Quarterly report pursuant to Section 13 or 15(d)

Postretirement Benefits

v3.19.3
Postretirement Benefits
 9 Months Ended
Sep. 28, 2019
Defined Benefit Plan [Abstract]  
Pension and Other Postretirement Benefits Postretirement Benefits

The Company has defined contribution plans, qualified and nonqualified defined benefit pension plans and other postretirement benefit plans covering substantially all of its employees. The Company's contributions to its defined contribution plans include matching and annual discretionary contributions which are based on various percentages of compensation, and in some instances are based on the amount of the employees' contributions to the plans. See Note 18 in the Notes to Consolidated Financial Statements in the 2018 Form 10-K for further details regarding these plans.

Pension Settlement. During 2019, total settlement payments of $672.9 million were made from the Brunswick Pension Plan for Salaried Employees (Salaried Plan) and the Brunswick Pension Plan for Hourly Bargaining Unit Employees (Bargaining Plan), consisting of lump-sum pension distributions of $77.1 million and the purchase of group annuity contracts totaling $595.8 million to cover future benefit payments. The annuity contracts unconditionally and irrevocably guarantee the full payment of all future annuity payments to the affected participants. The insurance company assumed all risk associated with the assets and obligations that were transferred. The Company recognized a pretax settlement loss of $294.1 million in the third quarter related to these actions.

Pension and other postretirement benefit costs included the following components for the three months and nine months ended September 28, 2019 and September 29, 2018:
 
Pension Benefits
 
Other Postretirement Benefits
 
Three Months Ended
 
Nine Months Ended
 
Three Months Ended
 
Nine Months Ended
(in millions)
Sep 28,
2019
 
Sep 29,
2018
 
Sep 28,
2019
 
Sep 29,
2018
 
Sep 28,
2019
 
Sep 29,
2018
 
Sep 28,
2019
 
Sep 29,
2018
Interest cost
$
0.7

 
$
5.8

 
$
5.9

 
$
17.2

 
$
0.3

 
$
0.3

 
$
0.9

 
$
0.8

Expected return on plan assets
(0.6
)
 
(6.4
)
 
(7.4
)
 
(19.1
)
 
—

 
—

 
—

 
—

Amortization of prior service credits
—

 
—

 
—

 
—

 
(0.1
)
 
(0.2
)
 
(0.5
)
 
(0.5
)
Amortization of net actuarial losses
0.6

 
2.6

 
5.7

 
7.7

 
—

 
—

 
—

 
—

Settlement loss
294.1

 
—

 
294.1

 
—

 
—

 
—

 
—

 
—

Net pension and other benefit costs
$
294.8

 
$
2.0

 
$
298.3

 
$
5.8

 
$
0.2

 
$
0.1

 
$
0.4

 
$
0.3



Employer Contributions and Benefit Payments. During the the nine months ended September 28, 2019 and September 29, 2018, the company contributed $3.5 million and $160.0 million, respectively to its qualified pension plans. Company contributions are subject to change based on funding regulations and Company discretion. During the nine months ended September 28, 2019 and September 29, 2018, the Company contributed $3.3 million and $2.7 million, respectively, to fund benefit payments to its nonqualified pension plan.