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Pension and Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2017
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]  
Schedule of Assumptions Related to Plans
The following are assumptions related to postretirement benefits:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Weighted average assumptions used to determine Benefit Obligation:
 

 
 

 
 

Discount rate
3.48
%
 
3.75
%
 
4.25
%
Weighted average assumptions used to determine net expense:
 
 
 
 
 
Discount rate
3.75
%
 
4.25
%
 
3.75
%
The following are assumptions related to the non-U.S. defined benefit pension plans:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Weighted average assumptions used to determine Benefit Obligations:
 

 
 

 
 

Discount rate
2.25
%
 
2.34
%
 
3.13
%
Rate of increase in compensation levels
3.25

 
3.22

 
3.61

Weighted average assumptions used to determine net pension expense:
 
 
 
 
 
Long-term rate of return on assets
3.88
%
 
4.68
%
 
5.03
%
Discount rate
2.34

 
3.13

 
3.40

Rate of increase in compensation levels
3.22

 
3.61

 
3.95

The following are assumptions related to the U.S. defined benefit pension plans:
 
Year Ended December 31,
 
2017
 
2016
 
2015
Weighted average assumptions used to determine Benefit Obligations:
 

 
 

 
 

Discount rate
3.63
%
 
4.00
%
 
4.75
%
Rate of increase in compensation levels
4.01

 
4.00

 
4.00

Weighted average assumptions used to determine net pension expense:
 
 
 
 
 
Long-term rate of return on assets
6.00
%
 
6.00
%
 
6.25
%
Discount rate
4.00

 
4.75

 
4.00

Rate of increase in compensation levels
4.01

 
4.00

 
4.25
Components of Net Periodic Cost for Pension and Postretirement Benefits
Net postretirement benefit cost for postretirement medical plans was:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
(Amounts in thousands)
Service cost
$
—

 
$
1

 
$
2

Interest cost
919

 
1,154

 
1,155

Amortization of unrecognized prior service cost
122

 
122

 
122

Amortization of unrecognized net gain
(275
)
 
(355
)
 
(539
)
Net postretirement benefit expense
$
766

 
$
922

 
$
740

Net pension expense for the U.S. defined benefit pension plans (including both qualified and non-qualified plans) was:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
(Amounts in thousands)
Service cost
$
22,257

 
$
22,583

 
$
24,113

Interest cost
16,878

 
19,072

 
17,072

Expected return on plan assets
(24,505
)
 
(23,997
)
 
(24,185
)
Settlement (gain) loss
(216
)
 
91

 
—

Amortization of unrecognized prior service cost
112

 
488

 
509

Amortization of unrecognized net loss
6,021

 
4,999

 
9,178

U.S. net pension expense
$
20,547

 
$
23,236

 
$
26,687

Net pension expense for non-U.S. defined benefit pension plans was:
 
Year Ended December 31,
 
2017
 
2016
 
2015
 
(Amounts in thousands)
Service cost
$
7,247

 
$
7,131

 
$
7,832

Interest cost
9,320

 
11,623

 
11,770

Expected return on plan assets
(8,834
)
 
(10,013
)
 
(11,693
)
Amortization of unrecognized net loss
3,741

 
4,751

 
4,949

Amortization of unrecognized prior service (benefit) cost
(4
)
 
4

 
(12
)
Settlement loss and other
2,434

 
780

 
570

Non-U.S. net pension expense
$
13,904

 
$
14,276

 
$
13,416
Schedule of Funded Status
The following summarizes the accrued postretirement benefits liability for the postretirement medical plans:
 
December 31,
 
2017
 
2016
 
(Amounts in thousands)
Postretirement Benefit Obligation
$
23,882

 
$
27,317

Funded status
$
(23,882
)
 
$
(27,317
)
The following summarizes the net pension liability for U.S. plans:
 
December 31,
 
2017
 
2016
 
(Amounts in thousands)
Plan assets, at fair value
$
464,779

 
$
418,854

Benefit Obligation
(461,355
)
 
(449,601
)
Funded status
$
3,424

 
$
(30,747
)
The following summarizes the net pension liability for non-U.S. plans:
 
December 31,
 
2017
 
2016
 
(Amounts in thousands)
Plan assets, at fair value
$
248,733

 
$
223,491

Benefit Obligation
(413,960
)
 
(383,947
)
Funded status
$
(165,227
)
 
$
(160,456
)
Schedule of Amounts Recognized in Balance Sheet
The following summarizes amounts recognized in the balance sheet for U.S. plans:
 
December 31,
 
2017
 
2016
 
(Amounts in thousands)
Noncurrent assets
$
10,853

 
$
—

Current liabilities
(459
)
 
(273
)
Noncurrent liabilities
(6,970
)
 
(30,474
)
Funded status
$
3,424

 
$
(30,747
)
The following summarizes amounts recognized in the balance sheet for postretirement Benefit Obligation:
 
December 31,
 
2017
 
2016
 
(Amounts in thousands)
Current liabilities
$
(2,952
)
 
$
(3,442
)
Noncurrent liabilities
(20,930
)
 
(23,875
)
Funded status
$
(23,882
)
 
$
(27,317
)
The following summarizes amounts recognized in the balance sheet for non-U.S. plans:
 
December 31,
 
2017
 
2016
\
(Amounts in thousands)
Noncurrent assets
$
13,908

 
$
4,905

Current liabilities
(8,392
)
 
(7,932
)
Noncurrent liabilities
(170,743
)
 
(157,429
)
Funded status
$
(165,227
)
 
$
(160,456
)
Schedule of Benefit Obligations and Accumulated Benefit Obligations
The following is a reconciliation of the non-U.S. plans’ defined benefit pension obligations:
 
2017
 
2016
 
(Amounts in thousands)
Balance — January 1
$
383,947

 
$
386,175

Service cost
7,247

 
7,131

Interest cost
9,320

 
11,623

Employee contributions
228

 
219

Settlements and other
(9,260
)
 
(10,347
)
Actuarial (gain) loss (1)
(1,913
)
 
49,826

Net benefits and expenses paid
(18,701
)
 
(21,735
)
Currency translation impact(2)
43,092

 
(38,945
)
Balance — December 31
$
413,960

 
$
383,947

Accumulated benefit obligations at December 31
$
391,102

 
$
362,618

_______________________________________
(1)
The 2016 actuarial loss primarily reflects the decrease in the discount rates for U.K. and the Euro-zone.
(2)
In 2017 the currency translation impact reflects the weakening of the U.S. dollar against our significant currencies, primarily the Euro and British pound, while in 2016 the currency translation impact reflects the strengthening of the U.S. dollar against our significant currencies, primarily the Euro and British pound.
The following is a summary of the changes in the U.S. defined benefit plans’ pension obligations:
 
2017
 
2016
 
(Amounts in thousands)
Balance — January 1
$
449,601

 
$
426,248

Service cost
22,257

 
22,583

Interest cost
16,878

 
19,072

Plan amendments and settlements
(3,006
)
 
(3,221
)
Actuarial loss (1)
9,404

 
22,706

Benefits paid
(33,779
)
 
(37,787
)
Balance — December 31
$
461,355

 
$
449,601

Accumulated benefit obligations at December 31
$
461,355

 
$
449,601


_______________________________________
(1)
The actuarial losses in 2017 and 2016 primarily reflect the impact of changes in the discount rate.
The following is a reconciliation of the postretirement Benefit Obligation:
 
2017
 
2016
 
(Amounts in thousands)
Balance — January 1
$
27,317

 
$
28,614

Service cost
—

 
1

Interest cost
919

 
1,154

Employee contributions
939

 
856

Medicare subsidies receivable
235

 
117

Actuarial (gain) loss
(1,818
)
 
1,907

Net benefits and expenses paid
(3,710
)
 
(5,332
)
Balance — December 31
$
23,882

 
$
27,317
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):
2018
$
17.5

2019
16.9

2020
17.2

2021
17.7

2022
18.5

2023-2027
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):
2018
$
39.5

2019
39.5

2020
40.7

2021
44.3

2022
42.3

2023-2027
202.9

The following presents expected benefit payments for future periods (amounts in millions):
 
Expected
Payments
 
Medicare
Subsidy
2018
$
3.0

 
$
0.1

2019
2.8

 
0.1

2020
2.6

 
0.1

2021
2.3

 
0.1

2022
2.1

 
0.1

2023-2027
8.1

 
0.3
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:
 
2017
 
2016
 
(Amounts in thousands)
Balance — January 1
$
(163
)
 
$
1,179

Amortization of net gain
(172
)
 
(223
)
Amortization of prior service cost
76

 
77

Net gain (loss) arising during the year
1,139

 
(1,196
)
Balance — December 31
$
880

 
$
(163
)

Amounts recorded in accumulated other comprehensive loss consist of:
 
December 31,
 
2017
 
2016
 
(Amounts in thousands)
Unrecognized net gain (loss)
$
1,921

 
$
(455
)
Unrecognized prior service (cost) gain
(1,041
)
 
292

Accumulated other comprehensive income (loss), net of tax
$
880

 
$
(163
)
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:
 
2017
 
2016
 
(Amounts in thousands)
Balance — January 1
$
(68,260
)
 
$
(59,993
)
Amortization of net loss
2,756

 
3,673

Net gain (loss) arising during the year
2,289

 
(20,071
)
Settlement loss
1,668

 
610

Prior service benefit arising during the year
28

 
—

Currency translation impact and other
(6,353
)
 
7,521

Balance — December 31
$
(67,872
)
 
$
(68,260
)

Amounts recorded in accumulated other comprehensive loss consist of:
 
December 31,
 
2017
 
2016
 
(Amounts in thousands)
Unrecognized net loss
$
(67,886
)
 
$
(68,194
)
Unrecognized prior service gain (cost)
14

 
(66
)
Accumulated other comprehensive loss, net of tax
$
(67,872
)
 
$
(68,260
)
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:
 
2017
 
2016
 
(Amounts in thousands)
Balance — January 1
$
(69,132
)
 
$
(61,647
)
Amortization of net loss
3,766

 
3,136

Amortization of prior service cost
70

 
306

Net gain (loss) arising during the year
16,009

 
(11,618
)
Settlement (gain) loss
(135
)
 
57

Prior service (cost) benefit arising during the year
(368
)
 
634

Balance — December 31
$
(49,790
)
 
$
(69,132
)


Amounts recorded in accumulated other comprehensive loss consist of:
 
December 31,
 
2017
 
2016
 
(Amounts in thousands)
Unrecognized net loss
$
(48,825
)
 
$
(68,476
)
Unrecognized prior service cost
(965
)
 
(656
)
Accumulated other comprehensive loss, net of tax
$
(49,790
)
 
$
(69,132
)
Reconciliation of Plan Assets
The following is a reconciliation of the U.S. defined benefit pension plans’ assets:
 
2017
 
2016
 
(Amounts in thousands)
Balance — January 1
$
418,854

 
$
408,218

Return on plan assets
59,462

 
28,182

Company contributions
23,836

 
22,450

Benefits paid
(33,779
)
 
(37,787
)
Settlements
(3,594
)
 
(2,209
)
Balance — December 31
$
464,779

 
$
418,854

The following is a reconciliation of the non-U.S. plans’ defined benefit pension assets:
 
2017
 
2016
 
(Amounts in thousands)
Balance — January 1
$
223,491

 
$
230,827

Return on plan assets
10,871

 
33,073

Employee contributions
228

 
219

Company contributions
18,494

 
20,004

Settlements
(7,383
)
 
(4,511
)
Currency translation impact and other
21,733

 
(34,386
)
Net benefits and expenses paid
(18,701
)
 
(21,735
)
Balance — December 31
$
248,733

 
$
223,491
Allocation of Plan Assets
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, 2017
 
At December 31, 2016
 
 
 
Hierarchical Levels
 
 
 
Hierarchical Levels
 
Total
 
I
 
II
 
III
 
Total
 
I
 
II
 
III
 
(Amounts in thousands)
 
(Amounts in thousands)
Cash and cash equivalents
$
5,494

 
$
5,494

 
$
—

 
$
—

 
$
848

 
$
848

 
$
—

 
$
—

Commingled Funds:
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
Equity securities
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
U.S. Large Cap(a)
—

 
—

 
—

 
—

 
81,953

 
—

 
81,953

 
—

U.S. Small Cap(b)
—

 
—

 
—

 
—

 
17,738

 
—

 
17,738

 
—

International Large Cap(c)
—

 
—

 
—

 
—

 
59,435

 
—

 
59,435

 
—

Emerging Markets(d)
—

 
—

 
—

 
—

 
20,014

 
—

 
20,014

 
—

World Equity(e)
—

 
—

 
—

 
—

 
34,261

 
—

 
34,261

 
—

Global Equity(f)
167,336

 
—

 
167,336

 
—

 
—

 
—

 
—

 
—

Global Real Assets(g)
55,261

 
—

 
55,261

 
—

 
—

 
—

 
—

 
—

Fixed income securities
 

 
 
 
 
 
 
 


 
 
 
 
 
 
Diversified Credit(h)
55,440

 
—

 
55,440

 
—

 
—

 
—

 
—

 
—

Liability Driven Investment (i)
181,248

 
—

 
181,248

 
—

 
164,384

 
—

 
164,384

 
—

Long-Term Government/Credit(j)
—

 
—

 
—

 
—

 
40,221

 
—

 
40,221

 
—

 
$
464,779

 
$
5,494

 
$
459,285

 
$
—

 
$
418,854

 
$
848

 
$
418,006

 
$
—

_______________________________________
(a)
U.S. Large Cap funds seek to outperform the Russell 1000 (R) Index with investments in large and medium capitalization U.S. companies represented in the Russell 1000 (R) Index, which is composed of the largest 1,000 U.S. equities as determined by market capitalization.
(b)
U.S. Small Cap funds seek to outperform the Russell 2000 (R) Index with investments in medium and small capitalization U.S. companies represented in the Russell 2000 (R) Index, which is composed of the smallest 2,000 U.S. equities as determined by market capitalization.
(c)
International Large Cap funds seek to outperform the MSCI Europe, Australia, and Far East Index with investments in most of the developed nations of the world so as to maintain a high degree of diversification among countries and currencies.
(d)
Emerging Markets funds represent a diversified portfolio that seeks high, long-term returns comparable to investments in emerging markets by investing in stocks from newly developed emerging market economies.
(e)
World Equity funds seek to outperform the Russell Developed Large Cap Index Net over a full market cycle. The fund's goal is to provide a favorable total return relative to the benchmark, primarily through long-term capital appreciation.
(f)
Global Equity fund seeks to closely track the performance of the MSCI All Country World Index.
(g)
Global Real Asset funds seek to provide exposure to the listed global real estate investment trusts (REITs) and infrastructure markets.
(h)
Diversified Credit funds seek to provide exposure to the high yield, emerging markets, bank loans, and securitized credit markets.
(i)
LDI funds seek to invest in high quality fixed income securities that closely match those found in discount curves used to value the plan's liabilities.
(j)
Long-Term Government/Credit funds seek to outperform the Bloomberg Barclays Capital U.S. Long-Term Government/Credit Index by generating excess return through a variety of diversified strategies in securities with longer durations, such as sector rotation, security selection and tactical use of high-yield bonds.
The asset allocations for the non-U.S. defined benefit pension plans at the end of 2017 and 2016 are as follows:
 
 
Target Allocation at
December 31,
 
Percentage of Actual Plan
Assets at December 31,
Asset category
 
2017
 
2016
 
2017
 
2016
Cash and cash equivalents
 
3
%
 
4
%
 
3
%
 
4
%
North American Companies
 
3
%
 
3
%
 
3
%
 
3
%
Global Equity
 
3
%
 
8
%
 
3
%
 
8
%
Equity securities
 
6
%
 
11
%
 
6
%
 
11
%
U.K. Government Gilt Index
 
41
%
 
31
%
 
41
%
 
31
%
U.K. Corporate Bond Index
 
1
%
 
1
%
 
1
%
 
1
%
Global Fixed Income Bond
 
2
%
 
2
%
 
2
%
 
2
%
Liability Driven Investment
 
9
%
 
11
%
 
9
%
 
11
%
Fixed income
 
53
%
 
45
%
 
53
%
 
45
%
Multi-asset
 
22
%
 
25
%
 
22
%
 
25
%
Buy-in Contract
 
10
%
 
9
%
 
10
%
 
9
%
Other
 
6
%
 
6
%
 
6
%
 
6
%
Other Types
 
38
%
 
40
%
 
38
%
 
40
%

The asset allocations for the qualified plan at the end of 2017 and 2016 by asset category, are as follows:
 
Target Allocation
at December 31,
 
Percentage of Actual Plan Assets at December 31,
Asset category
2017
 
2016
 
2017
 
2016
Cash and cash equivalents
—
%
 
—
%
 
1
%
 
—
%
U.S. Large Cap
—
%
 
19
%
 
—
%
 
20
%
U.S. Small Cap
—
%
 
4
%
 
—
%
 
4
%
International Large Cap
—
%
 
14
%
 
—
%
 
14
%
Emerging Markets
—
%
 
5
%
 
—
%
 
5
%
World Equity
—
%
 
8
%
 
—
%
 
8
%
Global Equity
36
%
 
—
%
 
36
%
 
—
%
Global Real Assets
12
%
 
—
%
 
12
%
 
—
%
Equity securities
48
%
 
50
%
 
48
%
 
51
%
Diversified Credit
12
%
 
—
%
 
12
%
 
—
%
Liability Driven Investment
40
%
 
40
%
 
39
%
 
39
%
Long-Term Government / Credit
—
%
 
10
%
 
—
%
 
10
%
Fixed income
52
%
 
50
%
 
51
%
 
49
%
The fair values of the non-U.S. assets were:
 
At December 31, 2017
 
At December 31, 2016
 
 
 
Hierarchical Levels
 
 
 
Hierarchical Levels
 
Total
 
I
 
II
 
III
 
Total
 
I
 
II
 
III
 
(Amounts in thousands)
 
(Amounts in thousands)
Cash
$
6,815

 
$
6,815

 
$
—

 
$
—

 
$
10,396

 
$
10,396

 
$
—

 
$
—

Commingled Funds:
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
Equity securities
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
North American Companies(a)
7,119

 
—

 
7,119

 
—

 
5,945

 
—

 
5,945

 
—

Global Equity(b)
8,951

 
—

 
8,951

 
—

 
16,774

 
—

 
16,774

 
—

Fixed income securities
 

 
 
 
 
 
 
 
 

 
 
 
 
 
 
U.K. Government Gilt Index(c)
103,230

 
—

 
103,230

 
—

 
68,227

 
—

 
68,227

 
—

U.K. Corporate Bond Index(d)
1,316

 
—

 
1,316

 
—

 
2,785

 
—

 
2,785

 
—

Global Fixed Income Bond(e)
5,350

 
—

 
5,350

 
—

 
5,259

 
—

 
5,259

 
—

Liability Driven Investment (f)
21,837

 
—

 
21,837

 
—

 
25,348

 
—

 
25,348

 
—

Other Types of Investments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Multi-asset (g)
55,503

 
—

 
55,503

 
—

 
54,880

 
—

 
54,880

 
—

Buy-in Contract (h)
24,484

 
—

 
—

 
24,484

 
20,931

 
—

 
—

 
20,931

Other(i)
14,128

 
—

 
—

 
14,128

 
12,946

 
—

 
—

 
12,946

 
$
248,733

 
$
6,815

 
$
203,306

 
$
38,612

 
$
223,491

 
$
10,396

 
$
179,218

 
$
33,877

_______________________________________
(a)
North American Companies represents U.S. and Canadian large cap equity funds, which are managed and 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 and track their respective benchmarks.
(d)
U.K. Corporate Bond Index represents U.K. corporate bond investments, which are passively managed and track the iBoxx Over 15 years £ Non-Gilt Index.
(e)
Global Fixed Income Bond represents investment funds that are actively managed, diversified and invested in traditional government bonds, high-quality corporate bonds, asset backed securities and emerging market debt.
(f)
Liability Driven Investment seeks to invest in fixed income securities that closely match those found in discount curves used to value the plan's liabilities.
(g)
Multi-asset seeks an attractive risk-adjusted return by investing in a diversified portfolio of strategies, including equities and fixed income.
(h)
Buy-in contract represents an asset held by the Netherlands plan, whereby the cost of providing benefits is funded by the contract. The fair value of the asset as January 1, 2017 was $20.9 million with contributions and currency adjustments resulting in a fair value of $24.5 million at December 31, 2017. The fair value of this asset is 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.
(i)
Includes assets held by plans outside the United Kingdom and the Netherlands. Details, including Level III rollforward details are not material.
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,
 
2017
 
2016
 
(Amounts in thousands)
Benefit Obligation
$
217,510

 
$
802,456

Accumulated benefit obligation
197,816

 
784,337

Fair value of plan assets
32,052

 
607,705
Schedule of Effect of One-Percentage Point Change in Assumed Health Care Cost Trend Rates
A one-percentage point change in assumed health care cost trend rates would have the following effect on the 2017 reported amounts (in thousands):
 
1% Increase
 
1% Decrease
Effect on postretirement Benefit Obligation
$
116

 
$
(111
)
Effect on service cost plus interest cost
4

 
(4
)