Page 37 - 2019 Annual Report

NOTES TO FINANCIAL STATEMENTS (continued)

Benefit obligations and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets
are as follows:

December 31
(in millions) 2019 2018
Projected benefit obligation $ 107.1 $ 98.7
Accumulated benefit obligation $ 96.4 $ 85.5
Fair value of plan assets $ 0.6 $ 0.6

Weighted‐average assumptions used to determine benefit obligations as of December 31 are:

2019 2018
Discount rate 3.69% 4.38%
Rate of increase in future compensation levels 4.50% 4.50%

Weighted‐average assumptions used to determine net periodic benefit cost for the years ended December 31 are:

2019 2018 2017
Discount rate 4.38% 3.76% 4.29%
Rate of increase in future compensation levels 4.50% 4.50% 4.50%
Expected long‐term rate of return on assets 6.75% 6.75% 6.75%

The expected long‐term rate of return on assets is based on a building‐block approach, whereby the components are weighted
based on the allocation of pension plan assets.
As of December 31, 2019 and 2018, the Company estimated the remaining lives of participants in the pension plans using the
Pri‐2012 and RP‐2014 Base tables, respectively. The no‐collar table was used for salaried participants and the blue‐collar table
was used for hourly participants; both tables were adjusted to reflect the experience of the Company’s participants. The
Company used the MP‐2018 mortality improvement scale for the years 2019 and 2018.
The target allocation for 2019 and the actual pension plan asset allocation by asset class are as follows:

Percentage of Plan Assets
2019
Target December 31
Asset Class Allocation 2019 2018
Equity securities 56% 64% 57%
Debt securities 30% 28% 32%
Hedge funds 4% 3% 6%
Real estate 10% 5% 5%
Total 100% 100% 100%

The Company’s investment strategy is for approximately 45% of equity securities, excluding hedge funds and real estate, to be
invested in mid‐sized to large capitalization U.S. funds, with the remaining invested in small capitalization, emerging markets
and international funds. Debt securities, or fixed income investments, are invested in funds benchmarked to the Barclays U.S.
Aggregate Bond Index.

Celebrating 25 Years as a Public Company Annual Report ♦ Page 35