CW 2020 Annual Report

Year Ended December 31, 2020

Year Ended December 31, 2019

Year Ended December 31, 2018

Principal actuarial assumptions

Discount rate

1.6% 2.5%

2.4% 3.4%

2.9% 4.2%

Expected return on plan assets

The Company evaluates these assumptions on a regular basis taking into consideration current market conditions and historical market data. A lower discount rate would increase the present value of the benefit obligation. Other changes in actuarial assumptions, such as plan participants’ life expectancy, can also have a material impact on the net benefit obligation.

Year Ended December 31, 2020

Year Ended December 31, 2019

Major categories of plan assets:

Equity instruments

33% 67%

34% 66%

Debt, cash and other instruments Total - Major categories of plan assets

100%

100%

Plan assets of $237.5 million and $200.0 million were held within instruments whose fair values can be readily determinable, but do not have regular active market pricing (Level 2) as of December 31, 2020 and 2019, respectively. Assets include marketable equity securities in both U.K. and U.S. companies, including U.S. and non-U.S. equity funds. Debt securities consist of mainly fixed income bonds, such as corporate or government bonds. For certain funds, the assets are valued using bid-market valuations provided by the funds’ investment managers. The plans do not invest directly in property occupied by the Company or in financial securities issued by the Company. In addition, plan assets of $6.8 million were held within instruments with unobservable inputs (Level 3) as of December 31, 2020. These assets include private credit funds. As of December 31, 2020, plans assets of $11.1 million were held within instruments whose fair values can be readily determinable through observable, quoted prices in active markets (Level 1), and these assets consist primarily of cash. The investment strategies are set by the independent trustees of the plans and are established to achieve a reasonable balance between risk and return and to cover administrative expenses, as well as to maintain funds at a level to meet any applicable minimum funding requirements. The actual asset allocations as of December 31, 2020 and 2019 approximate each plan’s target asset allocation percentages and are consistent with the

objectives of the trustees, particularly in relation to diversification, risk, expected return and liquidity. Expected future benefit payments for the defined benefit pension plans are as follows (in millions): Year Ending December 31,

Payment

2021 2022 2023 2024 2025

$

8.0 8.1 8.8 8.9 8.9

From 2026 to 2030

45.4

83