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EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Schedule of Net Benefit Cost (Credit)
Net pension cost (credit) included the following components (in thousands):
 
Twelve Months Ended
December 31,
 
2018
 
2017
 
20161
Service cost
$
77

 
$
90

 
79

Interest cost
2,303

 
2,438

 
2,504

Expected return on plan assets
(3,720
)
 
(3,110
)
 
(2,577
)
Amortization of net actuarial (gain) loss
(78
)
 
71

 
—

Net periodic pension cost (credit)
$
(1,418
)
 
$
(511
)
 
6
Schedule of Assumptions Used
The weighted-average assumptions used to determine benefit obligations at December 31, 2018 and 2017 are as follows:

 
December 31,
 
2018
 
2017
Discount rate
2.8
%
 
2.5
%
Rate of compensation increase1
Not applicable
 
Not applicable
Inflation
3.2
%
 
3.1
%
______________
1    Not applicable due to plan curtailment.
The weighted-average assumptions used to determine net periodic benefit cost (credit) for the years ended December 31, 2018 and 2017 are as follows:
 
Twelve Months Ended
December 31,
 
2018
 
2017
Discount rate
2.5
%
 
2.7
%
Expected long-term return on plan assets
4.7
%
 
4.5
%
Rate of compensation increase1
Not applicable
 
Not applicable
Inflation
3.1
%
 
3.3
%
_______________
1    Not applicable due to plan curtailment.
Schedule of Benefit Obligations in Excess of Fair Value of Plan Assets
The following table sets forth the changes in the benefit obligation and plan assets for the years ended December 31, 2018 and 2017 (in thousands):
 
Twelve Months Ended December 31,
 
2018
 
2017
Projected benefit obligation:
 
 
 
Beginning of year
$
96,875

 
$
89,206

Service cost
77

 
90

Interest cost
2,303

 
2,438

Actuarial (gain) loss
(4,347
)
 
890

Benefits paid
(4,539
)
 
(4,187
)
Prior service cost
669

 
—

Disposal of Norwegian Plan
(1,075
)
 
—

Foreign currency translation adjustment and other
(5,404
)
 
8,438

End of year
84,559

 
96,875

Fair value of plan assets:
 
 
 
Beginning of year
81,899

 
67,967

Actual gain (loss) on plan assets
(462
)
 
7,383

Employer contributions
2,404

 
4,350

Benefits paid
(4,539
)
 
(4,187
)
Disposal of Norwegian Plan
(983
)
 
—

Foreign currency translation adjustment and other
(4,700
)
 
6,386

End of year
73,619

 
81,899

Excess projected obligation under (over) fair value of plan assets at end of year
$
(10,940
)
 
$
(14,976
)
Amounts recognized in accumulated other comprehensive loss:
 
 
 
Net actuarial loss
$
(7,190
)
 
$
(7,221
)
Prior service cost
(669
)
 
—

Total
$
(7,859
)
 
$
(7,221
)
Schedule of Expected Benefit Payments
At December 31, 2018, expected future benefit payments are as follows for the years ended December 31, (in thousands):
2019
$
3,403

2020
3,536

2021
3,752

2022
3,926

2023
3,811

2024-2028
22,475

Total
$
40,903
Schedule of Allocation of Plan Assets
The following table sets forth the weighted-average asset allocation and target asset allocations as of December 31, 2018 and 2017 by asset category:
 
Asset Allocations
 
Target Asset Allocations
 
2018
 
2017
 
2018
 
2017
Equity securities and diversified growth funds1
19.2
%
 
73.5
%
 
27.5
%
 
65.0
%
Debt securities2
79.2
%
 
25.7
%
 
72.5
%
 
35.0
%
Other
1.5
%
 
0.8
%
 
—
%
 
—
%
Total
100
%
 
100
%
 
100
%
 
100
%
______________________________
1
Diversified growth funds refer to actively managed absolute return funds that hold a combination of equity and debt securities.
2
Includes investments in funds with the objective to provide leveraged returns to U.K. government fixed income securities, U.K. government indexed-linked securities, global bonds, and corporate bonds.
The following tables summarize the plan assets of the U.K. Plan measured at fair value on a recurring basis (at least annually) as of December 31, 2018 and 2017 (in thousands):
December 31, 2018
Asset Category
 
Total
 
Quoted Prices in
Active Markets 
for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2) (a)
 
Significant
Unobservable
Inputs
(Level 3) (a)
Cash
 
$
1,119

 
$
1,119

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
 
Diversified growth fund (h)
 
12,330

 
—

 
12,330

 
—

Global equity fund (o)
 
1,835

 
—

 
1,835

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
U.K. government fixed income securities (k)
 
18,048

 
—

 
18,048

 
—

U.K. government index-linked securities (l)
 
14,245

 
—

 
14,245

 
—

Global absolute return bond fund (m)
 
18,570

 
—

 
18,570

 
—

Corporate bonds (n)
 
7,472

 
—

 
7,472

 
—

Total
 
$
73,619

 
$
1,119

 
$
72,500

 
$
—

December 31, 2017
Asset Category
 
Total
 
Quoted Prices in
Active Markets 
for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2) (a)
 
Significant
Unobservable
Inputs
(Level 3) (a)
Cash
 
$
651

 
$
651

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
 
U.K. equity (b)
 
17,809

 
—

 
17,809

 
—

U.S. equity index (c)
 
4,370

 
—

 
4,370

 
—

European equity index (d)
 
4,378

 
—

 
4,378

 
—

Pacific rim equity index (e)
 
3,506

 
—

 
3,506

 
—

Japanese equity index (f)
 
2,733

 
—

 
2,733

 
—

Emerging markets equity index (g)
 
2,785

 
—

 
2,785

 
—

Diversified growth fund (h)
 
17,296

 
—

 
17,296

 
—

Global absolute return fund (i)
 
6,534

 
—

 
6,534

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
Cash fund (j)
 
5,315

 
—

 
5,315

 
—

U.K. government fixed income securities (k)
 
6,494

 
—

 
6,494

 
—

U.K. government index-linked securities (l)
 
8,934

 
—

 
8,934

 
—

Total
 
$
80,805

 
$
651

 
$
80,154

 
$
—

______________________________
a)
The net asset value of the commingled equity and fixed income funds are determined by prices of the underlying securities, less the funds’ liabilities, and then divided by the number of shares outstanding. As the funds are not traded in active markets, the commingled funds are classified as Level 2 or Level 3 assets. The net asset value is corroborated by observable market data (e.g., purchase or sale activities) for Level 2 assets.
b)
This category includes investments in U.K. companies and aims to achieve a return that is consistent with the return of the FTSE All-Share Index.
c)
This category includes investments in a variety of large and small U.S. companies and aims to achieve a return that is consistent with the return of the FTSE All-World USA Index.
d)
This category includes investments in a variety of large and small European companies and aims to achieve a return that is consistent with the return of the FTSE All-World Developed Europe ex-U.K. Index.
e)
This category includes investments in a variety of large and small companies across the Australian, Hong Kong, New Zealand and Singapore markets and aims to achieve a return that is consistent with the return of the FTSE-All-World Developed Asia Pacific ex-Japan Index.
f)
This category includes investments in a variety of large and small Japanese companies and aims to achieve a return that is consistent with the return of the FTSE All-World Japan Index.
g)
This category includes investments in companies in the Emerging Markets to achieve a return that is consistent with the return of the IFC Investable Index ex-Malaysia.
h)
This category includes investments in a diversified portfolio of equity, bonds, alternatives and cash markets and aims to achieve a return that is consistent with the return of the Libor GBP 3 month +3% Index.
i)
This category includes investments in a diversified portfolio of equity and bonds combined with investment strategies based on advanced derivative techniques and aims to achieve a return over rolling three-year periods equivalent to cash plus 5% per year, gross of fees.
j)
This category includes investments in British pound sterling-denominated money market instruments and fixed-income securities issued by governments, corporations or other issuers which may be listed or traded on a recognized market.
k)
This category includes investments in funds with the objective to provide a leveraged return to U.K. government fixed income securities (gilts) that have maturity periods ranging from 2030 to 2060.
l)
This category includes investments in funds with the objective to provide a leveraged return to various U.K. government indexed-linked securities (gilts), with maturity periods ranging from 2022 to 2062. The funds invest in U.K. government bonds and derivatives.
m)
This category includes investments in funds predominantly in a wide range of fixed and floating rate investment grade and below investment grade debt instruments traded on regulated markets worldwide with the objective to achieve a return of 3% above 1 month LIBOR over a 3-year basis.
n)
This category includes investments in a diversified pool of debt and debt like assets to generate capital and income returns.
o)
This category includes investments in a diversified portfolio of equity, bonds, money markets, alternatives and credit markets to achieve a return with downside protection through monthly put options.