Effect of Changes in the Expected Return on Assets and Constancy of Other Assumptions: At December 31, 2019, as compared with December 31, 2018, we decreased our discount rate for the U.S. plan from 4.34% to 3.41% based on an analysis of publicly-traded investment grade U.S. corporate bonds, which had lower yields due to current market conditions. The average discount rate for the non-U.S. plans decreased from 2.42% to 1.61% based on analysis of bonds and other publicly-traded instruments, by country, which had lower yields due to market conditions. The average assumed rate of compensation remained unchanged at 3.50% for the U.S. plan and decreased to 3.12% from 3.28% for our non-U.S. plans. To determine the 2019 pension expense, the expected rate of return on U.S. plan assets remained constant at 6.00% and we decreased our average rate of return on non-U.S. plan assets from 3.62% to 3.37%, primarily based on our target allocations and expected long-term asset returns. As the expected rate of return on plan assets is long-term in nature, short-term market fluctuations do not significantly impact the rate. For all U.S. plans, we adopted the Pri-2012 mortality tables and the MP-2019 improvement scale published in October 2019. We applied the Pri-2012 tables based on the constituency of our plan population for union and non-union participants. We adjusted the improvement scale to utilize 75% of the ultimate improvement rate, consistent with assumptions adopted by the Social Security Administration trustees, based on long-term historical experience. Currently, we believe this approach provides the best estimate of our future obligation. Most plan participants elect to receive plan benefits as a lump sum at the end of service, rather than an annuity. As such, the updated mortality tables had an immaterial effect on our pension obligation. We expect that the net pension expense for our defined benefit pension plans included in earnings before income taxes will be approximately $3.6 million higher in 2020 than the $30.8 million in 2019, primarily due to an increase in the amortization of actuarial losses and no anticipated special events. We have used discount rates of 3.41%, 1.61% and 3.27% at December 31, 2019, in calculating our estimated 2020 net pension expense for the U.S. pension plans, non-U.S. pension plans and postretirement medical plans, respectively. The assumed ranges for the annual rates of increase in health care costs were 7.5% for 2019, 7.0% for 2018 and 7% for 2017, with a gradual decrease to 5.0% for 2029 and future years. If actual costs are higher than those assumed, this will likely put modest upward pressure on our expense for retiree health care. Our funding policy for defined benefit plans is to contribute at least the amounts required under applicable laws and local customs. We contributed $37.3 million, $48.1 million and $44.9 million to our defined benefit plans in 2019, 2018 and 2017, respectively. After consideration of our intent to remain fully-funded based on standards set by law, we currently anticipate that our contribution to our U.S. pension plan in 2020 will be approximately $20 million, excluding direct benefits paid. We expect to contribute approximately $2 million to our non-U.S. pension plans in 2020, excluding direct benefits paid. For further discussion of our pension and postretirement benefits, see Note 13 to our consolidated financial statements included in Item 8 of this Annual Report. The process of preparing financial statements in conformity with U.S. GAAP requires the use of estimates and assumptions to determine reported amounts of certain assets, liabilities, revenues and expenses and the disclosure of related contingent assets and liabilities. These estimates and assumptions are based upon information available at the time of the estimates or assumptions, including our historical experience, where relevant. The most significant estimates made by management include: timing and amount of revenue recognition; deferred taxes, tax valuation allowances and tax reserves; reserves for contingent loss; pension and postretirement benefits; and valuation of goodwill, indefinite-lived intangible assets and other long-lived assets. The significant estimates are reviewed at least annually if not quarterly by management. Because 44 OUR CRITICAL ACCOUNTING ESTIMATES Plan Funding 0.5% Increase 0.5% Decrease (Amounts in millions) U.S. defined benefit pension plan: Effect on net pension expense $ (2.1) $ 2.1 Non-U.S. defined benefit pension plans: Effect on net pension expense (1.1) 1.1 As discussed below, accounting principles generally accepted in the U.S. (“U.S. GAAP”) provide that differences between expected and actual returns are recognized over the average future service of employees or over the remaining expected lifetime for plans with only inactive participants.