Retirement Plans (Tables)

12 Months Ended

Dec. 31, 2016

Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]

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 for U.S. and non-U.S. locations at the measurement dates.



	U.S. Pension Plans						Non-U.S. Pension Plans
	2016			2015			2016			2015
Accumulated benefit obligation	$	247,276		$	256,924		$	2,295		$	2,247
Change in projected benefit obligation:
Projected benefit obligation at January 1	$	256,924		$	284,365		$	2,796		$	16,168
Service cost	87			171			51			63
Interest cost	11,024			11,258			46			465
Benefits paid	(20,537		)	(21,526		)	(289		)	(691		)
Actuarial (gain) loss	(222		)	(17,344		)	229			(131		)
Plan settlement	—			—			—			(12,786		)
Foreign exchange impact	—			—			33			(292		)
Projected benefit obligation at December 31	$	247,276		$	256,924		$	2,866		$	2,796
Change in plan assets:
Assets at fair value at January 1	$	289,315		$	314,453		$	1,480		$	15,128
Actual return on assets	23,163			(3,723		)	11			(538		)
Company contributions	103			111			303			1,275
Benefits paid	(20,537		)	(21,526		)	(289		)	(691		)
Plan settlement	—			—			—			(13,437		)
Foreign exchange impact	—			—			18			(257		)
Assets at fair value at December 31	$	292,044		$	289,315		$	1,523		$	1,480
Funded status (plan assets less projected benefit obligations)	$	44,768		$	32,391		$	(1,343	)	$	(1,316	)

The measurement dates for the post-retirement life insurance plan were December 31, 2016, and 2015. The following table provides a reconciliation of benefit obligation, plan assets, and the funded status of the post-retirement life insurance plan at that measurement dates.



	Post-Retirement Life Insurance Plan
	2016			2015
Accumulated benefit obligation	$	4,952		$	4,885
Change in projected benefit obligation:
Projected benefit obligation at January 1	$	4,886		$	5,194
Service cost	3			5
Interest cost	207			204
Benefits paid	(165		)	(172		)
Actuarial loss (gain)	21			(345		)
Projected benefit obligation at December 31	$	4,952		$	4,886
Change in plan assets:
Assets at fair value at January 1	$	—		$	—
Actual return on assets	—			—
Company contributions	165			172
Benefits paid	(165		)	(172		)
Other	—			—
Assets at fair value at December 31	$	—		$	—
Funded status (plan assets less projected benefit obligations)	$	(4,952	)	$	(4,886	)

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
	2016			2015			2016			2015
Prepaid pension asset	$	46,183		$	33,779		$	—		$	—
Accrued expenses and other liabilities	(317		)	—			—			—
Long-term pension obligations	(1,098		)	(1,388		)	(1,343		)	(1,316		)
Net prepaid (accrued) cost	$	44,768		$	32,391		$	(1,343	)	$	(1,316	)

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



	Post-Retirement Life Insurance Plan
	2016			2015
Accrued expenses and other liabilities	$	(387	)	$	(360	)
Long-term pension obligations	(4,565		)	(4,526		)
Total accrued cost	$	(4,952	)	$	(4,886	)

Accumulated Other Comprehensive Loss

We have 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, 2015	$	96,194		$	—	$	96,194		$	8,490
Amortization of retirement benefits, net of tax	(3,956		)	—		(3,956		)	(1,507		)
Settlements and curtailments	—			—		—			(5,355		)
Net actuarial gain	4,150			—		4,150			640
Foreign exchange impact	—			—		—			(629		)
Balance at January 1, 2016	$	96,388		$	—	$	96,388		$	1,639
Amortization of retirement benefits, net of tax	(3,817		)	—		(3,817		)	85
Settlements and curtailments	—			—		—
Net actuarial (loss) gain	(2,808		)	—		(2,808		)	12
Foreign exchange impact	—			—		—			7
Balance at December 31, 2016	$	89,763		$	—	$	89,763		$	1,743

We have recorded the following amounts to accumulated other comprehensive loss for post-retirement life insurance plan, net of tax:



	Unrecognized (Gain) loss
Balance at January 1, 2015	$	(517	)
Amortization of retirement benefits, net of tax	63
Net actuarial loss	(215		)
Balance at January 1, 2016	$	(669	)
Amortization of retirement benefits, net of tax	95
Net actuarial gain	14
Balance at December 31, 2016	$	(560	)

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,
	2016		2015
Projected benefit obligation	$	4,281	$	4,184
Accumulated benefit obligation	3,710		3,635
Fair value of plan assets	1,523		1,480

Net Pension Income or Postretirement Expense

Net pension (income) expense includes the following components:



	Years Ended December 31,									Years Ended December 31,
	U.S. Pension Plans									Non-U.S. Pension Plans
	2016			2015			2014			2016			2015			2014
Service cost	$	87		$	171		$	192		$	51		$	63		$	83
Interest cost	11,024			11,258			12,214			46			465			608
Expected return on plan assets⁽¹⁾	(18,976		)	(20,272		)	(20,833		)	(26		)	(446		)	(677		)
Amortization of unrecognized loss	5,994			6,339			5,644			140			7,492			231
Additional cost due to early retirement	—			—			172			—			651			—
Curtailment loss	—			—			—			—			—			—
Net (income)/expense	$	(1,871	)	$	(2,504	)	$	(2,611	)	$	211		$	8,225		$	245
Weighted-average actuarial assumptions⁽²⁾
Benefit obligation assumptions:
Discount rate	4.16		%	4.43		%	4.07		%	1.13		%	1.63		%	3.13		%
Rate of compensation increase	0.00		%	0.00		%	0.00		%	2.00		%	2.00		%	0.48		%
Pension income/expense assumptions:
Discount rate	4.43		%	4.07		%	4.84		%	1.63		%	3.13		%	3.85		%
Expected return on plan assets⁽¹⁾	6.63		%	7.00		%	7.50		%	1.63		%	2.00		%	4.06		%
Rate of compensation increase	0.00		%	0.00		%	0.00		%	2.00		%	0.48		%	0.57		%


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


(2)	During the fourth quarter of each year, we review our 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:



	Post-Retirement Life Insurance Plan
	Years Ended December 31,
	2016			2015			2014
Service cost	$	3		$	5		$	4
Interest cost	207			204			230
Amortization of unrecognized gain	(149		)	(101		)	(158		)
Net expense	$	61		$	108		$	76
Weighted-average actuarial assumptions ⁽¹⁾
Benefit obligation assumptions:
Discount rate	4.10		%	4.43		%	4.07		%
Rate of compensation increase	0		%	0		%	0		%
Pension income/post-retirement expense assumptions:
Discount rate	4.43		%	4.07		%	4.84		%
Rate of compensation increase	0		%	0		%	0		%


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

Asset Allocation and Target Allocation Plan

Our pension plan asset allocation at December 31, 2016, and 2015, and target allocation for 2017 by asset category are as follows:



	Target Allocations	Percentage of Plan Assets at December 31,
Asset Category	2017	2016	2015
Equity securities ⁽¹⁾	28%	25%	39%
Debt securities	60%	59%	41%
Other	12%	16%	20%
Total	100%	100%	100%


(1)	Equity securities include CTS common stock in the amounts of approximately $17,700 (6% of total plan assets) at December 31, 2016, and approximately $25,000 (9% of total plan assets) at December 31, 2015.

Summary of Fair Values of Pension Plan

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



	As of December 31,
	2016		2015
Equity securities - U.S. holdings⁽¹⁾	$	43,708	$	56,696
Equity securities - non-U.S. holdings⁽¹⁾	819		11,028
Equity funds - U.S. holdings⁽¹⁾	28,052		17,522
Equity funds - non-U.S. holdings⁽¹⁾	—		26,903
Bond funds - government⁽⁶⁾	22,237		47,800
Bond funds - other⁽⁷⁾	150,712		69,617
Real estate⁽⁸⁾	3,812		10,006
Cash and cash equivalents⁽²⁾	7,823		7,417
Partnerships⁽⁵⁾	12,862		13,360
Long/short equity-focused hedge funds⁽⁴⁾	—		5,255
International hedge funds⁽³⁾	23,542		25,191
Total fair value of plan assets	$	293,567	$	290,795

Summary of Categories in Fair Value Hierarchy

The fair values at December 31, 2016, 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)		Not Leveled		Total
Equity securities - U.S. holdings⁽¹⁾	$	43,708	$	—	$	—	$	—	$	43,708
Equity securities - non-U.S. holdings⁽¹⁾	819		—		—		—		819
Equity funds - U.S. holdings⁽¹⁾	—		28,052		—		—		28,052
Equity funds - non-U.S. holdings⁽¹⁾	—		—		—		—		—
Bond funds - government⁽⁶⁾	—		22,237		—		—		22,237
Bond funds - other⁽⁷⁾	—		150,712		—		—		150,712
Real estate^{(8) (9)}	—		—		—		3,812		3,812
Cash and cash equivalents⁽²⁾	7,823		—		—		—		7,823
Partnerships⁽⁵⁾	—		—		12,862		—		12,862
International hedge funds^{(3) (9)}	—		—		—		23,542		23,542
Total	$	52,350	$	201,001	$	12,862	$	27,354	$	293,567

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)		Not Leveled		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(6)	—		47,800		—		—		47,800
Bond funds - other(7)	—		69,617		—		—		69,617
Real Estate(8) (9)	—		—		—		10,006		10,006
Cash and cash equivalents⁽²⁾	7,417		—		—		—		7,417
Partnerships⁽⁵⁾	—		—		13,360		—		13,360
Long/short equity-focused hedge funds^{(4) (9)}	—		—		—		5,255		5,255
International hedge funds^{(3) (9)}	—		—		—		25,191		25,191
Total	$	75,141	$	161,842	$	13,360	$	40,452	$	290,795

(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 short-term investment and money-market funds.

(3)

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. Investments can be redeemed at the Share Net Asset Value ("NAV") as of the last business day of each calendar quarter with at least a sixty-five day prior written notice to the administrator.


(4)	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. Investments can be redeemed at the Share NAV as of the last business day of each calendar quarter with at least a sixty-five day prior written notice to the administrator.


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


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


(7)	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.

(8)

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. Investments can be redeemed immediately following the valuation date with a notice of at least fifteen business days before valuation.


(9)	Comprised of investments that are measured at fair value using the NAV per share practical expedient. In accordance with the provisions of ASC 820-10, these investments have not been classified in the fair value hierarchy. The fair value amount not leveled is presented to allow reconciliation of the fair value hierarchy to total fund pension plan assets.

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		Post-Retirement Life Insurance Plan
2017	$	16,411	$	80	$	387
2018	16,280		88		378
2019	16,390		92		369
2020	16,488		239		360
2021	16,504		91		350
2022-2025	80,563		711		1,596
Total	$	162,636	$	1,301	$	3,440

Summary of 401K and Other Plan Expense

Expenses related to defined contribution plans include the following:



	Years Ended December 31,
	2016		2015		2014
401(k) and other plan expense	$	2,841	$	3,352	$	3,719

Partnership

Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]

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, 2015	$	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
Capital contributions	1,419
Net ordinary gain attributable to partnership assets	—
Realized and unrealized gain	584
Capital distributions	(2,501		)
Fair value of Level 3 partnership assets at December 31, 2016	$	12,862

Annuitization Benefit

Long-Duration Contracts, Assumptions by Product and Guarantee [Line Items]

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, 2015	$	12,475
Purchases	—
Benefits paid	(12,475		)
Net loss	—
Fair value of Level 3 fixed annuity contracts at December 31, 2015	—
Purchases	—
Assets transferred due to termination of plan	—
Net loss	—
Fair value of Level 3 fixed annuity contracts at December 31, 2016	$	—