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Benefit Plans
 12 Months Ended
Dec. 31, 2019
Defined Benefit Plan [Abstract]  
Benefits Plans Disclosure BENEFIT PLANS
The Company maintains a number of retirement and other post-retirement employee benefit plans.
Certain subsidiaries sponsor defined contribution plans. Benefits are determined and funded annually based upon the terms of the plans. Amounts recognized as cost under these plans amounted to $18.8 million, $18.9 million, and $17.2 million for the years ended December 31, 2019, 2018, and 2017, respectively.
Certain subsidiaries sponsor defined benefit plans. Benefits are provided to employees primarily based upon years of service and employees’ compensation for certain periods during the last years of employment. Prior to 2002, the Company’s U.S. operations also provided post-retirement medical benefits to their employees. Contributions for medical benefits are related to employee years of service.
The following tables set forth the change in benefit obligation, the change in plan assets, the funded status, and amounts recognized in the consolidated financial statements for the Company’s defined benefit plans and post-retirement plan at December 31, 2019 and 2018:
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Other Benefits
 
Total
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Change in benefit obligation:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Benefit obligation at beginning of year
$
130,202

 
$
142,571

 
$
864,095

 
$
918,478

 
$
2,186

 
$
2,673

 
$
996,483

 
$
1,063,722

Service cost, gross
1,063

 
1,090

 
30,665

 
30,721

 
—

 
—

 
31,728

 
31,811

Interest cost
4,585

 
4,242

 
10,192

 
8,630

 
64

 
66

 
14,841

 
12,938

Actuarial losses (gains)
14,449

 
(10,019
)
 
84,262

 
(40,469
)
 
(129
)
 
(167
)
 
98,582

 
(50,655
)
Plan amendments and other
—

 
—

 
—

 
974

 
(576
)
 
(8
)
 
(576
)
 
966

Benefits paid
(7,849
)
 
(7,682
)
 
(38,181
)
 
(36,379
)
 
(250
)
 
(378
)
 
(46,280
)
 
(44,439
)
Impact of foreign currency
—

 
—

 
10,230

 
(17,860
)
 
—

 
—

 
10,230

 
(17,860
)
Benefit obligation at end of year
$
142,450

 
$
130,202

 
$
961,263

 
$
864,095

 
$
1,295

 
$
2,186

 
$
1,105,008

 
$
996,483

Change in plan assets:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Fair value of plan assets at beginning of year
$
95,541

 
$
111,567

 
$
767,410

 
$
808,215

 
$
—

 
$
—

 
$
862,951

 
$
919,782

Actual return on plan assets
15,037

 
(8,419
)
 
76,732

 
(34,102
)
 
—

 
—

 
91,769

 
(42,521
)
Employer contributions
83

 
75

 
25,323

 
26,032

 
250

 
227

 
25,656

 
26,334

Plan participants’ contributions
—

 
—

 
15,130

 
15,176

 
—

 
151

 
15,130

 
15,327

Benefits paid
(7,849
)
 
(7,682
)
 
(38,181
)
 
(36,379
)
 
(250
)
 
(378
)
 
(46,280
)
 
(44,439
)
Impact of foreign currency and other
—

 
—

 
15,548

 
(11,532
)
 
—

 
—

 
15,548

 
(11,532
)
Fair value of plan assets at end of year
$
102,812

 
$
95,541

 
$
861,962

 
$
767,410

 
$
—

 
$
—

 
$
964,774

 
$
862,951

Funded status
$
(39,638
)
 
$
(34,661
)
 
$
(99,301
)
 
$
(96,685
)
 
$
(1,295
)
 
$
(2,186
)
 
$
(140,234
)
 
$
(133,532
)

Amounts recognized in the consolidated balance sheets consist of:
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Other Benefits
 
Total
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Other non-current assets
$
—

 
$
—

 
$
44,536

 
$
46,014

 
$
—

 
$
—

 
$
44,536

 
$
46,014

Accrued and other liabilities
(126
)
 
(110
)
 
(5,023
)
 
(4,884
)
 
(239
)
 
(431
)
 
(5,388
)
 
(5,425
)
Pension and other post-retirement liabilities
(39,512
)
 
(34,551
)
 
(138,813
)
 
(137,815
)
 
(1,057
)
 
(1,755
)
 
(179,382
)
 
(174,121
)
Accumulated other comprehensive loss (income)
64,269

 
61,344

 
286,370

 
260,820

 
(924
)
 
(910
)
 
349,715

 
321,254

Total
$
24,631

 
$
26,683

 
$
187,070

 
$
164,135

 
$
(2,220
)
 
$
(3,096
)
 
$
209,481

 
$
187,722


The following amounts have been recognized in accumulated other comprehensive income (loss), before taxes, at December 31, 2019 and have not yet been recognized as a component of net periodic pension cost:
 
U.S. Pension
Benefits
 
Non-U.S. Pension
Benefits
 
Other Benefits
 
Total
 
Total, After Tax
Plan amendments and prior service cost
$
—

 
$
(15,925
)
 
$
(576
)
 
$
(16,501
)
 
$
(13,041
)
Actuarial losses (gains)
64,269

 
302,295

 
(348
)
 
366,216

 
283,444

Total
$
64,269

 
$
286,370

 
$
(924
)
 
$
349,715

 
$
270,403


The following changes in plan assets and benefit obligations were recognized in other comprehensive income (loss), before taxes, for the year ended December 31, 2019:
 
U.S. Pension
Benefits
 
Non-U.S. Pension
Benefits
 
Other Benefits
 
Total
 
Total, After Tax
Net actuarial losses (gains)
$
5,299

 
$
36,692

 
$
(129
)
 
$
41,862

 
$
32,699

Plan amendment
—

 
—

 
(576
)
 
(576
)
 
(430
)
Amortization of:
 
 
 
 
 
 


 
 
Actuarial (losses) gains
(2,374
)
 
(20,505
)
 
691

 
(22,188
)
 
(17,594
)
Plan amendments and prior service cost
—

 
6,721

 
—

 
6,721

 
5,450

Impact of foreign currency
—

 
2,642

 
—

 
2,642

 
2,108

Total
$
2,925

 
$
25,550

 
$
(14
)
 
$
28,461

 
$
22,233


The accumulated benefit obligations at December 31, 2019 and 2018 were $142.5 million and $130.2 million, respectively, for the U.S. defined benefit pension plan and $812.0 million and $731.4 million, respectively, for all non-U.S. plans. Certain of the plans included within non-U.S. pension benefits have accumulated benefit obligations which exceed the fair value of plan assets. The projected benefit obligation, the accumulated benefit obligation, and fair value of assets of these plans as of December 31, 2019 were $195.3 million, $184.4 million, and $51.5 million, respectively.
The assumed discount rates and rates of increase in future compensation levels used in calculating the projected benefit obligations vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows:
 
U.S.
 
Non-U.S.
 
2019
 
2018
 
2019
 
2018
Discount rate
3.03
%
 
4.11
%
 
0.51
%
 
1.22
%
Compensation increase rate
n/a

 
n/a

 
0.86
%
 
0.87
%
Expected long-term rate of return on plan assets
6.25
%
 
6.50
%
 
3.76
%
 
3.84
%

The assumed discount rates, rates of increase in future compensation levels, and the long-term rate of return used in calculating the net periodic pension cost vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows:
 
U.S.
 
Non-U.S.
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Discount rate
4.11
%
 
3.49
%
 
3.97
%
 
1.22
%
 
0.97
%
 
0.98
%
Compensation increase rate
n/a

 
n/a

 
n/a

 
0.87
%
 
0.87
%
 
0.85
%
Expected long-term rate of return on plan assets
6.50
%
 
6.50
%
 
6.75
%
 
3.84
%
 
3.86
%
 
4.09
%

Net periodic pension cost and net periodic post-retirement benefit for the defined benefit plans and U.S. post-retirement plan include the following components for the years ended December 31:
 
U.S.
 
Non-U.S.
 
Other Benefits
 
Total
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
Service cost, net
$
1,063

 
$
1,090

 
$
565

 
$
15,534

 
$
15,545

 
$
16,341

 
$
—

 
$
—

 
$
—

 
$
16,597

 
$
16,635

 
$
16,906

Interest cost on projected benefit obligations
4,585

 
4,242

 
4,374

 
10,192

 
8,630

 
8,511

 
64

 
66

 
70

 
14,841

 
12,938

 
12,955

Expected return on plan assets
(5,887
)
 
(6,929
)
 
(6,737
)
 
(29,162
)
 
(31,005
)
 
(30,349
)
 
—

 
—

 
—

 
(35,049
)
 
(37,934
)
 
(37,086
)
Recognition of actuarial losses/(gains) and prior service costs
2,374

 
5,804

 
6,556

 
13,784

 
14,575

 
16,247

 
(691
)
 
(1,623
)
 
(2,674
)
 
15,467

 
18,756

 
20,129

Net periodic pension cost / (benefit)
$
2,135

 
$
4,207

 
$
4,758

 
$
10,348

 
$
7,745

 
$
10,750

 
$
(627
)
 
$
(1,557
)
 
$
(2,604
)
 
$
11,856

 
$
10,395

 
$
12,904


The amounts remaining in accumulated other comprehensive income (loss) that are expected to be recognized as a component of net periodic pension cost during 2020 are as follows:
 
U.S. Pension
Benefits
 
Non-U.S.
Pension Benefits
 
Other Benefits
 
Total
Plan amendments and prior service costs
$
—

 
$
(6,904
)
 
$
(75
)
 
$
(6,979
)
Actuarial losses (gains)
2,578

 
22,694

 
(28
)
 
25,244

Total
$
2,578

 
$
15,790

 
$
(103
)
 
$
18,265


The projected post-retirement benefit obligation was principally determined using discount rates of 2.54% in 2019 and 2.65% in 2018. Net periodic post-retirement benefit cost was principally determined using discount rates of 3.75% in 2019, 3.15% in 2018, and 3.41% in 2017. The health care cost trend rate was 6.2% in 2019, 6.4% in 2018, and 7.0% in 2017, decreasing to 4.50% in 2027. A one-percentage-point change in health care cost trend rates would have an immaterial impact on total service and interest cost components and the post-retirement benefit obligation.
The Company’s overall asset investment strategy is to achieve long-term growth while minimizing volatility by widely diversifying among asset types and strategies. Target asset allocations and investment return criteria are established by the pension committee or designated officers of each plan. Target asset allocation ranges for the U.S. pension plan include 40-60% in equity securities, 13-33% in fixed income securities, and 15-25% in other types of investments. International plan assets relate primarily to the Company’s Swiss plan with target allocations of 24-45% in equities, 35-55% in fixed income securities, and 15-25% in other types of investments. Actual results are monitored against targets and the trustees are required to report to the members of each plan, including an analysis of investment performance on an annual basis at a minimum. Day-to-day asset management is typically performed by third-party asset managers, reporting to the pension committees or designated officers.
The long-term rate of return on plan asset assumptions used to determine pension expense under U.S. GAAP is generally based on estimated future returns for the target investment mix determined by the trustees as well as historical investment performance.
The following table presents the fair value measurement of the Company’s plan assets by hierarchy level:
 
December 31, 2019
 
December 31, 2018
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Observable
Inputs for
Identical
Assets
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Observable
Inputs for
Identical
Assets
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
Asset Category:
 
 
 
 
 
 
 

 
 

 
 

 
 

 
 

Cash and Cash Equivalents
$
104,144

 
$
—

 
$
—

 
$
104,144

 
$
111,484

 
$
—

 
$
—

 
$
111,484

Equity Securities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Mettler-Toledo Stock
2,620

 
—

 
—

 
2,620

 
2,436

 
—

 
—

 
2,436

Equity Mutual Funds:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S.(1)
7,245

 
29,885

 
—

 
37,130

 
4,989

 
22,569

 
—

 
27,558

International(2)
62,569

 
53,188

 
—

 
115,757

 
68,544

 
45,892

 
—

 
114,436

Emerging Markets(3)
110,972

 
822

 
—

 
111,794

 
95,146

 
692

 
—

 
95,838

Fixed Income Securities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Corporate/Government Bonds(4)
84,020

 
—

 
—

 
84,020

 
71,644

 
—

 
—

 
71,644

Fixed Income Mutual Funds:
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Insurance Contracts(5)
—

 
37,459

 
1,486

 
38,945

 
—

 
22,852

 
1,461

 
24,313

Core Bond(6)
116,629

 
61,960

 
—

 
178,589

 
95,493

 
54,448

 
—

 
149,941

Real Asset Mutual Funds:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real Estate(7)
95,580

 
14,185

 
—

 
109,765

 
83,879

 
13,838

 
—

 
97,717

Commodities(8)
47,697

 
—

 
—

 
47,697

 
40,267

 
—

 
—

 
40,267

Other Types of Investments:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Debt Securities (9)
39,275

 
—

 
—

 
39,275

 
38,616

 
—

 
—

 
38,616

Global Allocation Funds(10)
12,269

 
—

 
—

 
12,269

 
11,195

 
10,562

 
—

 
21,757

Insurance Linked Securities(11)
18,434

 
—

 
—

 
18,434

 
18,664

 
—

 
—

 
18,664

Total assets in fair value hierarchy
$
701,454

 
$
197,499

 
$
1,486

 
$
900,439

 
$
642,357

 
$
170,853

 
$
1,461

 
$
814,671

Investments measured at net asset value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
International(2)
 
 
 
 
 
 
3,288
 
 
 
 
 
 
 
2,792

Emerging Markets (3)
 
 
 
 
 
 
6,650
 
 
 
 
 
 
 
4,889
Multi-Strategy Fund of Hedge Funds (12)
 
 
 
 
 
 
54,397
 
 
 
 
 
 
 
40,599
Total pension assets at fair value
 
 
 
 
 
 
$
964,774

 
 
 
 
 
 
 
$
862,951


_______________________________________
(1)
Represents primarily large capitalization equity mutual funds tracking the S&P 500 Index.
(2)
Represents all capitalization core and value equity mutual funds located primarily in Switzerland, the United Kingdom, and Canada.
(3)
Represents core and growth mutual funds and funds of mutual funds invested in emerging markets primarily in Eastern Europe, Latin America, and Asia.
(4)
Represents investments in high-grade corporate and government bonds located in Switzerland and the European Union.
(5)
Represents fixed and variable rate annuity contracts provided by insurance companies.
(6)
Represents fixed income mutual funds invested in the U.S., the United Kingdom, Switzerland, and European government bonds, high-grade corporate bonds, mortgage-backed securities, and collateralized mortgage obligations.
(7)
Represents mutual funds invested in real estate located primarily in Switzerland.
(8)
Represents commodity funds invested across a broad range of sectors.
(9)
Represents a loan to a wholly owned subsidiary of the Company. See Note 10 for additional disclosure.
(10)
Represents mutual funds invested globally in both equities and fixed income securities.
(11)
Represents a broadly diversified portfolio of assets that carry exposure to insurance risks, particularly insurance linked securities.
(12)
Represents investments in underlying globally diversified hedge funds. Investments that are measured using the net asset value (NAV) per share practical expedient have not been categorized in the fair value hierarchy. The amounts presented above are intended to permit reconciliation of the fair value hierarchy to the fair value of total plan assets in order to determine the amounts included in the consolidated balance sheet.
The fair value of the Company’s stock and corporate and government bonds are valued at the year-end closing price as reported on the securities exchange on which they are traded. Mutual funds are valued at the exchange-listed year-end closing price or at the net asset value of shares held by the fund at the end of the year. Insurance contracts are valued by discounting the related cash flows using a current year-end market rate or at cash surrender value, which is presumed to equal fair value. Funds of hedge funds are valued at the net asset value of shares held by the fund at the end of the year.
The following table presents a roll-forward of activity for the years ended December 31, 2019 and 2018 for Level 3 asset categories:
 
Insurance
Contracts
Balance at December 31, 2017
$
1,514

Actual return on plan assets related to assets held at end of year
14

Sales
(85
)
Purchases
82

Impact of foreign currency
(64
)
Balance at December 31, 2018
$
1,461

Actual return on plan assets related to assets held at end of year
14

Sales
(54
)
Purchases
83

Impact of foreign currency
(18
)
Balance at December 31, 2019
$
1,486


There were no transfers between any asset levels during the years ended December 31, 2019 and 2018.
The following benefit payments, which reflect expected future service as appropriate, are expected to be paid:
 
U.S. Pension
Benefits
 
Non-U.S. Pension
Benefits
 
Other Benefits Net of
Subsidy
 
Total
2020
$
8,247

 
$
44,024

 
$
239

 
$
52,510

2021
8,427

 
45,587

 
191

 
54,205

2022
8,549

 
44,554

 
146

 
53,249

2023
8,700

 
45,206

 
120

 
54,026

2024
8,776

 
46,141

 
106

 
55,023

2025-2029
43,317

 
224,446

 
371

 
268,134


In 2020, the Company expects to make employer pension contributions of approximately $25.6 million to its non-U.S. pension plan and employer contributions of approximately $0.2 million to its U.S. post-retirement medical plan.