Retirement Plans

9 Months Ended

Sep. 30, 2016

Retirement Plans

Retirement Plans

Note 13—Retirement Plans

Defined Benefit Plans

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

Beginning in 2016, the Company moved from utilizing a weighted-average discount rate, which was derived from the yield curve used to measure the pension benefit obligation at the beginning of the period, to a spot yield rate curve to estimate the pension benefit obligation and net periodic benefit costs.  The change in estimate provides a more accurate measurement of service and interest costs by applying the spot rate that could be used to settle each projected cash flow individually.  This change in estimate did not have a material effect on net periodic benefit costs for the nine months ended September 30, 2016.

The components of net periodic benefit cost is summarized as follows:

	Three Months Ended				Nine Months Ended
	September				September
(in millions)	2016		2015		2016		2015
Service cost	$	0.8	$	0.9	$	2.5	$	2.8
Interest cost		1.3		1.8		4.0		5.3
Expected return on plan assets		(2.5)		(2.6)		(7.6)		(7.8)
Amortization of unrecognized loss		0.6		1.3		1.8		3.9
Net periodic benefit cost	$	0.2	$	1.4	$	0.7	$	4.2

Defined Contribution Plans

The Company maintains defined contribution plans covering a significant portion of its employees. Employer contributions for the plans were $3.0 million and $2.9 million for the three month periods ended September 30, 2016 and 2015, respectively, and $10.2 million and $9.4 million for the nine months ended September 30, 2016 and 2015, respectively.

Employee Stock Ownership Plan

The Company sponsors an employee stock ownership plan (“ESOP”) as part of one of its existing savings plans. Costs for the ESOP are included in the defined contribution plans noted above. The ESOP is available to eligible domestic employees and includes a match of contributions made by plan participants to the savings plan up to a maximum of 4.0% of a participant’s eligible compensation, divided between cash and an employee-directed election of the Company’s common stock, not to exceed 50% of the total match. Participants are not allowed to direct savings plan contributions to an investment in the Company’s common stock. Total shares held by the ESOP were 1.3 million at September 30, 2016 and December 31, 2015.