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Employee Benefits
 12 Months Ended
Dec. 31, 2014
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Employee Benefits
Employee Benefits
Defined Contribution Plans
U.S. Plans
The Company has a defined contribution savings plan covering all U.S. regular full-time and part-time employees whereby eligible employees may elect to contribute up to 100% of their annual compensation, subject to an annual plan limit in line with the annual elective contribution limit as determined by the Internal Revenue Service. The Company matches 100% of an employee's contribution up to the first 4% of such employee's compensation. The Company may, at its discretion, make an additional non-matching contribution in an amount as the board of directors may determine. For the years ended December 31, 2014, 2013 and 2012, the Company charged approximately $6,856, $6,022 and $5,180, respectively, to expense for these contributions.
Further, within the defined contribution savings plan, the Company also makes an annual retirement contribution to substantially all employees of one subsidiary and certain employees of another subsidiary who have completed one year of service. The Company's contributions to the plan are determined as a percentage of employees' base and overtime pay. For the years ended December 31, 2014, 2013 and 2012, the Company charged approximately $8,309, $6,227 and $6,310, respectively, to expense for these contributions.
Non-U.S. Plans
As a result of the Vinnolit acquisition, the Company assumed various defined contribution plans in Germany, the United Kingdom, Italy and Belgium. The Company's contributions to the plans are based on applicable laws in each country. Contributions to the Company's non-U.S. defined contribution plans are made by both the employee and the Company. For the period from July 31, 2014 to December 31, 2014, the Company charged approximately $416 to expense for its contributions to these plans.
Defined Benefit Plans
U.S. Plans
The Company has noncontributory defined benefit pension plans that cover certain eligible salaried and wage employees of one subsidiary. However, eligibility for both plans has been frozen. Benefits for salaried employees under these plans are based primarily on years of service and employees' pay near retirement. Benefits for wage employees are based upon years of service and a fixed amount as periodically adjusted. The Company recognizes the years of service prior to the Company's acquisition of the subsidiary's facilities for purposes of determining vesting, eligibility and benefit levels for certain employees of the subsidiary and for determining vesting and eligibility for certain other employees of the subsidiary. The measurement date for these plans is December 31.
In December 2014, the Company announced a plan amendment to one of the Company's defined benefit pension plans. Under the plan amendment, no additional benefits may be earned by participants after January 31, 2015 and participants' accrued benefit will freeze at the level earned as of January 31, 2015. In addition, the amendment added a lump sum payment option effective February 1, 2015. The Company made a similar plan amendment to its other defined benefit pension plan in 2012. In conjunction with both of the defined benefit pension plans' amendments, the Company amended, in 2014 and 2012, its defined contribution savings plan to allow participants impacted by the amendments to participate in the Company's annual retirement contribution program.
Non-U.S. Plans
In conjunction with the Vinnolit acquisition, the Company assumed certain defined benefit pension plans. These pension plans are closed to new participants and are for employees in Germany who commenced employment before July 1, 2007. Benefits for employees for these plans are based primarily on employees' pay near retirement. The non-U.S. plans are unfunded as no contributions have been made to the plans and therefore, have no plan assets. The measurement date for these plans is December 31.
Details of the changes in benefit obligations, plan assets and funded status of the Company's pension plans are as follows:
 
 
2014
 
2013
 
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
Change in benefit obligation
 
 
 
 
 
 
Benefit obligation, beginning of year
 
$
57,946

 
$
—

 
$
65,313

Benefit obligation assumed with acquisition
 
—

 
117,970

 
—

Service cost
 
334

 
602

 
1,091

Interest cost
 
2,322

 
1,366

 
2,047

Actuarial loss (gain)
 
9,165

 
15,425

 
(8,163
)
Benefits paid
 
(2,757
)
 
(898
)
 
(2,342
)
Foreign exchange effects
 
—

 
(11,764
)
 
—

Benefit obligation, end of year
 
$
67,010

 
$
122,701

 
$
57,946

 
 
 
 
 
 
 
Change in plan assets
 
 
 
 
 
 
Fair value of plan assets, beginning of year
 
$
49,236

 
$
—

 
$
42,325

Actual return
 
2,953

 
—

 
7,159

Employer contribution
 
3,983

 
898

 
2,094

Benefits paid
 
(2,757
)
 
(898
)
 
(2,342
)
Fair value of plan assets, end of year
 
$
53,415

 
$
—

 
$
49,236

Funded status, end of year
 
$
(13,595
)
 
$
(122,701
)
 
$
(8,710
)

 
 
2014
 
2013
 
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
Amounts recognized in the consolidated
   balance sheet at December 31
 
 
 
 
 
 
Noncurrent liabilities
 
$
(13,595
)
 
$
(122,701
)
 
$
(8,710
)
Net amount recognized
 
$
(13,595
)
 
$
(122,701
)
 
$
(8,710
)

 
 
2014
 
2013
 
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
Amounts recognized in accumulated other
   comprehensive income
 
 
 
 
 
 
Net loss
 
$
15,482

 
$
15,425

 
$
6,404

Prior service cost
 
—

 
—

 
297

Total before tax (1)
 
$
15,482

 
$
15,425

 
$
6,701



______________________________
(1)
After-tax totals for pension benefits were $20,315 and $3,994 for 2014 and 2013, respectively, and are reflected in stockholders' equity as accumulated other comprehensive loss.
In the United States, the Pension Protection Act of 2006 (the "Pension Protection Act") established a relationship between a qualified pension plan's funded status and the actual benefits that can be provided. Restrictions on plan benefits and additional funding and notice requirements are imposed when a plan's funded status is less than certain threshold levels. For the 2014 plan year, the funded status for the Company's U.S. pension plans are above 80%, with one plan's funded status slightly above 100% and the other plan's funded status slightly below 100%. Accordingly, the Company's U.S. pension plans are exempt from the Pension Protection Act's benefit restrictions.
Pension plans with an accumulated benefit obligation in excess of plan assets at December 31 are as follows:
 
 
2014
 
2013
Information for pension plans with an accumulated
   benefit obligation in excess of plan assets
 
U.S. Plans
 
Non-U.S. Plans
 
U.S. Plans
Projected benefit obligation
 
$
(67,010
)
 
$
(122,701
)
 
$
(57,946
)
Accumulated benefit obligation
 
(67,010
)
 
(119,258
)
 
(57,946
)
Fair value of plan assets
 
53,415

 
—

 
49,236


The following table provides the components of net periodic benefit costs, other changes in plan assets and benefit obligation recognized in other comprehensive income.
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
 
 
U.S.
Plans
 
Non-U.S.
Plans
 
U.S.
Plans
 
U.S.
Plans
Components of net periodic benefit cost
 
 
 
 
 
 
 
 
Service cost
 
$
334

 
$
602

 
$
1,091

 
$
1,005

Interest cost
 
2,322

 
1,366

 
2,047

 
2,580

Expected return on plan assets
 
(3,140
)
 
—

 
(2,854
)
 
(2,490
)
Net amortization
 
571

 
—

 
2,255

 
2,071

Net periodic benefit cost
 
$
87

 
$
1,968

 
$
2,539

 
$
3,166

 
 
 
 
 
 
 
 
 
Other changes in plan assets and
   benefit obligation recognized in
   other comprehensive income (OCI)
 
 
 
 
 
 
 
 
Net loss (gain) emerging
 
$
9,352

 
$
15,425

 
$
(12,468
)
 
$
7,765

Curtailment
 
—

 
—

 
—

 
(5,484
)
Amortization of net loss
 
(274
)
 
—

 
(1,958
)
 
(1,774
)
Amortization of prior service cost
 
(297
)
 
—

 
(297
)
 
(297
)
Total recognized in OCI
 
$
8,781

 
$
15,425

 
$
(14,723
)
 
$
210

Total net periodic benefit cost and OCI
 
$
8,868

 
$
17,393

 
$
(12,184
)
 
$
3,376

The estimated prior service cost and net loss for the defined benefit plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2015 are expected to be zero and $2,308, respectively.
The weighted-average assumptions used to determine pension plan obligations and net periodic benefit costs for the plans are as follows:
 
 
2014
 
2013
 
2012
 
 
U.S.
Plans
 
Non-U.S.
Plans
 
U.S.
Plans
 
U.S.
Plans
Weighted average assumptions used to
   determine benefit obligations at
   December 31
 
 
 
 
 
 
 
 
Discount rate
 
3.5
%
 
1.9
%
 
4.5
%
 
3.3
%
Expected return on plan assets
 
7.0
%
 
—
%
 
7.0
%
 
7.0
%
Rate of compensation increase
 
—
%
 
2.5
%
 
4.0
%
 
4.0
%
Weighted average assumptions used to
   determine net periodic benefit costs for
   years ended December 31
 
 
 
 
 
 
 
 
Discount rate
 
4.5
%
 
2.6
%
 
3.3
%
 
4.5
%
Expected return on plan assets
 
7.0
%
 
—
%
 
7.0
%
 
7.0
%
Rate of compensation increase
 
—
%
 
2.5
%
 
4.0
%
 
4.0
%

The Company's return on asset assumption of 7.0% for its U.S. plans is based on historical asset returns, anticipated future performance of the investments and financial markets and input from the Company's third-party independent actuary and the pension fund trustee. There are no plan assets for the Company's non-U.S. plans. The discount rates for the Company's U.S. and non-U.S. plans are determined using a benchmark pension discount curve and applying spot rates from the curve to each year of expected benefit payments to determine the appropriate discount rate for the Company.
The Company's overall investment strategy for its U.S. plan assets is to achieve a balance between moderate income generation and capital appreciation. The investment strategy includes a mix of approximately 55% of investments for long-term growth and 45% for near-term benefit payments with a diversification of asset types. The Company does not believe that there are significant concentrations of risk in the pension plan assets due to its strategy of asset diversification. The pension fund investment policy allows the pension fund trustee a 10% discretionary range in the asset allocation model, with a target of approximately 55% equity securities and 45% fixed income. The Company expects to maintain the 55/45 investment policy for the near future. Equity securities primarily include investments in large-cap and small-cap companies located in the United States and international developed market stocks. Fixed income securities are comprised of investment grade bonds, including U.S. Treasuries and corporate bonds of companies from diversified industries. At December 31, 2014, plan assets did not include direct ownership of the Company's common stock.
Under the accounting guidance for fair value measurements, inputs used to measure fair value are classified in one of three levels:
Level 1: Quoted market prices in active markets for identical assets or liabilities.
Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
The investments in the bank collective trust funds are valued using a market approach based on the net asset value of units held. The fair values of the Company's U.S. plan assets at December 31, by asset category, are as follows:
 
 
2014
 
2013
 
 
U.S. Plans
 
U.S. Plans
 
 
Level 2
 
Total
 
Level 2
 
Total
Bank collective trust funds—Equity securities:
 
 
 
 
 
 
 
 
Large-cap index funds (1)
 
$
19,473

 
$
19,473

 
$
17,079

 
$
17,079

Small-cap index funds (2)
 
3,351

 
3,351

 
3,091

 
3,091

International index funds (3)
 
8,474

 
8,474

 
7,482

 
7,482

Bank collective trust funds—Fixed income:
 
 
 
 
 
 
 
 
Bond index funds (4)
 
21,495

 
21,495

 
21,333

 
21,333

Short term investment funds
 
622

 
622

 
251

 
251

 
 
$
53,415

 
$
53,415

 
$
49,236

 
$
49,236


______________________________
(1)
Substantially all of the assets of these funds are invested in large-cap U.S. companies. The remainder of the assets of these funds is invested in cash reserves.
(2)
Substantially all of the assets of these funds are invested in small-cap U.S. companies. The remainder of the assets of these funds is invested in cash reserves.
(3)
Substantially all of the assets of these funds are invested in international companies in developed markets (excluding the United States and Canada). The remainder of the assets of these funds is invested in cash reserves.
(4)
This category represents investment grade bonds of U.S. issuers, including U.S. Treasury notes.
The Company's funding policy for its U.S. plans is consistent with the minimum funding requirements of federal law and regulations, and based on preliminary estimates, the Company expects to make no contribution for the salaried pension plan and a contribution of approximately $349 for the wage pension plan in 2015.
Multi-employer Plans
Non-U.S. Plans
As a result of the Vinnolit acquisition, the Company participates in two multi-employer plans, Pensionskasse der Mitarbeiter der Hoechst-Gruppe VVaG and Pensionskasse der Wacker-Chemie GmbH VVaG, which provide benefits to certain of the Company's employees in Germany. These multi-employer plans are closed to new participants. The benefit obligations are covered up to a certain salary threshold by contributions made by the Company and employees to the plans.
Contributions to the Company's multi-employer plans are expensed as incurred and were as follows:
 
 
Year Ended December 31,
 
 
2014
 
 
Non-U.S.
Plans
Contributions to multi-employer plans (1)
 
$
2,295


______________________________
(1)
The plan information for both the Pensionskasse der Mitarbeiter der Hoechst-Gruppe VVaG and Pensionskasse der Wacker-Chemie GmbH VVaG plans is publicly available. The plans provide fixed, monthly retirement payments on the basis of the credits earned by the participating employees. To the extent that the plans are underfunded, future contributions to the plans may increase and may be used to fund retirement benefits for employees related to other employers. The Company does not consider either of its multi-employer plans individually significant.
Other Post-retirement Benefits
U.S. Plans
The Company provides post-retirement healthcare benefits to the employees of two subsidiaries who meet certain minimum age and service requirements. The Company has the right to modify or terminate some of these benefits. The following table provides a reconciliation of the benefit obligations of the Company's unfunded post-retirement healthcare plans.
 
 
2014
 
2013
 
 
U.S. Plans
 
U.S. Plans
Change in benefit obligation
 
 
 
 
Benefit obligation, beginning of year
 
$
19,958

 
$
21,383

Service cost
 
22

 
30

Interest cost
 
733

 
623

Actuarial loss (gain)
 
989

 
(501
)
Benefits paid
 
(1,525
)
 
(1,577
)
Benefit obligation, end of year
 
$
20,177

 
$
19,958

 
 
 
 
 
Change in plan assets
 
 
 
 
Fair value of plan assets, beginning of year
 
$
—

 
$
—

Employer contribution
 
1,525

 
1,577

Benefits paid
 
(1,525
)
 
(1,577
)
Fair value of plan assets, end of year
 
$
—

 
$
—

Funded status, end of year
 
$
(20,177
)
 
$
(19,958
)
 
 
2014
 
2013
 
 
U.S. Plans
 
U.S. Plans
Amounts recognized in the consolidated balance sheet at December 31
 
 
 
 
Current liabilities
 
$
(1,798
)
 
$
(1,835
)
Noncurrent liabilities
 
(18,379
)
 
(18,123
)
Net amount recognized
 
$
(20,177
)
 
$
(19,958
)
 
 
2014
 
2013
 
 
U.S. Plans
 
U.S. Plans
Amounts recognized in accumulated other comprehensive income
 
 
 
 
Net loss
 
$
5,171

 
$
4,484

Prior service cost
 
—

 
50

Total before tax (1)
 
$
5,171

 
$
4,534


______________________________
(1)
After-tax totals for post-retirement healthcare benefits were $3,127 and $2,702 for 2014 and 2013, respectively, and are reflected in stockholders' equity as accumulated other comprehensive loss.
The following table provides the components of net periodic benefit costs, other changes in plan assets and benefit obligation recognized in other comprehensive income.
 
 
Year Ended December 31,
 
 
2014
 
2013
 
2012
 
 
U.S. Plans
 
U.S. Plans
 
U.S. Plans
Components of net periodic benefit cost
 
 
 
 
 
 
Service cost
 
$
22

 
$
30

 
$
9

Interest cost
 
733

 
623

 
745

Net amortization
 
353

 
457

 
269

Net periodic benefit cost
 
$
1,108

 
$
1,110

 
$
1,023

 
 
 
 
 
 
 
Other changes in plan assets and benefit obligation recognized in
   other comprehensive income (OCI)
 
 
 
 
 
 
Net loss (gain) emerging
 
$
989

 
$
(501
)
 
$
2,021

Amortization of net loss
 
(303
)
 
(373
)
 
(185
)
Amortization of prior service cost
 
(50
)
 
(84
)
 
(84
)
Total recognized in OCI
 
$
636

 
$
(958
)
 
$
1,752

Total net periodic benefit cost and OCI
 
$
1,744

 
$
152

 
$
2,775

The estimated prior service cost and net loss for the post-retirement healthcare benefit plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2015 are expected to be zero and $384, respectively.
The weighted-average assumptions used to determine post-retirement healthcare plan obligations and net periodic benefit costs for the plans are as follows:
 
 
2014
 
2013
 
2012
 
 
U.S. Plans
 
U.S. Plans
 
U.S. Plans
Weighted average assumptions used to determine benefit
   obligations at December 31
 
 
 
 
 
 
Discount rate
 
3.3
%
 
4.0
%
 
3.0
%
Weighted average assumptions used to determine net periodic
   benefit costs for years ended December 31
 
 
 
 
 
 
Discount rate
 
4.0
%
 
3.0
%
 
4.0
%
The discount rate is determined using a benchmark pension discount curve and applying spot rates from the curve to each year of expected benefit payments to determine the appropriate discount rate for the Company. Assumed healthcare trend rates do not have a significant effect on the amounts reported for the healthcare plans because benefits for participants are capped at a fixed amount.
Estimated Future Benefit Payments
The following benefit payments are expected to be paid:
 
 
Pension
Benefits
 
Post-
retirement
Healthcare
Estimated future benefit payments:
 
 
 
 
Year 1
 
$
9,095

 
$
1,798

Year 2
 
8,420

 
1,945

Year 3
 
7,968

 
2,109

Year 4
 
8,702

 
2,068

Year 5
 
8,928

 
1,784

Years 6 to 10
 
41,469

 
5,852