The following tables summarize the net periodic benefit cost information and the related assumptions used to measure the net periodic benefit cost for the years ended December 31:



	2016			2015			2014
Components of net periodic benefit cost:
Service cost	$	0.3		$	0.4		$	1.3
Interest cost	11.0			10.9			16.7
Expected return on plan assets	(6.6		)	(7.1		)	(8.5		)
Amortization of prior service credit	1.0			0.8			1.0
Amortization of net actuarial loss	—			0.1			—
Curtailment	0.1			—			—
Less: discontinued operations	—			—			(3.1		)
Net periodic benefit cost	$	5.8		$	5.1		$	7.4

The discount rate assumption is based on current rates of high-quality long-term corporate bonds over the same period that benefit payments will be required to be made. The expected rate of return on plan assets assumption is based on the weighted-average expected return on the various asset classes in the plans’ portfolio. The asset class return is developed using historical asset return performance as well as current market conditions such as inflation, interest rates and equity market performance.

For expense purposes in 2016, the Company applied a discount rate of 4.39% to its postretirement benefit plans. For expense purposes in 2017, the Company will apply a discount rate of 3.97% to its postretirement benefit plans.

For expense purposes in 2016, the Company applied an expected rate of return of 6.00% to the VEBA trust assets. For expense purposes in 2017, the Company will apply an expected rate of return of 6.00% to the VEBA trust assets.

The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets of the postretirement benefit plans as of December 31, 2016 and 2015:



	2016			2015
Change in benefit obligation:
Benefit obligation at beginning of year	$	262.7		$	284.6
Service cost	0.3			0.4
Interest cost	11.0			10.9
Amendments	(11.4		)	—
Actuarial (gains) losses	4.3			(7.7		)
International plan exchange rate change	—			(0.3		)
Benefits paid	(25.5		)	(26.3		)
Acquisition	—			1.1
Benefit obligation at end of year	$	241.4		$	262.7



	2016			2015
Change in plan assets:
Fair value of plan assets at beginning of year	$	112.1		$	120.7
Company contributions / payments	9.7			19.0
Return on plan assets	6.1			(1.3		)
Benefits paid	(25.5		)	(26.3		)
Fair value of plan assets at end of year	102.4			112.1
Funded status at end of year	$	(139.0	)	$	(150.6	)



Amounts recognized on the Consolidated Balance Sheets:
Current liabilities	$	(7.5	)	$	(14.5	)
Non-current liabilities	(131.5		)	(136.1		)
	$	(139.0	)	$	(150.6	)



Amounts recognized in accumulated other comprehensive loss:
Net actuarial loss	$	23.9		$	19.2
Net prior service cost	(10.3		)	2.1
Accumulated other comprehensive loss	$	13.6		$	21.3



Changes in plan assets and benefit obligations recognized in AOCL:
AOCL at beginning of year	$	21.3		$	21.5
Net actuarial loss	4.8			0.7
Prior service cost	(11.4		)	—
Recognized net actuarial loss	—			(0.1		)
Recognized prior service credit	(1.0		)	(0.8		)
Loss recognized due to curtailment	(0.1		)	—
Total recognized in accumulated other comprehensive loss at December 31	$	13.6		$	21.3

In 2016, the Company amended the postretirement benefit plan for nonbargaining employees to no longer offer Company subsidized postretirement medical benefits to those employees that retire after December 31, 2016. This amendment reduced the accumulated benefit obligation by $11.4 million in 2016. This amount will be amortized over the remaining service period of the employees affected by this amendment.

The current portion of accrued postretirement benefit cost, which was included in salaries, wages and benefits on the Consolidated Balance Sheets, was $7.5 million and $14.5 million at December 31, 2016 and 2015, respectively. In 2016, the current portion of accrued postretirement benefit cost related to unfunded plans and represented the actuarial present value of expected payments related to the plans to be made over the next 12 months.

The estimated prior service cost for the postretirement plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is a credit of $1.1 million. The Company does not expect to recognize any amortization of the net actuarial loss over the next fiscal year.

For measurement purposes, the Company assumed a weighted-average annual rate of increase in the per capita cost (health care cost trend rate) for medical benefits of 6.50% for 2017, declining gradually to 5.0% in 2023 and thereafter; and 6.50% for 2017, declining gradually to 5.0% in 2023 and thereafter for prescription drug benefits; and 8.50% for 2017, declining gradually to 5.0% in 2031 and thereafter for HMO benefits. Most of the Company's postretirement plans include caps that limit the amount of the benefit provided by the Company to participants each year, which lessens the impact of health care inflation costs to the Company.

The assumed health care cost trend rate may have a significant effect on the amounts reported. A one percentage point increase in the assumed health care cost trend rate would have increased the 2016 total service and interest cost components by $0.2 million and would have increased the postretirement benefit obligation by $6.0 million. A one percentage point decrease would provide corresponding reductions of $0.2 million and $5.3 million, respectively.

The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (the Medicare Act) provides for prescription drug benefits under Medicare Part D and contains a subsidy to plan sponsors who provide “actuarially equivalent” prescription plans. The Company’s actuary determined that the prescription drug benefit provided by the Company’s postretirement plan is considered to be actuarially equivalent to the benefit provided under the Medicare Act. In accordance with ASC Topic 715, “Compensation – Retirement Benefits,” all measures of the accumulated postretirement benefit obligation or net periodic postretirement benefit cost in the financial statements or accompanying notes reflect the effects of the Medicare Act on the plan for the entire fiscal year. The 2016 expected subsidy was $1.7 million, of which $1.0 million was received prior to December 31, 2016.



	Current Target Allocation			Percentage of VEBA Assets at December 31,
Asset Category				2016	2015
Equity securities	34%	to	46%	30%	42%
Debt securities	54%	to	66%	70%	58%
Total				100%	100%

During 2016, the Pension Investment Committee made the decision to temporarily adjust the asset allocation outside of the target allocation percentages in order to better align investments with the timing of anticipated cash flows from the VEBA. The target allocation is currently under review and will be revised as needed in 2017.

Preservation of capital is important; however, the Company also recognizes that appropriate levels of risk are necessary to allow its investment managers to achieve satisfactory long-term results consistent with the objectives and the fiduciary character of the postretirement funds. Asset allocations are established in a manner consistent with projected plan liabilities, benefit payments and expected rates of return for various asset classes. The expected rate of return for the investment portfolio is based on expected rates of return for various asset classes, as well as historical asset class and fund performance.

The following table presents those investments of the Company’s VEBA trust assets measured at net asset value on a recurring basis as of December 31, 2016 and 2015, respectively:



	2016		2015
Assets:
Cash and cash equivalents	$	2.1	$	3.0
Common collective fund - U.S. equities	18.5		28.2
Common collective fund - international equities	12.3		18.3
Common collective fund - fixed income	69.5		62.6
Total Assets	$	102.4	$	112.1

Cash and cash equivalents are valued at redemption value. Common collective funds are valued based on a net asset value per share, which is used as a practical expedient to fair value. When such prices are unavailable, the plan trustee determines a valuation from the market maker dealing in the particular security.

The Company did not make any employer contributions to the VEBA Trust in 2016 and 2015. Employer contributions to the VEBA trust were $20.0 million in 2014. The Company does not expect to make any employer contributions in 2017.



	Gross		Expected Medicare Subsidies		Net Including Medicare Subsidies
2017	$	27.7	$	1.7	$	26.0
2018	26.3		1.8		24.5
2019	24.7		1.8		22.9
2020	23.2		1.9		21.3
2021	21.8		1.9		19.9
2022-2026	91.4		8.6		82.8