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Network
2335301 - Disclosure - Retirement and Postretirement Benefits (Tables)
(http://www.timkensteel.com/role/RetirementAndPostretirementBenefitsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0001598428 (http://www.sec.gov/CIK)
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]
 
Schedule of Changes in Benefit Obligation, Plan Assets, Funded Status and Amounts Recognized in the Consolidated Balance Sheets
The following tables set forth the change in benefit obligation, change in plan assets, funded status and amounts recognized on the Consolidated Balance Sheets for the defined benefit pension plans as of December 31, 2016 and 2015:
 
Pension
 
Postretirement
Change in benefit obligation:
2016
2015
 
2016
2015
Benefit obligation at the beginning of year

$1,163.5


$1,257.5

 

$215.3


$243.3

Service cost
15.6

16.8

 
1.5

1.7

Interest cost
52.4

51.3

 
9.4

9.4

Actuarial losses (gains)
81.1

(88.2
)
 
6.6

(19.9
)
Benefits paid
(79.1
)
(70.2
)
 
(19.5
)
(19.2
)
Plan amendment
—

—

 
0.9

—

Foreign currency translation adjustment
(13.2
)
(3.7
)
 
—

—

Benefit obligation at the end of year

$1,220.3


$1,163.5

 

$214.2


$215.3

 
Pension
 
Postretirement
Change in plan assets:
2016
2015
 
2016
2015
Fair value of plan assets at the beginning of year

$1,144.3


$1,230.0

 

$137.9


$142.6

Actual return on plan assets
78.7

(12.0
)
 
6.1

(0.6
)
Company contributions / payments
2.2

0.5

 
2.7

15.1

Benefits paid
(79.1
)
(70.2
)
 
(19.5
)
(19.2
)
Reimbursement from postretirement plan assets
—

—

 
(13.3
)
—

Foreign currency translation adjustment
(14.4
)
(4.0
)
 
—

—

Fair value of plan assets at end of year

$1,131.7


$1,144.3

 

$113.9


$137.9

Funded status at end of year

($88.6
)

($19.2
)


($100.3
)

($77.4
)
  
Schedule of Amounts Recognized in Balance Sheet
Amounts recognized on the balance sheet at December 31, 2016 and 2015, for TimkenSteel’s pension and postretirement benefit plans include:
 
Pension
 
Postretirement
 
2016
2015
 
2016
2015
Non-current assets

$6.2


$20.7

 

$—


$—

Current liabilities
(0.6
)
(0.6
)
 
(2.4
)
(2.6
)
Non-current liabilities
(94.2
)
(39.3
)
 
(97.9
)
(74.8
)
 

($88.6
)

($19.2
)
 

($100.3
)

($77.4
)
  
Schedule of Amounts Included in Other Comprehensive Loss
Included in accumulated other comprehensive loss at December 31, 2016 and 2015, were the following before-tax amounts that had not been recognized in net periodic benefit cost:
 
Pension
 
Postretirement
 
2016
2015
 
2016
2015
Unrecognized prior service cost

$1.5


$2.1

 

$2.1


$2.4

  
Schedule of Amounts to be Amortized From Accumulated Other Comprehensive Loss and Included in Net Periodic Benefit

Amounts expected to be amortized from accumulated other comprehensive loss and included in total net periodic benefit cost during the year ended December 31, 2017 are as follows:
 
Pension
 
Postretirement
 
 
 
 
Prior service cost

$0.5

 

$1.0

  
Schedule of Weighted-Average Assumptions Used in Determining Benefit Obligation and Cost
The weighted-average assumptions used in determining benefit obligation as of December 31, 2016 and 2015 were as follows:
 
Pension
 
Postretirement
Assumptions:
2016
2015
 
2016
2015
Discount rate
4.17
%
4.67
%
 
4.09
%
4.51
%
Future compensation assumption
3.09
%
2.76
%
 
n/a

n/a

The weighted-average assumptions used in determining benefit cost for the years ended December 31, 2016 and 2015 were as follows:
 
Pension
 
Postretirement
Assumptions:
2016
2015
 
2016
2015
Discount rate
4.67
%
4.21
%
 
4.51
%
4.05
%
Future compensation assumption
3.08
%
3.09
%
 
n/a

n/a

Expected long-term return on plan assets
6.46
%
6.98
%
 
5.00
%
5.00
%
  
Schedule of Net Periodic Benefit Costs
The components of net periodic benefit cost for the years ended December 31, 2016, 2015 and 2014 were as follows:
 
Pension
 
Postretirement
 
Years Ended December 31,
 
Years Ended December 31,
Components of net periodic benefit cost:
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost

$15.6

 

$16.8

 

$10.2

 

$1.5

 

$1.7

 

$1.1

Interest cost
52.4

 
51.3

 
33.3

 
9.4

 
9.4

 
6.5

Expected return on plan assets
(71.1
)
 
(82.8
)
 
(54.6
)
 
(5.8
)
 
(7.1
)
 
(4.6
)
Amortization of prior service cost
0.6

 
0.6

 
0.5

 
1.1

 
1.1

 
0.6

Net remeasurement losses (gains)
73.4

 
5.7

 
98.3

 
6.3

 
(12.2
)
 
15.9

Allocated benefit cost from Timken
—

 
—

 
5.2

 
—

 
—

 
2.2

Net Periodic Benefit Cost

$70.9

 

($8.4
)
 

$92.9

 

$12.5

 

($7.1
)


$21.7

  
Schedule of Fair Value Hierarchy for Plan Assets
The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2016:
 
Total
Level 1
Level 2
Level 3
Assets:
 
 
 
 
Cash and cash equivalents

$45.2


$4.6


$40.6


$—

U.S government and agency securities
220.3

214.2

6.1

—

Corporate bonds
105.2

—

105.2

—

Equity securities
52.2

52.2

—

—

Mutual fund - equity
15.3

—

15.3

—

Mutual fund - real estate
24.8

24.8

—

—

Total Assets in the fair value hierarchy

$463.0


$295.8


$167.2


$—

Assets measured at net asset value (1)
668.7

—

—

—

Total Assets

$1,131.7


$295.8


$167.2


$—


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, hedge funds, and risk parity investments. As of December 31, 2016, these assets are redeemable at net asset value within 90 days.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s pension assets measured at fair value on a recurring basis as of December 31, 2015:
 
Total
Level 1
Level 2
Level 3
Assets:
 
 
 
 
Cash and cash equivalents

$27.8


$2.1


$25.7


$—

U.S government and agency securities
220.7

213.1

7.6

—

Corporate bonds
125.6

—

125.6

—

Equity securities
78.8

78.8

—

—

Mutual fund - equity
16.1

—

16.1

—

Mutual fund - real estate
33.9

33.9

—

—

Total Assets in the fair value hierarchy

$502.9


$327.9


$175.0


$—

Assets measured at net asset value (1)
641.4

—

—

—

Total Assets

$1,144.3


$327.9


$175.0


$—

(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, and risk parity investments. As of December 31, 2015, these assets were redeemable at net asset value within 90 days.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2016:
 
Total
Level 1
Level 2
Level 3
Assets:
 
 
 
 
Cash and cash equivalents

$1.4


$1.4


$—


$—

Total Assets in the fair value hierarchy

$1.4


$1.4


$—


$—

Assets measured at net asset value (1)
112.5

—

—

—

Total Assets

$113.9


$1.4


$—


$—


(1) Certain assets that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have been classified in the fair value hierarchy. Such assets include common collective trusts that invest in equity securities and fixed income securities, limited partnerships, real estate partnerships, hedge funds, and risk parity investments. As of December 31, 2016, these assets are redeemable at net asset value within 90 days.

The following table presents the fair value hierarchy for those investments of TimkenSteel’s postretirement assets measured at fair value on a recurring basis as of December 31, 2015:
 
Total
Level 1
Level 2
Level 3
Assets:
 
 
 
 
Cash and cash equivalents

$1.0


$1.0


$—


$—

Total Assets in the fair value hierarchy

$1.0


$1


$—


$—

Assets measured at net asset value (1)
136.9

—

—

—

Total Assets

$137.9


$1.0


$—


$—

  
Schedule of Future Benefit Payments
Future benefit payments are expected to be as follows:
 
 
 
Postretirement
Benefit Payments:
Pension
 
Gross
 
Medicare Part D Subsidy Receipts
2017

$78.2

 

$20.3

 

$0.7

2018
88.1

 
19.8

 
0.7

2019
76.2

 
19.3

 
0.8

2020
75.2

 
18.4

 
0.9

2021
75.8

 
17.6

 
0.9

2022-2026
373.8

 
77.2

 
5.0