Employee Benefit Plans

9 Months Ended

Sep. 30, 2024

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Defined Benefit Plans

The Company recognizes net periodic benefit cost based on the actuarial analysis performed at the previous year end, adjusted if certain significant events occur during the year. The components of net periodic benefit cost follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2024		2023		2024		2023
Service cost	$	0.6	$	0.5	$	1.7	$	1.6
Interest cost	1.5		1.6		4.5		4.7
Expected return on plan assets	(2.0)		(2.0)		(5.9)		(6.1)
Amortization of unrecognized loss(1)	0.6		0.3		1.8		1.0
Net periodic benefit cost	$	0.7	$	0.4	$	2.1	$	1.2

(1)Includes amortization of unrecognized actuarial (gain) loss and prior service credits and excludes provision for income tax of $(0.1) million and $(0.4) million for the three and nine months ended September 30, 2024, respectively, and $(0.1) million and $(0.2) million for the three and nine months ended September 30, 2023, respectively.

The components of net periodic benefit cost, other than the service cost component, are included in other non-operating expense, net.

Subsequent Event

In October 2024, the Company entered into an agreement under which approximately $55 million of $134.3 million in pension obligations in its defined benefit pension plans were transferred to an insurance company. Under the agreement, the Company will purchase a group annuity contract for approximately 1,300 plan participants that will provide for an irrevocable commitment to make annuity payments to the affected participants. The payment obligation for the affected participants will be transferred from the pension plans to the insurance company. The transfer will not change the amount of the monthly pension benefits received by the affected participants.

The purchase of the group annuity contract will be funded through existing plan assets. The Company expects to recognize a non-cash pension settlement charge of approximately $21 million before tax in the fourth quarter of 2024. This charge represents the acceleration of deferred charges currently accrued in accumulated other comprehensive loss. The actual amount of the settlement charge will depend on the value of plan assets and the discount rate as of the measurement date.