Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2015

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

NOTE 7 – PENSION AND OTHER POSTRETIREMENT BENEFITS:

Pension Plans

The Corporation has a qualified defined benefit pension plan covering substantially all of its U.S. employees. Effective July 1, 2015, the plan was amended to freeze benefit accruals and participation in the plan for non-union hourly and salaried participants and, effective January 1, 2016, for employees of the Union Electric Steel Carnegie Steelworkers Location, and replace it with employer contributions of a 3% base contribution and a matching contribution of up to 4% to the defined contribution plan. For 2015, employer contributions to the defined contribution plan totaled $882 and are expected to approximate $1,892 in 2016. The plan changes resulted in a remeasurement of the plan liability, reducing the liability by approximately $10,306, and curtailment losses of $1,303. Additionally, during 2015, the plan was amended to permit lump sum distributions to deferred vested participants and deferred beneficiaries who were not offered a lump sum in 2014.

The defined benefit pension plan is covered by the Employee Retirement Income Security Act of 1974 (“ERISA”); accordingly, the Corporation’s policy is to fund at least the minimum actuarially computed annual contribution required under ERISA. Although no minimum contributions were required for any of the three years, voluntary contributions of $5,000 were made in 2013. Additionally, due to voluntary contributions and relief provided by Moving Ahead for Progress in the 21st Century (“MAP-21”) and, subsequently, the Highway and Transportation Funding Act of 2014 (“HAFTA”), which reduces funding requirements for single-employer defined benefit plans, no minimum contributions are required for 2016; however, voluntary contributions may be made. Estimated benefit payments for subsequent years are $9,434 for 2016, $9,772 for 2017, $10,039 for 2018, $10,274 for 2019, $10,500 for 2020 and $54,600 for 2021 – 2025. The fair value of the plan’s assets as of December 31, 2015 and 2014 approximated $139,376 and $157,048, respectively, in comparison to accumulated benefit obligations of $173,243 and $186,870 for the same periods.

Employees of UES-UK participate in a defined benefit pension plan that was curtailed effective December 31, 2004 and replaced with a defined contribution pension plan. The UES-UK plans are non-U.S. plans and therefore are not covered by ERISA. Instead, the Trustees and UES-UK have agreed to a recovery plan that estimates the amount of employer contributions at £1,123 annually through October 2021, based on U.K. regulations, necessary to eliminate the funding deficit of the plan with such estimates subject to change based on the future investment performance of the plan’s assets. The U.S. dollar equivalent of employer contributions to the defined benefit pension plan approximated $1,715, $1,849 and $1,764 in 2015, 2014 and 2013, respectively, and are expected to approximate $1,662 in 2016. The fair value of the plan’s assets as of December 31, 2015 and 2014 approximated $49,628 (£33,528) and $50,533 (£32,437), respectively, in comparison to accumulated benefit obligations of $63,750 (£43,069) and $70,523 (£45,268) for the same periods. Estimated benefit payments for subsequent years are $1,434 for 2016, $2,116 for 2017, $1,548 for 2018, $2,503 for 2019, $2,837 for 2020 and $13,894 for 2021 – 2025. Contributions to the defined contribution pension plan approximated $382, $407 and $316 in 2015, 2014 and 2013, respectively, and are expected to approximate $315 in 2016.

The Corporation also maintains nonqualified defined benefit pension plans for selected executives in addition to the benefits provided under the Corporation’s qualified defined benefit pension plan. The objectives of the nonqualified plans are to provide supplemental retirement benefits or restore benefits lost due to limitations set by the Internal Revenue Service. The assets of the nonqualified plans are held in a grantor tax trust known as a “Rabbi” trust and are subject to claims of the Corporation’s creditors, but otherwise must be used only for purposes of providing benefits under the plans. No contributions were made to the trust in 2013 – 2015 and none are expected in 2016. The fair market value of the trust at December 31, 2015 and 2014, which is included in other noncurrent assets, was $3,663 and $4,280, respectively. Changes in the fair market value of the trust are recorded as a component of other comprehensive income (loss). The plan is treated as a non-funded pension plan for financial reporting purposes. Accumulated benefit obligations approximated $5,676 and $4,294 at December 31, 2015 and 2014, respectively. Estimated benefit payments for subsequent years, which would represent employer contributions, are approximately $360 for 2016, $387 for 2017, $414 for 2018, $433 for 2019, $461 for 2020 and $2,516 for 2021 – 2025.

Employees at one location participate in a multi-employer plan, I.A.M. National Pension Fund, in lieu of the Corporation’s defined benefit pension plan. A multi-employer plan generally receives contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements. The assets contributed by one employer may be used to fund the benefits provided to employees of other employers in the plan because the plan assets, once contributed, are not restricted to individual employers. The latest report of summary plan information (for the 2014 plan year) provided by I.A.M. National Pension Fund indicates:

• More than 1,750 employer locations contribute to the plan

• Approximately 275,000 employees participate in the plan

• Assets of approximately $10.9 billion and a funded status in excess of 100%.

Less than 100 of the Corporation’s employees participate in the plan and contributions are based on a rate per hour. The Corporation’s contributions to the plan equaled $236, $233 and $230 in 2015, 2014 and 2013, respectively, and represent less than five percent of total contributions to the plan by all contributing employers. Contributions are expected to approximate $284 in 2016.

Other Postretirement Benefits

The Corporation provides postretirement health care benefits principally to the bargaining groups of one subsidiary. The plan covers participants and their spouses and/or dependents who retire under the existing pension plan on other than a deferred vested basis and at the time of retirement have also rendered 15 or more years of continuous service irrespective of age. During 2014, effective January 1, 2015, the plan was modified and existing coverage for the bargaining groups was replaced with monthly reimbursements. The plan change resulted in a remeasurement of the plan liability as of May 1, 2014, reducing the liability by approximately $8,914. Additionally, during 2015, the plan was further amended to provide monthly reimbursement for a 5-year period, which further reduced the plan liability by approximately $4,437. Retiree life insurance continues to be provided to substantially all retirees. The Corporation also provides health care and life insurance benefits to former employees of certain discontinued operations. This obligation had been estimated and provided for at the time of disposal. The Corporation’s postretirement health care and life insurance plans are not funded or subject to any minimum regulatory funding requirements. Estimated benefit payments for subsequent years, which would represent employer contributions, are approximately $624 for 2016, $635 for 2017, $659 for 2018, $672 for 2019, $687 for 2020, and $3,058 for 2021 – 2025.

Reconciliations

The following provides a reconciliation of projected benefit obligations, plan assets, the funded status of the plans and the amounts recognized in the consolidated balance sheets for the Corporation’s defined benefit plans calculated using a measurement date as of the end of the respective years.

	U.S. Pension Benefits(a)						Foreign Pension Benefits						Other Postretirement Benefits
		2015			2014			2015			2014			2015			2014
Change in projected benefit obligations:
Projected benefit obligations at January 1	$	205,399		$	181,606		$	70,523		$	60,830		$	13,739		$	20,129
Service cost		2,743			3,683			0			0			384			505
Interest cost		7,990			8,762			2,394			2,695			474			688
Plan amendments		447			163			0			0			(4,437	)		(8,914	)
Plan settlements(b)		(5,494	)		(9,304	)		0			0			0			0
Plan curtailment		(10,306	)		0			0			0			0			0
Foreign currency exchange rate changes		0			0			(3,413	)		(4,351	)		0			0
Actuarial (gain) loss		(9,880	)		29,023			(4,005	)		13,993			(1,433	)		1,920
Participant contributions		0			0			0			0			79			386
Benefits paid from plan assets		(8,772	)		(8,494	)		(1,749	)		(2,644	)		0			0
Benefits paid by the Corporation		(324	)		(40	)		0			0			(689	)		(975	)
Projected benefit obligations at December 31	$	181,803		$	205,399		$	63,750		$	70,523		$	8,117		$	13,739
Change in plan assets:
Fair value of plan assets at January 1	$	157,048		$	164,085		$	50,533		$	48,536		$	0		$	0
Actual return on plan assets		(3,406	)		10,761			1,701			5,936			0			0
Foreign currency exchange rate changes		0			0			(2,572	)		(3,144	)		0			0
Corporate contributions		324			40			1,715			1,849			610			589
Participant contributions		0			0			0			0			79			386
Plan settlements(b)		(5,494	)		(9,304	)		0			0			0			0
Gross benefits paid		(9,096	)		(8,534	)		(1,749	)		(2,644	)		(689	)		(975	)
Fair value of plan assets at December 31	$	139,376		$	157,048		$	49,628		$	50,533		$	0		$	0
Funded status of the plans:
Fair value of plan assets	$	139,376		$	157,048		$	49,628		$	50,533		$	0		$	0
Less benefit obligations		181,803			205,399			63,750			70,523			8,117			13,739
Funded status at December 31	$	(42,427	)	$	(48,351	)	$	(14,122	)	$	(19,990	)	$	(8,117	)	$	(13,739	)
(a)    Includes the nonqualified defined benefit pension plan. (b)    Represents lump sum payments.

	U.S. Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
		2015			2014			2015			2014			2015			2014
Amounts recognized in the balance sheets:
Employee benefit obligations:
Accrued payrolls and employee benefits(a)	$	(352	)	$	(73	)	$	0		$	0		$	(612	)	$	(791	)
Employee benefit obligations(b)		(42,075	)		(48,278	)		(14,122	)		(19,990	)		(7,505	)		(12,948	)
	$	(42,427	)	$	(48,351	)	$	(14,122	)	$	(19,990	)	$	(8,117	)	$	(13,739	)
Accumulated other comprehensive loss:(c)
Net actuarial loss	$	53,163		$	64,387		$	27,594		$	32,989		$	2,570		$	4,029
Prior service cost		237			1,464			0			0			(12,097	)		(8,331	)
	$	53,400		$	65,851		$	27,594		$	32,989		$	(9,527	)	$	(4,302	)
(a)    Recorded as a current liability in the consolidated balance sheet.
(b)    Recorded as a noncurrent liability in the consolidated balance sheet.
(c)    Amounts are pre-tax.

Amounts included in accumulated other comprehensive loss as of December 31, 2015 expected to be recognized in net periodic pension and other postretirement costs in 2016 include:

	U.S. Pension Benefits	Foreign Pension Benefits		Other Postretirement Benefits
Net actuarial loss	$    3,338	$	755	$	149
Prior service cost (credit)	31		0		(1,030	)
	$    3,369	$	755	$	(881	)

Investment Policies and Strategies

The investment policies and strategies are determined and monitored by the Board of Directors for the U.S. pension plan and by the Trustees (as appointed by UES-UK and the employees of UES-UK) for the foreign pension plan, each of whom employ their own investment managers to manage the plan’s assets in accordance with the policy guidelines. Pension assets are invested with the objective of maximizing long-term returns while minimizing material losses to meet future benefit obligations as they become due. Investments in equity securities are primarily in common stocks of publicly-traded U.S. and international companies across a broad spectrum of industry sectors. Investments in fixed-income securities are principally A-rated or better bonds with maturities of less than ten years, preferred stocks and convertible bonds. The Corporation believes there are no significant concentrations of risk associated with the Plans’ assets.

Attempts to minimize risk include allowing temporary changes to the allocation mix in response to market conditions, diversifying investments among asset categories (e.g., equity securities, fixed-income securities, alternative investments, cash and cash equivalents) and within these asset categories (e.g., economic sector, industry, geographic distribution, size) and consulting with independent financial and legal counsels to assure that the investments and their expected returns and risks are consistent with the goals of the Board of Directors or Trustees.

With respect to the U.S. pension plan, the following investments are prohibited unless otherwise approved by the Board of Directors: stock of the Corporation, futures and options except for hedging purposes, unregistered or restricted stock, warrants, margin trading, short-selling, real estate excluding public or real estate partnerships, and commodities including art, jewelry and gold. The foreign pension plan invests in specific funds. Any investments other than those specifically identified would be considered prohibited.

The following summarizes target asset allocations (within +/-5% considered acceptable) and major asset categories. Certain investments are classified differently for target asset allocation purposes and external reporting purposes.

	U.S. Pension Benefits			Foreign Pension Benefits
	Target Allocation	Percentage of Plan Assets		Target Allocation	Percentage of Plan Assets
	Dec. 31, 2015	2015	2014	Dec. 31, 2015	2015	2014
Equity Securities	65%	58%	64%	44%	46%	44%
Fixed-Income Securities	15%	19%	18%	35%	33%	35%
Alternative Investments	15%	13%	16%	21%	21%	21%
Other (primarily cash and cash equivalents)	5%	10%	2%	0%	0%	0%

Fair Value Measurement of Plan Assets

Equity securities and mutual funds are actively traded on exchanges and price quotes for these investments are readily available. Similarly, corporate debt and preferred securities consist of fixed-income securities of U.S. and U.K. corporations and price quotes for these investments are readily available. Common collective trust and commingled funds are not traded publicly, but the underlying assets (such as stocks and bonds) held in these funds are traded on active markets and the prices for the underlying assets are readily observable. For securities not actively traded, the fair value may be based on third-party appraisals, discounted cash flow analysis, benchmark yields and inputs that are currently observable in markets for similar securities.

Investment Strategies

The significant investment strategies of the various funds are summarized below.

Fund	Investment Strategy	Primary Investment Objective
Temporary Investment Funds	Invests primarily in a diversified portfolio of investment grade money market instruments.	Achieve a market level of current income while maintaining stability of principal and liquidity.
Various Equity Funds	Each fund maintains a diversified holding in common stock of applicable companies (e.g. common stock of small capitalization companies if a small-cap fund, common stock of medium capitalization companies if a mid-cap fund, common stock of foreign corporations if an international fund, etc.).	Outperform the fund’s related index.
Various Growth and Value Funds – Domestic	Invests primarily in common stocks and other equity securities or in common collective funds which invest in common stocks and other equity securities, generally traded on a major U.S. exchange.	Exceed the return of the applicable Russell or S&P Index over a market cycle.
Various Growth and Value Funds – International	Invests primarily in common stocks and other equity securities or in common collective funds which invest in common stocks and other equity securities of issuers organized or conducting business in countries other than the United States.	For the U.S. Plan – to exceed the return of the corresponding Morgan Stanley Index over a market cycle. For the U.K. Plan – to outperform the applicable FTSE index over a market cycle.
Return Funds	Invests primarily in a diversified portfolio of fixed-income securities of varying maturities or in commingled funds which invest in a diversified portfolio of fixed-income securities of varying maturities.	For the U.S. Plan – to outperform either the Barclays Capital U.S. Aggregate Index or US Corporate High Yield Index, as applicable, over a prescribed period. For the U.K. Plan – to outperform the applicable FTSE index over a prescribed period.
Alternative Investments – Managed Funds	Invests in equities and equity-like asset classes and strategies, (such as public equities, venture capital, private equity, real estate, natural resources and hedged strategies) and fixed-income securities.	Generate a minimum annual inflation adjusted return of 5% and outperform a traditional 70/30 equities/bond portfolio.
Alternative Investments – Hedge and Absolute Return Funds	Invests in a diversified portfolio of alternative investment styles and strategies.	Generate long-term capital appreciation while maintaining a low correlation with the traditional global financial markets.

Categories of Plan Assets

Asset categories based on the nature and risks of the U.S. Pension Benefit Plan’s assets as of December 31, 2015 are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity Securities:
U.S.
Capital goods	$	1,531	$	0	$	0	$	1,531
Chemicals		1,811		0		0		1,811
Commercial property		906		0		0		906
Commercial services		925		0		0		925
Common collective trust funds		0		31,291		0		31,291
Electronics		785		0		0		785
Food processing		2,856		0		0		2,856
Health care		1,815		0		0		1,815
Limited partnerships – public equity		4,173		0		0		4,173
Manufacturing		1,536		0		0		1,536
Oil & gas		1,499		0		0		1,499
Retail		706		0		0		706
Technology		1,674		0		0		1,674
Transportation		484		0		0		484
Wholesale distribution		789		0		0		789
Other (represents 13 business sectors)		5,695		0		0		5,695
International
Bank & financial services		1,525		0		0		1,525
Common collective trust funds		0		3,078		0		3,078
Engineering & construction		729		0		0		729
Oil & gas		807		0		0		807
Real estate		937		0		0		937
Technology		265		0		0		265
Other (represents 9 business sectors)		2,391		0		0		2,391
Total Equity Securities		33,839		34,369		0		68,208
Fixed-Income Securities:
Commingled funds		0		14,697		0		14,697
Preferred (represents 5 business sectors)		6,689		0		0		6,689
Other (represents 4 business sectors)		0		1,280		0		1,280
Total Fixed-Income Securities		6,689		15,977		0		22,666
Alternative Investments:
Managed funds(a)		0		0		32,210		32,210
Hedge and absolute return funds		0		0		4,967		4,967
Total Alternative Investments		0		0		37,177		37,177
Other (primarily cash and cash equivalents):
Mutual funds		1,836		0		0		1,836
Commingled funds		0		1,005		0		1,005
Other(b)		8,484		0		0		8,484
Total Other		10,320		1,005		0		11,325
	$	50,848	$	51,351	$	37,177	$	139,376

(a) Includes approximately 38% in equity and equity-like asset securities, 43% in alternative investments (real assets, commodities and resources, absolute return funds) and 19% in fixed income securities and cash and cash equivalents.

(b) Includes accrued receivables and pending broker settlements.

Asset categories based on the nature and risks of the U.S. Pension Benefit Plan’s assets as of December 31, 2014 are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity Securities:
U.S.
Capital goods	$	1,684	$	0	$	0	$	1,684
Chemicals		2,424		0		0		2,424
Commercial property		1,012		0		0		1,012
Commercial services		1,210		0		0		1,210
Common collective trust funds		0		34,871		0		34,871
Electronics		1,050		0		0		1,050
Engineering & construction		778		0		0		778
Food processing		3,423		0		0		3,423
Health care		1,345		0		0		1,345
Limited partnerships – public equity		6,482		0		0		6,482
Manufacturing		2,224		0		0		2,224
Oil & gas		2,503		0		0		2,503
Retail		935		0		0		935
Technology		2,022		0		0		2,022
Transportation		926		0		0		926
Wholesale distribution		927		0		0		927
Other (represents 10 business sectors)		5,681		0		0		5,681
International
Bank & financial services		1,790		0		0		1,790
Common collective trust funds		0		6,364		0		6,364
Engineering & construction		600		0		0		600
Oil & gas		1,422		0		0		1,422
Real estate		1,321		0		0		1,321
Technology		965		0		0		965
Other (represents 9 business sectors)		3,106		0		0		3,106
Total Equity Securities		43,830		41,235		0		85,065
Fixed-Income Securities:
Commingled funds		0		16,533		0		16,533
Preferred (represents 5 business sectors)		7,242		0		0		7,242
Other (represents 6 business sectors)		0		2,035		0		2,035
Total Fixed-Income Securities		7,242		18,568		0		25,810
Alternative Investments:
Managed funds(a)		0		0		33,602		33,602
Hedge and absolute return funds		0		0		8,592		8,592
Total Alternative Investments		0		0		42,194		42,194
Other (primarily cash and cash equivalents):
Mutual funds		237		0		0		237
Commingled funds		0		1,081		0		1,081
Other(b)		2,661		0		0		2,661
Total Other		2,898		1,081		0		3,979
	$	53,970	$	60,884	$	42,194	$	157,048

(a) Includes approximately 43% in equity and equity-like asset securities, 50% in alternative investments (real assets, commodities and resources, absolute return funds) and 7% in fixed income securities and cash and cash equivalents.

(b) Includes accrued receivables and pending broker settlements.

Asset categories based on the nature and risks of the Foreign Pension Benefit Plan’s assets as of December 31, 2015 are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity Securities:
Commingled Funds (U.K.)	$	0	$	3,697	$	0	$	3,697
Commingled Funds (International)		0		18,930		0		18,930
Total Equity Securities		0		22,627		0		22,627
Fixed-Income Securities:
Commingled Funds (U.K.)		0		16,298		0		16,298
Alternative Investments:
Hedge and Absolute Return Funds		0		0		10,571		10,571
Cash and cash equivalents		132		0		0		132
	$	132	$	38,925	$	10,571	$	49,628

Asset categories based on the nature and risks of the Foreign Pension Benefit Plan’s assets as of December 31, 2014 are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity Securities:
Commingled Funds (U.K.)	$	0	$	3,848	$	0	$	3,848
Commingled Funds (International)		0		18,449		0		18,449
Total Equity Securities		0		22,297		0		22,297
Fixed-Income Securities:
Commingled Funds (U.K.)		0		17,366		0		17,366
Alternative Investments:
Hedge and Absolute Return Funds		0		0		10,799		10,799
Cash and cash equivalents		71		0		0		71
	$	71	$	39,663	$	10,799	$	50,533

The table below sets forth a summary of changes in the fair value of the Level 3 plan assets for U.S. and foreign pension plans for the year ended December 31, 2015.

	Alternative Investments
	U.S. Pension Benefits						Foreign Pension Benefits
Fair value as of January 1, 2015	$	8,592		$	33,602		$	10,799
Contributions		5,900			0			0
Withdrawals		(9,843	)		(2,424	)		0
Realized gains (losses)		2,334			(19	)		0
Change in net unrealized (losses) gains		(2,016	)		1,051			320
Other, primarily impact from changes in foreign currency exchange rates		0			0			(548	)
Fair value as of December 31, 2015	$	4,967		$	32,210		$	10,571

The table below sets forth a summary of changes in the fair value of the Level 3 plan assets for U.S. and foreign pension plans for the year ended December 31, 2014.

	Alternative Investments
	U.S. Pension Benefits						Foreign Pension Benefits
Fair value as of January 1, 2014	$	8,389		$	32,433		$	11,041
Withdrawals		(200	)		(2,550	)		(181	)
Realized gains		66			821			0
Change in net unrealized gains		337			2,898			615
Other, primarily impact from changes in foreign currency exchange rates		0			0			(676	)
Fair value as of December 31, 2014	$	8,592		$	33,602		$	10,799

Net Periodic Pension and Other Postretirement Benefit Costs

The actual return on the fair value of plan assets is included in determining the funded status of the plans. In determining net periodic pension costs, the expected long-term rate of return on the market-related value of plan assets is used. Differences between the actual return on plan assets and the expected long-term rate of return on plan assets are classified as part of unrecognized actuarial gains or losses and are recorded as a component of accumulated other comprehensive loss on the consolidated balance sheet. When these gains or losses exceed 10% of the greater of the projected benefit obligation or the market-related value of plan assets, they are amortized to net periodic pension and other postretirement costs over the average remaining service period of employees expected to receive benefits under the plans. When the gains or losses are less than 10% of the greater of the projected benefit obligation or the market-related value of plan assets, they are included in net periodic pension and other postretirement costs indirectly as a result of lower/higher interest costs arising from a decrease/increase in the projected benefit obligation.

Net periodic pension and other postretirement benefit costs include the following components for the year ended December 31:

	U.S. Pension Benefits									Foreign Pension Benefits									Other Postretirement Benefits
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Service cost	$	2,743		$	3,683		$	4,424		$	0		$	0		$	0		$	384		$	505		$	943
Interest cost		7,990			8,762			8,070			2,394			2,695			2,551			474			688			926
Expected return on plan assets		(10,996	)		(10,747	)		(9,368	)		(2,681	)		(3,157	)		(2,485	)		0			0			0
Amortization of prior service cost (credit)		371			854			640			0			0			0			(672	)		(441	)		85
Amortization of actuarial loss		5,440			4,183			7,146			845			599			687			26			104			241
Curtailment loss		1,303			0			0			0			0			0			0			0			0
Net cost	$	6,851		$	6,735		$	10,912		$	558		$	137		$	753		$	212		$	856		$	2,195

Assumptions

Assumptions are reviewed on an annual basis. The expected long-term rate of return on plan assets is an estimate of average rates of earnings expected to be earned on funds invested or to be invested to provide for the benefits included in the projected benefit obligation. Since these benefits will be paid over many years, the expected long-term rate of return is reflective of current investment returns and investment returns over a longer period. Consideration is also given to target and actual asset allocations, inflation and real risk-free return. The discount rates used in determining future pension obligations and other postretirement benefits for each of the plans are based on rates of return on high-quality fixed-income investments currently available and expected to be available during the period to maturity of the pension and other postretirement benefits. High-quality fixed-income investments are defined as those investments which have received one of the two highest ratings given by a recognized rating agency with maturities of 10+ years.

The discount rates and weighted-average wage increases used to determine the benefit obligations as of December 31, 2015 and 2014 are summarized below. The change in discounts rates decreased plan benefit obligations and increased the funded status of the plans by approximately $11,000 as of December 31, 2015 in comparison to December 31, 2014.

	U.S. Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
	2015			2014			2015			2014			2015			2014
Discount rate		4.40	%		4.10	%		3.65	%		3.50	%		4.20	%		4.00	%
Wage increases		3.00	%		4.00	%		n/a			n/a			n/a			n/a

In addition, the assumed health care cost trend rate at December 31, 2015 for other postretirement benefits is 6% for 2016 gradually decreasing to 4.75% in 2019. In selecting rates for current and long-term health care assumptions, the Corporation considers known health care cost increases, the design of the benefit programs, the demographics of its active and retiree populations and expectations of inflation rates in the future. A one percentage point increase or decrease in the assumed health care cost trend rate would result in an inconsequential change to the postretirement benefit obligation at December 31, 2015 and the annual benefit expense for 2015.

The following assumptions were used to determine net periodic pension and other postretirement benefit costs for the year ended December 31:

	U.S. Pension Benefits							Foreign Pension Benefits									Other Postretirement Benefits
	2015			2014			2013	2015			2014			2013			2015			2014			2013
Discount rate		4.00/4.10	%		5.00	%	4.25%		3.50	%		4.50	%		4.50	%		4.00	%		5.00	%		4.25	%
Expected long-term rate of return		8.00	%		8.00	%	8.00%		5.40	%		6.50	%		6.09	%		n/a			n/a			n/a
Wages increases		4.00	%		4.00	%	4.00%		n/a			n/a			n/a			n/a			n/a			n/a