Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2015

Reconciliation of Benefit Obligation, Plan Assets, and Funded Status

The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the pension plans U.S. and non-U.S. locations plan at the measurement dates.



	U.S. Pension Plans						Non-U.S. Pension Plans
	2015			2014			2015			2014
Accumulated benefit obligation	$	256,924		$	284,365		$	2,247		$	16,168
Change in projected benefit obligation:
Projected benefit obligation at January 1	$	284,365		$	264,828		$	16,168		$	16,028
Service cost	171			192			63			83
Interest cost	11,258			12,214			465			608
Benefits paid	(21,526		)	(19,021		)	(691		)	(1,024		)
Actuarial (gain) loss	(17,344		)	26,152			(131		)	1,468
Plan settlement	—			—			(12,786		)	—
Foreign exchange impact and other	—			—			(292		)	(995		)
Projected benefit obligation at December 31	$	256,924		$	284,365		$	2,796		$	16,168
Change in plan assets:
Assets at fair value at January 1	$	314,453		$	314,211		$	15,128		$	14,867
Actual return on assets	(3,723		)	13,961			(538		)	(2,258		)
Company contributions	111			5,302			1,275			4,478
Benefits paid	(21,526		)	(19,021		)	(691		)	(1,024		)
Plan settlement	—			—			(13,437		)	—
Foreign exchange impact and other	—			—			(257		)	(935		)
Assets at fair value at December 31	$	289,315		$	314,453		$	1,480		$	15,128
Funded status (plan assets less projected benefit obligations)	$	32,391		$	30,088		$	(1,316	)	$	(1,040	)

The measurement dates for the other post-retirement plan was December 31, 2015 and 2014. The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the other post-retirement plan at that measurement dates.



	Other Post-Retirement Benefit Plan
	2015			2014
Accumulated benefit obligation	$	4,885		$	5,194
Change in projected benefit obligation:
Projected benefit obligation at January 1	$	5,194		$	4,916
Service cost	5			4
Interest cost	204			230
Benefits paid	(172		)	(179		)
Actuarial (gain) loss	(345		)	223
Projected benefit obligation at December 31	$	4,886		$	5,194
Change in plan assets:
Assets at fair value at January 1	$	—		$	—
Actual return on assets	—			—
Company contributions	172			179
Benefits paid	(172		)	(179		)
Other	—			—
Assets at fair value at December 31	$	—		$	—
Funded status (plan assets less projected benefit obligations)	$	(4,886	)	$	(5,194	)

Components of Prepaid (Accrued) Cost

The components of the prepaid (accrued) cost of the domestic and foreign pension plans, net are classified in the following lines in the Consolidated Balance Sheets at December 31:



	U.S.Pension Plans						Non-U.S. Pension Plans
	2015			2014			2015			2014
Prepaid pension asset	$	33,779		$	31,581		$	—		$	518
Other accrued liabilities	—			—			—			—
Post-retirement obligations	(1,388		)	(1,493		)	(1,316		)	(1,558		)
Net prepaid (accrued) cost	$	32,391		$	30,088		$	(1,316	)	$	(1,040	)

The components of the accrued cost of the other post-retirement benefit plan, net are classified in the following lines in the Consolidated Balance Sheets at December 31:



	Other Post-Retirement Benefit Plan
	2015			2014
Other accrued liabilities	$	(358	)	$	(342	)
Other long-term obligations	(4,528		)	(4,852		)
Total accrued cost	$	(4,886	)	$	(5,194	)

Accumulated Other Comprehensive Loss

CTS has also recorded the following amounts to accumulated other comprehensive loss for the U.S. and non-U.S. pension plans, net of tax:



	U.S.Pension Plans								Non-U.S. Pension Plans
	Unrecognized Loss			Prior Service Cost		Total			Unrecognized Loss
Balance at January 1, 2014	$	79,218		$	—	$	79,218		$	4,642
Amortization of retirement benefits, net of tax	(3,523		)	—		(3,523		)	(183		)
Settlements and curtailments	(106		)	—		(106		)	—
Net actuarial gain	20,605			—		20,605			4,290
Foreign exchange impact	—			—		—			(259		)
Balance at January 1, 2015	$	96,194		$	—	$	96,194		$	8,490
Amortization of retirement benefits, net of tax	(2,871		)	—		(2,871		)	(1,507		)
Settlements and curtailments	—			—		—			(5,355		)
Net actuarial gain	4,150			—		4,150			640
Foreign exchange impact	—			—		—			(629		)
Balance at December 31, 2015	$	97,473		$	—	$	97,473		$	1,639

CTS has also recorded the following amounts to accumulated other comprehensive loss for other post-retirement benefit plan, net of tax:



	Unrecognized (Gain) loss
Balance at January 1, 2014	$	(755	)
Amortization of retirement benefits, net of tax	98
Net actuarial loss	140
Balance at January 1, 2015	$	(517	)
Amortization of retirement benefits, net of tax	63
Net actuarial gain	(215		)
Balance at December 31, 2015	$	(669	)

Projected Benefit Obligation Accumulated Benefit Obligation and Fair Value of Plan Assets

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for those Pension Plans with accumulated benefit obligation in excess of fair value of plan assets is shown below:



	As of December 31,
	2015		2014
Projected benefit obligation	$	4,184	$	4,612
Accumulated benefit obligation	3,635		3,860
Fair value of plan assets	1,480		1,562

Net Pension Income or Postretirement Expense

Net pension (income) expense includes the following components:



	Year Ended December 31,									Year Ended December 31,
	U.S. Pension Plans									Non-U.S. Pension Plans
	2015			2014			2013			2015			2014			2013
Service cost	$	171		$	192		$	2,435		$	63		$	83		$	110
Interest cost	11,258			12,214			11,046			465			608			536
Expected return on plan assets⁽¹⁾	(20,272		)	(20,833		)	(20,217		)	(446		)	(677		)	(474		)
Amortization of unrecognized:
Prior service cost	—			—			498			—			—			—
Loss	6,339			5,644			7,245			7,492			231			378
Additional cost due to early retirement	—			172			692			651			—			—
Curtailment loss	—			—			651			—			—			—
Net (income)/expense	$	(2,504	)	$	(2,611	)	$	2,350		$	8,225		$	245		$	550
Weighted-average actuarial assumptions⁽²⁾
Benefit obligation assumptions:
Discount rate	4.43		%	4.07		%	4.84		%	1.63		%	3.13		%	3.85		%
Rate of compensation increase	—		%	—		%	3.00		%	2.00		%	0.48		%	0.56		%
Pension income/expense assumptions:
Discount rate	4.07		%	4.84		%	4.06		%	3.13		%	3.85		%	3.46		%
Expected return on plan assets⁽¹⁾	7.00		%	7.50		%	7.75		%	2.00		%	4.06		%	3.10		%
Rate of compensation increase	—		%	—		%	3.00		%	0.48		%	0.57		%	0.69		%


(1)	Expected return on plan assets is net of expected investment expenses and certain administrative expenses.


(2)	During the fourth quarter of each year, CTS reviews its actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted.

Net post-retirement expense includes the following components:



	Other Post-Retirement Benefit Plan
	Year Ended December 31,
	2015			2014			2013
Service cost	$	5		$	4		$	7
Interest cost	204			230			223
Amortization of unrecognized:
Gain	(101		)	(158		)	—
Net expense	$	108		$	76		$	230
Weighted-average actuarial assumptions ⁽¹⁾
Benefit obligation assumptions:
Discount rate	4.43		%	4.07		%	4.84		%
Rate of compensation increase	0		%	0		%	0		%
Pension income/post-retirement expense assumptions:
Discount rate	4.07		%	4.84		%	4.06		%
Rate of compensation increase	0		%	0		%	0		%


(1)	During the fourth quarter of each year, CTS reviews its actuarial assumptions in light of current economic factors to determine if the assumptions need to be adjusted.

Asset Allocation and Target Allocation Plan

CTS´ pension plan asset allocation at December 31, 2015 and 2014, and target allocation for 2016 by asset category are as follows:



	Target Allocations		Percentage of Plan Assets at December 31,
Asset Category	2016		2015		2014
Equity securities ⁽¹⁾	46	%	39	%	60	%
Debt securities	35	%	41	%	25	%
Other	19	%	20	%	15	%
Total	100	%	100	%	100	%


(1)	Equity securities include CTS common stock in the amounts of approximately $25,000 (9% of total plan assets) at December 31, 2015 and approximately $26,000 (8% of total plan assets) at December 31, 2014.

Summary of Fair Values of Pension Plan

The following table summarizes the fair values of CTS' pension plan assets:



	As of December 31,
	2015		2014
Equity securities — U.S. holdings⁽¹⁾	$	56,696	$	174,153
Equity securities — non-U.S. holdings⁽¹⁾	11,028		14,050
Equity funds — International LP⁽¹⁾	—		15,636
Equity funds — U.S. LP⁽¹⁾	—		13,077
Equity funds - U.S. holdings⁽¹⁾	17,522		—
Equity funds — non-U.S. holdings⁽²⁾	26,903		—
Corporate bonds⁽²⁾	—		47,417
Bond funds - government⁽¹⁰⁾	47,800		—
Bond funds - other⁽¹¹⁾	69,617		—
Real estate⁽¹²⁾	10,006		—
Cash and cash equivalents⁽³⁾	7,417		5,889
Debt securities issued by U.S., state and local governments⁽⁵⁾	—		14,484
Partnerships⁽⁷⁾	13,360		11,239
Long/short equity-focused hedge funds⁽⁶⁾	5,255		5,367
International hedge funds⁽⁴⁾	25,191		11,679
Mortgage-backed securities⁽⁸⁾	—		3,796
Fixed annuity contracts⁽⁹⁾	—		12,475
Other asset-backed securities	—		319
Total fair value of plan assets	$	290,795	$	329,581

Summary of Categories in Fair Value Hierarchy

The fair values at December 31, 2015 are classified within the following categories in the fair value hierarchy:



	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity securities — U.S. holdings⁽¹⁾	$	56,696	$	—	$	—	$	56,696
Equity securities — non-U.S. holdings⁽¹⁾	11,028		—		—		11,028
Equity funds - U.S. holdings⁽¹⁾	—		17,522		—		17,522
Equity funds - non-U.S. holdings⁽¹⁾	—		26,903		—		26,903
Bond funds - government⁽¹⁰⁾	—		47,800		—		47,800
Bond funds - other⁽¹¹⁾	—		69,617		—		69,617
Real estate⁽¹²⁾	—		10,006		—		10,006
Cash and cash equivalents⁽³⁾	7,417		—		—		7,417
Partnerships⁽⁷⁾	—		—		13,360		13,360
Long/short equity-focused hedge funds⁽⁶⁾	—		—		5,255		5,255
International hedge funds⁽⁴⁾	—		—		25,191		25,191
Total	$	75,141	$	171,848	$	43,806	$	290,795

The fair values at December 31, 2014 are classified within the following categories in the fair value hierarchy:



	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity securities — U.S. holdings⁽¹⁾	$	174,153	$	—	$	—	$	174,153
Equity securities — non-U.S. holdings⁽¹⁾	14,048		2		—		14,050
Equity funds — International LP⁽¹⁾	—		15,636		—		15,636
Equity funds — U.S. LP⁽¹⁾	—		13,077		—		13,077
Corporate Bonds⁽²⁾	—		47,417		—		47,417
Cash and cash equivalents⁽³⁾	5,889		—		—		5,889
Debt securities issued by U.S. and U.K., state and local governments⁽⁵⁾	—		14,484		—		14,484
Partnerships⁽⁷⁾	—		—		11,239		11,239
Long/short equity-focused hedge funds⁽⁶⁾	—		—		5,367		5,367
International hedge funds⁽⁴⁾	—		—		11,679		11,679
Mortgage-backed securities⁽⁸⁾	—		3,796		—		3,796
Fixed annuity contracts⁽⁹⁾	—		—		12,475		12,475
Other asset-backed securities	—		319		—		319
Total	$	194,090	$	94,731	$	40,760	$	329,581

(1)

Comprised of common stocks of companies in various industries. The Pension Plan fund manager may shift investments from value to growth strategies or vice-versa, from small cap to large cap stocks or vice-versa, in order to meet the Pension Plan's investment objectives, which are to provide for a reasonable amount of long-term growth of capital without undue exposure to volatility, and protect the assets from erosion of purchasing power.


(2)	Comprised of investment grade securities of companies in various industries.


(3)	Comprised of investment grade short-term investment funds.


(4)	This fund allocates its capital across several direct hedge-fund organizations. This fund invests with hedge funds that employ "non-directional" strategies. These strategies do not require the direction of the markets to generate returns. The majority of these hedge funds generate returns by the occurrence of key events such as bankruptcies, mergers, spin-offs, etc.


(5)	Comprised of investment grade securities that are backed by the U.S., state or local governments.


(6)	The hedge fund manager utilizes fundamental research and invests in equities both long (seeking price appreciation) and short (expectation that the stock will fall) instruments.


(7)	Comprised of partnerships that invest in various U.S. and international industries.


(8)	Comprised of investment grade securities in which approximately $0 and $941 are backed by the U.S. government for the years ended December 31, 2015 and December 31, 2014, respectively, and the remainder by commercial real estate.


(9)	Comprised of fixed annuity contracts purchased at market value when plan participants retire.


(10)	Comprised of zero-coupon U.S. Treasury securities (“Treasury STRIPS”) with maturities greater than 20 years.


(11)	Comprised predominately of investment grade U.S. corporate bonds with maturities greater than 10 years and U.S. high-yield corporate bonds; emerging market debt (local currency sovereign bonds, U.S. dollar-denominated sovereign bonds and U.S. dollar-denominated corporate bonds); and U.S. bank loans.


(12)	Comprised of investments in securities of U.S. and non-U.S. real estate investment trusts (REITs), real estate operating companies and other companies that are principally engaged in the real estate industry and of investments in global private direct commercial real estate.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:



	U.S. Pension Plans		Non-U.S. Pension Plans		Other Post-Retirement Benefit Plan
2016	$	16,326	$	78	$	358
2017	16,637		9		351
2018	16,638		102		344
2019	16,780		104		336
2020	16,915		239		327
2021-2025	83,978		717		1,497
Total	$	167,274	$	1,249	$	3,213

Summary of 401K and Other Plan Expense

Expenses related to defined contribution plans include the following:



	Year Ended December 31,
	2015		2014		2013
401(k) and other plan expense	$	3,352	$	3,719	$	4,651

International Hedge Fund

Reconciliation of Level 3 Hedge Fund Asset Within Fair Value Hierarchy

The table below reconciles the Level 3 international hedge fund assets within the fair value hierarchy:



	Amount
Fair value of Level 3 hedge fund assets at December 31, 2013	$	10,958
Capital contributions	—
Realized and unrealized gain	721
Fair value of Level 3 hedge fund assets at December 31, 2014	$	11,679
Capital contributions	12,700
Realized and unrealized gain	812
Fair value of Level 3 hedge fund assets at December 31, 2015	$	25,191

Long-biased hedge fund

Reconciliation of Level 3 Hedge Fund Asset Within Fair Value Hierarchy

The table below reconciles the Level 3 long/short equity-focused hedge fund assets within the fair value hierarchy:



	Amount
Fair value of Level 3 hedge fund assets at December 31, 2013	$	11,147
Capital contributions	—
Capital distributions	(6,178		)
Realized and unrealized gain	398
Fair value of Level 3 hedge fund assets at December 31, 2014	$	5,367
Capital contributions	—
Capital distributions	(180		)
Realized and unrealized gain	68
Fair value of Level 3 hedge fund assets at December 31, 2015	$	5,255

Partnership

Reconciliation of Level 3 Hedge Fund Asset Within Fair Value Hierarchy

The table below reconciles the Level 3 partnership assets within the fair value hierarchy:



	Amount
Fair value of Level 3 partnership assets at January 1, 2014	$	9,010
Capital contributions	2,570
Net ordinary gain attributable to partnership assets	—
Realized and unrealized gain	1,733
Capital distributions	(2,074		)
Fair value of Level 3 partnership assets at December 31, 2014	11,239
Capital contributions	2,808
Net ordinary gain attributable to partnership assets	—
Realized and unrealized gain	754
Capital distributions	(1,441		)
Fair value of Level 3 partnership assets at December 31, 2015	$	13,360

Annuitization Benefit

Reconciliation of Level 3 Hedge Fund Asset Within Fair Value Hierarchy

The table below reconciles the Level 3 fixed annuity contracts within the fair value hierarchy:



	Amount
Fair value of Level 3 fixed annuity contracts at January 1, 2014	$	1,620
Purchases	11,530
Benefits paid	(117		)
Net loss	(558		)
Fair value of Level 3 fixed annuity contracts at December 31, 2014	12,475
Purchases	—
Assets transferred due to termination of plan	(12,475		)
Net loss	—
Fair value of Level 3 fixed annuity contracts at December 31, 2015	$	—