XML 47 R34.htm IDEA: XBRL DOCUMENT v3.8.0.1
Pensions and Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [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, 2017 and 2016:
 
Pension Benefits
 
Postretirement Benefits
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Change in benefit obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
58.5

 
$
58.4

 
$
10.0

 
$
13.5

Service cost
2.4

 
2.4

 
—

 
—

Interest cost
1.8

 
1.8

 
0.3

 
0.3

Actuarial losses (gains)
2.4

 
0.5

 
0.5

 
(2.6
)
Benefits and expenses paid
(4.6
)
 
(4.6
)
 
(1.5
)
 
(1.2
)
Benefit obligation at end of year
$
60.5

 
$
58.5

 
$
9.3

 
$
10.0

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
120.2

 
$
117.3

 
$
—

 
$
—

Actual return on plan assets
20.2

 
8.3

 
—

 
—

Company contributions
—

 
—

 
1.5

 
1.2

Cash transfer to fund postretirement benefit payments
(1.0
)
 
(0.8
)
 
—

 
—

Benefits and expenses paid
(4.6
)
 
(4.6
)
 
(1.5
)
 
(1.2
)
Fair value of plan assets at end of year
$
134.8


$
120.2

 
$
—

 
$
—

Funded (underfunded) status of the plans
$
74.3

 
$
61.7

 
$
(9.3
)
 
$
(10.0
)
 
Amounts recognized in the consolidated balance sheets consist of:
 
Pension Benefits
 
Postretirement Benefits
 
2017
 
2016
 
2017
 
2016
 
(In millions)
Pension assets
$
74.3

 
$
61.7

 
$
—

 
$
—

Other current liabilities
—

 
—

 
1.1

 
1.2

Other long-term liabilities
—

 
—

 
8.2

 
8.8

 
$
74.3

 
$
61.7

 
$
9.3

 
$
10.0

Amounts recognized in Accumulated other comprehensive loss
 
 
 
 
 
 
 
Net actuarial loss
$
16.5

 
$
25.8

 
$
2.1

 
$
1.7

Net prior service cost (credit)
0.3

 
0.3

 
(0.1
)
 
(0.2
)
Accumulated other comprehensive loss
$
16.8

 
$
26.1

 
$
2.0

 
$
1.5
Summary of Pension Plan Weighted-Average Asset Allocation
The pension plan weighted-average asset allocation at December 31, 2017 and 2016 and target allocation for 2018 are as follows:
 
 
 
Plan Assets
 
Target 2018
 
2017
 
2016
Asset Category
 
 
 
 
 
Equity securities
45-75%
 
65.0
%
 
61.9
%
Debt securities
20-40%
 
23.6
%
 
24.6
%
Other
    0-20%
 
11.4
%
 
13.5
%
 
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:
 
2017
 
2016
 
Level 1
 
Total (at Fair Value)
 
Level 1
 
Total (at Fair Value)
 
(In millions)
Common stock
$
41.8

 
$
41.8

 
$
40.0

 
$
40.0

Equity securities
39.8

 
39.8

 
29.0

 
29.0

Foreign stock
7.3

 
7.3

 
5.4

 
5.4

U.S. Government obligations
5.8

 
5.8

 
8.1

 
8.1

Fixed income securities
13.7

 
13.7

 
14.1

 
14.1

Corporate bonds
10.2

 
10.2

 
6.3

 
6.3

Cash and cash equivalents
1.4

 
1.4

 
3.3

 
3.3

Total
$
120.0

 
 
 
$
106.2

 
 
Investments measured at net asset value:
 
 
 
 
 
 
 
Common collective trusts
 
 
0.7

 
 
 
1.1

Hedge funds
 
 
14.1

 
 
 
12.9

Total assets at fair value
 
 
$
134.8

 
 
 
$
120.2
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. The Company used a spot rate approach by applying the specific spot rates along the yield curve to the relevant projected cash flows in the estimation of the service and interest components of benefit cost.
 
Weighted-Average assumptions as of December 31,
 
Pension Benefits
 
Postretirement Benefits
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Assumptions used to determine benefit obligation at year-end
Discount rate
3.52
%
 
3.91
%
 
4.13
%
 
3.32
%
 
3.63
%
 
3.80
%
Rate of compensation increase
3.00
%
 
3.00
%
 
3.00
%
 
N/A

 
N/A

 
N/A

Health care cost trend rate
N/A

 
N/A

 
N/A

 
6.50
%
 
6.50
%
 
6.75
%
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

 
2025

 
2022

Assumptions used to determine expense
 
 
 
 
 
 
 
 
 
 
 
Discount rate for benefit obligations
3.90
%
 
4.13
%
 
3.82
%
 
3.61
%
 
3.76
%
 
3.60
%
Discount rate for service costs
3.98
%
 
4.20
%
 
3.82
%
 
4.24
%
 
4.44
%
 
3.60
%
Discount rate for interest costs
3.20
%
 
3.27
%
 
3.82
%
 
2.90
%
 
2.89
%
 
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
%
 
6.50
%
 
6.75
%
Medical drug benefits rate increase
N/A

 
N/A

 
N/A

 
6.50
%
 
6.50
%
 
6.75
%
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

 
2025

 
2022
Summary of Components of Net Periodic Benefit Cost
 
Pension Benefits
 
Postretirement Benefits
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
(In millions)
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
 
 
 
Service costs
$
2.4

 
$
2.4

 
$
2.6

 
$
—

 
$
—

 
$
—

Interest costs
1.8

 
1.8

 
2.3

 
0.3

 
0.3

 
0.6

Expected return on plan assets
(9.7
)
 
(9.4
)
 
(10.2
)
 
—

 
—

 
—

Amortization of prior service cost (credit)
—

 
—

 
—

 
(0.1
)
 
(0.1
)
 
(0.1
)
Recognized net actuarial loss
1.2

 
1.1

 
0.3

 
0.1

 
0.1

 
0.5

Benefit (income) costs
$
(4.3
)
 
$
(4.1
)
 
$
(5.0
)
 
$
0.3

 
$
0.3

 
$
1.0

Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss
 
 
 
 
 
 
 
 
 
 
 
AOCI at beginning of year
$
26.1

 
$
25.5

 
$
15.7

 
$
1.5

 
$
4.1

 
$
7.2

Net (loss) gain arising during the year
(1.1
)
 
1.7

 
10.1

 
0.5

 
(2.6
)
 
(2.7
)
Recognition of prior service credit
—

 
—

 
—

 
0.1

 
0.1

 
0.1

Recognition of actuarial loss
(8.2
)
 
(1.1
)
 
(0.3
)
 
(0.1
)
 
(0.1
)
 
(0.5
)
Total recognized in accumulated other comprehensive loss at end of year
$
16.8

 
$
26.1

 
$
25.5

 
$
2.0

 
$
1.5

 
$
4.1
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)
2018
$
5.1

 
$
1.2

 
$
1.1

 
$
0.1

2019
4.4

 
1.1

 
1.0

 
0.1

2020
4.5

 
1.0

 
0.9

 
0.1

2021
4.6

 
0.9

 
0.8

 
0.1

2022
4.4

 
0.9

 
0.8

 
0.1

2023 to 2027
22.8

 
3.6

 
3.2

 
0.4
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 2017
$
—

 
$
—

Effect on postretirement benefit obligation as of December 31, 2017
$
0.6

 
$
(0.6
)