Quarterly report pursuant to Section 13 or 15(d)

Pension and Other Postretirement Benefits

v2.4.0.8
Pension and Other Postretirement Benefits
 9 Months Ended
Sep. 27, 2014
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Postretirement Benefits
Note 16 – Pension and Other 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 are largely discretionary and 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 16 to the consolidated financial statements in the 2013 Form 10-K for further details regarding these plans.
 
Pension and other postretirement benefit costs included the following components for the three months ended September 27, 2014 and September 28, 2013:
 
Pension Benefits
 
Other Postretirement Benefits
 
Three Months Ended
 
Three Months Ended
(in millions)
September 27,
2014
 
September 28,
2013
 
September 27,
2014
 
September 28,
2013
Service cost
$
—

 
$
—

 
$
—

 
$
—

Interest cost
14.7

 
13.5

 
0.4

 
0.5

Expected return on plan assets
(14.7
)
 
(14.2
)
 
—

 
—

Amortization of prior service credits
—

 
—

 
(0.2
)
 
(1.4
)
Amortization of net actuarial losses
3.7

 
5.3

 
—

 
0.3

Net pension and other benefit costs
$
3.7

 
$
4.6

 
$
0.2

 
$
(0.6
)

Pension and other postretirement benefit costs included the following components for the nine months ended September 27, 2014 and September 28, 2013:
 
Pension Benefits
 
Other Postretirement Benefits
 
Nine Months Ended
 
Nine Months Ended
(in millions)
September 27,
2014
 
September 28,
2013
 
September 27,
2014
 
September 28,
2013
Service cost
$
—

 
$
0.1

 
$
—

 
$
—

Interest cost
44.0

 
40.5

 
1.4

 
1.5

Expected return on plan assets
(44.1
)
 
(42.7
)
 
—

 
—

Amortization of prior service credits
—

 
—

 
(0.6
)
 
(4.3
)
Amortization of net actuarial losses
11.2

 
16.0

 
—

 
0.9

Net pension and other benefit costs
$
11.1

 
$
13.9

 
$
0.8

 
$
(1.9
)


Portions of Net pension and other benefit costs are recorded in Selling, general and administrative expenses as well as capitalized into inventory. Costs capitalized into inventory are eventually realized through Cost of sales in the Condensed Consolidated Statements of Comprehensive Income.
Effective September 1, 2014 through October 31, 2014, a voluntary lump-sum pension payment opportunity was offered to certain terminated vested U.S. pension plan participants. Settlement payments for those participants electing to receive lump sums will be funded with pension plan assets and will be completed by the end of 2014. The Company expects to incur a settlement loss in conjunction with the payments, however, since the final result of the offering is presently unknown, the Company is unable to provide an estimate of its impact on the financial statements.

Employer Contributions and Benefit Payments. During the nine months ended September 27, 2014 and September 28, 2013, the Company contributed $2.4 million and $2.5 million, respectively, to fund benefit payments to its nonqualified pension plan.  During the nine months ended September 27, 2014 and September 28, 2013, the Company contributed $70.2 million and $23.3 million to its qualified pension plans, respectively. Company contributions are subject to change based on market conditions, pension funding regulations and Company discretion.