Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2017

Plan Assets and Benefit Obligations of Defined Benefit Pension Plans

The plan assets and benefit obligations of the defined benefit pension plans are measured at December 31 of each year.



	U.S. Plans									Non-U.S. Plans
(DOLLARS IN THOUSANDS)	2017			2016			2015			2017			2016			2015
Components of net periodic benefit cost
Service cost for benefits earned	$	2,175		$	2,497		$	3,144		$	18,652		$	15,210		$	15,866
Interest cost on projected benefit obligation	20,075			24,096			23,705			17,116			24,413			25,389
Expected return on plan assets	(35,577		)	(33,988		)	(32,405		)	(50,626		)	(45,865		)	(50,437		)
Net amortization of deferrals	5,424			5,821			21,390			14,403			12,802			12,864
Settlements and curtailments	—			—			—			2,746			—			—
Net periodic benefit cost	(7,903		)	(1,574		)	15,834			2,291			6,560			3,682
Defined contribution and other retirement plans	8,604			8,404			7,104			5,681			6,304			7,028
Total expense	$	701		$	6,830		$	22,938		$	7,972		$	12,864		$	10,710
Changes in plan assets and benefit obligations recognized in OCI
Net actuarial (gain) loss	$	(12,145	)	$	(4,917	)				$	(20,557	)	$	72,848
Recognized actuarial loss	(5,383		)	(5,759		)				(17,895		)	(13,643		)
Prior service cost	93			—						—			—
Recognized prior service (cost) credit	(41		)	(62		)				747			742
Currency translation adjustment	—			—						36,722			(43,270		)
Total recognized in OCI (before tax effects)	$	(17,476	)	$	(10,738	)				$	(983	)	$	16,677

Components of Net Periodic Benefit Cost and Changes in Plan Assets and Benefit Obligations Recognized in OCI



	Postretirement Benefits
(DOLLARS IN THOUSANDS)	2017			2016			2015
Components of net periodic benefit cost
Service cost for benefits earned	$	718		$	852		$	966
Interest cost on projected benefit obligation	2,710			3,326			3,904
Net amortization and deferrals	(4,913		)	(5,088		)	(4,476		)
(Credit) Expense	$	(1,485	)	$	(910	)	$	394
Changes in plan assets and benefit obligations recognized in OCI
Net actuarial loss	$	2,895		$	2,868
Recognized actuarial loss	(1,421		)	(1,701		)
Recognized prior service credit	6,334			6,789
Total recognized in OCI (before tax effects)	$	7,808		$	7,956

Amounts Expected to be Recognized in Net Periodic Cost

The amounts expected to be recognized in net periodic cost in 2018 are:



(DOLLARS IN THOUSANDS)	U.S. Plans		Non-U.S. Plans			Postretirement Benefits
Actuarial loss recognition	$	6,152	$	12,680		$	1,580
Prior service cost (credit) recognition	43		(794		)	(6,335		)

Weighted-Average Actuarial Assumption Used to Determine Expense



	U.S. Plans						Non-U.S. Plans
	2017		2016		2015		2017		2016		2015
Discount rate	4.19	%	4.20	%	3.90	%	2.14	%	3.03	%	2.74	%
Expected return on plan assets	7.30	%	7.30	%	7.30	%	5.95	%	6.40	%	6.24	%
Rate of compensation increase	3.25	%	3.25	%	3.25	%	1.97	%	1.98	%	2.00	%

Changes in Postretirement Benefit Obligation and Plan Assets

Changes in the postretirement benefit obligation and plan assets, as applicable, are detailed in the following table:



	U.S. Plans						Non-U.S. Plans						Postretirement Benefits
(DOLLARS IN THOUSANDS)	2017			2016			2017			2016			2017			2016
Benefit obligation at beginning of year	$	577,332		$	587,511		$	895,566		$	860,240		$	79,845		$	77,148
Service cost for benefits earned	2,175			2,497			18,652			15,210			718			852
Interest cost on projected benefit obligation	20,075			24,096			17,116			24,413			2,710			3,326
Actuarial (gain) loss	33,808			(7,078		)	(28,552		)	134,377			2,895			2,868
Plan amendments	93			—			—			—			—			—
Adjustments for expense/tax contained in service cost	—			—			(1,287		)	(1,515		)	—			—
Plan participants’ contributions	—			—			1,700			1,538			457			411
Benefits paid	(30,700		)	(29,694		)	(28,943		)	(30,648		)	(3,911		)	(4,760		)
Curtailments / settlements	—			—			(6,787		)	(487		)	—			—
Translation adjustments	—			—			105,596			(107,562		)	—			—
Benefit obligation at end of year	$	602,783		$	577,332		$	973,061		$	895,566		$	82,714		$	79,845

Fair value of plan assets at beginning of year	$	525,964		$	500,311		$	792,138		$	790,614
Actual return on plan assets	81,530			31,828			39,423			105,879
Employer contributions	5,123			23,519			36,645			23,239
Participants’ contributions	—			—			1,700			1,538
Benefits paid	(30,700		)	(29,694		)	(28,943		)	(30,648		)
Settlements	—			—			(6,787		)	(487		)
Translation adjustments	—			—			95,634			(97,997		)
Fair value of plan assets at end of year	$	581,917		$	525,964		$	929,810		$	792,138
Funded status at end of year	$	(20,866	)	$	(51,368	)	$	(43,251	)	$	(103,428	)

Amounts Recognized in Balance Sheet



	U.S. Plans						Non-U.S. Plans
(DOLLARS IN THOUSANDS)	2017			2016			2017			2016
Other assets	$	33,164		$	4,343		$	38,095		$	—
Other current liabilities	(4,049		)	(4,027		)	(652		)	(557		)
Retirement liabilities	(49,981		)	(51,684		)	(80,694		)	(102,871		)
Net amount recognized	$	(20,866	)	$	(51,368	)	$	(43,251	)	$	(103,428	)

Amounts Recognized in Accumulated Other Comprehensive Income



	U.S. Plans				Non-U.S. Plans						Postretirement Benefits
(DOLLARS IN THOUSANDS)	2017		2016		2017			2016			2017			2016
Net actuarial loss	$	136,888	$	154,417	$	338,916		$	339,654		$	20,810		$	19,336
Prior service cost (credit)	194		141		(7,635		)	(7,390		)	(25,330		)	(31,664		)
Total AOCI (before tax effects)	$	137,082	$	154,558	$	331,281		$	332,264		$	(4,520	)	$	(12,328	)

Accumulated Benefit Obligation



	U.S. Plans						Non-U.S. Plans
(DOLLARS IN THOUSANDS)	2017			2016			2017			2016
Accumulated Benefit Obligation — end of year	$	600,634		$	574,612		$	941,158		$	865,585
Information for Pension Plans with an ABO in excess of Plan Assets:
Projected benefit obligation	$	54,030		$	65,101		$	542,843		$	895,566
Accumulated benefit obligation	54,030			65,101			510,939			865,585
Fair value of plan assets	—			9,389			461,496			790,218
Weighted-average assumptions used to determine obligations at December 31
Discount rate	3.68		%	4.20		%	2.15		%	2.14		%
Rate of compensation increase	3.25		%	3.25		%	1.98		%	1.97		%

Estimated Future Benefit Payments



(DOLLARS IN THOUSANDS)	U.S. Plans		Non-U.S. Plans		Postretirement Benefits
Estimated Future Benefit Payments
2018	$	33,992	$	25,663	$	5,022
2019	35,378		25,925		5,115
2020	36,450		26,059		5,266
2021	37,192		26,736		5,259
2022	37,444		27,331		5,277
2023 - 2027	187,600		153,469		25,511
Contributions
Required Company Contributions in Following Year (2018)	$	4,121	$	17,104	$	5,022

Percentage of Assets Invested



	U.S. Plans				Non-U.S. Plans
	2017		2016		2017		2016
Cash and cash equivalents	1	%	—	%	4	%	2	%
Equities	28	%	36	%	27	%	27	%
Fixed income	71	%	64	%	40	%	56	%
Property	—	%	—	%	4	%	5	%
Alternative and other investments	—	%	—	%	25	%	10	%

Fair Value Hierarchy of Plan Assets

The following tables present the Company's plan assets for the U.S. and non-U.S. plans using the fair value hierarchy as of December 31, 2017 and 2016. The plans’ assets were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The Company's assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and their placement within the fair value hierarchy levels. For more information on a description of the fair value hierarchy, see Note 15.



	U.S. Plans for the Year Ended
	December 31, 2017
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total
Cash Equivalents	$	—	$	7,138	$	—	$	7,138
Fixed Income Securities
Government & Government Agency Bonds	—		16,118		—		16,118
Corporate Bonds	—		100,478		—		100,478
Municipal Bonds	—		8,982		—		8,982
Assets measured at net asset value⁽¹⁾	—				—		447,847
Total	$	—	$	132,716	$	—	$	580,563
Receivables							$	1,354
Total							$	581,917



	U.S. Plans for the Year Ended
	December 31, 2016
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total
Cash Equivalents	$	—	$	1,673	$	—	$	1,673
Fixed Income Securities
Government & Government Agency Bonds	—		11,845		—		11,845
Corporate Bonds	—		90,843		—		90,843
Municipal Bonds	—		9,682		—		9,682
Asset Backed Securities	—		64		—		64
Assets measured at net asset value⁽¹⁾	—		—		—		410,533
Total	$	—	$	114,107	$	—	$	524,640
Receivables							$	1,324
Total							$	525,964

_______________________

(1)

Investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Consolidated Balance Sheet. The total amount measured at net asset value includes approximately $159.6 million and $187.3 million in pooled equity funds and $288.2 million and $223.2 million in fixed income mutual funds for the years ended December 31, 2017 and 2016, respectively.



	Non-U.S. Plans for the Year Ended
	December 31, 2017
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total
Cash	$	33,146	$	—	$	—	$	33,146
Equity Securities
U.S. Large Cap	86,921		19,710		—		106,631
U.S. Mid Cap	623		—		—		623
U.S. Small Cap	474		—		—		474
Non-U.S. Large Cap	84,898		17,117		—		102,015
Non-U.S. Mid Cap	577		—		—		577
Non-U.S. Small Cap	422		—		—		422
Emerging Markets	43,706		1,296		—		45,002
Fixed Income Securities
U.S. Treasuries/Government Bonds	94		—		—		94
U.S. Corporate Bonds	—		39,647		—		39,647
Non-U.S. Treasuries/Government Bonds	129,494		7,492		—		136,986
Non-U.S. Corporate Bonds	26,212		128,121		—		154,333
Non-U.S. Asset-Backed Securities	—		34,350		—		34,350
Non-U.S. Other Fixed Income	2,116		—		—		2,116
Alternative Types of Investments
Insurance Contracts	—		146,998		270		147,268
Hedge Funds	—		—		33,593		33,593
Other	—		29,133		—		29,133
Absolute Return Funds	3,314		21,191		—		24,505
Real Estate
Non-U.S. Real Estate	—		—		38,895		38,895
Total	$	411,997	$	445,055	$	72,758	$	929,810



	Non-U.S. Plans for the Year Ended
	December 31, 2016
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total
Cash	$	12,726	$	—	$	—	$	12,726
Equity Securities
U.S. Large Cap	72,438		17,102		—		89,540
U.S. Mid Cap	504		—		—		504
U.S. Small Cap	382		—		—		382
Non-U.S. Large Cap	69,442		10,606		—		80,048
Non-U.S. Mid Cap	514		—		—		514
Non-U.S. Small Cap	284		—		—		284
Emerging Markets	37,354		1,035		—		38,389
Fixed Income Securities
U.S. Treasuries/Government Bonds	75		—		—		75
U.S. Corporate Bonds	—		28,843		—		28,843
Non-U.S. Treasuries/Government Bonds	121,987		57,116		—		179,103
Non-U.S. Corporate Bonds	26,412		183,020		—		209,432
Non-U.S. Asset-Backed Securities	—		27,114		—		27,114
Non-U.S. Other Fixed Income	1,969		—		—		1,969
Alternative Types of Investments
Insurance Contracts	—		31,087		246		31,333
Hedge Funds	—		—		30,739		30,739
Other	—		16,904		—		16,904
Absolute Return Funds	2,443		—		—		2,443
Real Estate
Non-U.S. Real Estate	—		—		41,796		41,796
Total	$	346,530	$	372,827	$	72,781	$	792,138

Reconciliation of Level 3 Non-U.S. Plan Assets Held

The following table presents a reconciliation of Level 3 non-U.S. plan assets held during the year ended December 31, 2017:



	Non-U.S. Plans
(DOLLARS IN THOUSANDS)	Real Estate			Hedge Funds		Total
Ending balance as of December 31, 2016	$	42,042		$	30,739	$	72,781
Actual return on plan assets	2,494			2,854		5,348
Purchases, sales and settlements	(5,371		)	—		(5,371		)
Transfers in/out	—			—		—
Ending balance as of December 31, 2017	$	39,165		$	33,593	$	72,758

Weighted Average Assumptions Used to Determine Postretirement Benefit Expense and Obligation

The following weighted average assumptions were used to determine the postretirement benefit expense and obligation for the years ended December 31:



	Expense				Liability
	2017		2016		2017		2016
Discount rate	4.20	%	4.20	%	3.70	%	4.20	%
Current medical cost trend rate	8.00	%	7.15	%	7.75	%	8.00	%
Ultimate medical cost trend rate	4.75	%	4.75	%	4.75	%	4.75	%
Medical cost trend rate decreases to ultimate rate in year	2030		2023		2030		2030

Sensitivity of Disclosures to Changes in Selected Assumptions

The following table presents the sensitivity of disclosures to changes in selected assumptions for the year ended December 31, 2017:



(DOLLARS IN THOUSANDS)	U.S. Pension Plans		Non-U.S. Pension Plans	Postretirement Benefit Plan
25 Basis Point Decrease in Discount Rate
Change in PBO	16,777		49,150	N/A
Change in ABO	16,698		47,394	2,454
Change in pension expense	(148	)	2,677	75
25 Basis Point Decrease in Long-Term Rate of Return
Change in pension expense	1,249		1,941	N/A