CW 2020 Annual Report

Changes in the net asset/ liability for defined benefit plans were as follows (in millions):

As of December 31, 2020

As of December 31, 2019

Change in pension benefit obligations: Balance at beginning of year

$

(209.2) $

(182.9)

Service cost Interest cost

(0.4) (4.1)

(0.3) (5.2)

Actuarial losses

(32.5)

(20.8)

Benefits paid

10.5

8.7

Foreign exchange movement

(7.6)

(8.7)

Balance at end of year

(243.3)

(209.2)

Change in pension plan assets: Balance at beginning of year

223.9

188.2

Actual return on plan assets

28.9

30.2

Employer contributions

5.2

5.3

Benefits paid

(10.4)

(8.7)

Foreign exchange movement

7.8

8.9

Balance at end of year

255.4

223.9

$

12.1 $

14.7

Over funded status at end of year

Total amounts recognized in the Consolidated Statements of Operations were as follows (in millions): Year Ended December 31, 2020

Year Ended December 31, 2019

Year Ended December 31, 2018

Service and other cost

$

(0.4) $

(0.3) $

—

Interest cost

(4.1)

(5.2)

(5.1)

Expected return on assets

6.1

7.9

8.4

Settlement loss

(0.3)

—

—

Amortization of net loss Net periodic pension benefit

—

(0.1)

(0.1)

$

1.3 $

2.3 $

3.2

Total actuarial gains and losses recognized in Accumulated other comprehensive loss were as follows (in millions): Year Ended December 31, 2020 Year Ended December 31, 2019

Year Ended December 31, 2018

Cumulative actuarial losses at beginning of year

$

(1.3) $

(3.4) $

(6.4)

Actuarial gains (losses) recognized during the period, net of tax

(3.9)

2.2 0.1

1.8 0.1 1.1

1

Amortization of net loss

—

Foreign exchange movement

(0.3)

(0.2)

Cumulative actuarial losses at end of year

$

(5.5) $

(1.3) $

(3.4)

(1)

Actuarial gains (losses) recognized are reported net of tax benefit of $0.6 million, $0.8 million and $0.6 million for the years ended December 31, 2020, 2019 and 2018, respectively. The expected rate of return on plan assets has been calculated by taking a weighted average of the expected return on assets, weighted by the actual asset allocation at each reporting period. The Company uses investment services to assist with determining the overall expected rate of return on pension plan assets. Factors considered in this determination include historical long-term investment performance and estimates of future long-term returns by asset class. The discount rate is determined using a cash flow matching method and a yield curve which is based on AA corporate bonds with extrapolation beyond 30 years in line with a gilt yield curve to 50 years. For beyond 50 years, due to absence of data, flat forward rates are assumed.

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