Benefit Plans and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2019

Benefit Plans and Other Postretirement Benefits

Benefit Plans and Other Postretirement Benefits

Note 10—Benefit Plans and Other Postretirement Benefits

The Company and certain of its domestic subsidiaries have defined benefit pension plans (the “U.S. Plans”), which cover certain U.S. employees and which represent the majority of the plan assets and benefit obligations of the aggregate defined benefit plans of the Company. The U.S. Plans’ benefits are generally based on years of service and

compensation and are generally noncontributory. Certain U.S. employees not covered by the U.S. Plans are covered by defined contribution plans. Certain foreign subsidiaries have defined benefit plans covering their employees (the “Foreign Plans” and, together with the U.S. Plans, the “Plans”). The following is a summary, based on the most recent actuarial valuations of the Company’s net cost for pension benefits, of the Plans for the three and nine months ended September 30, 2019 and 2018:

	Pension Benefits
Three Months Ended September 30:	2019		2018
Service cost	$	2.0	$	1.8
Interest cost		5.4		4.9
Expected return on plan assets		(9.2)		(9.6)
Amortization of prior service cost		0.4		0.6
Amortization of net actuarial losses		4.6		5.8
Net pension expense	$	3.2	$	3.5
Nine Months Ended September 30:
Service cost	$	5.5	$	5.6
Interest cost		16.2		14.7
Expected return on plan assets		(27.8)		(28.9)
Amortization of prior service cost		1.3		1.8
Amortization of net actuarial losses		13.9		17.5
Net pension expense	$	9.1	$	10.7

In January 2018, the Company made a voluntary cash contribution of approximately $81.0 to fund the U.S. Plans. This voluntary cash contribution made in the first quarter of 2018 was reflected as cash used in operating activities within Net change in accrued pension and postretirement benefits in the Condensed Consolidated Statements of Cash Flow. There is no current requirement for cash contributions to any of the U.S. Plans, and the Company plans to evaluate annually, based on actuarial calculations and the investment performance of the Plans’ assets, the timing and amount of cash contributions in the future.

The Company offers various defined contribution plans for certain U.S. and foreign employees. Participation in these plans is based on certain eligibility requirements. Through 2018, the Company matched the majority of employee contributions to the U.S. defined contribution plans with cash contributions up to a maximum of 5% of eligible compensation. Effective January 1, 2019, the Company increased its matching of employee contributions to the U.S. defined contribution plans to a maximum of 6% of eligible compensation. During the nine months ended September 30, 2019 and 2018, the Company provided matching contributions to the U.S. defined contribution plans of approximately $9.8 and $6.2, respectively.