DFS Annual Report

Notes to the Consolidated and Combined Financial Statements (in millions, except per share data, unless otherwise indicated)-(Continued) The components of the estimated net pension plan (income) expense for Donnelley Financial’s pension plans for the years ended December 31, 2016, 2015 and 2014 were as follows: Pension Benefits 2016 2015 2014 Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $— $ — $ 0.1 Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 147.3 161.7 Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.1) (210.7) (224.5) Amortization of actuarial loss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.7 36.4 29.1 Settlements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — — 95.7 Net periodic benefit (income) expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(1.0) $ (27.0) $ 62.1 Income allocated to RRD affiliates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . — 25.2 31.0 Net periodic benefit (income) expense, net of allocation . . . . . . . . . . . . . . . . $(1.0) $ (1.8) $ 93.1 Weighted average assumption used to calculate net periodic benefit expense: Discount rate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.7% 4.2% 5.0% Expected return on plan assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3% 7.5% 7.8% Reconciliation of funded status Pension Benefits Other Postretirement Benefits 2016 2015 2016 Benefit obligation at beginning of year . . . . . . . . . . . . . . . . . . . . . . . $ 3.2 $ 3,631.1 $— Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 147.3 — Actuarial gain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (24.7) (254.0) (0.3) Plan transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317.0 (3,363.2) 1.5 Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.6) (158.0) — Benefit obligation at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . $293.3 $ 3.2 $ 1.2 Fair value of plan assets at beginning of year . . . . . . . . . . . . . . . . . . $ — $ 3,219.9 $— Actual return on assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9.6) (33.8) — Employer contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 — — Plan transfer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 248.7 (3,028.1) — Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (4.6) (158.0) — Fair value of plan assets at end of year . . . . . . . . . . . . . . . . . . . . . . . . $235.8 $ — $— Funded status at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (57.5) $ (3.2) $(1.2) The accumulated benefit obligation for all defined benefits pension plans was $294.5 million and $3.2 million at December 31, 2016 and 2015, respectively. Pension Benefits Other Postretirement Benefits 2016 2015 2016 Prepaid pension cost (included in other noncurrent assets) . . . . . . . . . . . . $ — $ 0.1 $— Accrued benefit cost (included in accrued liabilities) . . . . . . . . . . . . . . . . (2.2) (3.3) (0.1) Pension and other postretirement benefits plan liabilities . . . . . . . . . . . . . (55.3) — (1.1) Net liabilities recognized in the Consolidated and Combined Balance Sheets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $(57.5) $(3.2) $(1.2) F-18