EMPLOYEE BENEFIT PLANS

9 Months Ended

Oct. 01, 2022

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

On February 17, 2022, we transferred our existing liability under the SPX Postretirement Benefit Plans (the “Plans”) for a group of participants with retiree life insurance benefits to an insurance carrier for consideration payable to the insurance carrier of $10.0. Of this consideration, $9.0 was paid during the first quarter of 2022, with the remainder paid in the second quarter of 2022. This transaction resulted in a settlement charge of $0.7 recorded to “Other income (expense), net” during the first quarter of 2022. In addition, and in connection with this transfer, we remeasured the assets and liabilities of the Plans as of the transfer date, which resulted in an actuarial gain of $0.4 recorded to “Other income (expense), net” for the three months ended April 2, 2022.

Participants in the SPX U.S. Pension Plan (the “U.S. Plan”) are eligible to elect a lump-sum payment option in lieu of a future pension benefit. During the first half of 2022, $10.0 was paid to participants who elected lump-sum payments. This triggered a plan settlement which resulted in a charge to “Other income (expense), net” of $2.3 during the quarter ended July 2, 2022. In addition, we remeasured assets and liabilities of the U.S. Plan at July 2, 2022, which resulted in an actuarial loss of $1.5 recorded to “Other income (expense), net” during the quarter ended July 2, 2022. In connection with the remeasurement, we updated our actuarial assumptions. The only changes of significance related to the discount rate and expected return on assets, which increased from 2.83% to 4.86% and 3.25% to 4.50%, respectively.

Additional settlements by the U.S. Plan during the quarter ended October 1, 2022 resulted in a charge to “Other income (expense), net” of $2.0. We also remeasured the assets and liabilities of the U.S. Plan as of October 1, 2022, which resulted in an actuarial loss of $0.4 recorded to “Other income (expense), net” during the quarter ended October 1, 2022. In connection with the remeasurement, we updated our actuarial assumptions. The only changes of significance related to the discount rate and expected return on assets, which increased from 4.86% to 5.70% and 4.50% to 5.00%, respectively.

Net periodic benefit (income) expense for our pension and postretirement plans include the following components:

Domestic Pension Plans

	Three months ended				Nine months ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Service cost	$	—	$	—	$	—	$	—
Interest cost	2.9		2.1		7.5		6.3
Expected return on plan assets	(2.0)		(2.2)		(6.2)		(6.6)
Settlement and actuarial losses (1)	2.4		—		6.2		—
Net periodic pension benefit (income) expense	$	3.3	$	(0.1)	$	7.5	$	(0.3)

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(1)     For the three months ended October 1, 2022, consists of a settlement loss of $2.0 and an actuarial loss of $0.4. For the nine months ended October 1, 2022, consists of a settlement loss of $4.3 and an actuarial loss of $1.9.

Foreign Pension Plans

	Three months ended				Nine months ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Service cost	$	—	$	—	$	—	$	—
Interest cost	1.0		0.8		3.0		2.4
Expected return on plan assets	(1.5)		(1.4)		(4.5)		(4.2)
Net periodic pension benefit income	$	(0.5)	$	(0.6)	$	(1.5)	$	(1.8)

Postretirement Plans

	Three months ended				Nine months ended
	October 1, 2022		October 2, 2021		October 1, 2022		October 2, 2021
Service cost	$	—	$	—	$	—	$	—
Interest cost	0.3		0.3		0.9		0.9
Amortization of unrecognized prior service credits	(1.1)		(1.2)		(3.3)		(3.6)
Settlement loss, net (1)	—		—		0.3		—
Net periodic postretirement benefit income	$	(0.8)	$	(0.9)	$	(2.1)	$	(2.7)

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(1)     For the nine months ended October 1, 2022, includes the impact of the transfer of the retiree life insurance benefits obligation.