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Pension and Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of Assumptions Related to Plans
The following are assumptions related to the U.S. defined benefit pension plans:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Weighted average assumptions used to determine Benefit Obligations:
 

 
 

 
 

Discount rate
3.41
%
 
4.34
%
 
3.63
%
Rate of increase in compensation levels
3.50

 
3.50

 
4.01

Weighted average assumptions used to determine net pension expense:
 
 
 
 
 
Long-term rate of return on assets
6.00
%
 
6.00
%
 
6.00
%
Discount rate
4.34

 
3.63

 
4.00

Rate of increase in compensation levels
3.50

 
4.01

 
4.01


The following are assumptions related to postretirement benefits:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Weighted average assumptions used to determine Benefit Obligation:
 

 
 

 
 

Discount rate
3.27
%
 
4.20
%
 
3.48
%
Weighted average assumptions used to determine net expense:
 
 
 
 
 
Discount rate
4.20
%
 
3.48
%
 
3.75
%

The following are assumptions related to the non-U.S. defined benefit pension plans:
 
Year Ended December 31,
 
2019
 
2018
 
2017
Weighted average assumptions used to determine Benefit Obligations:
 

 
 

 
 

Discount rate
1.61
%
 
2.42
%
 
2.25
%
Rate of increase in compensation levels
3.12

 
3.28

 
3.25

Weighted average assumptions used to determine net pension expense:
 
 
 
 
 
Long-term rate of return on assets
3.37
%
 
3.62
%
 
3.88
%
Discount rate
2.42

 
2.25

 
2.34

Rate of increase in compensation levels
3.28

 
3.25

 
3.22
Components of Net Periodic Cost for Pension and Postretirement Benefits
Net postretirement benefit cost for postretirement medical plans was:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(Amounts in thousands)
Interest cost
$
754

 
$
779

 
$
919

Amortization of unrecognized prior service cost
122

 
122

 
122

Amortization of unrecognized net gain
(215
)
 
(764
)
 
(275
)
Net postretirement benefit expense
$
661

 
$
137

 
$
766


Net pension expense for non-U.S. defined benefit pension plans was:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(Amounts in thousands)
Service cost
$
5,728

 
$
7,208

 
$
7,247

Interest cost
8,867

 
8,970

 
9,320

Expected return on plan assets
(7,535
)
 
(8,747
)
 
(8,834
)
Amortization of unrecognized net loss
2,933

 
3,626

 
3,741

Amortization of unrecognized prior service cost (benefit)
265

 
33

 
(4
)
Settlement loss (gain) and other
859

 
(521
)
 
2,434

Non-U.S. net pension expense
$
11,117

 
$
10,569

 
$
13,904


Net pension expense for the U.S. defined benefit pension plans (including both qualified and non-qualified plans) was:
 
Year Ended December 31,
 
2019
 
2018
 
2017
 
(Amounts in thousands)
Service cost
$
23,245

 
$
22,195

 
$
22,257

Interest cost
17,584

 
15,789

 
16,878

Expected return on plan assets
(25,645
)
 
(25,704
)
 
(24,505
)
Settlement gain
—

 
(462
)
 
(216
)
Amortization of unrecognized prior service cost
164

 
164

 
112

Amortization of unrecognized net loss
3,675

 
5,514

 
6,021

U.S. net pension expense
$
19,023

 
$
17,496

 
$
20,547
Schedule of Funded Status
The following summarizes the net pension (liability) asset for U.S. plans:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Plan assets, at fair value
$
482,553

 
$
425,792

Benefit Obligation
(471,462
)
 
(432,595
)
Funded status
$
11,091

 
$
(6,803
)


The following summarizes the accrued postretirement benefits liability for the postretirement medical plans:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Postretirement Benefit Obligation
$
18,862

 
$
18,810

Funded status
$
(18,862
)
 
$
(18,810
)

The following summarizes the net pension liability for non-U.S. plans:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Plan assets, at fair value
$
262,559

 
$
232,175

Benefit Obligation
(425,617
)
 
(376,649
)
Funded status
$
(163,058
)
 
$
(144,474
)
Schedule of Amounts Recognized in Balance Sheet
The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Current liabilities
$
(2,370
)
 
$
(2,500
)
Noncurrent liabilities
(16,492
)
 
(16,310
)
Funded status
$
(18,862
)
 
$
(18,810
)

The following summarizes amounts recognized in the balance sheet for non-U.S. plans:
 
December 31,
 
2019
 
2018
\
(Amounts in thousands)
Noncurrent assets
$
16,379

 
$
17,864

Current liabilities
(7,609
)
 
(7,782
)
Noncurrent liabilities
(171,828
)
 
(154,556
)
Funded status
$
(163,058
)
 
$
(144,474
)
The following summarizes amounts recognized in the balance sheet for U.S. plans:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Noncurrent assets
$
16,396

 
$
—

Current liabilities
(348
)
 
(232
)
Noncurrent liabilities
(4,957
)
 
(6,571
)
Funded status
$
11,091

 
$
(6,803
)
Schedule of Benefit Obligations and Accumulated Benefit Obligations
The following is a reconciliation of the postretirement Benefit Obligation:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Balance — January 1
$
18,810

 
$
23,882

Interest cost
754

 
779

Employee contributions
964

 
883

Medicare subsidies receivable
14

 
127

Actuarial loss (gain)
2,222

 
(2,662
)
Net benefits and expenses paid
(3,902
)
 
(4,199
)
Balance — December 31
$
18,862

 
$
18,810


The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Balance — January 1
$
432,595

 
$
461,355

Service cost
23,245

 
22,195

Interest cost
17,584

 
15,789

Plan amendments and settlements
276

 
(3,016
)
Actuarial loss (gain) (1)
31,214

 
(25,908
)
Benefits paid
(33,452
)
 
(37,820
)
Balance — December 31
$
471,462

 
$
432,595

Accumulated benefit obligations at December 31
$
470,643

 
$
431,973


_______________________________________
(1)
The actuarial losses (gain) in 2019 and 2018 primarily reflect the impact of changes in the discount rate.
The following is a reconciliation of the non-U.S. plans’ defined benefit pension obligations:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Balance — January 1
$
376,649

 
$
413,960

Service cost
5,728

 
7,208

Interest cost
8,867

 
8,970

Employee contributions
78

 
238

Settlements and other
(3,713
)
 
(7,896
)
Actuarial loss (gain)(1)
48,888

 
(8,839
)
Net benefits and expenses paid
(14,526
)
 
(16,632
)
Currency translation impact(2)
3,646

 
(20,360
)
Balance — December 31
$
425,617

 
$
376,649

Accumulated benefit obligations at December 31
$
404,035

 
$
356,989

_______________________________________
(1)
The 2019 actuarial loss primarily reflects the decrease in the discount rates for all plans.
(2)
In 2019, the currency translation loss reflects the weakening of the U.S. dollar against the British pound, partially offset by the strengthening of the U.S. dollar against the Euro, while in 2018 the
Schedule of Expected Cash Activity
The following table summarizes the expected cash benefit payments for the non-U.S. defined benefit plans in the future (amounts in millions):
2020
$
16.5

2021
17.0

2022
17.8

2023
17.9

2024
18.7

2025-2029
97.3


The following table summarizes the expected cash benefit payments for the U.S. defined benefit pension plans in the future (amounts in millions):
2020
$
42.8

2021
44.0

2022
41.9

2023
42.9

2024
42.1

2025-2029
196.8


The following presents expected benefit payments for future periods (amounts in millions):
 
Expected
Payments
2020
$
2.4

2021
2.3

2022
2.1

2023
1.9

2024
1.7

2025-2029
6.6
Schedule of Accumulated Other Comprehensive Income (Loss)
The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for postretirement benefits, net of tax:
 
2019
 
2018
 
(Amounts in thousands)
Balance — January 1
$
2,425

 
$
880

Amortization of net gain
(164
)
 
(584
)
Amortization of prior service cost
94

 
93

Net (loss) gain arising during the year
(1,699
)
 
2,036

Balance — December 31
$
656

 
$
2,425


Amounts recorded in accumulated other comprehensive loss consist of:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Unrecognized net gain
$
1,512

 
$
3,365

Unrecognized prior service cost
(856
)
 
(940
)
Accumulated other comprehensive income, net of tax
$
656

 
$
2,425


The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for non-U.S. plans, net of tax:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Balance — January 1
$
(62,088
)
 
$
(67,872
)
Amortization of net loss
2,946

 
3,260

Net (loss) gain arising during the year
(29,910
)
 
2,458

Settlement loss (gain)
746

 
(386
)
Prior service cost arising during the year
—

 
(3,080
)
Currency translation impact and other
(1,031
)
 
3,532

Balance — December 31
$
(89,337
)
 
$
(62,088
)

Amounts recorded in accumulated other comprehensive loss consist of:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Unrecognized net loss
$
(85,891
)
 
$
(58,697
)
Unrecognized prior service cost
(3,446
)
 
(3,391
)
Accumulated other comprehensive loss, net of tax
$
(89,337
)
 
$
(62,088
)

The following table shows the change in accumulated other comprehensive loss attributable to the components of the net cost and the change in Benefit Obligations for U.S. plans, net of tax:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Balance — January 1
$
(62,018
)
 
$
(49,790
)
Amortization of net loss
2,809

 
4,216

Amortization of prior service cost
125

 
125

Net gain (loss) arising during the year
9,785

 
(16,216
)
Settlement gain
—

 
(353
)
Prior service cost arising during the year
(211
)
 
—

Balance — December 31
$
(49,510
)
 
$
(62,018
)


Amounts recorded in accumulated other comprehensive loss consist of:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Unrecognized net loss
$
(48,578
)
 
$
(61,129
)
Unrecognized prior service cost
(932
)
 
(889
)
Accumulated other comprehensive loss, net of tax
$
(49,510
)
 
$
(62,018
)
Reconciliation of Plan Assets
The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Balance — January 1
$
232,175

 
$
248,733

Return (loss) on plan assets
23,793

 
(580
)
Employee contributions
78

 
238

Company contributions
16,782

 
21,696

Settlements
(3,688
)
 
(7,776
)
Currency translation impact and other
7,945

 
(13,504
)
Net benefits and expenses paid
(14,526
)
 
(16,632
)
Balance — December 31
$
262,559

 
$
232,175

The following is a reconciliation of the U.S. defined benefit pension plans’ assets:
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Balance — January 1
$
425,792

 
$
464,779

Return on plan assets
69,663

 
(21,414
)
Company contributions
20,552

 
23,263

Benefits paid
(33,454
)
 
(37,820
)
Settlements
—

 
(3,016
)
Balance — December 31
$
482,553

 
$
425,792
Allocation of Plan Assets
The fair values of the non-U.S. assets were:
 
At December 31, 2019
 
At December 31, 2018
 
 
 
Hierarchical Levels
 
 
 
Hierarchical Levels
 
Total
 
I
 
II
 
III
 
Total
 
I
 
II
 
III
 
(Amounts in thousands)
 
(Amounts in thousands)
Cash
$
5,026

 
$
5,026

 
$
—

 
—

 
$
15,105

 
$
15,105

 
$
—

 
$
—

Commingled Funds:
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
Equity securities
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
North American Companies(a)
2,501

 
—

 
2,501

 
—

 
6,603

 
—

 
6,603

 
—

Global Equity(b)
2,411

 
—

 
2,411

 
—

 
4,648

 
—

 
4,648

 
—

Fixed income securities
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
U.K. Government Gilt Index(c)
113,855

 
—

 
113,855

 
—

 
99,482

 
—

 
99,482

 
—

U.K. Corporate Bond Index
—

 
—

 
—

 
—

 
1,192

 
—

 
1,192

 
—

Global Fixed Income Bond
—

 
—

 
—

 
—

 
4,110

 
—

 
4,110

 
—

Liability-Driven Investment(d)
20,011

 
—

 
20,011

 
—

 
20,004

 
—

 
20,004

 
—

Other Types of Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-asset(e)
48,964

 
—

 
48,964

 
—

 
44,147

 
—

 
44,147

 
—

Buy-in Contracts(f)
54,544

 
—

 
—

 
54,544

 
23,616

 
—

 
—

 
23,616

Other(g)
15,247

 
—

 
—

 
15,247

 
13,268

 
—

 
—

 
13,268

 
$
262,559

 
$
5,026

 
$
187,742

 
$
69,791

 
$
232,175

 
$
15,105

 
$
180,186

 
$
36,884

_______________________________________
(a)
North American Companies represents U.S. and Canadian large cap equity funds, which are managed to track their respective benchmarks (FTSE All-World USA Index and FTSE All-World Canada Index).
(b)
Global Equity represents actively managed global equity funds, taking a top-down strategic view on the different regions by analyzing companies based on fundamentals, market-driven, thematic and quantitative factors to generate alpha.
(c)
U.K. Government Gilt Index represents U.K. government issued fixed income investments which are passively managed to track their respective benchmarks.
(d)
LDI seeks to invest in fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities.
(e)
Multi-asset seeks an attractive risk-adjusted return by investing in a diversified portfolio of strategies, including equities and fixed income.
(f)
The Buy-in Contracts ("Contract" or "Contracts") represent assets held by plans, whereby the cost of providing benefits to plan participants is funded by the Contract. The Contracts are held by the plans for the benefit of plan participants in the Netherlands and U.K. The fair value of these assets are based on the current present value of accrued benefits and will fluctuate based on changes in the obligations associated with covered plan members as well as the assumptions used in the present value calculation. The fair value of asset held in the Netherlands Contract as of January 1, 2019 was $23.6 million, with contributions and currency adjustments resulting in a fair value of $25.9 million at December 31, 2019. On August 29, 2019, we established a Contract for our U.K. plan participants with initial investment of $27.4 million, with contributions and currency adjustments resulting in a fair value of $28.6 million at December 31, 2019.
(g)
Includes assets held by plans outside the United Kingdom, the Netherlands and Canada.
The asset allocations for the non-U.S. defined benefit pension plans at the end of 2019 and 2018 are as follows:
 
 
Target Allocation at
December 31,
 
Percentage of Actual Plan
Assets at December 31,
Asset category
 
2019
 
2018
 
2019
 
2018
Cash and cash equivalents
 
2
%
 
7
%
 
2
%
 
7
%
Cash and cash equivalents
 
2
%
 
7
%
 
2
%
 
7
%
North American Companies
 
1
%
 
3
%
 
1
%
 
3
%
Global Equity
 
1
%
 
2
%
 
1
%
 
2
%
Equity securities
 
2
%
 
5
%
 
2
%
 
5
%
U.K. Government Gilt Index
 
43
%
 
43
%
 
43
%
 
43
%
Global Fixed Income Bond
 
—
%
 
2
%
 
—
%
 
2
%
Liability-Driven Investment
 
7
%
 
9
%
 
7
%
 
9
%
Fixed income
 
50
%
 
54
%
 
50
%
 
54
%
Multi-asset
 
19
%
 
19
%
 
19
%
 
19
%
Buy-in Contracts
 
21
%
 
10
%
 
21
%
 
10
%
Other
 
6
%
 
5
%
 
6
%
 
5
%
Other types
 
46
%
 
34
%
 
46
%
 
34
%

The asset allocations for the qualified plan at the end of 2019 and 2018 by asset category, are as follows:
 
Target Allocation
at December 31,
 
Percentage of Actual Plan Assets at December 31,
Asset category
2019
 
2018
 
2019
 
2018
Cash and cash equivalents
—
%
 
—
%
 
1
%
 
1
%
Cash and cash equivalents
—
%
 
—
%
 
1
%
 
1
%
Global Equity
31
%
 
30
%
 
28
%
 
30
%
Global Real Assets
12
%
 
13
%
 
12
%
 
13
%
Equity securities
43
%
 
43
%
 
40
%
 
43
%
Diversified Credit
12
%
 
12
%
 
12
%
 
13
%
Liability-Driven Investment
45
%
 
45
%
 
47
%
 
43
%
Fixed income
57
%
 
57
%
 
59
%
 
56
%

The plan’s financial instruments, shown below, are presented at fair value. See Note 1 for further discussion on how the hierarchical levels of the fair values of the Plan’s investments are determined. The fair values of our U.S. defined benefit plan assets were:
 
At December 31, 2019
 
At December 31, 2018
 
 
 
Hierarchical Levels
 
 
 
Hierarchical Levels
 
Total
 
I
 
II
 
III
 
Total
 
I
 
II
 
III
 
(Amounts in thousands)
 
(Amounts in thousands)
Cash and cash equivalents
$
4,994

 
$
4,994

 
$
—

 
$
—

 
$
4,778

 
$
4,778

 
$
—

 
$
—

Commingled Funds:
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
Equity securities
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
Global Equity(a)
135,350

 
—

 
135,350

 
—

 
126,165

 
—

 
126,165

 
—

Global Real Assets(b)
60,523

 
—

 
60,523

 
—

 
55,046

 
—

 
55,046

 
—

Fixed income securities
 

 
 
 
 
 
 
 


 
 
 
 
 
 
Diversified Credit(c)
56,375

 
—

 
56,375

 
—

 
55,039

 
—

 
55,039

 
—

Liability-Driven Investment(d)
225,311

 
—

 
225,311

 
—

 
184,764

 
—

 
184,764

 
—

 
$
482,553

 
$
4,994

 
$
477,559

 
$
—

 
$
425,792

 
$
4,778

 
$
421,014

 
$
—

_______________________________________
(a)
Global Equity fund seeks to closely track the performance of the MSCI All Country World Index.
(b)
Global Real Asset funds seek to provide exposure to the listed global real estate investment trusts (REITs) and infrastructure markets.
(c)
Diversified Credit funds seek to provide exposure to the high yield, emerging markets, bank loans and securitized credit markets.
(d)
Liability-Driven Investment ("LDI") funds seek to invest in high quality fixed income securities that collectively closely match those found in discount curves used to value the plan's liabilities.
Schedule of Benefit Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets
The following summarizes key pension plan information regarding U.S. and non-U.S. plans whose accumulated benefit obligations exceed the fair value of their respective plan assets.
 
December 31,
 
2019
 
2018
 
(Amounts in thousands)
Benefit Obligation
$
229,793

 
$
613,441

Accumulated benefit obligation
212,906

 
596,584

Fair value of plan assets
46,718

 
444,929