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Employee Benefits (Tables)
 12 Months Ended
Dec. 31, 2014
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]  
Schedule of Components of Defined Benefit Pension Expense
The following are the components of defined benefit pension expense for the years ended December 31 (in thousands):  
 
2014
 
2013
 
2012
Service cost (1)
$
2,630

 
$
2,545

 
$
1,775

Interest cost
1,190

 
1,075

 
980

Expected return on plan assets
(540
)
 
(340
)
 
(115
)
Recognition of actuarial loss (gain)
75

 
30

 
(215
)
Recognition of termination benefits
30

 
455

 
175

Total defined benefit pension expense (2)
$
3,385

 
$
3,765

 
$
2,600

 

(1)
The higher service cost beginning in 2013 was primarily due to additional employees covered under the plans.
(2)
Pension expense is classified in SG&A in the Consolidated Statements of Operations.
Schedule of Assumptions Used in the Computation of Pension Expense
The following are the assumptions used in the computation of pension expense for the years ended December 31:
 
2014
 
2013
 
2012
Weighted-average discount rate (1)
2.15
%
 
3.35
%
 
3.20
%
Average compensation increase
2.65
%
 
2.70
%
 
2.70
%
 

(1)
Discount rates are typically determined by utilizing the yields on long-term corporate or government bonds in the relevant country with a duration consistent with the expected term of the underlying pension obligations.
Schedule of Changes in the Projected Benefit Obligation
The following table provides information related to changes in the projected benefit obligation for the years ended December 31 (in thousands):
 
 
2014
 
2013
 
2012
Projected benefit obligation at beginning of year
$
34,585

 
$
31,605

 
$
21,160

Service cost
2,630

 
2,545

 
1,775

Interest cost
1,190

 
1,075

 
980

Actuarial loss (gain) due to assumption changes and plan experience (1)
6,300

 
625

 
6,265

Additions and contractual termination benefits
30

 
460

 
1,925

Benefits paid (2)
(1,350
)
 
(1,255
)
 
(680
)
Foreign currency impact
(5,270
)
 
(470
)
 
180

Projected benefit obligation at end of year (3)
$
38,115

 
$
34,585

 
$
31,605

 

(1)
The 2014 and 2012 actuarial losses were primarily due to significant declines in the weighted-average discount rate.

(2)
The Company projects the following approximate amounts will be paid in future years to plan participants: $1.0 million in 2015; $1.9 million in 2016; $1.4 million in each of the years 2017, 2018, and 2019; and $9.6 million in total in the five years thereafter.

(3)
Measured as of December 31.
Schedule of Funded Status of the Plans and Related Amounts Recorded in Consolidated Balance Sheet
The following table provides information regarding the funded status of the plans and related amounts recorded in the Company’s Consolidated Balance Sheets as of December 31 (in thousands):
 
Funded status of the plans:
 
2014
 
2013
 
2012
Projected benefit obligation
$
38,115

 
$
34,585

 
$
31,605

Plan assets at fair value (1)
(13,220
)
 
(13,870
)
 
(8,885
)
Funded status – shortfall (2)
$
24,895

 
$
20,715

 
$
22,720

Amounts recorded in the Consolidated Balance Sheets for the plans:
 
 
 
 
 
Other liabilities — accrued pension obligation (2)
$
24,895

 
$
20,715

 
$
22,720

Stockholders’ equity — deferred actuarial loss (3)
$
(6,028
)
 
$
(1,811
)
 
$
(1,578
)
 

(1)
The plan assets are held by third-party trustees and are invested in a diversified portfolio of equities, high quality government and corporate bonds, and other investments. The assets are primarily valued based on Level 1 and Level 2 inputs under the fair value hierarchy in FASB ASC Topic 820, with the majority of the invested assets considered to be of low-to-medium investment risk. The Company projects a future long-term rate of return on these plan assets of 2.7%, which it believes is reasonable based on the composition of the assets and both current and projected market conditions. For the year-ended December 31, 2014, the Company contributed $2.8 million to these plans, and benefits paid to participants were $1.4 million.

In addition to the plan assets held with third-party trustees, the Company also maintains a reinsurance asset arrangement with a large international insurance company. The reinsurance asset is an asset of the Company whose purpose is to provide funding for benefit payments for one of the plans. At December 31, 2014, the reinsurance asset was carried on the Company’s Consolidated Balance Sheets at its cash surrender value of $8.5 million and is classified in Other Assets. The Company believes the cash surrender value approximates fair value and is equivalent to a Level 2 input under the FASB’s fair value framework in ASC Topic 820.

(2)
The Funded status — shortfall represents the amount of the projected benefit obligation that the Company has not funded with a third-party trustee. This amount is a liability of the Company and is recorded in Other Liabilities on the Company’s Consolidated Balance Sheets.

(3)
The deferred actuarial loss as of December 31, 2014 is recorded in Accumulated Other Comprehensive Income (“AOCI”) and will be reclassified out of AOCI and recognized as pension expense over approximately 14 years, subject to certain limitations set forth in FASB ASC Topic 715. The impact of this amortization on the periodic pension expense in 2015 is projected to be approximately $0.4 million. The actual amortization of deferred actuarial losses (gains) from AOCI to pension expense was less than $0.1 million in 2014 and 2013 and $(0.2) million in 2012.