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Pension and Other Postretirement Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Change in Benefit Obligation and Plan Assets

A reconciliation of the change in benefit obligation and the change in plan assets for the years ended December 31, 2019 and 2018, is shown below (in millions):



	Pension												Other Postretirement
	December 31, 2019						December 31, 2018						December 31, 2019						December 31, 2018
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Change in benefit obligation:
Benefit obligation at beginning of period	$	438.0		$	437.1		$	558.0		$	490.6		$	52.4		$	34.3		$	56.6		$	41.2
Service cost	0.1			6.3			0.1			6.9			—			0.3			—			0.4
Interest cost	18.6			14.7			19.8			14.7			2.1			1.3			1.9			1.4
Amendments and settlements	—			—			—			0.7			—			—			—			—
Actuarial (gain) loss	63.0			55.8			(43.1		)	(21.8		)	4.5			0.4			(1.8		)	(3.9		)
Benefits paid	(18.9		)	(21.5		)	(23.6		)	(21.3		)	(3.6		)	(1.3		)	(4.3		)	(1.6		)
Annuity purchase ⁽¹⁾	—			—			(73.2		)	—			—			—			—			—
Curtailment	—			(2.4		)	—			0.4			—			(10.9		)	—			—
Translation adjustment	—			14.3			—			(33.1		)	—			1.5			—			(3.2		)
Benefit obligation at end of period	$	500.8		$	504.3		$	438.0		$	437.1		$	55.4		$	25.6		$	52.4		$	34.3



	Pension												Other Postretirement
	December 31, 2019						December 31, 2018						December 31, 2019						December 31, 2018
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Change in plan assets:
Fair value of plan assets at beginning of period	$	330.6		$	351.8		$	438.2		$	406.4		$	—		$	—		$	—		$	—
Actual return on plan assets	61.5			42.3			(13.7		)	(11.7		)	—			—			—			—
Employer contributions	3.4			6.6			2.9			7.3			3.6			1.3			4.3			1.6
Benefits paid	(18.9		)	(21.5		)	(23.6		)	(21.3		)	(3.6		)	(1.3		)	(4.3		)	(1.6		)
Annuity purchase⁽¹⁾	—			—			(73.2		)	—			—			—			—			—
Translation adjustment	—			17.6			—			(28.9		)	—			—			—			—
Fair value of plan assets at end of period	$	376.6		$	396.8		$	330.6		$	351.8		$	—		$	—		$	—		$	—

Funded status	$	(124.2	)	$	(107.5	)	$	(107.4	)	$	(85.3	)	$	(55.4	)	$	(25.6	)	$	(52.4	)	$	(34.3	)

Amounts Recognized in Consolidated Balance Sheet



	Pension												Other Postretirement
	December 31, 2019						December 31, 2018						December 31, 2019						December 31, 2018
	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Amounts recognized in the consolidated balance sheet:
Other long-term assets	$	0.1		$	23.8		$	—		$	29.0		$	—		$	—		$	—		$	—
Accrued liabilities	(2.6		)	(3.3		)	(2.3		)	(2.9		)	(3.9		)	(1.4		)	(3.9		)	(1.5		)
Other long-term liabilities	(121.7		)	(128.0		)	(105.1		)	(111.4		)	(51.5		)	(24.2		)	(48.5		)	(32.8		)

(1)

See Annuity Purchase below for further discussion

Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets

As of December 31, 2019 and 2018, the majority of the Company's pension plans had accumulated benefit obligations in excess of plan assets. Information related to pension plans with accumulated benefit obligations in excess of plan assets is shown below (in millions):



December 31,	2019		2018
Projected benefit obligation	$	726.3	$	635.0
Accumulated benefit obligation	711.5		624.0
Fair value of plan assets	470.8		414.2

Amounts Recognized in Other Comprehensive Income (Loss)

Pretax amounts recognized in other comprehensive income (loss) for the years ended December 31, 2019 and 2018, are shown below (in millions):



	Pension											Other Postretirement
	December 31, 2019						December 31, 2018					December 31, 2019						December 31, 2018
	U.S.			Foreign			U.S.		Foreign			U.S.			Foreign			U.S.			Foreign
Actuarial gains (losses) recognized:
Reclassification adjustments	$	1.8		$	7.8		$	2.0	$	6.2		$	(2.3	)	$	—		$	(2.2	)	$	0.2
Actuarial gain (loss) arising during the period	(21.7		)	(33.8		)	2.1		(11.2		)	(4.5		)	—			1.8			3.9
Effect of curtailment	—			0.1			—		—			—			—			—			—
Effect of settlements	0.1			—			5.7		—			—			—			—			—
Prior service credit recognized:
Reclassification adjustments	—			—			—		—			(0.2		)	(0.2		)	(0.2		)	(0.3		)
Prior service cost arising during the period	—			—			—		(0.6		)	—			—			—			—
Translation adjustment	—			(3.8		)	—		7.4			—			—			—			0.4
	$	(19.8	)	$	(29.7	)	$	9.8	$	1.8		$	(7.0	)	$	(0.2	)	$	(0.6	)	$	4.2

Amounts Recorded in Accumulated Other Comprehensive Loss Not Yet Recognized in Net Periodic Benefit Cost

Pretax amounts recorded in accumulated other comprehensive loss not yet recognized in net periodic benefit cost as of December 31, 2019 and 2018, are shown below (in millions):



	Pension												Other Postretirement
	December 31, 2019						December 31, 2018						December 31, 2019					December 31, 2018
	U.S.			Foreign			U.S.			Foreign			U.S.		Foreign			U.S.		Foreign
Net unrecognized actuarial gain (loss)	$	(105.9	)	$	(135.9	)	$	(86.1	)	$	(106.8	)	$	19.6	$	(0.9	)	$	26.6	$	(0.9	)
Prior service (cost) credit	—			(1.2		)	—			(0.6		)	1.9		0.1			1.9		0.3
	$	(105.9	)	$	(137.1	)	$	(86.1	)	$	(107.4	)	$	21.5	$	(0.8	)	$	28.5	$	(0.6	)

Amounts Recorded in Accumulated Other Comprehensive Loss That Are Expected To Be Recognized As Components of Net Periodic Benefit Cost in Next Fiscal Year

Pretax amounts recorded in accumulated other comprehensive loss as of December 31, 2019, that are expected to be recognized as components of net periodic benefit cost in the year ending December 31, 2020, are shown below (in millions):



	Pension						Other Postretirement
	U.S.			Foreign			U.S.		Foreign
Net unrecognized actuarial gain (loss)	$	(2.3	)	$	(4.7	)	$	1.6	$	—
Prior service credit	—			—			0.2		—
	$	(2.3	)	$	(4.7	)	$	1.8	$	—

Components of Net Periodic Benefit Cost (Credit)

The components of the Company’s net periodic pension benefit cost are shown below (in millions):



	Year Ended December 31,
	2019						2018						2017
Pension	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Service cost	$	0.1		$	6.3		$	0.1		$	6.9		$	0.1		$	7.3
Interest cost	18.6			14.7			19.8			14.7			21.8			15.0
Expected return on plan assets	(20.2		)	(20.9		)	(27.3		)	(23.0		)	(24.0		)	(22.9		)
Amortization of actuarial loss	1.8			7.8			2.0			6.2			2.6			5.1
Curtailment (gain) loss	—			(2.3		)	—			0.4			—			0.9
Settlement losses	0.1			—			5.7			—			0.2			0.8
Net periodic benefit cost	$	0.4		$	5.6		$	0.3		$	5.2		$	0.7		$	6.2

The components of the Company’s net periodic other postretirement benefit cost (credit) are shown below (in millions):



	Year Ended December 31,
	2019						2018						2017
Other Postretirement	U.S.			Foreign			U.S.			Foreign			U.S.			Foreign
Service cost	$	—		$	0.3		$	—		$	0.4		$	0.1		$	0.5
Interest cost	2.1			1.3			1.9			1.4			2.4			1.5
Amortization of actuarial (gain) loss	(2.3		)	—			(2.2		)	0.2			(2.6		)	0.3
Amortization of prior service credit	(0.2		)	(0.2		)	(0.2		)	(0.3		)	—			(0.4		)
Curtailment gain	—			(10.6		)	—			—			—			—
Special termination benefits	—			—			—			—			—			0.1
Net periodic benefit cost (credit)	$	(0.4	)	$	(9.2	)	$	(0.5	)	$	1.7		$	(0.1	)	$	2.0

Weighted Average Actuarial Assumptions Used

The weighted average actuarial assumptions used in determining the benefit obligations are shown below:



	Pension		Other Postretirement
December 31,	2019	2018	2019	2018
Discount rate:
Domestic plans	3.4%	4.3%	3.2%	4.2%
Foreign plans	2.6%	3.4%	3.1%	3.8%
Rate of compensation increase:
Foreign plans	3.7%	3.4%	N/A	N/A

The weighted average actuarial assumptions used in determining the net periodic benefit cost (credit) are shown below:



For the year ended December 31,	2019		2018		2017
Pension
Discount rate:
Domestic plans	4.3	%	3.6	%	4.1	%
Foreign plans	3.4	%	3.1	%	3.3	%
Expected return on plan assets:
Domestic plans	6.3	%	6.5	%	7.3	%
Foreign plans	5.9	%	5.9	%	6.3	%
Rate of compensation increase:
Foreign plans	3.4	%	3.3	%	3.3	%
Other postretirement
Discount rate:
Domestic plans	4.2	%	3.5	%	3.9	%
Foreign plans	3.8	%	3.5	%	3.9	%

Sensitivity to Change in the Health Care Cost Trend Rates

Assumed healthcare cost trend rates have a significant effect on the amounts reported for the postretirement benefit plans. As of December 31, 2019, the sensitivity to a 100 basis point ("bp") change in the assumed healthcare cost trend rates is shown below (in millions):



	Postretirement Benefit Obligation			Net Periodic Postretirement Cost
100 bp increase in healthcare cost trend rates	$	9.7		$	0.5
100 bp decrease in healthcare cost trend rates	$	(8.2	)	$	(0.4	)

Assumed Health Care Cost Trend Rates

The assumed healthcare cost trend rates used to measure the postretirement benefit obligation as of December 31, 2019, are shown below:



	U.S. Plans	Foreign Plans
Initial healthcare cost trend rate	6.8%	4.7%
Ultimate healthcare cost trend rate	4.5%	4.0%
Year ultimate healthcare cost trend rate achieved	2028	2040

Pension Plan Assets By Asset Category and Fair Value Hierarchy

Fair value measurements and the related valuation techniques and fair value hierarchy level for the Company’s pension plan assets measured at fair value on a recurring basis as of December 31, 2019 and 2018, are shown below (in millions):



	December 31, 2019
	Total		Level 1		Level 2		Level 3		Valuation Technique
U.S. Plans:
Equity securities -
Equity funds	$	103.6	$	81.5	$	22.1	$	—	Market
Common stock	77.4		45.5		31.9		—		Market
Fixed income -
Fixed income funds	76.0		76.0		—		—		Market
Corporate bonds	53.9		—		53.9		—		Market
Government obligations	7.3		—		7.3		—		Market
Preferred stock	1.2		0.6		0.6		—		Market
Cash and short-term investments	14.0		8.4		5.6		—		Market
Assets at fair value	333.4		$	212.0	$	121.4	$	—
Investments measured at net asset value -
Alternative investments	43.2
Assets at fair value	$	376.6
Foreign Plans:
Equity securities -
Equity funds	$	148.4	$	—	$	148.4	$	—	Market
Common stock	66.7		66.7		—		—		Market
Fixed income -
Fixed income funds	45.6		—		45.6		—		Market
Corporate bonds	31.5		—		31.5		—		Market
Government obligations	55.8		—		55.8		—		Market
Cash and short-term investments	10.9		7.7		3.2		—		Market
Assets at fair value	358.9		$	74.4	$	284.5	$	—
Investments measured at net asset value -
Alternative investments	37.9
Assets at fair value	$	396.8



	December 31, 2018
	Total		Level 1		Level 2		Level 3		Valuation Technique
U.S. Plans:
Equity securities -
Equity funds	$	89.1	$	74.4	$	14.7	$	—	Market
Common stock	61.2		33.6		27.6		—		Market
Fixed income -
Fixed income funds	78.6		78.6		—		—		Market
Corporate bonds	47.7		—		47.7		—		Market
Government obligations	1.0		—		1.0		—		Market
Preferred stock	1.3		0.8		0.5		—		Market
Cash and short-term investments	4.2		0.2		4.0		—		Market
Assets at fair value	283.1		$	187.6	$	95.5	$	—
Investments measured at net asset value -
Alternative investments	47.5
Assets at fair value	$	330.6
Foreign Plans:
Equity securities -
Equity funds	$	138.1	$	—	$	138.1	$	—	Market
Common stock	58.3		58.3		—		—		Market
Fixed income -
Fixed income funds	28.2		—		28.2		—		Market
Corporate bonds	32.9		—		32.9		—		Market
Government obligations	52.8		—		52.8		—		Market
Cash and short-term investments	7.4		4.0		3.4		—		Market
Assets at fair value	317.7		$	62.3	$	255.4	$	—
Investments measured at net asset value -
Alternative investments	34.1
Assets at fair value	$	351.8

Expected Benefit Payments

As of December 31, 2019, the Company’s estimate of expected benefit payments in each of the five succeeding years and in the aggregate for the five years thereafter are shown below (in millions):



	Pension				Other Postretirement
Year	U.S.		Foreign		U.S.		Foreign
2020	$	20.1	$	22.0	$	4.0	$	1.4
2021	20.9		18.8		3.9		1.5
2022	22.6		20.2		3.9		1.5
2023	23.3		20.0		3.9		1.5
2024	23.3		20.7		3.9		1.5
Five years thereafter	126.3		122.5		17.6		7.1

Detailed information related to these plans is shown below (amounts in millions):

Pension Protection Act

Zone Status

Contributions to Multiemployer Pension Plans

Employer Identification Number ("EIN")

December 31,

2019

Certification

December 31,

2018

Certification

FIP/RP

Pending or

Implemented

Surcharge

Year Ended December 31, 2019

Year Ended December 31, 2018

Year Ended December 31, 2017

51-6099782-001

Green

Yes

0.5

0.6

13-6130178-001

Red

Yes

0.4