Pension And Other Postretirement Benefit Programs (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Retirement Benefits [Abstract] |
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| Changes in Projected Benefit Obligations |
The following tables summarize the balance sheet impact of the postretirement benefit plans, as well as the related benefit obligations, assets, funded status and rate assumptions.
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2019 |
|
2018 |
Change in benefit obligation: |
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Projected benefit obligations as January 1 |
$ |
62.2 |
|
|
$ |
76.4 |
|
Service cost |
0.2 |
|
|
0.4 |
|
Interest cost |
2.5 |
|
|
2.6 |
|
Plan participants' contributions |
2.2 |
|
|
1.6 |
|
Plan amendments |
(2.6 |
) |
|
— |
|
Effect of curtailment |
— |
|
|
(0.2 |
) |
Actuarial loss/(gain) |
10.0 |
|
|
(9.0 |
) |
Benefits paid |
(9.2 |
) |
|
(9.6 |
) |
Projected benefit obligation as of December 31 |
65.3 |
|
|
62.2 |
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|
|
|
Change in plan assets: |
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|
Fair value of plan assets as January 1 |
— |
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|
— |
|
Employer contribution |
7.0 |
|
|
8.0 |
|
Plan participants' contribution |
2.2 |
|
|
1.6 |
|
Benefits paid |
(9.2 |
) |
|
(9.6 |
) |
Fair value of plan assets as of December 31 |
— |
|
|
— |
|
Funded status of the plans |
$ |
(65.3 |
) |
|
$ |
(62.2 |
) |
The following tables summarize the balance sheet impact of the pension benefit plans, as well as the related benefit obligations, assets, funded status and rate assumptions. The pension benefits disclosures include both the qualified, funded RIP and the Retirement Benefit Equity Plan, which is a nonqualified, unfunded plan designed to provide pension benefits in excess of the limits defined under Sections 415 and 401(a)(17) of the Internal Revenue Code. The disclosures also include our two Canadian pension plans.
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U.S. Pension Plans |
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Canadian Pension Plans |
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2019 |
|
2018 |
|
2019 |
|
2018 |
Change in benefit obligation: |
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Projected benefit obligations as of January 1 |
$ |
346.4 |
|
|
$ |
395.8 |
|
|
$ |
15.6 |
|
|
$ |
17.8 |
|
Liabilities transferred to AHF, LLC |
— |
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|
(11.5 |
) |
|
— |
|
|
— |
|
Service cost |
2.7 |
|
|
3.8 |
|
|
— |
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|
— |
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Interest cost |
15.0 |
|
|
14.6 |
|
|
0.6 |
|
|
0.6 |
|
Foreign currency translation adjustment |
— |
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|
— |
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|
0.6 |
|
|
(1.2 |
) |
Actuarial loss/(gain) |
49.2 |
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|
(33.4 |
) |
|
1.3 |
|
|
0.5 |
|
Benefits paid |
(18.7 |
) |
|
(22.9 |
) |
|
(1.8 |
) |
|
(2.1 |
) |
Projected benefit obligations as of December 31 |
394.6 |
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|
346.4 |
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|
16.3 |
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|
15.6 |
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Change in plan assets: |
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Fair value of plan assets as of January 1 |
337.1 |
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|
390.8 |
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13.6 |
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|
17.1 |
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Assets to be transferred to AHF, LLC |
— |
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|
(8.1 |
) |
|
— |
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|
— |
|
Actual return on plan assets |
62.2 |
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|
(22.8 |
) |
|
1.7 |
|
|
(0.4 |
) |
Employer contribution |
0.1 |
|
|
0.1 |
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|
0.1 |
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|
0.1 |
|
Foreign currency translation adjustment |
— |
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|
— |
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|
0.6 |
|
|
(1.1 |
) |
Benefits paid |
(18.7 |
) |
|
(22.9 |
) |
|
(1.8 |
) |
|
(2.1 |
) |
Fair value of plan assets as of December 31 |
380.7 |
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|
337.1 |
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|
14.2 |
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|
13.6 |
|
Funded status of the plans |
$ |
(13.9 |
) |
|
$ |
(9.3 |
) |
|
$ |
(2.1 |
) |
|
$ |
(2.0 |
) |
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Accumulated benefit obligation as of December 31 |
$ |
393.2 |
|
|
$ |
345.1 |
|
|
$ |
16.3 |
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|
$ |
15.6 |
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| Schedule of Assumptions Used |
The table below presents the weighted-average assumptions used in computing the benefit obligations and net periodic benefit cost for the U.S. defined-benefit postretirement benefit plans:
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2019 |
|
2018 |
Weighted average discount rate used to determine benefit obligations as of December 31 |
3.20 |
% |
|
4.30 |
% |
Weighted average discount rate used to determine net periodic benefit cost |
4.30 |
% |
|
3.60 |
% |
The table below presents the weighted-average assumptions used in computing the benefit obligations and net periodic benefit cost for the defined-benefit pension plans:
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U.S. Pension Plans |
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Canadian Pension Plans |
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2019 |
|
2018 |
|
2019 |
|
2018 |
Weighted average assumptions used to determine benefit obligations as of December 31 |
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Discount rate |
3.25 |
% |
|
4.40 |
% |
|
3.00 |
% |
|
3.80 |
% |
Rate of compensation increase |
3.25 |
% |
|
3.25 |
% |
|
n/a |
|
|
n/a |
|
Weighted average assumptions used to determine net periodic benefit cost for the period: |
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Discount rate |
4.40 |
% |
|
3.75 |
% |
|
3.80 |
% |
|
3.30 |
% |
Expected return on plan assets |
6.30 |
% |
|
5.85 |
% |
|
4.90 |
% |
|
4.90 |
% |
Rate of compensation increase |
3.25 |
% |
|
3.25 |
% |
|
n/a |
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|
n/a |
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| Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets |
Defined-benefit pension plans with benefit obligations in excess of plan assets were as follows:
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U.S. Pension Plans |
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Canadian Pension Plans |
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2019 |
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2018 |
|
2019 |
|
2018 |
Projected benefit obligation, December 31 |
$ |
394.6 |
|
|
$ |
346.4 |
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|
$ |
15.8 |
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|
$ |
15.2 |
|
Accumulated benefit obligation, December 31 |
393.2 |
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|
345.1 |
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|
15.8 |
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|
15.2 |
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Fair value of plan assets, December 31 |
380.7 |
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|
337.1 |
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|
13.7 |
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|
13.1 |
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| Schedule of Net Periodic Pension Cost |
The components of net periodic pension cost for the U.S. defined-benefit pension plans were as follows:
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Year Ended December 31, |
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2019 |
|
2018 |
|
2017 |
Service cost of benefits earned during the period |
$ |
2.7 |
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|
$ |
3.8 |
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$ |
5.4 |
|
Interest cost on projected benefit obligation |
15.0 |
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|
14.6 |
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|
15.4 |
|
Expected return on plan assets |
(21.7 |
) |
|
(22.2 |
) |
|
(22.7 |
) |
Amortization of prior service cost |
— |
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|
— |
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|
0.4 |
|
Recognized net actuarial loss |
9.7 |
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|
10.7 |
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|
10.5 |
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Net periodic pension cost |
$ |
5.7 |
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|
$ |
6.9 |
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|
$ |
9.0 |
|
The components of net periodic pension cost (credit) for the Canadian defined-benefit pension plans were as follows:
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Year Ended December 31, |
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2019 |
|
2018 |
|
2017 |
Interest cost on projected benefit obligation |
$ |
0.6 |
|
|
$ |
0.6 |
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|
$ |
0.6 |
|
Expected return on plan assets |
(0.7 |
) |
|
(0.8 |
) |
|
(0.9 |
) |
Amortization of net actuarial loss |
0.4 |
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|
0.2 |
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|
0.2 |
|
Net periodic pension cost (credit) |
$ |
0.3 |
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|
$ |
— |
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|
$ |
(0.1 |
) |
The components of net periodic postretirement (benefit) cost were as follows:
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Year Ended December 31, |
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2019 |
|
2018 |
|
2017 |
Service cost of benefits earned during the period |
$ |
0.2 |
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$ |
0.4 |
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$ |
0.4 |
|
Interest cost on accumulated postretirement benefit obligations |
2.5 |
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|
2.6 |
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|
3.2 |
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Amortization of net actuarial (gain) |
(3.1 |
) |
|
(2.5 |
) |
|
(2.4 |
) |
Net periodic postretirement (benefit) cost |
$ |
(0.4 |
) |
|
$ |
0.5 |
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|
$ |
1.2 |
|
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| Schedule of Allocation of Plan Assets |
The following tables set forth by level within the fair value hierarchy a summary of the U.S. and Canadian defined-benefit pension plan assets, net of payables for administrative expenses, measured at fair value on a recurring basis:
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Value at December 31, 2019 |
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Level 1 |
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Level 2 |
|
Level 3 |
|
Total |
U.S. Plans |
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Fixed income securities |
$ |
— |
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|
$ |
207.9 |
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|
$ |
— |
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$ |
207.9 |
|
Equities |
— |
|
|
173.2 |
|
|
— |
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|
173.2 |
|
Other |
(0.4 |
) |
|
— |
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|
— |
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|
(0.4 |
) |
Net assets measured at fair value |
$ |
(0.4 |
) |
|
$ |
381.1 |
|
|
$ |
— |
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|
$ |
380.7 |
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Value at December 31, 2018 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
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Total |
U.S. Plans |
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Fixed income securities |
$ |
— |
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|
$ |
202.4 |
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|
$ |
— |
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$ |
202.4 |
|
Equities |
— |
|
|
143.2 |
|
|
— |
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|
143.2 |
|
Other |
(0.4 |
) |
|
— |
|
|
— |
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|
(0.4 |
) |
Net assets measured at fair value |
$ |
(0.4 |
) |
|
$ |
345.6 |
|
|
$ |
— |
|
|
345.2 |
|
Assets to be transferred to AHF, LLC |
|
|
|
|
|
|
(8.1 |
) |
Net assets |
|
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|
$ |
337.1 |
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Value at December 31, 2019 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Canadian Plans |
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Fixed income securities |
$ |
— |
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|
$ |
7.0 |
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|
$ |
— |
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$ |
7.0 |
|
Equities |
— |
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|
6.9 |
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|
— |
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|
6.9 |
|
Other |
0.3 |
|
|
— |
|
|
— |
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|
0.3 |
|
Net assets measured at fair value |
$ |
0.3 |
|
|
$ |
13.9 |
|
|
$ |
— |
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|
$ |
14.2 |
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Value at December 31, 2018 |
|
Level 1 |
|
Level 2 |
|
Level 3 |
|
Total |
Canadian Plans |
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Fixed income securities |
$ |
— |
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|
$ |
6.9 |
|
|
$ |
— |
|
|
$ |
6.9 |
|
Equities |
— |
|
|
6.5 |
|
|
— |
|
|
6.5 |
|
Other |
0.2 |
|
|
— |
|
|
— |
|
|
0.2 |
|
Net assets measured at fair value |
$ |
0.2 |
|
|
$ |
13.4 |
|
|
$ |
— |
|
|
$ |
13.6 |
|
Each asset class used has a defined asset allocation target and allowable range. The tables below show the asset allocation targets and the December 31, 2019 and 2018 positions for each asset class:
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Target Weight at |
|
Position at December 31, |
|
December 31, 2019 |
|
2019 |
|
2018 |
U.S. Asset Class |
|
|
|
|
|
Fixed income securities |
56 |
% |
|
55 |
% |
|
59 |
% |
Equities |
44 |
% |
|
45 |
% |
|
41 |
% |
|
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|
Target Weight at |
|
Position at December 31, |
|
December 31, 2019 |
|
2019 |
|
2018 |
Canadian Asset Class |
|
|
|
|
|
Fixed income securities |
50 |
% |
|
50 |
% |
|
50 |
% |
Equities |
48 |
% |
|
48 |
% |
|
48 |
% |
Other |
2 |
% |
|
2 |
% |
|
2 |
% |
|
| Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates |
A one-percentage-point change in assumed health care cost trend rates would have the following effects on the defined-benefit postretirement benefit plans for 2020:
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One percentage point |
|
Increase |
|
Decrease |
(Decrease) increase on total service and interest cost components |
$ |
— |
|
|
$ |
— |
|
(Decrease) increase on postretirement benefit obligation |
(0.9 |
) |
|
1.2 |
|
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| Schedule of Assets and (Liabilities) Recognized in Balance Sheet |
Amounts recognized in assets and (liabilities) on the Consolidated Balance Sheets at year end consist of:
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U.S. Pension Benefits |
|
Canadian Pension Benefits |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Pension benefit liabilities |
$ |
(13.9 |
) |
|
$ |
(9.3 |
) |
|
$ |
(2.1 |
) |
|
$ |
(2.0 |
) |
Net amount recognized |
$ |
(13.9 |
) |
|
$ |
(9.3 |
) |
|
$ |
(2.1 |
) |
|
$ |
(2.0 |
) |
|
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|
Postretirement Benefits |
|
2019 |
|
2018 |
Accounts payable and accrued expenses |
$ |
(5.6 |
) |
|
$ |
(6.5 |
) |
Postretirement benefit liabilities |
(59.7 |
) |
|
(55.7 |
) |
Net amount recognized |
$ |
(65.3 |
) |
|
$ |
(62.2 |
) |
|
| Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) |
Pre-tax amounts recognized in AOCI at year end for our pension and postretirement benefit plans consist of:
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U.S. Pension Benefits |
|
Canadian Pension Benefits |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
Net actuarial (loss) |
$ |
(123.1 |
) |
|
$ |
(124.2 |
) |
|
$ |
(4.8 |
) |
|
$ |
(4.7 |
) |
|
|
|
|
|
|
|
|
|
|
Postretirement Benefits |
|
2019 |
|
2018 |
Net actuarial gain |
$ |
30.5 |
|
|
$ |
41.0 |
|
|
| Schedule of Expected Future Benefit Payments |
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid over the next ten years for our U.S. and Canadian plans:
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U.S. Pension Benefits |
|
Canadian Pension Benefits |
|
Postretirement Benefits |
2020 |
$ |
19.1 |
|
|
$ |
1.4 |
|
|
$ |
5.6 |
|
2021 |
19.1 |
|
|
1.3 |
|
|
5.3 |
|
2022 |
20.1 |
|
|
1.2 |
|
|
5.0 |
|
2023 |
21.0 |
|
|
1.2 |
|
|
4.6 |
|
2024 |
21.6 |
|
|
1.1 |
|
|
4.3 |
|
2025-2029 |
114.4 |
|
|
5.3 |
|
|
17.5 |
|
|