|
BENEFIT PLANS (Tables)
|
12 Months Ended |
|
Dec. 31, 2011
|
| Reconciliation of Projected Benefit Obligations, Plan Assets and Funded Status of Plans |
Obligations and Funded Status. A reconciliation
of the projected benefit obligations, plan assets and funded status
of the plans is as follows:
| |
|
Pension Benefits |
|
|
Other Benefits |
|
| |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
| |
|
(In
millions) |
|
| Change in projected
benefit obligation |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefit obligation at January 1, |
|
$ |
678.0 |
|
|
$ |
624.2 |
|
|
$ |
33.6 |
|
|
$ |
33.5 |
|
| Service cost |
|
|
6.4 |
|
|
|
6.4 |
|
|
|
0.6 |
|
|
|
0.5 |
|
| Interest cost |
|
|
34.5 |
|
|
|
34.9 |
|
|
|
1.6 |
|
|
|
1.7 |
|
| Plan participants' contributions |
|
|
- |
|
|
|
- |
|
|
|
1.1 |
|
|
|
1.1 |
|
| Amendments |
|
|
- |
|
|
|
0.6 |
|
|
|
- |
|
|
|
- |
|
| Actuarial loss (gain) |
|
|
70.0 |
|
|
|
50.5 |
|
|
|
(3.0 |
) |
|
|
1.2 |
|
| Foreign currency exchange rate
changes |
|
|
(1.2 |
) |
|
|
1.8 |
|
|
|
- |
|
|
|
- |
|
| Benefits
paid |
|
|
(41.6 |
) |
|
|
(40.4 |
) |
|
|
(4.0 |
) |
|
|
(4.5 |
) |
| Projected benefit
obligation at December 31, |
|
|
746.1 |
|
|
|
678.0 |
|
|
|
29.9 |
|
|
|
33.5 |
|
| Change in plan
assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair value of plan assets at January 1, |
|
|
569.9 |
|
|
|
505.4 |
|
|
|
18.9 |
|
|
|
17.3 |
|
| Actual return on plan assets |
|
|
9.2 |
|
|
|
47.5 |
|
|
|
0.4 |
|
|
|
1.6 |
|
| Employer contributions |
|
|
46.6 |
|
|
|
55.4 |
|
|
|
2.9 |
|
|
|
3.4 |
|
| Plan participants' contributions |
|
|
- |
|
|
|
- |
|
|
|
1.1 |
|
|
|
1.1 |
|
| Foreign currency exchange rate
changes |
|
|
(1.1 |
) |
|
|
2.0 |
|
|
|
- |
|
|
|
- |
|
| Benefits
paid |
|
|
(41.6 |
) |
|
|
(40.4 |
) |
|
|
(4.0 |
) |
|
|
(4.5 |
) |
| Fair value of plan assets at
December 31, |
|
|
583.0 |
|
|
|
569.9 |
|
|
|
19.3 |
|
|
|
18.9 |
|
| Funded
status of plan |
|
$ |
(163.1 |
) |
|
$ |
(108.1 |
) |
|
$ |
(10.6 |
) |
|
$ |
(14.6 |
) |
|
| Net Amount Recognized, or Funded Status of Pension and Other Postretirement Benefit Plans |
The following table represents the net amounts recognized, or the
funded status of our pension and other postretirement benefit
plans, in our Consolidated Balance Sheets at December 31, 2011
and 2010:
| |
|
Pension Benefits |
|
|
Other Benefits |
|
| (In
millions) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
| Amounts recognized
in the statements of financial position consist of: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Prepaid pension asset |
|
$ |
- |
|
|
$ |
4.0 |
|
|
$ |
- |
|
|
$ |
- |
|
| Current liabilities |
|
|
(3.8 |
) |
|
|
(3.8 |
) |
|
|
- |
|
|
|
- |
|
| Long-term liabilities |
|
|
(159.3 |
) |
|
|
(108.3 |
) |
|
|
(10.6 |
) |
|
|
(14.6 |
) |
| Net amount
recognized |
|
$ |
(163.1 |
) |
|
$ |
(108.1 |
) |
|
$ |
(10.6 |
) |
|
$ |
(14.6 |
) |
|
| Benefit Costs Included in Accumulated Other Comprehensive Loss that have not yet Recognized in Net Periodic Pension Cost |
Included in accumulated other comprehensive loss at
December 31, 2011 and 2010, were the following amounts that
have not yet been recognized in net periodic pension cost:
| |
|
Pension Benefits |
|
|
Other Benefits |
|
| (In
millions) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
|
Prior service cost, net of accumulated taxes of $0.9 and $1.3 in
2011 and 2010, respectively, for pension benefits and $(0.4) in
2011 and 2010 for other benefits |
|
$ |
1.8 |
|
|
$ |
2.2 |
|
|
$ |
(0.6 |
) |
|
$ |
(0.8 |
) |
|
Net actuarial loss, net of accumulated taxes of $165.6 and $130.6
in 2011 and 2010, respectively, for pension benefits and $6.0 and
$7.1 in 2011 and 2010, respectively, for other benefits |
|
|
288.6 |
|
|
|
227.5 |
|
|
|
10.5 |
|
|
|
12.4 |
|
|
Accumulated other comprehensive loss |
|
$ |
290.4 |
|
|
$ |
229.7 |
|
|
$ |
9.9 |
|
|
$ |
11.6 |
|
|
| Amounts Recognized in Other Comprehensive Income (Loss) |
The following indicates amounts recognized in other comprehensive
income (loss) during the twelve months ended December 31, 2011
and 2010:
| |
|
Pension Benefits |
|
|
Other Benefits |
|
| (In millions) |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
|
Amounts arising during the period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net actuarial loss (gain), net of taxes of $39.2 and $17.2 in 2011
and 2010, respectively, for pension benefits and $(0.6) and $0.4 in
2011 and 2010, respectively, for other benefits |
|
$ |
68.9 |
|
|
$ |
31.0 |
|
|
$ |
(1.0 |
) |
|
$ |
0.8 |
|
|
Foreign currency exchange rate (gain) loss, net of taxes of $(0.0)
and $(0.1) in 2011 and 2010, respectively, for pension
benefits |
|
|
(0.1 |
) |
|
|
(0.1 |
) |
|
|
- |
|
|
|
- |
|
| Prior
service (credit) cost, net of taxes of $0.2 for pension benefits in
2010 |
|
|
- |
|
|
|
0.4 |
|
|
|
- |
|
|
|
- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts recognized in net periodic benefit cost during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Recognized actuarial loss, net of taxes of $(4.4) and $(3.4) in
2011 and 2010, respectively, for pension benefits and $(0.5) and
$(0.4) in 2011 and 2010, respectively, for other benefits |
|
|
(7.6 |
) |
|
|
(5.8 |
) |
|
|
(0.8 |
) |
|
|
(0.8 |
) |
|
Amortization of prior service cost, net of taxes of $(0.3) in 2011
and 2010 for pension benefits and $0.1 in 2011 and 2010 for other
benefits |
|
|
(0.5 |
) |
|
|
(0.5 |
) |
|
|
0.1 |
|
|
|
0.1 |
|
|
Total recognized in other comprehensive income |
|
$ |
60.7 |
|
|
$ |
25.0 |
|
|
$ |
(1.7 |
) |
|
$ |
0.1 |
|
|
| Components of Net Periodic Benefit Cost |
Components of Net Periodic Benefit Cost.
| |
|
Pension Benefits |
|
|
Other Benefits |
|
| |
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
2011 |
|
|
2010 |
|
|
2009 |
|
| |
|
(In
millions) |
|
| Service cost |
|
$ |
6.4 |
|
|
$ |
6.4 |
|
|
$ |
5.3 |
|
|
$ |
0.6 |
|
|
$ |
0.5 |
|
|
$ |
0.5 |
|
| Interest cost |
|
|
34.5 |
|
|
|
34.9 |
|
|
|
35.1 |
|
|
|
1.6 |
|
|
|
1.7 |
|
|
|
1.8 |
|
| Expected return on plan assets |
|
|
(46.6 |
) |
|
|
(44.8 |
) |
|
|
(44.8 |
) |
|
|
(1.7 |
) |
|
|
(1.5 |
) |
|
|
(1.5 |
) |
| Amortization of prior service
cost |
|
|
0.8 |
|
|
|
0.8 |
|
|
|
0.8 |
|
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|
|
(0.2 |
) |
| Recognized actuarial loss |
|
|
12.0 |
|
|
|
9.2 |
|
|
|
8.7 |
|
|
|
1.3 |
|
|
|
1.2 |
|
|
|
1.1 |
|
| Special
termination benefit |
|
|
- |
|
|
|
- |
|
|
|
0.1 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Total net
periodic benefit cost |
|
$ |
7.1 |
|
|
$ |
6.5 |
|
|
$ |
5.2 |
|
|
$ |
1.6 |
|
|
$ |
1.7 |
|
|
$ |
1.7 |
|
|
| Amount of Prior Service Cost and Actuarial Loss Included in Accumulated Other Comprehensive Loss that is Expected to Be Recognized in Net Periodic Benefit Cost |
The following represents the amount of prior service cost and
actuarial loss included in accumulated other comprehensive loss
that is expected to be recognized in net periodic benefit cost
during the twelve months ending December 31, 2012:
| |
|
Pension |
|
|
Other |
|
| (In millions) |
|
Benefits |
|
|
Benefits |
|
|
Actuarial loss, net of taxes of $5.8 for pension benefits and and
$0.4 for other benefits |
|
$ |
10.2 |
|
|
$ |
0.6 |
|
| Prior
service cost, net of taxes of $0.3 for pension benefits and and
$(0.1) for other benefits |
|
$ |
0.5 |
|
|
$ |
(0.1 |
) |
|
| Effect of One-Percentage Point Change in Assumed Healthcare Cost Trend Rates |
A one-percentage point change in assumed healthcare cost trend
rates at December 31, 2011 would have had the following
effects:
| |
|
1-Percentage |
|
|
1-Percentage |
|
| (In millions) |
|
Point Increase |
|
|
Point Decrease |
|
| Effect on total service
and interest cost components |
|
$ |
0.2 |
|
|
$ |
(0.2 |
) |
| Effect on accumulated postretirement
benefit obligation |
|
$ |
3.0 |
|
|
$ |
(2.6 |
) |
|
| Estimated Future Benefits Payable for Retirement and Postretirement Plans |
We estimate that the future benefits payable for our retirement and
postretirement plans are as follows at December 31, 2011:
| |
|
U.S. Defined |
|
|
Non-U.S. Defined |
|
|
Other |
|
| Years ending December 31, |
|
Benefit Plans |
|
|
Benefit Plans |
|
|
Benefit Plans |
|
| |
|
(In
millions) |
|
|
2012 |
|
$ |
40.8 |
|
|
$ |
2.5 |
|
|
$ |
2.7 |
|
| 2013 |
|
$ |
41.5 |
|
|
$ |
2.5 |
|
|
$ |
2.5 |
|
| 2014 |
|
$ |
41.4 |
|
|
$ |
2.6 |
|
|
$ |
2.5 |
|
| 2015 |
|
$ |
41.4 |
|
|
$ |
2.6 |
|
|
$ |
2.4 |
|
| 2016 |
|
$ |
41.8 |
|
|
$ |
2.6 |
|
|
$ |
2.2 |
|
| Next five fiscal
years to December 31, 2021 |
|
$ |
210.1 |
|
|
$ |
14.7 |
|
|
$ |
10.3 |
|
| Reconciliation of Beginning and Ending Balances for Plan Assets Valued using Significant Unobservable Inputs |
The following table shows a reconciliation of the beginning and
ending balances for assets valued using significant unobservable
inputs:
| |
|
Private Equity |
|
|
Hedge Funds |
|
|
Real Assets |
|
| |
|
(In
millions) |
|
| Balance at December 31, 2010 |
|
$ |
31.8 |
|
|
$ |
93.2 |
|
|
$ |
8.0 |
|
| Return on plan assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Unrealized |
|
|
3.2 |
|
|
|
(4.7 |
) |
|
|
0.9 |
|
| Realized |
|
|
- |
|
|
|
0.1 |
|
|
|
0.3 |
|
| Purchases |
|
|
4.1 |
|
|
|
8.7 |
|
|
|
0.9 |
|
| Sales |
|
|
(6.1 |
) |
|
|
(4.4 |
) |
|
|
(0.3 |
) |
| Level 3
transfers, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Balance at December 31, 2011 |
|
$ |
33.0 |
|
|
$ |
92.9 |
|
|
$ |
9.8 |
|
|
Benefit Obligations
|
|
| Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic Benefit Cost |
Weighted-Average Assumptions.
| Weighted-average assumptions used to
determine |
|
Pension Benefits |
|
|
Other Benefits |
|
|
benefit obligations at December 31, |
|
2011 |
|
|
2010 |
|
|
2011 |
|
|
2010 |
|
| Discount rate |
|
|
4.60 |
% |
|
|
5.24 |
% |
|
|
4.29 |
% |
|
|
4.90 |
% |
| Rate of compensation increase |
|
|
4.41 |
% |
|
|
4.37 |
% |
|
|
N/A |
|
|
|
N/A |
|
|
Benefit Costs
|
|
| Weighted-Average Assumptions used to Determine Benefit Obligations and Net Periodic Benefit Cost |
| Weighted-average assumptions used to
determine |
|
Pension Benefits |
|
|
Other Benefits |
|
| net
periodic benefit cost at December 31, |
|
2011 |
|
|
2010 |
|
|
2009 |
|
|
2011 |
|
|
2010 |
|
|
2009 |
|
| Discount rate |
|
|
5.24 |
% |
|
|
5.77 |
% |
|
|
6.27 |
% |
|
|
4.90 |
% |
|
|
5.45 |
% |
|
|
6.22 |
% |
| Expected return on plan assets |
|
|
7.73 |
% |
|
|
7.73 |
% |
|
|
8.02 |
% |
|
|
7.75 |
% |
|
|
7.75 |
% |
|
|
8.00 |
% |
| Rate of compensation increase |
|
|
4.37 |
% |
|
|
4.37 |
% |
|
|
4.38 |
% |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
Pension Benefits
|
|
| Fair Value of Plan Assets |
The fair value of the pension assets at December 31, 2011, is
as follows:
| |
|
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using: |
|
|
Description |
|
|
|
|
Fair Value at
December 31, 2011 |
|
|
Quoted Prices in
Active Markets
for
Identical Assets
(Level 1) |
|
|
Significant
Other
Observable
Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
| |
|
|
|
|
(In
millions) |
|
| Large-Cap Equity |
|
|
(1) (2) |
|
|
$ |
76.4 |
|
|
$ |
73.9 |
|
|
$ |
2.5 |
|
|
$ |
- |
|
| Small and Mid-Cap Equity |
|
|
(1) |
|
|
|
7.2 |
|
|
|
7.2 |
|
|
|
- |
|
|
|
- |
|
| International Equity |
|
|
(1) (2) |
|
|
|
78.2 |
|
|
|
44.6 |
|
|
|
33.6 |
|
|
|
- |
|
| Fixed Income |
|
|
(1) (2) |
|
|
|
210.2 |
|
|
|
14.5 |
|
|
|
195.7 |
|
|
|
- |
|
| Private Equity |
|
|
(3) |
|
|
|
33.0 |
|
|
|
- |
|
|
|
- |
|
|
|
33.0 |
|
| Hedge Funds |
|
|
(4) |
|
|
|
92.9 |
|
|
|
- |
|
|
|
- |
|
|
|
92.9 |
|
| Real Assets |
|
|
(1) (5) |
|
|
|
27.6 |
|
|
|
17.8 |
|
|
|
- |
|
|
|
9.8 |
|
| Cash |
|
|
(1) |
|
|
|
57.5 |
|
|
|
57.5 |
|
|
|
- |
|
|
|
- |
|
| Total |
|
|
|
|
|
$ |
583.0 |
|
|
$ |
215.5 |
|
|
$ |
231.8 |
|
|
$ |
135.7 |
|
| (1) |
Fair value is based on
observable market prices for the assets. |
| (2) |
For the portion of this
asset class categorized as Level 2, fair value is determined using
dealer and broker quotations, certain pricing models, bid prices,
quoted prices for similar assets and liabilities in active markets,
or other inputs that are observable or can be corroborated by
observable market data. |
| |
|
| (3) |
Private equity investments are
initially valued at cost. Fund managers periodically review the
valuations utilizing subsequent company- specific transactions or
deterioration in the company’s financial performance to
determine if fair value adjustments are necessary. Private equity
investments are typically viewed as long term, less liquid
investments with return of capital coming via cash distributions
from the sale of underlying fund assets. The Plan intends to hold
these investments through each fund’s normal life cycle and
wind down period. As of December 31, 2011, we had $23.9
million of remaining commitments related to these private equity
investments. |
| (4) |
Fair value is reported by
the fund manager based on observable market prices for actively
traded assets within the funds, as well as financial models,
comparable financial transactions or other factors relevant to the
specific asset for assets with no observable
market. These investments are redeemable quarterly with
a range of 30 – 90 days notice. |
| (5) |
For the portion of this
asset class categorized as Level 3, fair value is reported by
the fund manager based on a combination of the following valuation
approaches: current replacement cost less deterioration and
obsolescence, a discounted cash flow model of income streams and
comparable market sales. As of December 31, 2011, we had $4.1
million of remaining commitments related to the real asset
investments. |
|
|
Other Benefits
|
|
| Fair Value of Plan Assets |
The fair value of the postretirement assets at December 31,
2011, is as follows:
| |
|
|
|
|
|
|
|
Fair Value Measurements at Reporting Date Using: |
|
|
Description |
|
|
|
|
Fair Value at
December 31, 2011 |
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1) |
|
|
Significant Other
Observable Inputs
(Level 2) |
|
|
Significant
Unobservable
Inputs
(Level 3) |
|
| |
|
|
|
|
(In
millions) |
|
| Large-Cap Equity |
|
|
(1) |
|
|
$ |
2.7 |
|
|
$ |
2.7 |
|
|
$ |
- |
|
|
$ |
- |
|
| Small and Mid-Cap Equity |
|
|
(1) |
|
|
|
0.3 |
|
|
|
0.3 |
|
|
|
- |
|
|
|
- |
|
| International Equity |
|
|
(1) (2) |
|
|
|
2.1 |
|
|
|
1.6 |
|
|
|
0.5 |
|
|
|
- |
|
| Fixed Income |
|
|
(1) (2) |
|
|
|
6.6 |
|
|
|
0.5 |
|
|
|
6.1 |
|
|
|
- |
|
| Private Equity |
|
|
(3) |
|
|
|
1.2 |
|
|
|
- |
|
|
|
- |
|
|
|
1.2 |
|
| Hedge Funds |
|
|
(4) |
|
|
|
3.3 |
|
|
|
- |
|
|
|
- |
|
|
|
3.3 |
|
| Real Assets |
|
|
(1) (5) |
|
|
|
1.0 |
|
|
|
0.6 |
|
|
|
- |
|
|
|
0.4 |
|
| Cash |
|
|
(1) |
|
|
|
2.1 |
|
|
|
2.1 |
|
|
|
- |
|
|
|
- |
|
| Total |
|
|
|
|
|
$ |
19.3 |
|
|
$ |
7.8 |
|
|
$ |
6.6 |
|
|
$ |
4.9 |
|
| (1) |
Fair value is based on
observable market prices for the assets. |
| (2) |
For the portion of this
asset class categorized as Level 2, fair value is determined using
dealer and broker quotations, certain pricing models, bid prices,
quoted prices for similar assets and liabilities in active markets,
or other inputs that are observable or can be corroborated by
observable market data. |
| |
|
| (3) |
Private equity investments are
initially valued at cost. Fund managers periodically review the
valuations utilizing subsequent company- specific transactions or
deterioration in the company’s financial performance to
determine if fair value adjustments are necessary. Private equity
investments are typically viewed as long term, less liquid
investments with return of capital coming via cash distributions
from the sale of underlying fund assets. The Plan intends to hold
these investments through each fund’s normal life cycle and
wind down period. |
| (4) |
Fair value is reported by
the fund manager based on observable market prices for actively
traded assets within the funds, as well as financial models,
comparable financial transactions or other factors relevant to the
specific asset for assets with no observable market. These
investments are redeemable quarterly with a range of 30 – 90
days notice. |
| (5) |
For the portion of this
asset class categorized as Level 3, fair value is reported by
the fund manager based on a combination of the following valuation
approaches: current replacement cost less deterioration and
obsolescence, a discounted cash flow model of income streams and
comparable market sales. |
|
|
U.S. Retirement Income Plan, or USRIP
|
|
| Asset Allocation Ranges and Actual Allocations |
The following asset allocation ranges and actual allocations were
in effect as of December 31, 2011 and 2010:
| |
|
|
|
|
Actual |
|
|
USRIP |
|
Range |
|
|
2011 |
|
|
2010 |
|
| Large-Cap Equity |
|
|
10%-35% |
|
|
|
13.9 |
% |
|
|
16.6 |
% |
| Small- and Mid-Cap Equity |
|
|
0%-15% |
|
|
|
1.3 |
% |
|
|
5.2 |
% |
| International Equity |
|
|
10%-30% |
|
|
|
10.7 |
% |
|
|
13.7 |
% |
| Private Equity |
|
|
2%-10% |
|
|
|
6.2 |
% |
|
|
6.1 |
% |
| Hedge Funds |
|
|
10%-30% |
|
|
|
17.3 |
% |
|
|
18.0 |
% |
| Real Assets |
|
|
2%-10% |
|
|
|
5.2 |
% |
|
|
6.3 |
% |
| Fixed Income |
|
|
15%-40% |
|
|
|
34.8 |
% |
|
|
33.1 |
% |
| Cash |
|
|
0%-15% |
|
|
|
10.6 |
% |
|
|
1.0 |
% |
|
|
Canadian Retirement Income Plan, or CRIP
|
|
| Asset Allocation Ranges and Actual Allocations |
The following specifies the asset allocation ranges and actual
allocation as of December 31, 2011 and 2010:
| |
|
|
|
|
Actual |
|
|
CRIP |
|
Range |
|
|
2011 |
|
|
2010 |
|
| Canadian Equities |
|
|
25%-50% |
|
|
|
34.8 |
% |
|
|
35.3 |
% |
| U.S. Equities |
|
|
0%-19% |
|
|
|
5.2 |
% |
|
|
4.9 |
% |
| International Equities |
|
|
0%-19% |
|
|
|
8.9 |
% |
|
|
8.9 |
% |
| Fixed Income |
|
|
30%-70% |
|
|
|
50.5 |
% |
|
|
50.3 |
% |
| Money Market |
|
|
0%-10% |
|
|
|
0.6 |
% |
|
|
0.6 |
% |
|