Pensions and Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Summary of Changes in Benefit Obligation, Plan Assets, Funded Status

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, 2019 and 2018:



	Pension Benefits						Postretirement Benefits
	2019			2018			2019			2018
Change in benefit obligation
Benefit obligation at beginning of year	$	71.2		$	60.5		$	8.5		$	9.3
Service cost	3.8			3.7			—			—
Interest cost	2.6			2.2			0.3			0.3
Actuarial losses (gains)	7.4			(5.3		)	0.5			0.4
Acquisition of CDF	—			14.9			—			—
Benefits and expenses paid	(5.6		)	(4.8		)	(1.3		)	(1.5		)
Benefit obligation at end of year	$	79.4		$	71.2		$	8.0		$	8.5
Change in plan assets
Fair value of plan assets at beginning of year	$	128.2		$	134.8		$	—		$	—
Actual return on plan assets	22.7			(12.1		)	—			—
Company contributions	—			—			1.3			1.5
Cash transfer to fund postretirement benefit payments	(0.9		)	(1.0		)	—			—
Acquisition of CDF	—			11.3			—			—
Benefits and expenses paid	(5.6		)	(4.8		)	(1.3		)	(1.5		)
Fair value of plan assets at end of year	$	144.4		$	128.2		$	—		$	—
Funded (underfunded) status of the plans	$	65.0		$	57.0		$	(8.0	)	$	(8.5	)

Schedule of Amounts Recognized in the Consolidated Balance Sheets

Amounts recognized in the consolidated balance sheets consist of:



	Pension Benefits				Postretirement Benefits
	2019		2018		2019		2018
Pension assets	$	65.0	$	57.0	$	—	$	—
Other current liabilities	—		—		0.9		0.9
Other long-term liabilities	—		—		7.1		7.6
	$	65.0	$	57.0	$	8.0	$	8.5
Amounts recognized in Accumulated other comprehensive loss
Net actuarial loss	$	28.1	$	34.7	$	2.6	$	2.4
Net prior service cost (credit)	0.2		0.3		—		(0.1		)
Accumulated other comprehensive loss	$	28.3	$	35.0	$	2.6	$	2.3

Summary of Pension Plan Weighted-Average Asset Allocation

The pension plan weighted-average asset allocation at December 31, 2019 and 2018 and target allocation for 2020 are as follows:



		Plan Assets
	Target 2020	2019		2018
Asset Category
Equity securities	45-75%	59.2	%	57.6	%
Debt securities	20-40%	25.5	%	26.5	%
Other	0-20%	15.3	%	15.9	%
	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:



	2019				2018
	Level 1		Total		Level 1		Total
Common stock	$	40.0	$	40.0	$	34.2	$	34.2
Equity securities	43.9		43.9		37.9		37.9
Foreign stock	7.0		7.0		5.7		5.7
U.S. Government obligations	8.6		8.6		4.8		4.8
Fixed income securities	11.5		11.5		13.1		13.1
Corporate bonds	14.2		14.2		12.0		12.0
Cash and cash equivalents	2.7		2.7		6.3		6.3
Total	$	127.9			$	114.0
Investments measured at net asset value:
Common collective trusts			—				0.1
Hedge funds			16.5				14.1
Total assets at fair value			$	144.4			$	128.2

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
	2019		2018		2017		2019		2018		2017
Assumptions used to determine benefit obligation at year-end
Discount rate	3.22	%	4.24	%	3.52	%	2.94	%	4.06	%	3.32	%
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		6.25	%	6.50	%	6.50	%
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		2025
Assumptions used to determine expense
Discount rate for benefit obligations	4.11	%	3.51	%	3.90	%	4.06	%	3.35	%	3.61	%
Discount rate for service costs	4.14	%	3.60	%	3.98	%	4.34	%	3.70	%	4.24	%
Discount rate for interest costs	3.72	%	3.08	%	3.20	%	3.72	%	2.92	%	2.90	%
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	%	6.50	%
Medical drug benefits rate increase	N/A		N/A		N/A		6.50	%	6.50	%	6.50	%
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		2025

Summary of Components of Net Periodic Benefit Cost



	Pension Benefits									Postretirement Benefits
	2019			2018			2017			2019			2018			2017
Components of net periodic benefit cost
Service costs	$	3.8		$	3.7		$	2.4		$	—		$	—		$	—
Interest costs	2.6			2.2			1.8			0.3			0.3			0.3
Expected return on plan assets	(10.9		)	(11.6		)	(9.7		)	—			—			—
Amortization of prior service cost (credit)	—			—			—			(0.1		)	(0.1		)	(0.1		)
Recognized net actuarial loss	2.2			0.3			1.2			0.3			0.1			0.1
Benefit (income) costs	$	(2.3	)	$	(5.4	)	$	(4.3	)	$	0.5		$	0.3		$	0.3
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss (“AOCI”)
AOCI at beginning of year	$	35.0		$	16.8		$	26.1		$	2.3		$	2.0		$	1.5
Net (loss) gain arising during the year	(2.2		)	(0.3		)	(1.1		)	(0.3		)	(0.1		)	(0.1		)
Recognition of prior service credit	—			—			—			0.1			0.1			0.1
Recognition of actuarial loss	(4.5		)	18.5			(8.2		)	0.5			0.3			0.5
Total recognized in accumulated other comprehensive loss at end of year	$	28.3		$	35.0		$	16.8		$	2.6		$	2.3		$	2.0

Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (income) Loss (“AOCI”)



	Pension Benefits									Postretirement Benefits
	2019			2018			2017			2019			2018			2017
Components of net periodic benefit cost
Service costs	$	3.8		$	3.7		$	2.4		$	—		$	—		$	—
Interest costs	2.6			2.2			1.8			0.3			0.3			0.3
Expected return on plan assets	(10.9		)	(11.6		)	(9.7		)	—			—			—
Amortization of prior service cost (credit)	—			—			—			(0.1		)	(0.1		)	(0.1		)
Recognized net actuarial loss	2.2			0.3			1.2			0.3			0.1			0.1
Benefit (income) costs	$	(2.3	)	$	(5.4	)	$	(4.3	)	$	0.5		$	0.3		$	0.3
Other changes in plan assets and benefit obligations recognized in accumulated other comprehensive (income) loss (“AOCI”)
AOCI at beginning of year	$	35.0		$	16.8		$	26.1		$	2.3		$	2.0		$	1.5
Net (loss) gain arising during the year	(2.2		)	(0.3		)	(1.1		)	(0.3		)	(0.1		)	(0.1		)
Recognition of prior service credit	—			—			—			0.1			0.1			0.1
Recognition of actuarial loss	(4.5		)	18.5			(8.2		)	0.5			0.3			0.5
Total recognized in accumulated other comprehensive loss at end of year	$	28.3		$	35.0		$	16.8		$	2.6		$	2.3		$	2.0

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
2020	$	5.7	$	1.0	$	0.1	$	0.9
2021	5.9		0.9		0.1		0.8
2022	6.1		0.8		0.1		0.7
2023	6.2		0.8		0.1		0.7
2024	6.2		0.8		0.1		0.7
2025 to 2029	31.0		3.0		0.3		2.7

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
Effect on total of service and interest cost components in 2020	$	—	$	—
Effect on postretirement benefit obligation as of December 31, 2020	$	0.5	$	(0.4	)