Annual report pursuant to Section 13 and 15(d)

Pension And Other Postretirement Benefit Programs (Tables)

v3.20.4
Pension And Other Postretirement Benefit Programs (Tables)
12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Changes in Projected Benefit Obligations
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.
U.S. Pension Plans Canadian Pension Plans
2020 2019 2020 2019
Change in benefit obligation:
Projected benefit obligations as of January 1 $ 394.6  $ 346.4  $ 16.3  $ 15.6 
Service cost 2.6  2.7    — 
Interest cost 12.5  15.0  0.5  0.6 
Foreign currency translation adjustment   —  0.4  0.6 
   Effect of plan curtailment (0.9) —  —  — 
Actuarial loss 30.4  49.2  1.2  1.3 
Benefits paid (20.8) (18.7) (1.3) (1.8)
Projected benefit obligations as of December 31 418.4  394.6  17.1  16.3 
Change in plan assets:
Fair value of plan assets as of January 1 380.7  337.1  14.2  13.6 
Actual return on plan assets 57.2  62.2  1.4  1.7 
Employer contribution 0.1  0.1  0.1  0.1 
Foreign currency translation adjustment   —  0.4  0.6 
Benefits paid (20.8) (18.7) (1.3) (1.8)
Fair value of plan assets as of December 31 417.2  380.7  14.8  14.2 
Funded status of the plans $ (1.2) $ (13.9) $ (2.3) $ (2.1)
Accumulated benefit obligation as of December 31 $ 418.4  $ 393.2  $ 17.1  $ 16.3 
2020 2019
Change in benefit obligation:
Projected benefit obligations as January 1 $ 65.3  $ 62.2 
Service cost   0.2 
Interest cost 1.9  2.5 
Plan participants' contributions 1.2  2.2 
   Plan amendments (6.4) (2.6)
Actuarial loss 4.5  10.0 
Benefits paid (6.9) (9.2)
Projected benefit obligation as of December 31 59.6  65.3 
Change in plan assets:
Fair value of plan assets as January 1   — 
Employer contribution 5.7  7.0 
Plan participants' contribution 1.2  2.2 
Benefits paid (6.9) (9.2)
Fair value of plan assets as of December 31   — 
Funded status of the plans $ (59.6) $ (65.3)
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 defined-benefit pension plans:
U.S. Pension Plans Canadian Pension Plans
2020 2019 2020 2019
Weighted average assumptions used to determine benefit obligations as of December 31:
Discount rate 2.50  % 3.25  % 2.30  % 3.00  %
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:
Discount rate 3.25  % 4.40  % 3.00  % 3.80  %
Expected return on plan assets 5.70  % 6.30  % 4.00  % 4.90  %
Rate of compensation increase 3.25  % 3.25  % n/a n/a
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:
2020 2019
Weighted average discount rate used to determine benefit obligations as of December 31 2.45  % 3.20  %
Weighted average discount rate used to determine net periodic benefit cost 3.20  % 4.30  %
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:
U.S. Pension Plans Canadian Pension Plans
2020 2019 2020 2019
Projected benefit obligation, December 31 $ 2.3  $ 394.6  $ 16.7  $ 15.8 
Accumulated benefit obligation, December 31 2.3  393.2  16.7  15.8 
Fair value of plan assets, December 31   380.7  14.4  13.7 
Schedule of Net Periodic Pension Cost
The components of net periodic pension cost for the U.S. and Canadian defined-benefit pension plans were as follows:
Year Ended December 31,
U.S. Pension Plans Canadian Pension Plans
2020 2019 2018 2020 2019 2018
Service cost of benefits earned during the period $ 2.6  $ 2.7  $ 3.8  $ —  $ —  $ — 
Interest cost on projected benefit obligation 12.5  15.0  14.6  0.5  0.6  0.6 
Expected return on plan assets (21.3) (21.7) (22.2) (0.5) (0.7) (0.8)
Recognized net actuarial loss 10.1  9.7  10.7  0.3  0.4  0.2 
Net periodic pension cost $ 3.9  $ 5.7  $ 6.9  $ 0.3  $ 0.3  $ — 
The components of net periodic postretirement (benefit) cost were as follows:
Year Ended December 31,
2020 2019 2018
Service cost of benefits earned during the period $   $ 0.2  $ 0.4 
Interest cost on accumulated postretirement benefit obligations 1.9  2.5  2.6 
Amortization of prior service (credit) (0.2) —  — 
Amortization of net actuarial (gain) (4.8) (3.1) (2.5)
Net periodic postretirement (benefit) cost $ (3.1) $ (0.4) $ 0.5 
Schedule of Allocation of Plan Assets
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, 2020 and 2019 positions for each asset class:
Target Weight at Position at December 31,
December 31, 2020 2020 2019
U.S. Asset Class
Fixed income securities 60  % 54  % 55  %
Equities 40  % 46  % 45  %
Canadian Asset Class
Fixed income securities 50  % 50  % 50  %
Equities 48  % 48  % 48  %
Other 2  % 2  % %
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:
Value at December 31, 2020
Level 1 Level 2 Level 3 Total
U.S. Plans
Fixed income securities $   $ 226.5  $   $ 226.5 
Equities   191.0    191.0 
Other (0.3)     (0.3)
Net assets measured at fair value $ (0.3) $ 417.5  $   $ 417.2 
Value at December 31, 2019
Level 1 Level 2 Level 3 Total
U.S. Plans
Fixed income securities $ —  $ 207.9  $ —  $ 207.9 
Equities —  173.2  —  173.2 
Other (0.4) —  —  (0.4)
Net assets measured at fair value $ (0.4) $ 381.1  $ —  380.7 
Value at December 31, 2020
Level 1 Level 2 Level 3 Total
Canadian Plans
Fixed income securities $   $ 7.5  $   $ 7.5 
Equities   7.1    7.1 
Other 0.2      0.2 
Net assets measured at fair value $ 0.2  $ 14.6  $   $ 14.8 
Value at December 31, 2019
Level 1 Level 2 Level 3 Total
Canadian Plans
Fixed income securities $ —  $ 7.0  $ —  $ 7.0 
Equities —  6.9  —  6.9 
Other 0.3  —  —  0.3 
Net assets measured at fair value $ 0.3  $ 13.9  $ —  $ 14.2 
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:
U.S. Pension Benefits Canadian Pension Benefits Postretirement Benefits
2020 2019 2020 2019 2020 2019
Other noncurrent assets $ 1.1  $ —  $ —  $ —  $ —  $ — 
Accounts payable and accrued expenses   —    —  (4.0) (5.6)
Postretirement benefit liabilities   —    —  (55.6) (59.7)
Pension benefit liabilities (2.3) (13.9) (2.3) (2.1) —  — 
Net amount recognized $ (1.2) $ (13.9) $ (2.3) $ (2.1) $ (59.6) $ (65.3)
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:
U.S. Pension Benefits Canadian Pension Benefits Postretirement Benefits
2020 2019 2020 2019 2020 2019
Net actuarial gain (loss) $ (106.7) $ (123.1) $ (4.9) $ (4.8) $ 25.6  $ 30.5 

We expect to contribute $0.1 million each to our U.S. and Canadian defined-benefit pension plans and $4.1 million to our U.S. postretirement benefit plans in 2021.

Future Benefit Payments
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:
U.S. Pension Benefits Canadian Pension Benefits Postretirement Benefits
2021 $ 19.9  $ 1.3  $ 4.1 
2022 20.9  1.3  3.8 
2023 21.6  1.2  3.6 
2024 21.7  1.2  3.5 
2025 22.1  1.1  3.4 
2026-2030 114.1  5.3  15.7