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Network
2317301 - Disclosure - Pension and Postretirement Benefits (Tables)
(http://www.verisk.com/role/PensionAndPostretirementBenefitsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0001442145 (http://www.sec.gov/CIK)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Compensation and Retirement Disclosure [Abstract]
 
Summary of Changes in Benefit Obligations and Plan Assets Amount Recognized
The following table sets forth the changes in the benefit obligations and the plan assets, the (funded) unfunded status of the Pension Plan, SERP and Postretirement Plan, and the amounts recognized in the Company’s consolidated balance sheets at December 31:
 
Pension Plan and SERP

Postretirement Plan
 
2016

2015

2016

2015
Change in benefit obligation:











Benefit obligation at January 1
$
419.6


$
471.3


$
15.8


$
18.7

Interest cost

19.3



18.1



0.4



0.5

Actuarial loss (gain)

28.5



(44.2
)


(1.4
)


(1.6
)
Plan amendments

—



3.8



—



—

Plan participants’ contributions

—



—



1.9



1.9

Benefits paid

(29.0
)


(29.4
)


(4.4
)


(4.4
)
Federal subsidy on benefits paid

—



—



0.5



0.7

Benefit obligation at December 31
$
438.4


$
419.6


$
12.8


$
15.8

Accumulated benefit obligation at December 31
$
438.4


$
419.6








Change in plan assets:













Fair value of plan assets at January 1
$
438.6


$
475.3


$
13.0


$
15.2

Actual return on plan assets, net of expenses

33.9



(8.2
)


0.1



—

Employer contributions, net

1.0



0.9



—



(0.4
)
Plan participants’ contributions

—



—



1.9



1.9

Benefits paid

(29.0
)


(29.4
)


(4.4
)


(4.4
)
Subsidies received

—



—



0.5



0.7

Fair value of plan assets at December 31
$
444.5


$
438.6


$
11.1


$
13.0

(Funded) unfunded status at December 31
$
(6.1
)

$
(19.0
)

$
1.7


$
2.8

Amounts recognized in the consolidated balance sheets consist of:
 
 
 
 
 
 
 
 
 
 
 
Pension assets, noncurrent
$
(19.6
)
 
$
(32.9
)
 
$
—

 
$
—

Pension, SERP and postretirement benefits, current
 
0.9

 
 
1.0

 
 
—

 
 
0.8

Pension, SERP and postretirement benefits, noncurrent
 
12.6

 
 
12.9

 
 
1.7

 
 
2.0

Total Pension, SERP and Postretirement benefits
$
(6.1
)
 
$
(19.0
)
 
$
1.7

 
$
2.8

  
Summary of Pre-Tax Components of Accumulated Other Comprehensive Losses
The following is a summary of accumulated other comprehensive losses as of December 31:
 
2016

2015
Foreign currency translation adjustment
$
(561.4
)

$
(165.8
)
Unrealized gains on available-for-sale securities, net of tax

0.3



—

Pension and postretirement adjustment, net of tax

(89.7
)


(76.2
)
Accumulated other comprehensive losses
$
(650.8
)

$
(242.0
)
The pre-tax components included within accumulated other comprehensive losses as of December 31 are summarized below:
 
Pension Plan and SERP

Postretirement Plan
 
2016

2015

2016

2015
Prior service benefit cost (credit)
$
3.7


$
3.8


$
(0.8
)

$
(0.9
)
Actuarial losses

139.6



116.4



5.2



6.7

Accumulated other comprehensive losses, pretax
$
143.3


$
120.2


$
4.4


$
5.8

  
Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive Income
The pre-tax components of net periodic benefit (credit) cost and the amounts recognized in other comprehensive loss are summarized below for the years ended December 31:
 
Pension Plan and SERP

Postretirement Plan
 
2016

2015

2014

2016

2015

2014
Interest cost
$
19.3


$
18.1


$
19.0


$
0.4


$
0.5


$
0.6

Expected return on plan assets

(31.7
)


(34.4
)


(33.9
)


(0.5
)


(0.6
)


(0.8
)
Amortization of prior service cost (credit) reclassified from accumulated other comprehensive losses

0.1



—



—



(0.1
)


(0.1
)


(0.1
)
Amortization of net actuarial loss reclassified from accumulated other comprehensive losses

3.2



2.8



0.8



0.4



0.6



0.5

Net periodic benefit (credit) cost

(9.1
)


(13.5
)


(14.1
)


0.2



0.4



0.2

Amortization of prior service benefit cost (credit) reclassified from accumulated other comprehensive losses

(0.1
)


—



—



0.1



0.1



0.1

Amortization of actuarial loss reclassified from accumulated other comprehensive losses

—



(0.2
)


(0.4
)


—



—



—

Net loss recognized reclassified from accumulated other comprehensive losses

(3.2
)


(2.6
)


(0.4
)


(0.4
)


—



—

Plan amendments
 
—

 
 
3.8

 
 
—

 
 
—

 
 
—

 
 
—

Actuarial gain (loss)

26.4



(1.5
)


59.3



(1.1
)


(1.6
)


(0.8
)
Total recognized in other comprehensive loss

23.1



(0.5
)


58.5



(1.4
)


(1.5
)


(0.7
)
Total recognized in net periodic benefit cost (credit) and other comprehensive loss
$
14.0


$
(14.0
)

$
44.4


$
(1.2
)

$
(1.1
)

$
(0.5
)
  
Summary of Accumulated Other Comprehensive Losses Recognized in Net Periodic Benefit
The estimated amounts in accumulated other comprehensive losses that are expected to be recognized as components of net periodic benefit (credit) cost during 2017 are summarized below:

Pension Plan
and SERP

Postretirement
Plan

Total
Amortization of prior service benefit cost (credit)
$
0.2


$
(0.1
)

$
0.1

Amortization of net actuarial loss

4.0



0.4



4.4

Total
$
4.2


$
0.3


$
4.5

  
Summary of Weighted-Average Assumptions Used in Calculating Net Periodic Benefit (Credit) Cost
The weighted-average assumptions used to determine benefit obligations as of December 31, 2016 and 2015 and net periodic benefit (credit) cost for the years 2016, 2015 and 2014 are provided below:
 
Pension Plan and SERP

Postretirement Plan
Weighted-average assumptions used to determine benefit obligations:
2016
 
2015
 
 
 
2016
 
2015
 
 
Discount rate
3.99
%
 
4.73
%
 
 
 
3.25
%
 
3.25
%
 
 
Expected return on plan assets
7.25
%
 
7.50
%
 
 
 
3.00
%
 
4.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions used to determine net periodic benefit (credit) loss:
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Discount rate
4.73
%

3.99
%

4.73
%

3.25
%

3.00
%

3.45
%
Expected return on plan assets
7.50
%

7.50
%

7.50
%

4.00
%

4.00
%

5.00
%
  
Summary of Estimated Future Benefit Payments for Respective Plans
The following table presents the estimated future benefit payments for the respective plans. The future benefit payments for the Postretirement Plan are net of the federal Medicare subsidy.
 
Pension Plan
and SERP

Postretirement
Plan
 
Gross Benefit
Amount

Gross Benefit
Amount

Medicare Subsidy
Payments

Net Benefit
Amount
2017
$
31.1


$
2.2


$
(0.4
)

$
1.8

2018
$
30.3


$
2.0


$
(0.3
)

$
1.7

2019
$
30.8


$
1.8


$
(0.3
)

$
1.5

2020
$
29.9


$
1.6


$
(0.3
)

$
1.3

2021
$
30.2


$
1.4


$
(0.3
)

$
1.1

2022-2026
$
141.3


$
5.0


$
(0.5
)

$
4.5

  
Summary of Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates
A 1.00% change in assumed healthcare cost trend rates would have the following effects:

1%
Increase

1%
Decrease
Effect of total service and interest cost components of net periodic postretirement healthcare benefit cost
$
—


$
—

Effect on the healthcare component of the accumulated postretirement benefit obligation
$
0.3


$
(0.3
)
  
Summary of Asset Allocation and Target Allocation
The following table summarizes the fair value measurements by level of the Pension Plan and Postretirement Plan assets:

Total

Quoted Prices
in Active Markets
for Identical
Assets (Level 1)

Significant Other
Observable
Inputs (Level 2)

Significant
Unobservable
Inputs (Level 3)
December 31, 2016











Equity











Managed equity accounts (1)
$
210.2


$
210.2


$
—


$
—

Equity — pooled separate account (2)

63.2



—



63.2



—

Equity — partnerships (3)

0.2



—



—



0.2

Debt











Fixed income manager — pooled separate account (2)

167.9



—



167.9



—

Fixed income manager — government securities (4)

11.1



11.1



—



—

Other











Cash — pooled separate account (2)

3.0



—



3.0



—

Total
$
455.6


$
221.3


$
234.1


$
0.2

December 31, 2015











Equity











Managed equity accounts (1)
$
215.6


$
215.6


$
—


$
—

Equity — pooled separate account (2)

47.3



—



47.3



—

Equity — partnerships (3)

0.2



—



—



0.2

Debt















Fixed income manager — pooled separate account (2)

173.7



—



173.7



—

Fixed income manager — government securities (4)

13.0



13.0



—



—

Other











Cash — pooled separate account (2)

1.8



—



1.8



—

Total
$
451.6


$
228.6


$
222.8


$
0.2


(1)
Valued at the closing price of shares for domestic stocks within the managed equity accounts, and valued at the net asset value (“NAV”) of shares for mutual funds at either the closing price reported in the active market or based on yields currently available on comparable securities of issuers with similar credit ratings for corporate bonds held by the Pension Plan in these managed accounts.
(2)
The pooled separate accounts invest in domestic and foreign stocks, bonds and mutual funds. The fair values of these stocks, bonds and mutual funds are publicly quoted and are used in determining the NAV of the pooled separate account, which is not publicly quoted.
(3)
Investments for which readily determinable prices do not exist are valued by the General Partner using either the market or income approach. In establishing the estimated fair value of investments, including those without readily determinable values, the General Partner assumes a reasonable period of time for liquidation of the investment, and takes into consideration the financial condition and operating results of the underlying portfolio company, nature of investment, restrictions on marketability, holding period, market conditions, foreign currency exposures, and other factors the General Partner deems appropriate.
(4)
The fund invested in the U.S. government, its agencies or instrumentalities or securities that are rated AAA by S&P, AAA by Fitch, or Aaa by Moody’s, including but not limited to mortgage securities such as agency and non-agency collateralized mortgage obligations, and other obligations that are secured by mortgages or mortgage backed securities, and valued at the closing price reported in the active market.
The asset allocation at December 31, 2016 and 2015, and target allocation for 2017 by asset category are as follows:
Asset Category
Target
Allocation
 
Percentage of Plan Assets
2016
 
2015
Equity securities
60.00
%
 
61.60
%
 
60.00
%
Debt securities
40.00
%
 
37.80
%
 
39.60
%
Other
—
%
 
0.60
%
 
0.40
%
Total
100.00
%
 
100.00
%
 
100.00
%