Defined Benefit Pension Plans

12 Months Ended

Dec. 31, 2019

Defined Benefit Plan [Abstract]

Defined Benefit Pension Plans

Defined Benefit Pension PlansWe sponsor both funded and unfunded defined benefit pension plans offering death and disability, retirement, and special termination benefits for certain of our international employees, primarily in Germany, France, India, Indonesia, and Italy. The defined benefit obligation is calculated annually by using the projected unit credit method. The measurement date for the pension plans was December 31, 2019.

The following tables set forth the components of the changes in benefit obligations and fair value of plan assets:

	Year Ended December 31,
In thousands	2019		2018
Change in benefit obligation:
Benefit obligation at January 1,	$	105,570	$	110,820
Service cost	3,711		4,034
Interest cost	2,278		2,324
Actuarial (gain) loss	8,798		(2,497)
Benefits paid	(2,970)		(3,018)
Foreign currency exchange rate changes	(1,984)		(5,110)
Curtailment	(36)		(694)
Settlement	(234)		(413)
Other	(915)		124
Benefit obligation at December 31,	$	114,218	$	105,570
Change in plan assets:
Fair value of plan assets at January 1,	$	11,890	$	12,834
Actual return on plan assets	1,134		(54)
Company contributions	289		465
Benefits paid	(411)		(392)
Foreign currency exchange rate changes	(237)		(963)
Fair value of plan assets at December 31,	12,665		11,890
Net pension benefit obligation at fair value	$	101,553	$	93,680

Amounts recognized on the Consolidated Balance Sheets consist of:

	December 31,
In thousands	2019		2018
Assets
Plan assets in other long-term assets	$	44	$	572
Liabilities
Current portion of pension benefit obligation in wages and benefits payable	2,885		2,730
Long-term portion of pension benefit obligation	98,712		91,522
Pension benefit obligation, net	$	101,553	$	93,680

Amounts recognized in OCI (pre-tax) are as follows:

	Year Ended December 31,
In thousands	2019		2018		2017
Net actuarial (gain) loss	$	8,762	$	(3,191)	$	(3,209)
Settlement (gain) loss	(250)		(1)		2
Curtailment (gain) loss	—		(1)		586
Plan asset (gain) loss	(526)		724		(192)
Amortization of net actuarial loss	(1,648)		(1,533)		(2,308)
Amortization of prior service cost	(68)		(61)		(62)
Other	(160)		124		—
Other comprehensive (income) loss	$	6,110	$	(3,939)	$	(5,183)

If actuarial gains and losses exceed ten percent of the greater of plan assets or plan liabilities, we amortize them over the employees' average future service period. The estimated net actuarial loss and prior service cost that will be amortized from AOCI into net periodic benefit cost during 2020 is $1.9 million.

Net periodic pension benefit cost for our plans include the following components:

	Year Ended December 31,
In thousands	2019		2018		2017
Service cost	$	3,711	$	4,034	$	3,968
Interest cost	2,278		2,324		2,264
Expected return on plan assets	(608)		(670)		(594)
Amortization of prior service costs	68		61		62
Amortization of actuarial net loss	1,648		1,533		2,308
Settlement	250		1		(2)
Curtailment	—		1		(586)
Net periodic benefit cost	$	7,347	$	7,284	$	7,420

The components of net periodic benefit cost, other than the service cost component, are included in total other income (expense) on the Consolidated Statements of Operations.

The significant actuarial weighted average assumptions used in determining the benefit obligations and net periodic benefit cost for our benefit plans are as follows:

	Year Ended December 31,
	2019		2018		2017
Actuarial assumptions used to determine benefit obligations at end of period:
Discount rate	1.76	%	2.24	%	2.21	%
Expected annual rate of compensation increase	3.76	%	3.60	%	3.64	%
Actuarial assumptions used to determine net periodic benefit cost for the period:
Discount rate	2.24	%	2.21	%	2.18	%
Expected rate of return on plan assets	5.19	%	5.58	%	5.58	%
Expected annual rate of compensation increase	3.60	%	3.64	%	3.65	%

We determine a discount rate for our plans based on the estimated duration of each plan's liabilities. For euro denominated defined benefit pension plans, which represent 93% of our benefit obligation, we use discount rates with consideration of the duration of each of the plans, using a hypothetical yield curve developed from euro-denominated AA-rated corporate bond issues. These bonds are assigned different weights to adjust their relative influence on the yield curve, and the highest and lowest yielding 10% of bonds are excluded within each maturity group. The discount rates used, depending on the duration of the plans, were between 0.25% and 2.00%.

Our expected rate of return on plan assets is derived from a study of actual historic returns achieved and anticipated future long-term performance of plan assets, specific to plan investment asset category. While the study primarily gives consideration to recent insurers' performance and historical returns, the assumption represents a long-term prospective return.

The total accumulated benefit obligation for our defined benefit pension plans was $105.1 million and $97.3 million at December 31, 2019 and 2018, respectively.

The total obligations and fair value of plan assets for plans with projected benefit obligations and accumulated benefit obligations exceeding the fair value of plan assets are as follows:

In thousands	December 31,
	2019		2018
Projected benefit obligation	$	110,656	$	103,059
Accumulated benefit obligation	101,611		94,831
Fair value of plan assets	9,059		8,807

Our asset investment strategy focuses on maintaining a portfolio using primarily insurance funds, which are accounted for as investments and measured at fair value, in order to achieve our long-term investment objectives on a risk adjusted basis. Our general funding policy for these qualified pension plans is to contribute amounts sufficient to satisfy regulatory funding standards of the respective countries for each plan.

The fair values of our plan investments by asset category are as follows:

	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Unobservable Inputs (Level 3)
In thousands	December 31, 2019
Cash	$	926	$	926	$	—
Insurance funds	8,133		—		8,133
Other securities	3,606		—		3,606
Total fair value of plan assets	$	12,665	$	926	$	11,739
In thousands	December 31, 2018
Cash	$	787	$	787	$	—
Insurance funds	8,020		—		8,020
Other securities	3,083		—		3,083
Total fair value of plan assets	$	11,890	$	787	$	11,103

The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2019 and 2018.

In thousands	Balance at January 1, 2019		Net Realized and Unrealized Gains		Net Purchases, Issuances, Settlements, and Other		Effect of Foreign Currency		Balance at December 31, 2019
Insurance funds	$	8,020	$	282	$	(27)	$	(142)	$	8,133
Other securities	3,083		814		(160)		(131)		3,606
Total	$	11,103	$	1,096	$	(187)	$	(273)	$	11,739

In thousands	Balance at January 1, 2018		Net Realized and Unrealized Gains		Net Purchases, Issuances, Settlements, and Other		Effect of Foreign Currency		Balance at December 31, 2018
Insurance funds	$	8,384	$	(158)	$	141	$	(347)	$	8,020
Other securities	3,661		123		(141)		(560)		3,083
Total	$	12,045	$	(35)	$	—	$	(907)	$	11,103

As the plan assets and contributions are not significant to our total company assets, no further disclosures are considered material.

Annual benefit payments for the next 10 years, including amounts to be paid from our assets for unfunded plans and reflecting expected future service, as appropriate, are expected to be paid as follows:

Year Ending December 31,	Estimated Annual Benefit Payments
In thousands
2020	$	3,828
2021	3,463
2022	3,861
2023	4,176
2024	5,141
2025-2029	27,701