Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2018

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)	2018			2017			2016			2018			2017			2016
Components of net periodic benefit cost
Service cost for benefits earned	$	1,971		$	2,175		$	2,497		$	18,738		$	18,652		$	15,210
Interest cost on projected benefit obligation	19,393			20,075			24,096			17,704			17,116			24,413
Expected return on plan assets	(30,994		)	(35,577		)	(33,988		)	(50,546		)	(50,626		)	(45,865		)
Net amortization of deferrals	6,592			5,424			5,821			11,798			14,403			12,802
Settlements and curtailments	—			—			—			—			2,746			—
Net periodic benefit cost	(3,038		)	(7,903		)	(1,574		)	(2,306		)	2,291			6,560
Defined contribution and other retirement plans	10,527			8,604			8,404			6,859			5,681			6,304
Total expense	$	7,489		$	701		$	6,830		$	4,553		$	7,972		$	12,864
Changes in plan assets and benefit obligations recognized in OCI
Net actuarial (gain) loss	$	21,050		$	(12,145	)				$	11,937		$	(20,557	)
Recognized actuarial loss	(6,549		)	(5,383		)				(12,590		)	(17,895		)
Prior service cost	—			93						2,776			—
Recognized prior service (cost) credit	(43		)	(41		)				792			747
Currency translation adjustment	—			—						(16,978		)	36,722
Total recognized in OCI (before tax effects)	$	14,458		$	(17,476	)				$	(14,063	)	$	(983	)

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



	Postretirement Benefits
(DOLLARS IN THOUSANDS)	2018			2017			2016
Components of net periodic benefit cost
Service cost for benefits earned	$	755		$	718		$	852
Interest cost on projected benefit obligation	2,460			2,710			3,326
Net amortization and deferrals	(5,497		)	(4,913		)	(5,088		)
(Credit) Expense	$	(2,282	)	$	(1,485	)	$	(910	)
Changes in plan assets and benefit obligations recognized in OCI
Net actuarial loss	$	(6,677	)	$	2,895
Recognized actuarial loss	(1,506		)	(1,421		)
Prior service credit	(14,862		)	—
Recognized prior service credit	7,003			6,334
Total recognized in OCI (before tax effects)	$	(16,042	)	$	7,808

Amounts Expected to be Recognized in Net Periodic Cost

The amounts expected to be recognized in net periodic cost in 2019 are:



(DOLLARS IN THOUSANDS)	U.S. Plans		Non-U.S. Plans			Postretirement Benefits
Actuarial loss recognition	$	5,060	$	12,336		$	1,274
Prior service cost (credit) recognition	43		(647		)	(6,051		)

Weighted-Average Actuarial Assumption Used to Determine Expense



	U.S. Plans						Non-U.S. Plans
	2018		2017		2016		2018		2017		2016
Discount rate	3.69	%	4.19	%	4.20	%	2.15	%	2.14	%	3.03	%
Expected return on plan assets	6.20	%	7.30	%	7.30	%	5.19	%	5.95	%	6.40	%
Rate of compensation increase	3.25	%	3.25	%	3.25	%	1.98	%	1.97	%	1.98	%

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)	2018			2017			2018			2017			2018			2017
Benefit obligation at beginning of year	$	602,783		$	577,332		$	973,061		$	895,566		$	82,714		$	79,845
Service cost for benefits earned	1,971			2,175			18,738			18,652			755			718
Interest cost on projected benefit obligation	19,393			20,075			17,704			17,116			2,460			2,710
Actuarial (gain) loss	(33,284		)	33,808			(29,433		)	(28,552		)	(6,677		)	2,895
Plan amendments	—			93			2,776			—			(14,862		)	—
Adjustments for expense/tax contained in service cost	—			—			(1,290		)	(1,287		)	—			—
Plan participants’ contributions	—			—			2,047			1,700			435			457
Benefits paid	(32,093		)	(30,700		)	(33,862		)	(28,943		)	(5,200		)	(3,911		)
Curtailments / settlements	—			—			(2,751		)	(6,787		)	—			—
Translation adjustments	—			—			(49,027		)	105,596			—			—
Acquisitions/Transferred Liabilities	3,273			—			48,356			—			—			—
Other	—			—			11,616			—			—			—
Benefit obligation at end of year	$	562,043		$	602,783		$	957,935		$	973,061		$	59,625		$	82,714

Fair value of plan assets at beginning of year	$	581,917		$	525,964		$	929,810		$	792,138
Actual return on plan assets	(23,339		)	81,530			6,699			39,423
Employer contributions	3,524			5,123			18,238			36,645
Participants’ contributions	—			—			2,047			1,700
Benefits paid	(32,093		)	(30,700		)	(33,862		)	(28,943		)
Settlements	—			—			(1,564		)	(6,787		)
Translation adjustments	—			—			(47,247		)	95,634
Acquisitions/Transferred Assets	2,372			—			21,672			—
Other	—			—			989			—
Fair value of plan assets at end of year	$	532,381		$	581,917		$	896,782		$	929,810
Funded status at end of year	$	(29,662	)	$	(20,866	)	$	(61,153	)	$	(43,251	)

Amounts Recognized in Balance Sheet



	U.S. Plans						Non-U.S. Plans
(DOLLARS IN THOUSANDS)	2018			2017			2018			2017
Other assets	$	20,949		$	33,164		$	54,434		$	38,095
Other current liabilities	(4,092		)	(4,049		)	(882		)	(652		)
Retirement liabilities	(46,519		)	(49,981		)	(114,705		)	(80,694		)
Net amount recognized	$	(29,662	)	$	(20,866	)	$	(61,153	)	$	(43,251	)

Amounts Recognized in Accumulated Other Comprehensive Income



	U.S. Plans				Non-U.S. Plans						Postretirement Benefits
(DOLLARS IN THOUSANDS)	2018		2017		2018			2017			2018			2017
Net actuarial loss	$	151,389	$	136,888	$	321,144		$	338,916		$	12,627		$	20,810
Prior service cost (credit)	151		194		(3,926		)	(7,635		)	(33,189		)	(25,330		)
Total AOCI (before tax effects)	$	151,540	$	137,082	$	317,218		$	331,281		$	(20,562	)	$	(4,520	)

Accumulated Benefit Obligation



	U.S. Plans						Non-U.S. Plans
(DOLLARS IN THOUSANDS)	2018			2017			2018			2017
Accumulated Benefit Obligation — end of year	$	562,043		$	600,634		$	957,935		$	941,158
Information for Pension Plans with an ABO in excess of Plan Assets:
Projected benefit obligation	$	52,714		$	54,030		$	582,466		$	542,843
Accumulated benefit obligation	52,690			54,030			548,116			510,939
Fair value of plan assets	2,103			—			466,878			461,496
Weighted-average assumptions used to determine obligations at December 31
Discount rate	4.31		%	3.68		%	2.22		%	2.15		%
Rate of compensation increase	3.25		%	3.25		%	1.91		%	1.98		%

Estimated Future Benefit Payments



(DOLLARS IN THOUSANDS)	U.S. Plans		Non-U.S. Plans		Postretirement Benefits
Estimated Future Benefit Payments
2019	$	35,742	$	26,342	$	3,881
2020	36,918		25,991		3,940
2021	37,710		27,270		4,014
2022	38,823		27,589		4,081
2023	38,449		28,843		4,085
2024 - 2028	190,164		165,681		20,449
Contributions
Required Company Contributions in Following Year (2019)	$	4,207	$	19,258	$	3,882

Percentage of Assets Invested



	U.S. Plans				Non-U.S. Plans
	2018		2017		2018		2017
Cash and cash equivalents	1	%	1	%	3	%	4	%
Equities	25	%	28	%	12	%	27	%
Fixed income	74	%	71	%	36	%	40	%
Property	—	%	—	%	8	%	4	%
Alternative and other investments	—	%	—	%	41	%	25	%

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, 2018 and 2017. 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 17.



	U.S. Plans for the Year Ended
	December 31, 2018
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total
Cash Equivalents	$	—	$	3,490	$	—	$	3,490
Fixed Income Securities
Government & Government Agency Bonds	—		17,827		—		17,827
Corporate Bonds	—		96,566		—		96,566
Municipal Bonds	—		8,138		—		8,138
Assets measured at net asset value⁽¹⁾	—		—		—		404,895
Total	$	—	$	126,021	$	—	$	530,916
Receivables							$	1,465
Total							$	532,381



	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

_______________________

(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 $133.1 million and $159.6 million in pooled equity funds and $271.8 million and $288.2 million in fixed income mutual funds for the years ended December 31, 2018 and 2017, respectively.



	Non-U.S. Plans for the Year Ended
	December 31, 2018
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total
Cash	$	25,386	$	—	$	—	$	25,386
Equity Securities
U.S. Large Cap	35,929		11,340		—		47,269
U.S. Mid Cap	—		—		—		—
U.S. Small Cap	—		—		—		—
Non-U.S. Large Cap	30,841		8,381		—		39,222
Non-U.S. Mid Cap	905		—		—		905
Non-U.S. Small Cap	628		—		—		628
Emerging Markets	22,608		—		—		22,608
Fixed Income Securities
U.S. Treasuries/Government Bonds	131		—		—		131
U.S. Corporate Bonds	—		29,682		—		29,682
Non-U.S. Treasuries/Government Bonds	137,267		5,494		—		142,761
Non-U.S. Corporate Bonds	30,893		85,841		—		116,734
Non-U.S. Asset-Backed Securities	—		32,587		—		32,587
Non-U.S. Other Fixed Income	2,324		—		—		2,324
Alternative Types of Investments
Insurance Contracts	—		152,947		254		153,201
Other	—		123,786		25,913		149,699
Absolute Return Funds	3,584		61,211		—		64,795
Real Estate
Non-U.S. Real Estate	—		—		68,850		68,850
Total	$	290,496	$	511,269	$	95,017	$	896,782



	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

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, 2018:



	Non-U.S. Plans
(DOLLARS IN THOUSANDS)	Real Estate			Hedge Funds			Total
Ending balance as of December 31, 2017	$	39,165		$	33,593		$	72,758
Actual return on plan assets	(2,155		)	(1,377		)	(3,532		)
Purchases, sales and settlements	32,094			(6,303		)	25,791
Ending balance as of December 31, 2018	$	69,104		$	25,913		$	95,017

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
	2018		2017		2018		2017
Discount rate	3.70	%	4.20	%	4.30	%	3.70	%
Current medical cost trend rate	7.75	%	8.00	%	7.50	%	7.75	%
Ultimate medical cost trend rate	4.75	%	4.75	%	4.75	%	4.75	%
Medical cost trend rate decreases to ultimate rate in year	2030		2030		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, 2018:



(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	14,603		46,475	N/A
Change in ABO	14,524		44,628	1,638
Change in pension expense	(102	)	2,710	44
25 Basis Point Decrease in Long-Term Rate of Return
Change in pension expense	1,248		1,911	N/A