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Retirement and Deferred Compensation Plans (Tables)
 12 Months Ended
Dec. 31, 2012
Retirement and Deferred Compensation Plans [Abstract]  
Reconciliation of changes in benefit obligations and fair value of plan assets and funded status of plans
We sponsor several qualified and nonqualified pension plans covering permanent employees. The reconciliation of the changes in the plans' benefit obligations and the fair value of plan assets and the funded status of the plans are as follows:
 
   
 
  
 
  
 
  
 
 
 
 
United States Plans
 
Non-United States Plans
 
Year Ended December 31
 
2012
 
2011
 
2012
 
2011
 
Change in Benefit Obligation
 
 
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation, beginning of year
 
$
57.5
 
$
56.2
 
$
264.7
 
$
244.8
 
Service cost
 
 
—
 
 
—
 
 
10.4
 
 
9.9
 
Interest cost
 
 
2.6
 
 
2.8
 
 
12.5
 
 
12.7
 
Curtailments
 
 
—
 
 
—
 
 
—
 
 
(1.9
)
Transfers
 
 
—
 
 
—
 
 
(0.1
)
 
(0.5
)
Actuarial loss
 
 
6.0
 
 
3.1
 
 
20.4
 
 
9.4
 
Plan participant contributions
 
 
—
 
 
—
 
 
2.2
 
 
2.4
 
Benefits paid
 
 
(4.2
)
 
(4.6
)
 
(5.6
)
 
(6.6
)
Currency exchange rate changes
 
 
—
 
 
—
 
 
10.7
 
 
(5.5
)
Benefit obligation, end of year
 
$
61.9
 
$
57.5
 
$
315.2
 
$
264.7
 


   
 
  
 
  
 
  
 
 
 
 
United States Plans
 
Non-United States Plans
 
Year Ended December 31
 
2012
 
2011
 
2012
 
2011
 
Change in Plan Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets, beginning of year
 
$
34.7
 
$
36.4
 
$
250.4
 
$
226.1
 
Actual return on plan assets
 
 
2.8
 
 
(0.4
)
 
21.2
 
 
17.4
 
Curtailments
 
 
—
 
 
—
 
 
—
 
 
(1.1
)
Transfers
 
 
—
 
 
—
 
 
—
 
 
(1.1
)
Plan participant contributions
 
 
—
 
 
—
 
 
2.2
 
 
2.4
 
Company contributions
 
 
2.7
 
 
3.3
 
 
17.7
 
 
18.3
 
Benefits paid
 
 
(4.2
)
 
(4.6
)
 
(5.6
)
 
(6.6
)
Currency exchange rate changes
 
 
—
 
 
—
 
 
10.5
 
 
(5.0
)
Fair value of plan assets, end of year
 
$
36.0
 
$
34.7
 
$
296.4
 
$
250.4
 
Funded Status at End of Year
 
 
 
 
 
 
 
 
 
 
 
 
 
Funded status, end of year
 
$
(25.9
)
$
(22.8
)
$
(18.8
)
$
(14.3
)
Amounts Recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
Noncurrent assets
 
$
11.6
 
$
12.2
 
$
31.4
 
$
29.0
 
Current liabilities
 
 
(2.9
)
 
(2.8
)
 
(0.3
)
 
(0.2
)
Noncurrent liabilities
 
 
(34.6
)
 
(32.2
)
 
(49.9
)
 
(43.1
)
Net amount recognized
 
$
(25.9
)
$
(22.8
)
$
(18.8
)
$
(14.3
)
 
Amounts recognized in accumulated other comprehensive income, net of tax, consist of:
   
 
  
 
  
 
  
 
 
 
 
United States Plans
 
Non-United States Plans
 
December 31
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
Net loss
 
$
15.8
 
$
12.8
 
$
14.8
 
$
7.0
 
Prior service cost
 
 
0.1
 
 
0.2
 
 
6.3
 
 
6.5
 
Total
 
$
15.9
 
$
13.0
 
$
21.1
 
$
13.5
 
 
We provide medical and dental benefits to certain eligible retired employees in the United States. Due to the nature of the plan, there are no plan assets. The reconciliation of the changes in the plan's benefit obligation and the statement of the funded status of the plan were as follows:
 
 
 
 
 
 
 
 
 
Year Ended December 31
 
2012
 
2011
 
Change in Benefit Obligation
 
 
 
 
 
 
 
Benefit obligation, beginning of year
 
$
28.5
 
$
25.5
 
Service cost
 
 
0.1
 
 
0.1
 
Interest cost
 
 
1.3
 
 
1.3
 
Actuarial loss
 
 
3.2
 
 
3.3
 
Benefits paid
 
 
(1.9
)
 
(1.9
)
Plan participant contributions
 
 
0.2
 
 
0.1
 
Retiree drug subsidy reimbursement
 
 
0.1
 
 
0.1
 
Benefit obligation, end of year
 
$
31.5
 
$
28.5
 
Funded Status at End of Year
 
 
 
 
 
 
 
Funded status, end of year
 
$
(31.5
)
$
(28.5
)
Amounts Recognized
 
 
 
 
 
 
 
Current liabilities
 
$
(1.8
)
$
(1.6
)
Noncurrent liabilities
 
 
(29.7
)
 
(26.9
)
Net amount recognized
 
$
(31.5
)
$
(28.5
)
 
Amounts recognized in accumulated other comprehensive income (loss), net of tax
Amounts recognized in accumulated other comprehensive income, net of tax, consist of:
   
 
  
 
  
 
  
 
 
 
 
United States Plans
 
Non-United States Plans
 
December 31
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
Net loss
 
$
15.8
 
$
12.8
 
$
14.8
 
$
7.0
 
Prior service cost
 
 
0.1
 
 
0.2
 
 
6.3
 
 
6.5
 
Total
 
$
15.9
 
$
13.0
 
$
21.1
 
$
13.5
 
 
Plans with accumulated benefit obligations in excess of fair value of plan assets
The accumulated benefit obligation for our plans that have plan assets was $272.8 and $233.2 as of December 31, 2012 and 2011, respectively. The accumulated benefit obligation for certain of our plans exceeded the fair value of plan assets as follows:
 
   
 
  
 
 
December 31
 
 
2012
 
 
2011
 
Accumulated benefit obligation
 
$
9.2
 
$
6.3
 
Plan assets
 
 
8.5
 
 
6.2
 
 
 
 
 
 
 
 
 
Plans with projected benefit obligation in excess of fair value of plan assets
The projected benefit obligation for certain of our plans exceeded the fair value of plan assets as follows:
 
 
 
 
 
 
 
 
December 31
 
 
2012
 
 
2011
 
Projected benefit obligation
 
$
16.7
 
$
41.7
 
Plan assets
 
 
12.4
 
 
35.8
 
 
Components of net periodic benefit cost and other amounts recognized in Other Comprehensive Loss (Income)
The components of the net periodic benefit cost and other amounts recognized in other comprehensive loss for all plans were as follows:
 
   
 
  
 
  
 
 
Year Ended December 31
 
 
2012
 
 
2011
 
 
2010
 
Service cost
 
$
10.4
 
$
9.9
 
$
8.6
 
Interest cost
 
 
15.1
 
 
15.5
 
 
14.5
 
Expected return on assets
 
 
(14.7
)
 
(15.2
)
 
(13.4
)
Curtailment and settlement
 
 
—
 
 
(1.0
)
 
—
 
Net loss (gain)
 
 
1.1
 
 
(0.2
)
 
(1.2
)
Prior service cost
 
 
0.7
 
 
0.7
 
 
0.7
 
Net periodic benefit cost
 
 
12.6
 
 
9.7
 
 
9.2
 
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss
 
 
 
 
 
 
 
 
 
 
Net loss
 
 
15.4
 
 
11.6
 
 
8.5
 
Amortization of net (loss) gain
 
 
(1.1
)
 
0.2
 
 
1.2
 
Amortization of prior service cost
 
 
(0.7
)
 
(0.7
)
 
(0.7
)
Total recognized in other comprehensive loss
 
 
13.6
 
 
11.1
 
 
9.0
 
Total recognized in net periodic benefit cost and other comprehensive loss
 
$
26.2
 
$
20.8
 
$
18.2
 
 
The discount rate used in the measurement of the benefit obligation was 3.9% and 4.8% in 2012 and 2011, respectively. The discount rate used in the measurement of net periodic benefit cost was 4.8%, 5.3% and 5.7% in 2012, 2011 and 2010, respectively. The components of net periodic benefit cost for this plan were as follows:
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31
 
2012
 
2011
 
2010
 
Net Periodic Benefit Cost
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
0.1
 
$
0.1
 
$
0.1
 
Interest cost
 
 
1.3
 
 
1.3
 
 
1.4
 
Net gain
 
 
—
 
 
—
 
 
(0.1
)
Net periodic benefit cost
 
 
1.4
 
 
1.4
 
 
1.4
 
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Loss
 
 
 
 
 
 
 
 
 
 
Net loss
 
 
3.2
 
 
3.3
 
 
1.1
 
Amortization of net gain
 
 
—
 
 
—
 
 
0.1
 
Total recognized in other comprehensive loss
 
 
3.2
 
 
3.3
 
 
1.2
 
Total recognized in net periodic benefit cost and other comprehensive loss
 
$
4.6
 
$
4.7
 
$
2.6
 
 
Weighted-average assumptions used in measurement of benefit obligation and net periodic benefit cost
The weighted-average assumptions used in the measurement of the benefit obligation were as follows:
   
 
  
 
  
 
  
 
 
 
 
United States Plans
 
Non-United States Plans
 
Year Ended December 31
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
Discount rate
 
 
3.7
%
 
4.6
%
 
4.2
%
 
4.7
%
Rate of compensation increase
 
 
3.0
%
 
3.0
%
 
3.6
%
 
4.0
%
 
The weighted-average assumptions used in the measurement of the net periodic benefit cost were as follows:
   
 
  
 
  
 
  
 
  
 
  
 
 
 
 
United States Plans
 
Non-United States Plans
 
Year Ended December 31
 
 
2012
 
 
2011
 
 
2010
 
 
2012
 
 
2011
 
 
2010
 
Discount rate
 
 
4.6
%
 
5.1
%
 
5.7
%
 
4.7
%
 
5.1
%
 
5.5
%
Expected long-term return on plan assets
 
 
6.3
%
 
7.0
%
 
7.3
%
 
4.7
%
 
5.3
%
 
5.5
%
Rate of compensation increase
 
 
3.0
%
 
4.0
%
 
4.0
%
 
4.0
%
 
4.3
%
 
4.5
%
 
Fair value of plan assets by asset category
The fair value of our pension plan assets are primarily determined by using market quotes and other relevant information that is generated by market transactions involving identical or comparable assets. The fair value of our pension plan assets by asset category was as follows:
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
 
United States Plans
 
 
 
 
Non-United States Plans
 
 
 
Fair Value Measurements Using
 
 
 
 
Fair Value Measurements Using
 
 
 
December 31,
2012
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
December 31,
2012
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Asset Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents(1)
 
$
1.8
 
$
1.8
 
$
—
 
$
—
 
$
2.6
 
$
2.6
 
$
—
 
$
—
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States companies
 
 
16.1
 
 
16.1
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
International companies
 
 
—
 
 
—
 
 
—
 
 
—
 
 
72.8
 
 
72.8
 
 
—
 
 
—
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government bonds(2)
 
 
18.1
 
 
—
 
 
18.1
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Guaranteed insurance contracts
 
 
—
 
 
—
 
 
—
 
 
—
 
 
112.9
 
 
—
 
 
112.9
 
 
—
 
Other types of investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unitized funds(3)
 
 
—
 
 
—
 
 
—
 
 
—
 
 
101.3
 
 
101.3
 
 
—
 
 
—
 
Real estate funds
 
 
—
 
 
—
 
 
—
 
 
—
 
 
6.8
 
 
—
 
 
6.8
 
 
—
 
 
 
$
36.0
 
$
17.9
 
$
18.1
 
$
—
 
$
296.4
 
$
176.7
 
$
119.7
 
$
—
 
(1) This category includes a prime obligations money market portfolio.
(2) This category includes United States Treasury/Federal agency securities and foreign government securities.
(3) This category includes investments in approximately 80% fixed income securities and 20% equity.
 
   
 
  
 
  
 
  
 
  
 
  
 
  
 
  
 
 
 
 
United States Plans
 
 
 
 
Non-United States Plans
 
 
 
Fair Value Measurements Using
 
 
 
 
Fair Value Measurements Using
 
 
 
December 31,
2011
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
December 31,
2011
 
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
Asset Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents(1)
 
$
1.8
 
$
1.8
 
$
—
 
$
—
 
$
1.5
 
$
1.5
 
$
—
 
$
—
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
United States companies
 
 
15.4
 
 
15.4
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
International companies
 
 
—
 
 
—
 
 
—
 
 
—
 
 
57.9
 
 
57.9
 
 
—
 
 
—
 
Fixed income securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Government bonds(2)
 
 
17.5
 
 
—
 
 
17.5
 
 
—
 
 
—
 
 
—
 
 
—
 
 
—
 
Corporate bonds
 
 
—
 
 
—
 
 
—
 
 
—
 
 
59.4
 
 
—
 
 
59.4
 
 
—
 
Guaranteed insurance contracts
 
 
—
 
 
—
 
 
—
 
 
—
 
 
38.4
 
 
—
 
 
38.4
 
 
—
 
Other types of investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unitized funds(3)
 
 
—
 
 
—
 
 
—
 
 
—
 
 
87.9
 
 
87.9
 
 
—
 
 
—
 
Real estate funds
 
 
—
 
 
—
 
 
—
 
 
—
 
 
5.3
 
 
—
 
 
5.3
 
 
—
 
 
 
$
34.7
 
$
17.2
 
$
17.5
 
$
—
 
$
250.4
 
$
147.3
 
$
103.1
 
$
—
 
  
(1)
This category includes a prime obligations money market portfolio.
(2)
This category includes United States Treasury/Federal agency securities and foreign government securities.
(3)
This category includes investments in approximately 80% fixed income securities, 10% equity and 10% cash and cash equivalents.
 
Effect of one-percentage-point change in assumed health care cost trend rates
The health care cost trend rate was assumed to remain flat at 7.5% through 2013, then grading to an ultimate rate of 5.0% in 2020. Assumed health care cost trend rates have a significant effect on the amounts reported. A one-percentage point change in the assumed health care cost trend rate would have the following effects:
 
 
 
 
 
 
 
 
 
 
1% Increase
 
1% Decrease
 
Effect on total of service and interest cost components
 
$
0.2
 
$
(0.2
)
Effect on benefit obligation
 
 
4.1
 
 
(3.5
)
Projected future benefit payments
During 2013, we plan to contribute $18.0 to our pension plans and to fund our retiree health care payments as incurred. Projected benefit payments from the plans as of December 31, 2012 were estimated as follows:
 
 
 
 
 
 
 
 
Year
 
Pension Plans
 
Retiree Health
Care Plan
 
2013
 
$
11.3
 
$
1.6
 
2014
 
 
11.9
 
 
1.6
 
2015
 
 
12.3
 
 
1.6
 
2016
 
 
13.0
 
 
1.6
 
2017
 
 
14.3
 
 
1.6
 
2018–2022
 
 
81.8
 
 
8.3
 
Total projected benefit payments
 
$
144.6
 
$
16.3