Benefit Plans

12 Months Ended

Dec. 31, 2020

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 $19.3 million, $18.8 million, and $18.9 million for the years ended December 31, 2020, 2019, and 2018, 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, 2020 and 2019:

	U.S. Pension Benefits				Non-U.S. Pension Benefits				Other Benefits				Total
	2020		2019		2020		2019		2020		2019		2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	142,450	$	130,202	$	961,263	$	864,095	$	1,295	$	2,186	$	1,105,008	$	996,483
Service cost, gross	1,304		1,063		33,995		30,665		—		—		35,299		31,728
Interest cost	3,556		4,585		4,778		10,192		25		64		8,359		14,841
Actuarial losses (gains)	10,733		14,449		43,508		84,262		(70)		(129)		54,171		98,582
Plan amendments and other	—		—		112		—		—		(576)		112		(576)
Benefits paid	(8,096)		(7,849)		(39,412)		(38,181)		(220)		(250)		(47,728)		(46,280)
Impact of foreign currency	—		—		87,567		10,230		—		—		87,567		10,230
Benefit obligation at end of year	$	149,947	$	142,450	$	1,091,811	$	961,263	$	1,030	$	1,295	$	1,242,788	$	1,105,008
Change in plan assets:
Fair value of plan assets at beginning of year	$	102,812	$	95,541	$	861,962	$	767,410	$	—	$	—	$	964,774	$	862,951
Actual return on plan assets	9,223		15,037		39,535		76,732		—		—		48,758		91,769
Employer contributions	5,523		83		26,249		25,323		220		250		31,992		25,656
Plan participants’ contributions	—		—		15,681		15,130		—		—		15,681		15,130
Benefits paid	(8,096)		(7,849)		(39,412)		(38,181)		(220)		(250)		(47,728)		(46,280)
Impact of foreign currency and other	—		—		80,307		15,548		—		—		80,307		15,548
Fair value of plan assets at end of year	$	109,462	$	102,812	$	984,322	$	861,962	$	—	$	—	$	1,093,784	$	964,774
Funded status	$	(40,485)	$	(39,638)	$	(107,489)	$	(99,301)	$	(1,030)	$	(1,295)	$	(149,004)	$	(140,234)

The change in the benefit obligation for 2020 and 2019 includes an actuarial loss primarily related to a decline in discount rates, offset in part by plan asset returns.

The accumulated benefit obligations at December 31, 2020 and 2019 were $149.9 million and $142.5 million, respectively, for the U.S. defined benefit pension plan and $920.3 million and $812.0 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, 2020 were $216.7 million, $205.3 million, and $57.4 million, respectively. 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.

Amounts recognized in the consolidated balance sheets consist of:

	U.S. Pension Benefits				Non-U.S. Pension Benefits				Other Benefits				Total
	2020		2019		2020		2019		2020		2019		2020		2019
Other non-current assets	$	—	$	—	$	51,619	$	44,536	$	—	$	—	$	51,619	$	44,536
Accrued and other liabilities	(133)		(126)		(5,549)		(5,023)		(153)		(239)		(5,835)		(5,388)
Pension and other post-retirement liabilities	(40,353)		(39,512)		(153,559)		(138,813)		(877)		(1,057)		(194,789)		(179,382)
Accumulated other comprehensive loss (income)	69,296		64,269		332,280		286,370		(891)		(924)		400,685		349,715
Total	$	28,810	$	24,631	$	224,791	$	187,070	$	(1,921)	$	(2,220)	$	251,680	$	209,481

The following amounts have been recognized in accumulated other comprehensive income (loss), before taxes, at December 31, 2020 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	$	—	$	(9,857)	$	(501)	$	(10,358)	$	(8,262)
Actuarial losses (gains)	69,296		342,137		(390)		411,043		322,947
Total	$	69,296	$	332,280	$	(891)	$	400,685	$	314,685

The following changes in plan assets and benefit obligations were recognized in other comprehensive income (loss), before taxes, for the year ended December 31, 2020:

	U.S. Pension Benefits		Non-U.S. Pension Benefits		Other Benefits		Total		Total, After Tax
Net actuarial losses (gains)	$	7,605	$	37,041	$	(70)	$	44,576	$	35,662
Plan amendment	—		112		—		112		93
Amortization of:
Actuarial (losses) gains	(2,578)		(23,251)		28		(25,801)		(20,370)
Plan amendments and prior service cost	—		7,117		75		7,192		5,823
Impact of foreign currency	—		24,891		—		24,891		19,701
Total	$	5,027	$	45,910	$	33	$	50,970	$	40,909

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.
	2020		2019		2020		2019
Discount rate	2.22	%	3.03	%	0.32	%	0.51	%
Compensation increase rate	n/a		n/a		0.86	%	0.86	%
Expected long-term rate of return on plan assets	5.75	%	6.25	%	3.73	%	3.76	%
Interest crediting risk	n/a		n/a		0.50	%	0.80	%

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.
	2020		2019		2018		2020		2019		2018
Discount rate	3.03	%	4.11	%	3.49	%	0.51	%	1.22	%	0.97	%
Compensation increase rate	n/a		n/a		n/a		0.86	%	0.87	%	0.87	%
Expected long-term rate of return on plan assets	6.25	%	6.50	%	6.50	%	3.76	%	3.84	%	3.86	%

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
	2020		2019		2018		2020		2019		2018		2020		2019		2018		2020		2019		2018
Service cost, net	$	1,304	$	1,063	$	1,090	$	18,314	$	15,534	$	15,545	$	—	$	—	$	—	$	19,618	$	16,597	$	16,635
Interest cost on projected benefit obligations	3,556		4,585		4,242		4,778		10,192		8,630		25		64		66		8,359		14,841		12,938
Expected return on plan assets	(6,094)		(5,887)		(6,929)		(33,067)		(29,162)		(31,005)		—		—		—		(39,161)		(35,049)		(37,934)
Recognition of actuarial losses/(gains) and prior service costs	2,578		2,374		5,804		16,134		13,784		14,575		(103)		(691)		(1,623)		18,609		15,467		18,756
Net periodic pension cost / (benefit)	$	1,344	$	2,135	$	4,207	$	6,159	$	10,348	$	7,745	$	(78)	$	(627)	$	(1,557)	$	7,425	$	11,856	$	10,395

The projected post-retirement benefit obligation was principally determined using discount rates of 1.47% in 2020 and 2.54% in 2019. Net periodic post-retirement benefit cost was principally determined using discount rates of 2.54% in 2020, 3.75% in 2019, and 3.15% in 2018. The health care cost trend rate was 6.0% in 2020, 6.2% in 2019, and 6.4% in 2018, decreasing to 4.50% in 2029.

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, 23-33% 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, 2020								December 31, 2019
	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	$	166,614	$	—	$	—	$	166,614	$	104,144	$	—	$	—	$	104,144
Equity Securities:
Mettler-Toledo Stock	3,767		—		—		3,767		2,620		—		—		2,620
Equity Mutual Funds:
U.S.(1)	7,467		30,460		—		37,927		7,245		29,885		—		37,130
International(2)	83,309		41,027		—		124,336		62,569		53,188		—		115,757
Emerging Markets(3)	131,103		966		—		132,069		110,972		822		—		111,794
Fixed Income Securities:
Corporate/Government Bonds(4)	92,085		—		—		92,085		84,020		—		—		84,020
Fixed Income Mutual Funds:
Insurance Contracts(5)	—		43,055		1,793		44,848		—		37,459		1,486		38,945
Core Bond(6)	72,061		64,111		—		136,172		116,629		61,960		—		178,589
Real Asset Mutual Funds:
Real Estate(7)	117,089		15,864		—		132,953		95,580		14,185		—		109,765
Commodities(8)	53,088		—		—		53,088		47,697		—		—		47,697
Other Types of Investments:
Debt Securities (9)	43,060		—		—		43,060		39,275		—		—		39,275
Global Allocation Funds(10)	12,359		—		—		12,359		12,269		—		—		12,269
Insurance Linked Securities(11)	19,038		—		—		19,038		18,434		—		—		18,434
Total assets in fair value hierarchy	$	801,040	$	195,483	$	1,793	$	998,316	$	701,454	$	197,499	$	1,486	$	900,439
Investments measured at net asset value:
International(12)							2,930								3,288
Emerging Markets (12)							7,262								6,650
Multi-Strategy Fund of Hedge Funds (12)							85,276								54,397
Total pension assets at fair value							$	1,093,784							$	964,774

_______________________________________

(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)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, 2020 and 2019 for Level 3 asset categories:

	Insurance Contracts
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
Actual return on plan assets related to assets held at end of year	22
Purchases	99
Impact of foreign currency	186
Balance at December 31, 2020	$	1,793

There were no transfers between any asset levels during the years ended December 31, 2020 and 2019.

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
2021	$	8,382	$	49,784	$	153	$	58,319
2022	8,507		48,687		128		57,322
2023	8,666		49,242		110		58,018
2024	8,750		50,370		98		59,218
2025	8,778		50,415		87		59,280
2026-2030	42,808		246,920		303		290,031

In 2020, the Company expects to make employer pension contributions of approximately $27.9 million to its non-U.S. pension plan and employer contributions of approximately $0.2 million to its U.S. post-retirement medical plan.