Postretirement Benefits Other Than Pensions

12 Months Ended

Dec. 31, 2020

Postretirement Benefits Other Than Pensions

The Company provides certain retiree health care and life insurance benefits covering certain U.S. salaried and hourly employees and employees in Canada. Employees are generally eligible for benefits upon retirement and completion of a specified number of years of creditable service. The Company’s policy is to fund the cost of these postretirement benefits as these benefits become payable.

Information related to the Company’s postretirement benefit plans was as follows:


	Year Ended December 31,
	2020				2019
	U.S.		Non-U.S.		U.S.		Non-U.S.
Change in benefit obligation:
Benefit obligations at beginning of year	$	22,436	$	23,949	$	25,633	$	21,981
Service cost	103		404		118		397
Interest cost	680		726		864		752
Net actuarial loss	1,603		2,221		1,697		1,705
Benefits paid	(1,403)		(663)		(1,491)		(570)
Divestiture	—		—		(4,405)		(1,513)
Other	—		—		20		61
Foreign currency exchange rate effect	—		395		—		1,136
Benefit obligation at end of year	$	23,419	$	27,032	$	22,436	$	23,949

Funded status of the plan	$	(23,419)	$	(27,032)	$	(22,436)	$	(23,949)

Net amount recognized as of December 31	$	(23,419)	$	(27,032)	$	(22,436)	$	(23,949)


	December 31, 2020				December 31, 2019
	U.S.		Non-U.S.		U.S.		Non-U.S.
Amounts recognized in the consolidated balance sheet:
Accrued liabilities	$	(1,648)	$	(968)	$	(1,686)	$	(840)
Postretirement benefits other than pension (long term)	(21,771)		(26,064)		(20,750)		(23,109)

Pre-tax amounts included in accumulated other comprehensive loss that have not yet been recognized in net periodic benefit (income) cost as of December 31, 2020 and 2019 were as follows:


	December 31, 2020				December 31, 2019
	U.S.		Non-U.S.		U.S.		Non-U.S.
Prior service credits	$	—	$	—	$	55	$	93
Actuarial gains (losses)	11,018		(9,563)		14,496		(7,753)

The components of net periodic benefit (income) costs for the Company’s other postretirement benefit plans were as follows:


	Year Ended December 31,
	2020				2019				2018
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Service cost	$	103	$	404	$	118	$	397	$	308	$	495
Interest cost	680		726		864		752		1,198		789
Amortization of prior service credit and recognized actuarial (gain) loss	(1,930)		448		(2,441)		320		(1,672)		308
Other	—		—		—		48		5		—
Net periodic benefit (income) cost	$	(1,147)	$	1,578	$	(1,459)	$	1,517	$	(161)	$	1,592

During the year ended December 31, 2019, the Company recognized a gain of $3,452 for the U.S. plan and a net charge of $453 for the Non-U.S. plan, related to settlements and curtailments due to the divestiture of the Company’s AVS product line. See Note 5. “Divestitures.” The amounts are recorded in gain on sale of business, net in the consolidated statements of operations.

Plan Assumptions

Weighted average assumptions used to determine benefit obligations as of December 31, 2020 and 2019 were as follows:


	2020				2019
	U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	2.35	%	2.65	%	3.15	%	3.05	%

Weighted average assumptions used to determine net periodic benefit costs for the years ended December 31, 2020, 2019 and 2018 were as follows:


	2020				2019				2018
	U.S.		Non-U.S.		U.S.		Non-U.S.		U.S.		Non-U.S.
Discount rate	3.15	%	3.05	%	4.20	%	3.65	%	3.55	%	3.40	%

The assumed health care cost trend rates used to measure the postretirement benefit obligation as of December 31, 2020 were as follows:


	U.S.		Non-U.S.
Health care cost trend rate	5.34	%	5.00	%
Ultimate health care cost trend rate	4.50	%	5.00	%
Year that the rate reaches the ultimate trend rate	2027		N/A

Expected Future Postretirement Benefit Payments

The Company estimates its benefit payments for its postretirement benefit plans during the next ten years to be as follows:


	U.S.		Non-U.S.		Total
2021	$	1,667	$	981	$	2,648
2022	1,666		975		2,641
2023	1,648		978		2,626
2024	1,608		1,011		2,619
2025	1,572		1,019		2,591
2026 - 2030	7,108		5,211		12,319

Other

Other postretirement benefits recorded in the Company’s consolidated balance sheets include $1,778 and $4,454 as of December 31, 2020 and 2019, respectively, for termination indemnity plans in Europe.