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EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2014
Summary of Components of Net Periodic Benefit Cost
 
Pension Plans
 
Postretirement Plans
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Net periodic costs:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
3.8

 
$
5.2

 
$
6.0

 
$
0.7

 
$
1.2

 
$
1.1

Interest cost
43.1

 
39.7

 
41.5

 
8.1

 
7.0

 
8.4

Expected return on plan assets
(51.1
)
 
(54.5
)
 
(51.6
)
 
(1.4
)
 
(1.6
)
 
(1.7
)
Amortization of prior service costs (credits)
0.2

 
0.2

 
0.4

 
(3.1
)
 
(3.4
)
 
(4.4
)
Curtailment/settlement
(1.5
)
 
(2.9
)
 
(3.8
)
 
—

 
(6.0
)
 
—

Mark-to-market adjustment
63.0

 
(25.0
)
 
60.9

 
39.0

 
(14.9
)
 
(12.9
)
Net periodic expense (credit)
$
57.5

 
$
(37.3
)
 
$
53.4

 
$
43.3

 
$
(17.7
)
 
$
(9.5
)
Weighted-average assumptions used to determine net periodic costs, during the year:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.8
%
 
4.0
%
 
4.7
%
 
4.5
%
 
3.5
%
 
4.3
%
Expected return on plan assets
5.7
%
 
6.0
%
 
6.6
%
 
6.0
%
 
6.25
%
 
6.75
%
Rate of compensation increase
2.5%-5.0%

 
2.5%-5.0%

 
2.5%-4.5%

 
 
 
 
 
 
Weighted-average assumptions used to determine benefit obligations, end of the year:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.9
%
 
4.8
%
 
4.0
%
 
3.7
%
 
4.5
%
 
3.5
%
Rate of compensation increase
2.5%-5.0%

 
2.5%-5.0%

 
2.5%-4.5%

 
 
 
 
 
 
Changes in Benefit Obligations and Changes in Plan Assets
 
Pension Plans
 
Postretirement Plans
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Change in benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
Benefit obligation at January 1,
$
947.4

 
$
1,016.6

 
$
864.6

 
$
182.6

 
$
200.8

 
$
219.9

Service cost
3.8

 
5.2

 
6.0

 
0.7

 
1.2

 
1.1

Interest cost
43.1

 
39.7

 
41.5

 
8.1

 
7.0

 
8.4

Amendments
(0.1
)
 
0.4

 
—

 
1.7

 
1.3

 
1.5

Translation difference
(11.8
)
 
1.0

 
5.2

 
(0.7
)
 
(0.6
)
 
0.2

Actuarial losses (gains)
149.3

 
(75.2
)
 
104.4

 
40.0

 
(13.4
)
 
(12.0
)
Participant contributions
0.2

 
0.3

 
0.2

 
3.5

 
3.6

 
3.5

Benefits paid
(43.1
)
 
(42.0
)
 
(41.0
)
 
(14.9
)
 
(17.3
)
 
(20.2
)
Acquisitions/divestitures
—

 
2.7

 
42.9

 
—

 
—

 
—

Curtailments/settlements(1)
(120.4
)
 
(1.3
)
 
(7.2
)
 
—

 
—

 
(1.6
)
Benefit obligation at December 31,
$
968.4

 
$
947.4

 
$
1,016.6

 
$
221.0

 
$
182.6

 
$
200.8

Accumulated benefit obligation at December 31,
$
960.6

 
$
933.2

 
$
1,005.1

 
—

 
—

 
—

Change in plan assets:
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets at January 1,
$
941.3

 
$
905.0

 
$
765.7

 
$
25.8

 
$
28.4

 
$
28.8

Actual return on plan assets
137.4

 
4.4

 
95.4

 
2.3

 
3.1

 
2.8

Company contributions
6.2

 
71.8

 
37.8

 
7.4

 
8.0

 
13.5

Participant contributions
0.2

 
0.3

 
0.2

 
3.5

 
3.6

 
3.5

Translation difference
(11.3
)
 
1.0

 
5.1

 
—

 
—

 
—

Acquisitions/divestitures
—

 
0.8

 
42.7

 
—

 
—

 
—

Curtailments/settlements(1)
(118.3
)
 
—

 
(0.9
)
 
—

 
—

 
—

Benefits paid
(43.1
)
 
(42.0
)
 
(41.0
)
 
(14.9
)
 
(17.3
)
 
(20.2
)
Fair value of plan assets at December 31,
$
912.4

 
$
941.3

 
$
905.0

 
$
24.1

 
$
25.8

 
$
28.4

(1)
Represents various curtailments and settlements. During 2014, we had a one-time settlement of $118.3 due to the Bulk Lump Sum offering for terminated vested and divested employees who received a lump sum payout during December 2014. Also in 2014, we recognized a curtailment gain of $1.5 related to certain bargaining employees transitioning to a defined contribution plan; the impact of this curtailment was a reduction to the obligation of$2.1 and recognition of previously deferred prior service cost of $0.5. The net curtailment gain of $1.5 is included in Manufacturing cost of sales in the consolidated statements of income.
In the second quarter of 2013, we had a curtailment gain of $7.7 related to the sale of Coatings, which is included in Net gain (loss) on sale of discontinued operations, net of tax in the consolidated statements of income. In the fourth quarter of 2013, we recognized a curtailment gain of $1.2 related to certain bargaining employees transitioning to a defined contribution plan.
During 2012, we had a curtailment loss of $0.7 associated primarily with the pending sale of Coatings, which is included in Earnings from operations of discontinued business, net of tax in the consolidated statements of income.
Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income
 
Pension Plans
 
Postretirement Plans
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Funded status, end of year:
 
 
 
 
 
 
 
 
 
 
 
Fair value of plan assets
$
912.4

 
$
941.3

 
$
905.0

 
$
24.1

 
$
25.8

 
$
28.4

Benefit obligations
(968.4
)
 
(947.4
)
 
(1,016.6
)
 
(221.0
)
 
(182.6
)
 
(200.8
)
Funded status
$
(56.0
)
 
$
(6.1
)
 
$
(111.6
)
 
$
(196.9
)
 
$
(156.8
)
 
$
(172.4
)
Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
 
 
 
 
 
Noncurrent assets
$
5.4

 
$
43.8

 
$
3.6

 
$
—

 
$
—

 
$
—

Current liabilities
(2.4
)
 
(1.9
)
 
(2.1
)
 
(10.0
)
 
(9.6
)
 
(10.0
)
Noncurrent liabilities
(59.0
)
 
(48.0
)
 
(113.1
)
 
(186.9
)
 
(147.2
)
 
(162.4
)
Total amounts recognized
$
(56.0
)
 
$
(6.1
)
 
$
(111.6
)
 
$
(196.9
)
 
$
(156.8
)
 
$
(172.4
)
Amounts recognized in accumulated other comprehensive income consist of:
 
 
 
 
 
 
 
 
 
 
 
Prior service costs/(credits)
$
0.9

 
$
1.7

 
$
1.6

 
$
(15.3
)
 
$
(20.1
)
 
$
(29.3
)
Changes in accumulated other comprehensive income (AOCI) consist of:
 
 
 
 
 
 
 
 
 
 
 
AOCI, beginning of year
$
1.7

 
$
1.6

 
$
2.6

 
$
(20.1
)
 
$
(29.3
)
 
$
(35.2
)
Current year prior service (credits)/costs
(0.1
)
 
0.4

 
0.1

 
1.7

 
1.3

 
1.5

Curtailments/settlements
(0.5
)
 
(0.1
)
 
(0.7
)
 
—

 
4.5

 
—

Amortization:
 
 
 
 
 
 
 
 
 
 
 
Amortization of prior service (credits)/costs
(0.2
)
 
(0.2
)
 
(0.4
)
 
3.1

 
3.4

 
4.4

AOCI, end of year
$
0.9

 
$
1.7

 
$
1.6

 
$
(15.3
)
 
$
(20.1
)
 
$
(29.3
)
Estimated amortization to be recognized in AOCI in 2015 consist of:
 
 
 
 
 
 
 
 
 
 
 
Prior service costs/(credits)
$
0.1

 
 
 
 
 
$
(2.9
)
 
 
 
 
Change in Assumed Healthcare Cost Trend Rates
A 1.0% change in assumed healthcare cost trend rates would have the following effect:
 
2014
 
2013
 
1% Increase
 
1% Decrease
 
1% Increase
 
1% Decrease
Approximate effect on the total of service and interest cost components of other postretirement benefit costs
$
0.6

 
$
(0.6
)
 
$
0.5

 
$
(0.5
)
Approximate effect on accumulated postretirement
benefit obligation
$
19.3

 
$
(16.6
)
 
$
14.1

 
$
(12.6
)
Plans with Accumulated Benefit Obligation in Excess of Plan Assets
The following information is presented for those plans with an accumulated benefit obligation in excess of plan assets:
 
U.S. Plans
 
Non-U.S. Plans
 
Total
December 31,
2014
 
2013
 
2014
 
2013
 
2014
 
2013
Projected benefit obligation
$
(780.4
)
 
$
—

 
$
(162.7
)
 
$
(122.9
)
 
$
(943.1
)
 
$
(122.9
)
Accumulated benefit obligation
$
(777.4
)
 
$
—

 
$
(158.4
)
 
$
(119.3
)
 
$
(935.8
)
 
$
(119.3
)
Fair value of plan assets
$
747.6

 
$
—

 
$
134.7

 
$
101.7

 
$
882.3

 
$
101.7
Actual and Target Allocation by Asset Category
 
Postretirement Plans
 
Target
Allocation
 
Percentage of Plan
Assets at Year End
Asset category
2015
 
2014
 
2013
Equity securities
40
%
 
53
%
 
42
%
Fixed income
60
%
 
47
%
 
58
%
Total
100
%
 
100
%
 
100
%
Fair Value of Pension Plan Assets by Assets Category
The fair values of the pension assets at December 31, 2014 and 2013, by asset category, are as follows:
 
Fair Value Measurements at December 31, 2014
Asset category
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
$
13.1

 
$
10.7

 
$
2.4

 
$
—

Equity securities:
 
 
 
 
 
 
 
U.S. equity funds(1)
73.2

 
63.2

 
10.0

 
—

International equity funds(2)
54.2

 
2.4

 
51.8

 
—

Fixed income funds(3)
756.2

 
275.1

 
481.1

 
—

Real estate fund
1.4

 
—

 
—

 
1.4

Insurance assets
13.8

 
—

 
—

 
13.8

Other Assets
0.5

 
—

 
—

 
0.5

Total
$
912.4

 
$
351.4

 
$
545.3

 
$
15.7


 
Fair Value Measurements at December 31, 2013
Asset category
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
$
86.0

 
$
86.0

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
U.S. equity funds(1)
168.6

 
157.9

 
10.7

 
—

International equity funds(2)
63.6

 
2.6

 
61.0

 
—

Fixed income funds(3)
610.4

 
247.4

 
363.0

 
—

Real estate fund
1.3

 
—

 
—

 
1.3

Insurance assets
11.4

 
—

 
—

 
11.4

Total
$
941.3

 
$
493.9

 
$
434.7

 
$
12.7

(1)
Funds which invest in a diversified portfolio of publicly traded U.S. common stocks of large-cap, medium-cap, and small-cap companies. There are no restrictions on these investments.
(2)
Funds which invest in a diversified portfolio of publicly traded common stock of non-U.S. companies, primarily in Europe. There are no restrictions on these investments.
(3)
Funds which invest in a diversified portfolio of publicly traded government bonds and corporate bonds, approximately 37% and 63%, respectively, as of December 31, 2014, and approximately 36% and 64%, respectively, as of December 31, 2013. There are no restrictions on these investments.
Fair Value Measurement of Plan Assets Using Significant Unobservable Inputs
Fair value measurements of plan assets at December 31, 2014, using significant unobservable inputs (Level 3), are as follows:
 
Total
 
Insurance
Assets
 
Real Estate
Fund
 
Other
Assets
Balance at December 31, 2013
$
12.7

 
$
11.4

 
$
1.3

 
$
—

Actual return on assets:
 
 
 
 
 
 
 
Assets held at end of year
—

 
—

 
—

 
—

Assets sold during the year
2.5

 
2.4

 
0.1

 
—

Purchases, sales and settlements
0.5

 
—

 
—

 
0.5

Transfers in/(out)
—

 
—

 
—

 
—

Balance at December 31, 2014
$
15.7

 
$
13.8

 
$
1.4

 
$
0.5
Fair Value of Postretirement Plan Assets by Asset Category
The fair values of the postretirement plan assets at December 31, 2014 and 2013, by asset category, are as follows:
 
Fair Value Measurements at December 31, 2014
Asset category
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
$
1.0

 
$
1.0

 
$
—

 
$
—

Equity funds(1)
12.7

 
12.7

 
—

 
—

Fixed income funds(2)
10.4

 
10.4

 
—

 
—

Total
$
24.1

 
$
24.1

 
$
—

 
$
—


 
Fair Value Measurements at December 31, 2013
Asset category
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
Cash and cash equivalents
$
1.9

 
$
1.9

 
$
—

 
$
—

Equity funds(1)
10.8

 
10.8

 
—

 
—

Fixed income funds(2)
13.1

 
13.1

 
—

 
—

Total
$
25.8

 
$
25.8

 
$
—

 
$
—

(1)
Investments in publicly traded funds: 100% invested in an S&P 500 index fund as of December 31, 2014 and 2013.
(2)
A publicly traded mutual fund that invests in a diversified portfolio of investment grade fixed income securities, with government, corporate and mortgage securities. The fund has a dollar-weighted maturity between 3 and 10 years.
Expected Employer Contributions
The following table reflects expected 2015 cash flows for the pension and postretirement benefit plans:
Expected employer contributions
Pension
Plans
 
Postretirement
Plans
U.S. Plans
$
1.8

 
$
10.0

Non-U.S. Plans
$
3.1

 
$
0.2
Expected Benefit Payments
The following table reflects total benefits expected to be paid from the U.S. plans and the non-U.S. plans and/or our assets:
 
U.S. Plans
 
Non-U.S. Plans
Expected benefit payments
Pension
Plans
 
Postretirement
Plans
 
Pension
Plans
 
Postretirement
Plans
2015
$
40.6

 
$
14.5

 
$
5.5

 
$
0.2

2016
41.6

 
14.8

 
5.3

 
0.2

2017
42.5

 
14.9

 
5.6

 
0.2

2018
43.5

 
14.9

 
5.9

 
0.3

2019
44.4

 
14.7

 
6.5

 
0.3

2020-2024
230.1

 
69.1

 
37.4

 
1.7
Amounts Expensed Related to Plans
Amounts expensed related to these plans are as follows:
Years ended December 31,
2014
 
2013
 
2012
U.S.
 
 
 
 
 
Savings Plan
$
20.0

 
$
18.9

 
$
19.6

Non-U.S.
 
 
 
 
 
Others
$
4.2

 
$
3.7

 
$
2.9
U.S. Plans  
Actual and Target Allocation by Asset Category
The asset allocation for our U.S. and non-U.S. pension plans and postretirement plans at the end of 2014 and 2013, and the target allocation for 2015, by asset category, are as follows:
 
U.S. Pension Plans
 
Target
Allocation
 
Percentage of Plan
Assets at Year End
Asset category
2015
 
2014
 
2013
Equity securities
10
%
 
8
%
 
20
%
Fixed income
90
%
 
92
%
 
80
%
Total
100
%
 
100
%
 
100
%
Non U.S. Plans  
Actual and Target Allocation by Asset Category
 
Non-U.S. Pension Plans
 
Target
Allocation
 
Percentage of Plan
Assets at Year End
Asset category
2015
 
2014
 
2013
Equity securities
40
%
 
41
%
 
49
%
Fixed income
50
%
 
47
%
 
39
%
Cash and other
10
%
 
12
%
 
12
%
Total
100
%
 
100
%
 
100
%