XML 41 R37.htm IDEA: XBRL DOCUMENT v2.4.0.8
Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2013
Compensation and Retirement Disclosure [Abstract]  
Schedule of Assumptions Used to Determine Benefit Obligations
Assumptions used to determine benefit obligations as of December 31 are:
 
 
Canadian Pension Benefits
 
VEBA Benefits
 
 
December 31, 2013
 
December 31, 2012
 
December 31, 2013
 
December 31, 2012
 
 
 
 
 
 
Union
VEBA
 
Salaried
VEBA
 
Union
VEBA
 
Salaried
VEBA
Benefit obligations assumptions:
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
4.90
%
 
4.40
%
 
4.70
%
 
4.20
%
 
4.00
%
 
3.40
%
Rate of compensation increase
 
3.00
%
 
3.00
%
 
—

 
—

 
—

 
—

Initial medical trend rate 1
 
—

 
—

 
7.50
%
 
—

 
8.00
%
 
—

Ultimate medical trend rate 1
 
—

 
—

 
5.00
%
 
—

 
5.00
%
 
—

1 
The medical trend rate assumptions used for the Union VEBA were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 at each of December 31, 2013 and December 31, 2012. A one-percentage-point increase in the assumed medical trend rates would increase the accumulated postretirement benefit obligation of the Union VEBA by $27.8 and $41.1 at December 31, 2013 and December 31, 2012, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the accumulated postretirement benefit obligation of the Union VEBA by $22.7 and $33.4 at December 31, 2013 and December 31, 2012, respectively.
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost (Income)
Assumptions used to determine net periodic benefit cost (income) for the years ended December 31 are:
 
 
Canadian Pension Benefits
 
VEBA Benefits
 
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
 
 
 
 
 
 
 
 
Union
VEBA
 
Salaried
VEBA
 
Union
VEBA
 
Salaried
VEBA
 
Union
VEBA
 
Salaried
VEBA
Net periodic benefit cost assumptions:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
4.40
%
 
5.60
%
 
5.70
%
 
4.00
%
 
3.40
%
 
4.20
%
 
3.75
%
 
5.25
%
 
4.70
%
Expected long-term return on plan assets 1
 
4.50
%
 
4.60
%
 
5.40
%
 
6.25
%
 
7.25
%
 
7.25
%
 
7.25
%
 
6.00
%
 
7.25
%
Rate of compensation increase
 
3.00
%
 
3.00
%
 
3.50
%
 
—

 
—

 
—

 
—

 
—

 
—

Initial medical trend rate2
 
—

 
—

 
—

 
8.00
%
 
—

 
8.50
%
 
—

 
9.00
%
 
—

Ultimate medical trend rate2
 
—

 
—

 
—

 
5.00
%
 
—

 
5.00
%
 
—

 
5.00
%
 
—

_____________________
1 
The expected long-term rate of return assumption is based on the targeted investment portfolios provided to the Company by the VEBAs’ trustees.
2 
The medical trend rate assumptions used for the Union VEBA, which is currently paying certain prescription drug benefits, were provided by the Union VEBA and certain industry data were provided by the Company's actuaries. The trend rate is assumed to decline to 5% by 2019 for each of 2013, 2012 and 2011. A one-percentage-point increase in the assumed medical trend rates would increase the aggregate of the service and interest cost components of net periodic benefit costs by $2.0, $2.5 and $2.7 for 2013, 2012 and 2011, respectively. A one-percentage-point decrease in the assumed medical trend rates would decrease the aggregate of the service and interest cost components of net periodic benefit costs by $1.5, $2.0, and $2.1 for 2013, 2012 and 2011, respectively.
Schedule of Changes in Benefit Obligations
The following table presents the benefit obligations and funded status of the Company’s Canadian pension and the VEBAs as of December 31, 2013 and December 31, 2012, and the corresponding amounts that are included in the Company’s Consolidated Balance Sheets.
 
 
Canadian Pension Benefits
 
VEBA Benefits
 
 
2013
 
2012
 
2013
 
2012
Change in Benefit Obligation:
 
 
 
 
 
 
 
 
Obligation at beginning of year
 
$
7.0

 
$
5.4

 
$
384.1

 
$
446.9

Foreign currency translation adjustment
 
(0.5
)
 
0.2

 
—

 
—

Service cost
 
0.3

 
0.2

 
2.5

 
3.4

Interest cost
 
0.3

 
0.3

 
14.6

 
17.9

Actuarial (gain) loss1
 
(0.2
)
 
1.1

 
(7.3
)
 
(66.2
)
Plan participant contributions
 
—

 
0.1

 
—

 
—

Benefits paid by Company
 
(0.3
)
 
(0.3
)
 
—

 
—

Benefits paid by VEBA
 
—

 
—

 
(21.5
)
 
(20.8
)
Reimbursement from retiree drug subsidy2
 
—

 
—

 
2.3

 
2.9

Obligation at end of year
 
6.6

 
7.0

 
374.7

 
384.1
Schedule of Changes in Plan Assets
Change in Plan Assets:
 
 
 
 
 
 
 
 
FMV of plan assets at beginning of year
 
5.7

 
4.9

 
744.7

 
571.0

Foreign currency translation adjustment
 
(0.4
)
 
0.2

 
—

 
—

Actual return on assets
 
0.7

 
0.3

 
39.2

 
63.0

Plan participant contributions
 
—

 
0.1

 
—

 
—

Sale of Company's common stock by Union VEBA
 
—

 
—

 
—

 
108.6

Employer/Company contributions 4
 
0.5

 
0.5

 
16.0

 
20.0

Benefits paid by Company
 
(0.3
)
 
(0.3
)
 
—

 
—

Benefits paid by VEBA
 
—

 
—

 
(21.5
)
 
(20.8
)
Reimbursement from retiree drug subsidy2
 
—

 
—

 
2.3

 
2.9

FMV of plan assets at end of year
 
6.2

 
5.7

 
780.7

 
744.7

Net Funded Status 3
 
$
(0.4
)
 
$
(1.3
)
 
$
406.0

 
$
360.6

_____________________________
1 
The actuarial gain relating to the VEBA plans in 2013 was primarily comprised of (i) a gain of $54.9 due to projected lower drug claim cost in the future because of lower than expected drug claim costs in 2013 in the Union VEBA, (ii) a gain of $30.5 due to a decrease in discount rates used to determine benefit obligations for both VEBAs, (iii) a gain of $8.0 primarily due to a higher than expected mortality rate in the Union VEBA, partially offset by (iv) a loss of $63.8 due to the addition of a new healthcare premium reimbursement benefit starting in 2014 in the Union VEBA, (v) a loss of $20.8 resulting from an increase in the existing benefits reimbursement rates starting in 2014 for plan participants in both VEBAs, and (vi) a loss of $2.7 primarily due to an increase in administrative cost in the Union VEBA.
The actuarial gain relating to the VEBA plans in 2012 was primarily comprised of (i) a gain of $42.2 due to lower than expected prescription drug claim cost and a change in retiree drug subsidy assumption in 2012 in the Union VEBA, (ii) a gain of $16.2 due to changes in census data for both VEBA plans, (iii) a gain of $9.6 relating to a change in the participant marital status assumption in the Union VEBA and (iv) a gain of $11.0 relating to a change in the assumption for annual benefit utilization per participant in the Salaried VEBA, partially offset by a loss of $9.7 due to a decrease in discount rates used to determine benefit obligations for both VEBA plans.
2 
The Union VEBA is eligible for the retiree drug subsidy of the Medicare Modernization Act that went into effect January 1, 2006 equal to 28% of allowable drug costs. As a result, the Company has measured the Union VEBA’s obligations and costs to take into account this subsidy.
3 
Prepaid benefit of $406.0 relating to the VEBAs at December 31, 2013 was presented as Net asset in respect of VEBAs on the Consolidated Balance Sheet. With respect to the Prepaid benefit of $360.6 relating to the VEBAs at December 31, 2012, $365.9 was included in Net asset in respect of VEBA and $5.3 was included in Net liability in respect of VEBA on the Consolidated Balance Sheets.
4 
The Company accrued a liability for a variable cash contribution of $16.0 to the VEBAs with respect to calendar year 2013, which will be paid in the first quarter of 2014. The Company accrued a liability for a variable cash contribution of $20.0 to the VEBAs with respect to calendar year 2012, which was paid in the first quarter of 2013.
Schedule of Net Funded Status
The following table presents the net assets of each VEBA as of December 31, 2013 and December 31, 2012 (such information is also included in the tables required under GAAP above which roll forward the assets and obligations):
 
 
December 31, 2013
 
December 31, 2012
 
 
Union VEBA
 
Salaried VEBA
 
Total
 
Union VEBA
 
Salaried VEBA
 
Total
Accumulated plan benefit obligation
 
$
(312.7
)
 
$
(62.0
)
 
$
(374.7
)
 
$
(319.4
)
 
$
(64.7
)
 
$
(384.1
)
Plan assets
 
717.5

 
63.2

 
780.7

 
685.3

 
59.4

 
744.7

Net Funded Status
 
$
404.8

 
$
1.2

 
$
406.0

 
$
365.9

 
$
(5.3
)
 
$
360.6
Schedule of Expected Benefit Payments
As of December 31, 2013, the net benefits expected to be paid in each of the next five fiscal years and in aggregate for the five fiscal years thereafter are as follows:
 
Benefit Payments Due by Period
 
2014
 
2015
 
2016
 
2017
 
2018
 
2019-2023
Canadian pension plan benefit payments
$
0.2

 
$
0.3

 
$
0.3

 
$
0.3

 
$
0.3

 
$
2.0

VEBA benefit payments1
30.5

 
30.5

 
30.3

 
30.1

 
29.8

 
142.5

Anticipated retiree drug subsidy1
(3.1
)
 
(3.3
)
 
(3.4
)
 
(3.5
)
 
(3.5
)
 
(18.6
)
Total net benefits
$
27.6

 
$
27.5

 
$
27.2

 
$
26.9

 
$
26.6

 
$
125.9

__________________________________
1 Such amounts were obtained from the VEBAs. The Company's only financial obligations to the VEBAs are to pay the variable contributions, which may not exceed $20.0 annually, and certain administrative fees.
Schedule of Net Periodic Benefit Cost Not yet Recognized
The amount of loss which is recognized in the Consolidated Balance Sheets (in Accumulated other comprehensive income (loss)) associated with the Company’s Canadian defined benefit pension plan and the VEBAs (before tax) that have not yet been reflected in net periodic benefit cost as of December 31, 2013 and December 31, 2012 were as follows:
 
 
Canadian Pension Benefits
 
VEBA Benefits
 
 
December 31, 2013
 
December 31, 2012
 
December 31, 2013
 
December 31, 2012
Accumulated net actuarial losses
 
$
(1.8
)
 
$
(2.8
)
 
$
(0.5
)
 
$
(3.2
)
Transition assets
 
0.2

 
0.3

 
—

 
—

Prior service cost
 
—

 
—

 
(32.7
)
 
(36.9
)
Loss recognized in Accumulated other comprehensive (loss)
 
$
(1.6
)
 
$
(2.5
)
 
$
(33.2
)
 
$
(40.1
)
Schedule of Net Periodic Benefit Costs (Income)
The following table presents the components of net periodic benefit cost (income) for 2013, 2012 and 2011:
 
 
Canadian Pension Benefits
 
VEBA Benefits
 
 
2013
 
2012
 
2011
 
2013
 
2012
 
2011
Service cost
 
$
0.3

 
$
0.2

 
$
0.2

 
$
2.5

 
$
3.4

 
$
2.2

Interest cost
 
0.3

 
0.3

 
0.3

 
14.6

 
17.9

 
17.4

Expected return on plan assets
 
(0.3
)
 
(0.2
)
 
(0.3
)
 
(45.1
)
 
(40.4
)
 
(30.4
)
Amortization of prior service cost1
 
—

 
—

 
—

 
4.2

 
4.2

 
4.2

Amortization of net actuarial loss
 
0.2

 
0.1

 
0.1

 
1.3

 
3.0

 
0.6

Net periodic benefit costs (income)
 
$
0.5

 
$
0.4

 
$
0.3

 
$
(22.5
)
 
$
(11.9
)
 
$
(6.0
)
__________________________
1 
The Company amortizes prior service cost on a straight-line basis over the average remaining years of service to full eligibility for benefits of the active plan participants.
Schedule of Income (Charges) Related to All Benefit Plans
The following tables present the total (income) charges related to all benefit plans for 2013, 2012 and 2011:
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
Canadian pension plan
 
$
0.5

 
$
0.4

 
$
0.3

VEBAs
 
(22.5
)
 
(11.9
)
 
(6.0
)
Deferred compensation plan
 
1.2

 
0.9

 
0.2

Defined contribution plans
 
7.9

 
7.6

 
7.1

   Total
 
$
(12.9
)
 
$
(3.0
)
 
$
1.6
Allocation of Income (Charges) Relating to Retirement Plans
The following tables present the allocation of these (income) charges:
 
 
Year Ended December 31,
 
 
2013
 
2012
 
2011
Fabricated Products
 
$
8.0

 
$
7.4

 
$
6.4

All Other
 
(20.9
)
 
(10.4
)
 
(4.8
)
   Total
 
$
(12.9
)
 
$
(3.0
)
 
$
1.6