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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2020
Compensation And Retirement Disclosure [Abstract]  
Schedule of Assumptions Used for Benefit Obligation

The following table presents the assumptions used to determine benefit obligations:

 

 

 

Canadian Pension Plan

 

 

Salaried VEBA

 

 

 

As of December 31,

 

 

As of December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Discount rate

 

 

2.50

%

 

 

3.10

%

 

 

2.05

%

 

 

2.95

%

Expected long-term return on plan assets

 

 

4.45

%

 

 

4.45

%

 

 

5.50

%

 

 

5.50

%

Rate of compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

—

 

 

 

—

 
Schedule of Assumptions Used to Determine Net Periodic Benefit Cost (Income)

The following table presents the assumptions used to determine net periodic postretirement benefit cost:

 

 

 

Canadian Pension Plan

 

 

Salaried VEBA

 

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

2020

 

 

2019

 

 

2018

 

Discount rate

 

 

3.10

%

 

 

3.90

%

 

 

3.40

%

 

 

2.95

%

 

 

3.90

%

 

 

3.20

%

Expected long-term return on plan assets1

 

 

4.45

%

 

 

4.45

%

 

 

4.45

%

 

 

5.50

%

 

 

5.50

%

 

 

5.50

%

Rate of compensation increase

 

 

3.00

%

 

 

3.00

%

 

 

3.00

%

 

 

—

 

 

 

—

 

 

 

—

 

 

1.

The expected long-term rate of return assumption for the Salaried VEBA is based on the targeted investment portfolios provided to us by the trustee of the Salaried VEBA.
Schedule of Changes in Benefit Obligations The following table presents the benefit obligations and funded status of our Canadian pension plan and the Salaried VEBA and the corresponding amounts that are included in our Consolidated Balance Sheets (in millions of dollars):

 

 

 

Canadian Pension Plan

 

 

Salaried VEBA

 

 

 

As of December 31,

 

 

As of December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligation at beginning of year

 

$

8.8

 

 

$

7.3

 

 

$

90.2

 

 

$

85.6

 

Foreign currency translation adjustment

 

 

0.3

 

 

 

0.3

 

 

 

—

 

 

 

—

 

Service cost

 

 

0.3

 

 

 

0.3

 

 

 

0.1

 

 

 

0.1

 

Interest cost

 

 

0.3

 

 

 

0.3

 

 

 

2.5

 

 

 

3.2

 

Prior service (credit) cost1

 

 

—

 

 

 

—

 

 

 

(12.3

)

 

 

2.5

 

Actuarial loss2

 

 

0.6

 

 

 

1.1

 

 

 

4.7

 

 

 

6.4

 

Benefits paid by Company

 

 

(0.3

)

 

 

(0.5

)

 

 

—

 

 

 

—

 

Benefits paid by Salaried VEBA

 

 

—

 

 

 

—

 

 

 

(6.9

)

 

 

(7.6

)

Obligation at end of year3

 

 

10.0

 

 

 

8.8

 

 

 

78.3

 

 

 

90.2

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair market value of plan assets at beginning of year

 

 

7.8

 

 

 

6.5

 

 

 

57.6

 

 

 

53.2

 

Foreign currency translation adjustment

 

 

0.2

 

 

 

0.3

 

 

 

—

 

 

 

—

 

Actual return on assets

 

 

0.7

 

 

 

1.0

 

 

 

8.1

 

 

 

9.1

 

Company contributions

 

 

0.3

 

 

 

0.5

 

 

 

1.7

 

 

 

2.9

 

Benefits paid by Company

 

 

(0.3

)

 

 

(0.5

)

 

 

—

 

 

 

—

 

Benefits paid by Salaried VEBA

 

 

—

 

 

 

—

 

 

 

(6.9

)

 

 

(7.6

)

Fair market value of plan assets at end of year

 

 

8.7

 

 

 

7.8

 

 

 

60.5

 

 

 

57.6

 

Net funded status4

 

$

(1.3

)

 

$

(1.0

)

 

$

(17.8

)

 

$

(32.6

)

 

1.

The prior service (credit) cost relating to the Salaried VEBA in both 2020 and 2019 resulted from (decreases) increases in the annual healthcare reimbursement benefit starting in 2020 and 2019, respectively, for plan participants.

2.

The actuarial loss relating to the Salaried VEBA in 2020 was comprised of a $5.7 million loss due to a change in the discount rate offset by a $1.0 million gain due to changes in census information. The actuarial loss relating to the Salaried VEBA in 2019 was comprised of: (i) a $6.8 million loss due to a change in the discount rate and (ii) a $0.1 million loss due to changes in census information, partially offset by a $0.5 million gain due to a change in the projected utilization rate.

3.

For the Canadian pension plan, the benefit obligation is the projected benefit obligation. For the Salaried VEBA, the benefit obligation is the APBO.

4.

Net funded status relating to the Canadian pension plan at December 31, 2020 and December 31, 2019 was included within Long term liabilities on our Consolidated Balance Sheets. Net funded status relating to the Salaried VEBA at December 31, 2020 and December 31, 2019 was presented as Net liabilities of Salaried VEBA on our Consolidated Balance Sheets.
Schedule of Expected Benefit Payments

The following table presents the net benefits expected to be paid (in millions of dollars):

 

 

 

Year Ended December 31,

 

 

 

2021

 

 

2022

 

 

2023

 

 

2024

 

 

2025

 

 

2026-2030

 

Canadian pension plan benefit payments

 

$

0.4

 

 

$

0.4

 

 

$

0.4

 

 

$

0.4

 

 

$

0.4

 

 

$

2.2

 

Salaried VEBA benefit payments1

 

 

6.6

 

 

 

6.4

 

 

 

6.1

 

 

 

5.9

 

 

 

5.6

 

 

 

24.2

 

Total net benefits

 

$

7.0

 

 

$

6.8

 

 

$

6.5

 

 

$

6.3

 

 

$

6.0

 

 

$

26.4

 

 

1.

Such amounts are based on benefit amounts and certain key assumptions obtained from the Salaried VEBA.
Schedule of Net Periodic Benefit Cost Not yet Recognized

The following table presents the amount of loss included in our Consolidated Balance Sheets (within Accumulated other comprehensive loss) associated with our Canadian pension plan and the Salaried VEBA (before tax) that had not yet been reflected in net periodic postretirement benefit cost (in millions of dollars):

 

 

 

Canadian Pension Plan

 

 

Salaried VEBA

 

 

 

As of December 31,

 

 

As of December 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Accumulated net actuarial loss

 

$

(2.1

)

 

$

(1.9

)

 

$

(11.2

)

 

$

(12.1

)

Prior service cost

 

 

—

 

 

 

—

 

 

 

(24.1

)

 

 

(41.1

)

Cumulative loss reflected in Accumulated other comprehensive loss

 

$

(2.1

)

 

$

(1.9

)

 

$

(35.3

)

 

$

(53.2

)
Schedule of Fair Value of Plan Assets

The following table presents the fair value of plan assets, classified under the appropriate level of the fair value hierarchy (in millions of dollars):

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

As of December 31, 2020:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan Assets in the Fair Value Hierarchy:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaried VEBA –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and money market investments

 

$

1.4

 

 

$

—

 

 

$

—

 

 

$

1.4

 

Deferred compensation program – Diversified

   investment funds in registered investment companies1

 

 

—

 

 

 

9.6

 

 

 

—

 

 

 

9.6

 

Total plan assets in the fair value hierarchy

 

$

1.4

 

 

$

9.6

 

 

$

—

 

 

$

11.0

 

Plan Assets Measured at NAV 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaried VEBA – Fixed income investment funds

   in registered investment companies3

 

 

 

 

 

 

 

 

 

 

 

 

 

$

22.7

 

Salaried VEBA – Equity investment funds in

   registered investment companies4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

34.7

 

Canadian pension plan – Diversified investment

   funds in registered investment companies1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8.7

 

Total plan assets at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

$

77.1

 

As of December 31, 2019:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plan Assets in the Fair Value Hierarchy:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaried VEBA –

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and money market investments

 

$

0.9

 

 

$

—

 

 

$

—

 

 

$

0.9

 

Diversified investment funds in registered

   investment companies1

 

 

7.1

 

 

 

—

 

 

 

—

 

 

 

7.1

 

Total Salaried VEBA assets in the fair value hierarchy

 

 

8.0

 

 

 

—

 

 

 

—

 

 

 

8.0

 

Deferred compensation program – Diversified

   investment funds in registered investment companies1

 

 

—

 

 

 

8.1

 

 

 

—

 

 

 

8.1

 

Total plan assets in the fair value hierarchy

 

$

8.0

 

 

$

8.1

 

 

$

—

 

 

$

16.1

 

Plan Assets Measured at NAV 2:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaried VEBA – Fixed income investment funds

   in registered investment companies3

 

 

 

 

 

 

 

 

 

 

 

 

 

$

21.9

 

Salaried VEBA – Equity investment funds in

   registered investment companies4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24.8

 

Canadian pension plan – Diversified investment

   funds in registered investment companies1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7.8

 

Total plan assets at fair value

 

 

 

 

 

 

 

 

 

 

 

 

 

$

70.6

 

 

1.

The plan assets are invested in investment funds that hold a diversified portfolio of: (i) U.S. and international debt and equity securities; (ii) fixed income securities such as corporate bonds and government bonds; (iii) mortgage-related securities; and (iv) cash and cash equivalents.

2.

The market value of these funds has not been categorized in the fair value hierarchy and is being presented in the table above to permit a reconciliation of the fair value hierarchy to our Consolidated Balance Sheets. Equity investment funds measured at fair value using the NAV practical expedient are managed by an investment adviser registered with the SEC under the Investment Advisers Act of 1940 and can be redeemed with five business days’ notice on the 15th (or last business day prior to the 15th) and on the last business day of each month. A business day is every day that the New York Stock Exchange is open. Diversified investment funds measured at fair value using the NAV practical expedient are unitized mutual funds without externally published net asset values, which can be redeemed daily without restriction.

3.

This category represents investments in various fixed income funds with multiple registered investment companies. Such funds invest primarily in bonds (including Eurodollar and Yankee bonds), debentures, notes, securities with equity and fixed-income characteristics (such as bonds with warrants attached, convertible bonds, hybrids and certain preferred securities), cash equivalents, securities backed by mortgages and other assets, loans, pooled or collective investment vehicles made up of fixed‑income securities and other fixed-income obligations of banks, corporations and governmental authorities.

4.

This category represents investments in equity funds that invest in portfolios comprised primarily of equity and equity-related securities of U.S. and non-U.S. issuers across all market capitalizations.
Schedule of Total Expense Related to Benefit Plans

The following table presents the total expense related to all benefit plans (in millions of dollars):

 

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

Canadian pension plan1

 

$

0.4

 

 

$

0.4

 

 

$

0.4

 

Defined contribution plans1

 

 

8.3

 

 

 

8.8

 

 

 

8.8

 

Deferred compensation plan2

 

 

1.5

 

 

 

1.6

 

 

 

1.0

 

Multiemployer pension plans1,3

 

 

4.9

 

 

 

5.0

 

 

 

4.7

 

Net periodic postretirement benefit cost relating to Salaried VEBA2,3

 

 

4.8

 

 

 

6.6

 

 

 

6.1

 

Total

 

$

19.9

 

 

$

22.4

 

 

$

21.0

 

 

1.

Substantially all of these charges related to employee benefits are in Cost of products sold with the remaining balance in SG&A and R&D.

2.

The deferred compensation plan and the current service cost component of Net periodic postretirement benefit cost relating to Salaried VEBA is included within our Statements of Consolidated Income in SG&A and R&D for all periods presented. All other components of Net periodic postretirement benefit cost relating to Salaried VEBA are included within Other expense, net, in our Statements of Consolidated Income.

3.

See Note 6 for more information on our multiemployer defined benefit pension plans.
Schedule of Net Benefit Costs The following table presents the components of Net periodic postretirement benefit cost (in millions of dollars):

 

 

 

Canadian Pension Plan

 

 

Salaried VEBA

 

 

 

Year Ended December 31,

 

 

Year Ended December 31,

 

 

 

2020

 

 

2019

 

 

2018

 

 

2020

 

 

2019

 

 

2018

 

Service cost

 

$

0.3

 

 

$

0.3

 

 

$

0.3

 

 

$

0.1

 

 

$

0.1

 

 

$

0.1

 

Interest cost

 

 

0.3

 

 

 

0.3

 

 

 

0.3

 

 

 

2.5

 

 

 

3.2

 

 

 

2.7

 

Expected return on plan assets

 

 

(0.3

)

 

 

(0.3

)

 

 

(0.3

)

 

 

(2.8

)

 

 

(2.7

)

 

 

(2.9

)

Amortization of prior service cost1

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4.7

 

 

 

5.6

 

 

 

5.4

 

Amortization of net actuarial loss

 

 

0.1

 

 

 

0.1

 

 

 

0.1

 

 

 

0.3

 

 

 

0.4

 

 

 

0.8

 

Net periodic postretirement benefit cost

 

$

0.4

 

 

$

0.4

 

 

$

0.4

 

 

$

4.8

 

 

$

6.6

 

 

$

6.1

 

 

1.

We amortize 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.