XML 35 R18.htm IDEA: XBRL DOCUMENT v3.22.0.1
Benefit Plans
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Benefit Plans Benefit Plans
Pension and other post-retirement plans
We sponsor U.S. and non-U.S. defined-benefit pension and other post-retirement plans. Pension benefits are based principally on an employee’s years of service and/or compensation levels near retirement. In addition, we provide certain post-retirement health care and life insurance benefits. Generally, the post-retirement health care and life insurance plans require contributions from retirees.
Obligations and funded status
The following tables present reconciliations of plan benefit obligations, fair value of plan assets and the funded status of pension plans and other post-retirement plans as of and for the years ended December 31, 2021 and 2020:
 Pension plansOther post-retirement
plans
In millions2021202020212020
Change in benefit obligations
Benefit obligation beginning of year
$120.8 $112.1 $13.8 $14.6 
Service cost2.8 3.3 — — 
Interest cost2.0 2.9 0.2 0.4 
Actuarial (gain) loss(2.1)9.3 (1.4)0.1 
Foreign currency translation(0.6)1.4 — — 
Benefits paid(6.8)(8.2)(1.3)(1.3)
Benefit obligation end of year$116.1 $120.8 $11.3 $13.8 
Change in plan assets
Fair value of plan assets beginning of year
$33.7 $31.0 $— $— 
Actual return on plan assets(0.3)3.0 — — 
Company contributions8.1 7.1 1.3 1.3 
Foreign currency translation(0.3)0.8 — — 
Benefits paid(6.8)(8.2)(1.3)(1.3)
Fair value of plan assets end of year
$34.4 $33.7 $— $— 
Funded status
Benefit obligations in excess of the fair value of plan assets
$(81.7)$(87.1)$(11.3)$(13.8)
The actuarial gain in 2021 was primarily due to increases in the discount rates to reflect economic conditions at December 31, 2021.
Amounts recorded in the Consolidated Balance Sheets were as follows:
 Pension plansOther post-retirement
plans
In millions2021202020212020
Current liabilities$(5.7)$(5.6)$(1.3)$(1.5)
Non-current liabilities(76.0)(81.5)(10.0)(12.3)
Benefit obligations in excess of the fair value of plan assets
$(81.7)$(87.1)$(11.3)$(13.8)
The accumulated benefit obligation for all defined benefit plans was $112.7 million and $119.3 million at December 31, 2021 and 2020, respectively.
 
Information for pension plans with an accumulated benefit obligation or projected benefit obligation in excess of plan assets as of December 31 was as follows:
 Projected benefit obligation
exceeds the fair value
of plan assets		Accumulated benefit  obligation
exceeds the fair value of
plan assets
In millions2021202020212020
Projected benefit obligation$116.1 $120.8 $116.1 $120.8 
Fair value of plan assets34.4 33.7 34.4 33.7 
Accumulated benefit obligationN/AN/A112.7 119.3 
Components of net periodic benefit expense for our pension plans for the years ended December 31 were as follows:
In millions202120202019
Service cost$2.8 $3.3 $2.6 
Interest cost2.0 2.9 7.3 
Expected return on plan assets(0.5)(0.8)(3.9)
Net actuarial (gain) loss(1.5)6.8 (4.1)
Net periodic benefit expense$2.8 $12.2 $1.9 
Components of net periodic benefit expense for our other post-retirement plans for the years ended December 31, 2021, 2020 and 2019, were not material.
Assumptions
The following table provides the weighted-average assumptions used to determine benefit obligations and net periodic benefit cost as they pertain to our pension and other post-retirement plans.
 Pension plansOther post-retirement
plans
202120202019202120202019
Benefit obligation assumptions
Discount rate2.21 %1.74 %2.68 %2.34 %1.77 %2.81 %
Rate of compensation increase
3.61 %3.62 %3.68 %N/AN/AN/A
Net periodic benefit expense assumptions
Discount rate1.74 %2.68 %3.70 %1.77 %2.81 %3.95 %
Expected long-term return on plan assets
2.60 %3.32 %4.37 %N/AN/AN/A
Rate of compensation increase
3.62 %3.68 %3.72 %N/AN/AN/A
Discount rates
The discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year based on our December 31 measurement date. The discount rate was determined by matching our expected benefit payments to payments from a stream of bonds rated AA or higher available in the marketplace. There are no known or anticipated changes in our discount rate assumptions that will impact our pension expense in 2022.
Expected rates of return
The expected rate of return is designed to be a long-term assumption that may be subject to considerable year-to-year variance from actual returns. In developing the expected long-term rate of return, we considered our historical returns, with consideration given to forecasted economic conditions, our asset allocations, input from external consultants and broader long-term market indices. Pension plan assets yielded a loss of (0.89)% in 2021 and returns of 9.68% and 8.85% in 2020 and 2019, respectively.
Healthcare cost trend rates
The assumed healthcare cost trend rates for other post-retirement plans as of December 31 were as follows:
20212020
Healthcare cost trend rate assumed for following year5.5 %5.4 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)4.0 %4.4 %
Year the cost trend rate reaches the ultimate trend rate20462038
Pension plans assets
Objective
The primary objective of our investment strategy is to meet the pension obligation to our employees at a reasonable cost to us. This is primarily accomplished through growth of capital and safety of the funds invested.
Asset allocation
Our actual overall asset allocation for our pension plans as compared to our investment policy goals as of December 31 was as follows:
 ActualTarget
2021202020212020
Fixed income67 %70 %68 %71 %
Alternative32 %30 %32 %29 %
Cash1 %— %— %— %
Fair value measurement
The fair values of our pension plan assets and their respective levels in the fair value hierarchy as of December 31, 2021 and December 31, 2020 were as follows:
 December 31, 2021
In millionsLevel 1Level 2Level 3Total
Cash and cash equivalents$0.3 $— $— $0.3 
Other investments— — 11.0 11.0 
Total investments at fair value$0.3 $— $11.0 $11.3 
Investments measured at NAV23.1 
Total$34.4 

 December 31, 2020
In millionsLevel 1Level 2Level 3Total
Cash and cash equivalents$0.1 $— $— $0.1 
Other investments— — 10.0 10.0 
Total investments at fair value$0.1 $— $10.0 $10.1 
Investments measured at NAV23.6 
Total$33.7 
 Valuation methodologies used for investments measured at fair value were as follows:
•Cash and cash equivalents: Cash consists of cash held in bank accounts and is considered a Level 1 investment. Cash equivalents consist of investments in commingled funds valued based on observable market data. Such investments are considered a Level 2 investment.
•Other investments: Other investments include investments in commingled funds with diversified investment strategies. Investments in commingled funds that were valued based on unobservable inputs due to liquidation restrictions were classified as Level 3.
Activity for our Level 3 pension plan assets held during the years ended December 31, 2021 and 2020 was not material.
Cash flows
Contributions
Pension contributions totaled $8.1 million and $7.1 million in 2021 and 2020, respectively. We anticipate our 2022 pension contributions to be approximately $6.6 million. The 2022 expected contributions will equal or exceed our minimum funding requirements.
Estimated future benefit payments
The following benefit payments, which reflect expected future service or payout from termination, as appropriate, are expected to be paid by the plans in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter are as follows:
In millionsPension plansOther post-
retirement
plans
2022$7.4 $1.4 
20237.5 1.3 
20247.8 1.2 
20257.6 1.1 
20267.4 1.0 
2027 - 203137.7 3.7 
Savings plan
We have a 401(k) plan (the “401(k) plan”) with an employee share ownership (“ESOP”) bonus component, which covers certain union and all non-union U.S. employees who met certain age requirements. Under the 401(k) plan, eligible U.S. employees may voluntarily contribute a percentage of their eligible compensation. We match contributions made by employees who met certain eligibility and service requirements. The 401(k) company match contribution is a dollar-for-dollar (100%) matching contribution on up to 5% of employee eligible earnings, contributed as before-tax contributions.
Our expense for the 401(k) plan, including the ESOP, was $19.0 million, $15.3 million and $14.4 million in 2021, 2020 and 2019, respectively.
Other retirement compensation
Total other accrued retirement compensation, primarily related to deferred compensation and supplemental retirement plans, was $32.7 million and $30.7 million as of December 31, 2021 and 2020, respectively, and is included in Pension and other post-retirement compensation and benefits and Other non-current liabilities in the Consolidated Balance Sheets.