.2

 
$
—

 
$
—

 
$
—

Interest costs
1.8

 
2.3

 
2.2

 
0.3

 
0.6

 
0.6

Expected return on plan assets
(9.4
)
 
(10.2
)
 
(10.1
)
 
—

 
—

 
—

Amortization of prior service cost (credit)
—

 
—

 
0.1

 
(0.1
)
 
(0.1
)
 
(0.1
)
Recognized net actuarial loss
1.1

 
0.3

 
—

 
0.1

 
0.5

 
0.5

Benefit (income) costs
$
(4.1
)
 
$
(5.0
)
 
$
(5.6
)
 
$
0.3

 
$
1.0

 
$
1.0

Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss
 
 
 
 
 
 
 
 
 
 
 
AOCI at beginning of year
$
25.5

 
$
15.7

 
$
2.2

 
$
4.1

 
$
7.2

 
$
5.8

Net loss (gain) arising during the year
1.7

 
10.1

 
13.1

 
(2.6
)
 
(2.7
)
 
1.8

Recognition of prior service credit
—

 
—

 
—

 
0.1

 
0.1

 
0.1

Recognition of actuarial loss
(1.1
)
 
(0.3
)
 
0.4

 
(0.1
)
 
(0.5
)
 
(0.5
)
Total recognized in accumulated other comprehensive loss at end of year
$
26.1

 
$
25.5

 
$
15.7

 
$
1.5

 
$
4.1

 
$
7.2
Summary Company's Expected Future Benefit Payments
Below is a table summarizing the Company’s expected future benefit payments and the expected payments due to Medicare subsidy over the next ten years:
 
 
 
Postretirement Benefits
 
Pension Benefits
 
Gross
 
Expected
Medicare Subsidy
 
Net including
Medicare Subsidy
 
(In millions)
2017
$
4.7

 
$
1.3

 
$
0.2

 
$
1.1

2018
4.4

 
1.2

 
0.2

 
1.0

2019
4.3

 
1.1

 
0.1

 
1.0

2020
4.5

 
1.0

 
0.1

 
0.9

2021
4.6

 
0.9

 
0.1

 
0.8

2022 to 2026
23.4

 
4.0

 
0.5

 
3.5
Summary of One-Percentage-Point Change in Assumed Healthcare Cost Trend Rate
A one-percentage-point change in the assumed health care cost trend rate would have the following effects:
 
1-Percentage
Point
Increase
 
1-Percentage
Point
Decrease
 
(In millions)
Effect on total of service and interest cost components in 2016
$
—

 
$
—

Effect on postretirement benefit obligation as of December 31, 2016
$
0.7

 
$
(0.6
)