Pension and Postretirement Benefits

12 Months Ended

Dec. 31, 2016

Pension and Other Postretirement Benefits [Abstract]

Pension And Other Postretirement Benefits Disclosure [Text Block]

Note 17 – Pension and Other Postretirement Benefits

The following table shows the Company’s plans’ funded status reconciled with amounts reported in the Consolidated Balance Sheets as of December 31, 2016 and 2015:

																Other Post-
				Pension Benefits												Retirement Benefits
				2016							2015					2016		2015
Change in benefit obligation				Foreign		Domestic		Total		Foreign		Domestic		Total		Domestic		Domestic
Gross benefit obligation at beginning
	of year			$	92,406	$	66,862	$	159,268	$	106,827	$	70,667	$	177,494	$	5,422	$	6,045
Service cost					2,378		298		2,676		2,799		250		3,049		10		17
Interest cost					2,314		2,114		4,428		2,476		2,541		5,017		142		195
Employee contributions					71		—		71		80		—		80		—		—
Plan settlements					—		—		—		(328)		—		(328)		—		—
Benefits paid					(1,583)		(4,522)		(6,105)		(1,604)		(4,249)		(5,853)		(443)		(533)
Plan expenses and premiums paid					(155)		(275)		(430)		(57)		(250)		(307)		—		—
Actuarial loss (gain)					14,848		2,777		17,625		(7,799)		(2,097)		(9,896)		(401)		(302)
Translation differences and other					(6,788)		—		(6,788)		(9,988)		—		(9,988)		—		—
Gross benefit obligation at end of year				$	103,491	$	67,254	$	170,745	$	92,406	$	66,862	$	159,268	$	4,730	$	5,422
Change in plan assets
Fair value of plan assets at
year	beginning of year			$	76,156	$	46,701	$	122,857	$	86,523	$	49,689	$	136,212	$	—	$	—
Actual return (loss) on plan assets					14,472		2,516		16,988		(2,170)		223		(1,947)		—		—
Employer contributions					3,103		4,777		7,880		1,804		1,288		3,092		443		533
Employee contributions					71		—		71		80		—		80		—		—
Plan settlements					—		—		—		(328)		—		(328)		—		—
Benefits paid					(1,583)		(4,522)		(6,105)		(1,604)		(4,249)		(5,853)		(443)		(533)
Plan expenses and premiums paid					(155)		(275)		(430)		(57)		(250)		(307)		—		—
Translation differences					(5,220)		—		(5,220)		(8,092)		—		(8,092)		—		—
Fair value of plan assets at end of year				$	86,844	$	49,197	$	136,041	$	76,156	$	46,701	$	122,857	$	—	$	—
Net benefit obligation recognized				$	(16,647)	$	(18,057)	$	(34,704)	$	(16,250)	$	(20,161)	$	(36,411)	$	(4,730)	$	(5,422)
Amounts recognized in the balance
	sheet consist of:
		Current liabilities		$	(61)	$	(574)	$	(635)	$	(52)	$	(575)	$	(627)	$	(451)	$	(517)
		Non-current liabilities			(16,586)		(17,483)		(34,069)		(16,198)		(19,586)		(35,784)		(4,279)		(4,905)
Net benefit obligation recognized				$	(16,647)	$	(18,057)	$	(34,704)	$	(16,250)	$	(20,161)	$	(36,411)	$	(4,730)	$	(5,422)
Amounts not yet reflected in net
	periodic benefit costs and included in
	accumulated other comprehensive loss:
		Prior service credit (cost)		$	1,687	$	(122)	$	1,565	$	1,910	$	(185)	$	1,725	$	—	$	—
		Accumulated loss			(20,214)		(33,147)		(53,361)		(20,058)		(31,906)		(51,964)		(581)		(983)
		Accumulated other comprehensive
			loss ("AOCI")		(18,527)		(33,269)		(51,796)		(18,148)		(32,091)		(50,239)		(581)		(983)
		Cumulative employer contributions
			in excess of or (below) net periodic
			benefit cost		1,880		15,212		17,092		1,898		11,930		13,828		(4,149)		(4,439)
Net benefit obligation recognized				$	(16,647)	$	(18,057)	$	(34,704)	$	(16,250)	$	(20,161)	$	(36,411)	$	(4,730)	$	(5,422)

The accumulated benefit obligation for all defined benefit pension plans was $167.1 million ($66.7 million Domestic and approximately $100.4 million Foreign) and $157.5 million ($66.9 million Domestic and $90.6 million Foreign) at December 31, 2016 and 2015, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets:

	2016							2015
	Foreign		Domestic		Total		Foreign		Domestic		Total
Projected benefit obligation	$	103,491	$	67,254	$	170,745	$	92,406	$	66,862	$	159,268
Accumulated benefit obligation		100,463		66,676		167,139		90,624		66,862		157,486
Fair value of plan assets		86,844		49,197		136,041		76,156		46,701		122,857

Information for pension plans with a projected benefit obligation in excess of plan assets:

	2016							2015
	Foreign		Domestic		Total		Foreign		Domestic		Total
Projected benefit obligation	$	103,491	$	67,254	$	170,745	$	92,406	$	66,862	$	159,268
Fair value of plan assets		86,844		49,197		136,041		76,156		46,701		122,857

Components of net periodic benefit costs – pension plans:

	2016							2015
	Foreign		Domestic		Total		Foreign		Domestic		Total
Service cost	$	2,378	$	298	$	2,676	$	2,799	$	250	$	3,049
Interest cost		2,314		2,114		4,428		2,476		2,541		5,017
Expected return on plan assets		(2,026)		(3,316)		(5,342)		(2,092)		(3,453)		(5,545)
Settlement loss		—		—		—		170		—		170
Actuarial loss amortization		839		2,336		3,175		1,136		2,353		3,489
Prior service (credit) cost
amortization		(164)		63		(101)		(164)		63		(101)
Net periodic benefit cost	$	3,341	$	1,495	$	4,836	$	4,325	$	1,754	$	6,079

		2014
	Foreign		Domestic		Total
Service cost	$	2,626	$	250	$	2,876
Interest cost		3,210		2,823		6,033
Expected return on plan assets		(2,543)		(3,817)		(6,360)
Actuarial loss amortization		1,307		1,757		3,064
Prior service cost amortization		736		63		799
Net periodic benefit cost	$	5,336	$	1,076	$	6,412

Other changes recognized in other comprehensive income:

			2016							2015
			Foreign		Domestic		Total		Foreign		Domestic		Total
Net loss (gain) arising during
	the period		$	2,401	$	3,576	$	5,977	$	(3,537)	$	1,134	$	(2,403)
Recognition of amortization in net
	periodic benefit cost
		Prior service credit (cost)		164		(63)		101		164		(63)		101
		Actuarial loss		(839)		(2,336)		(3,175)		(1,306)		(2,353)		(3,659)
Effect of exchange rates on amounts
		included in AOCI		(1,347)		—		(1,347)		(2,353)		—		(2,353)
Total recognized in other
		comprehensive loss (income)		379		1,177		1,556		(7,032)		(1,282)		(8,314)
Total recognized in net periodic
	benefit cost and other
	comprehensive loss (income)		$	3,720	$	2,672	$	6,392	$	(2,707)	$	472	$	(2,235)

			2014
				Foreign		Domestic		Total
Net loss arising during period			$	4,973	$	7,290	$	12,263
Effect of plan amendment				242		—		242
Recognition of amortization in net periodic benefit
	cost
		Prior service cost		(736)		(63)		(799)
		Actuarial loss		(1,307)		(1,757)		(3,064)
Effect of exchange rates on amounts included
	in AOCI			(3,076)		—		(3,076)
Total recognized in other comprehensive loss				96		5,470		5,566
Total recognized in net periodic benefit cost and
	other comprehensive loss		$	5,432	$	6,546	$	11,978

Components of net periodic benefit costs – other postretirement plan:

		2016		2015		2014
Service cost	$	10	$	17	$	19
Interest cost		142		195		232
Actuarial loss amortization		—		83		65
Net periodic benefit costs	$	152	$	295	$	316

Other changes recognized in other comprehensive income – other postretirement benefit plans:

			2016		2015		2014
Net (gain) loss arising during period		$	(401)	$	(302)	$	688
Amortization of actuarial loss in net periodic
	benefit costs		—		(83)		(65)
Total recognized in other comprehensive (income)
	loss		(401)		(385)		623
Total recognized in net periodic benefit cost and
	other comprehensive (income) loss	$	(249)	$	(90)	$	939

Estimated amounts that will be amortized from accumulated other comprehensive loss over the next fiscal year:

							Other Post-
	Pension Plans						Retirement
	Foreign		Domestic		Total		Benefits
Actuarial loss	$	808	$	2,658	$	3,466	$	22
Prior service (credit) cost		(155)		63		(92)		—
	$	653	$	2,721	$	3,374	$	22

Weighted-average assumptions used to determine benefit obligations at December 31, 2016 and 2015:

					Other Postretirement
	Pension Benefits				Benefits
	2016		2015		2016		2015
U.S. Plans:
Discount rate	3.88	%	4.07	%	3.73	%	3.88	%
Rate of compensation increase	3.63	%	3.63	%	N/A		N/A

Foreign Plans:
Discount rate	2.17	%	2.95	%	N/A		N/A
Rate of compensation increase	2.48	%	2.41	%	N/A		N/A

Weighted-average assumptions used to determine net periodic benefit costs for the years ended December 31, 2016 and 2015:

						Other Postretirement
		Pension Benefits				Benefits
		2016		2015		2016		2015
U.S. Plans:
Discount rate		4.07	%	3.72	%	3.88	%	3.45	%
Expected long-term return on
	plan assets	7.20	%	7.30	%	N/A		N/A
Rate of compensation increase		3.63	%	3.63	%	N/A		N/A

Foreign Plans:
Discount rate		2.95	%	2.51	%	N/A		N/A
Expected long-term return on
	plan assets	2.65	%	2.55	%	N/A		N/A
Rate of compensation increase		2.41	%	3.05	%	N/A		N/A

As of December 31, 2015, the Company elected to use a split discount rate (spot-rate approach) for the U.S. plans and certain foreign plans, which includes the method used to estimate the service and interest components of net periodic benefit cost for pension and other postretirement benefits beginning in the first quarter of 2016. This change resulted in a decrease in the service and interest components for pension cost in the year ended December 31, 2016 compared to the year ended December 31, 2015. Historically, the Company estimated service and interest cost components utilizing a single weighted-average discount rate derived from a specific yield curve used to measure the benefit obligation at the beginning of the period. Under the spot-rate approach, service and interest cost components have been estimated based on the application of the spot rates on a given yield curve at each future year to each plan's projected cash flows to measure the benefit obligation at the beginning of the period. The Company made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows and the corresponding spot yield curve rates. This change has been accounted for as a change in accounting estimate and, accordingly, accounted for prospectively during 2016.

The long-term rates of return on assets were selected from within the reasonable range of rates determined by (a) historical real returns for the asset classes covered by the investment policy and (b) projections of inflation over the long-term period during which benefits are payable to plan participants. See Note 1 of Notes to Consolidated Financial Statements for further information.

Assumed health care cost trend rates at December 31, 2016 and 2015:

		2016		2015
Health care cost trend rate for next year		6.70	%	6.70	%
Rate to which the cost trend rate is assumed to decline (the
	ultimate trend rate)	4.50	%	4.50	%
Year that the rate reaches the ultimate trend rate		2037		2037

Assumed health care cost trend rates could have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

		1% Point		1% Point
		Increase		Decrease
Effect on total service and interest cost	$	12	$	(10)
Effect on postretirement benefit obligations		352		(308)

Plan Assets and Fair Value

The Company’s pension plan target asset allocation and the weighted-average asset allocations at December 31, 2016 and 2015 by asset category were as follows:

Asset Category		Target		2016		2015
U.S. Plans
Equity securities		61	%	60	%	65	%
Debt securities		32	%	39	%	34	%
Other		7	%	1	%	1	%
	Total	100	%	100	%	100	%

Foreign Plans
Equity securities and other		25	%	24	%	26	%
Debt securities		75	%	76	%	74	%
	Total	100	%	100	%	100	%

As of December 31, 2016 and 2015, “Other” consisted principally of cash and cash equivalents (approximately 1% to 2% of plan assets in each respective period).

The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, where applicable:

Cash and Cash Equivalents

Cash and cash equivalents consist of cash and money market funds and are classified as Level 1 investments.

Common Stock

Common stock is valued based on quoted market prices on an exchange in an active market and is classified as Level 1 investments.

Commingled Funds

Investments in the U.S. pension plan and foreign pension plan commingled funds represent pooled institutional investments, including primarily collective investment trusts. These commingled funds are not available on an exchange or in an active market and these investments are valued using their NAV, which is generally based on the underlying asset values of the pooled investments held in the trusts. In accordance with the accounting standard update adopted by the Company during 2016, these assets are no longer included in the fair value hierarchy.

As of December 31, 2016, the U.S. pension plan commingled funds included approximately 61 percent of investments in equity securities and 39 percent of investments in fixed income securities. As of December 31, 2016, foreign pension plan commingled funds included approximately 30 percent of investments in diversified equity securities, 60 percent of investments in fixed income securities, and 10 percent of other non-related investments, primarily real estate.

Pooled Separate Accounts

Investments in the U.S. pension plan pooled separate accounts consist of insurance annuity contracts and are valued based on the reported unit value at year end. Units of the pooled separate account are not traded on an exchange or in an active market and these investments are valued using their NAV. In accordance with the accounting standard update adopted by the Company during 2016, these assets are no longer included in the fair value hierarchy.

Registered Investment Companies

Investments in shares of registered investment companies in the U.S. pension plan as of December 31, 2015 which represent the net asset values of shares held by the Plan and were valued based on quoted market prices on an exchange in an active market and classified as Level 1 investments.

Fixed Income Corporate Securities

Investments in corporate fixed income securities in the U.S. pension plan as of December 31, 2015 were valued using third party pricing services which were based on a combination of quoted market prices on an exchange in an active market as well as proprietary pricing models and inputs using observable market data and were classified as Level 2 investments.

Fixed Income U.S. and Foreign Government Securities

Investments in U.S. and foreign government fixed income securities in the U.S. pension plan as of December 31, 2015 were valued using third party pricing services which are based on a combination of quoted market prices on an exchange in an active market as well as proprietary pricing models and inputs using observable market data and were classified as Level 2 investments.

Insurance Contract

Investments in the foreign pension plan insurance contract are valued at the highest value available for the Company at year end, either the reported cash surrender value of the contract or the vested benefit obligation. Both the cash surrender value and the vested benefit obligation are determined based on unobservable inputs, which are contractually or actuarially determined, regarding returns, fees, the present value of the future cash flows of the contract and benefit obligations. The contract is classified as a Level 3 investment.

Diversified Equity Securities - Registered Investment Companies

Investments in the foreign pension plan diversified equity securities of registered investment companies are based upon the quoted redemption value of shares in the fund owned by the plan at year end. The shares of the fund are not available on an exchange or in an active market; however, the fair value is determined based on the underlying investments in the fund as traded on an exchange in an active market and are classified as Level 2 investments.

Fixed Income – Foreign Registered Investment Companies

Investments in the foreign pension plan fixed income securities of foreign registered investment companies are based upon the quoted redemption value of shares in the fund owned by the plan at year end. The shares of the fund are not available on an exchange or in an active market; however, the fair value is determined based on the underlying investments in the fund as traded on an exchange in an active market and are classified as Level 2 investments.

Real Estate

The foreign pension plan’s investment in real estate consists of an investment in a property fund. The fund’s underlying investments consist of real property, which are valued using unobservable inputs. The property fund is classified as a Level 3 investment

As of December 31, 2016 and 2015, the U.S. and foreign plans’ investments measured at fair value on a recurring basis were as follows:

						Fair Value Measurements at December 31, 2016
				Total			Using Fair Value Hierarchy
U.S. Pension Assets				Fair Value			Level 1		Level 2		Level 3
Cash and cash equivalents				$	302		$	302	$	—	$	—
Small capitalization common stock					1,279			1,279		—		—
	Subtotal U.S. pension plan assets in fair value hierarchy			$	1,581		$	1,581	$	—	$	—
Commingled funds measured at NAV					46,185
Pooled separate accounts measured at NAV					1,431
		Total U.S. pension plan assets		$	49,197

Foreign Pension Assets
Cash and cash equivalents				$	130		$	130	$	—	$	—
Insurance contract					72,778			—		—		72,778
Diversified equity securities - registered investment companies					7,308			—		7,308		—
Fixed income - foreign registered investment companies					2,753			—		2,753		—
Real estate - registered investment companies					2,041			—		—		2,041
	Sub-total of foreign pension assets in fair value hierarchy			$	85,010		$	130	$	10,061	$	74,819
Commingled funds measured at NAV					1,834
		Total foreign pension assets		$	86,844

			Total pension assets in fair value hierarchy	$	86,591		$	1,711	$	10,061	$	74,819
			Total pension assets measured at NAV		49,450
			Total pension assets	$	136,041

						Fair Value Measurements at December 31, 2015
				Total			Using Fair Value Hierarchy
U.S. Pension Assets				Fair Value			Level 1		Level 2		Level 3
Cash and cash equivalents				$	753		$	753	$	—	$	—
Large capitalization common stock					13,346			13,346		—		—
Large capitalization registered investment companies					6,363			6,363		—		—
Small capitalization common stock					773			773		—		—
Small capitalization registered investment companies					2,333			2,333		—		—
International developed and emerging markets registered
	investment companies				5,166			5,166		—		—
International developed and emerging markets common stock					2,519			2,519		—		—
Fixed income corporate securities					9,601			—		9,601		—
Fixed income registered investment companies					4,147			4,147		—		—
Fixed income U.S. and foreign government securities					308			—		308		—
	Subtotal U.S. pension plan assets in fair value hierarchy			$	45,309		$	35,400	$	9,909	$	—
Pooled separate accounts measured at NAV					1,392
		Total U.S. pension plan assets		$	46,701

Foreign Pension Assets
Cash and cash equivalents				$	7		$	7	$	—	$	—
Insurance contract					62,409			—		—		62,409
Diversified equity securities - registered investment companies					7,180			—		7,180		—
Fixed income - foreign registered investment companies					2,290			—		2,290		—
Real estate - registered investment companies					2,388			—		—		2,388
	Subtotal foreign pension assets in fair value hierarchy			$	74,274		$	7	$	9,470	$	64,797
Commingled funds measured at NAV					1,882
		Total foreign pension plan assets		$	76,156

			Total pension assets in fair value hierarchy	$	119,583		$	35,407	$	19,379	$	64,797
			Total pension assets measured at NAV		3,274
			Total pension assets	$	122,857

Certain investments that are measured at fair value using the NAV per share (or its equivalent) have not been classified in the fair value hierarchy. During 2016, the Company adopted the guidance in the accounting standard update issued in May, 2015 which removed the requirement to categorize within the fair value hierarchy all such investments. Adoption of this guidance was done on a retrospective basis, which required reclassifications to the fair value tables for the year ended December 31, 2015. The fair value amounts presented for these investments in the preceding tables are intended to permit reconciliation of the fair value hierarchies to the line items presented in the statements of net assets available for benefits.

Changes in the fair value of the foreign plans’ Level 3 investments during the years ended December 31, 2016 and 2015 were as follows:

			Insurance		Real Estate
			Contract		Fund		Total
Balance at December 31, 2014		$	72,417	$	478	$	72,895
	Purchases		953		1,937		2,890
	Settlements		(1,239)		—		(1,239)
	Unrealized (losses) gains		(2,402)		60		(2,342)
	Currency translation adjustment		(7,320)		(87)		(7,407)
Balance at December 31, 2015			62,409		2,388		64,797
	Purchases		2,584		—		2,584
	Settlements		(1,350)		—		(1,350)
	Unrealized gains		12,005		56		12,061
	Currency translation adjustment		(2,870)		(403)		(3,273)
Balance at December 31, 2016		$	72,778	$	2,041	$	74,819

U.S. pension assets include Company common stock in the amounts of $1.3 million (3% of total U.S. plan assets) and $0.8 million (2% of total U.S. plan assets) at December 31, 2016 and 2015, respectively.

During 2013, it was discovered that the Company’s subsidiary in the U.K. did not appropriately amend a trust for a legacy change in its pension scheme as it related to a past retirement age equalization law. Given the lack of an official deed to the pension trust, the effective date of the change to the subsidiary’s pension scheme differed from the Company’s historical beliefs, but the extent of the potential exposure was not estimable. In the first quarter of 2014, the Company recorded costs of $0.9 million, or $0.05 per diluted share, related to prior service cost and interest cost, to appropriately reflect the past plan amendment related to the retirement age equalization law.

Cash Flows

Contributions

The Company expects to make minimum cash contributions of $7.8 million to its pension plans ($4.6 million Domestic and $3.2 million Foreign) and $0.5 million to its other postretirement benefit plan in 2017.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

							Other Post-
	Pension Benefits						Retirement
	Foreign		Domestic		Total		Benefits
2017	$	1,780	$	4,929	$	6,709	$	451
2018		1,946		4,642		6,588		444
2019		2,094		4,605		6,699		432
2020		2,311		4,354		6,665		407
2021		2,922		4,346		7,268		385
2022 to 2026		16,581		23,445		40,026		1,611

The Company maintains a plan under which supplemental retirement benefits are provided to certain officers. Benefits payable under the plan are based on a combination of years of service and existing postretirement benefits. Included in total pension costs are charges of $0.9 million, $0.9 million and $0.8 million in 2016, 2015 and 2014, respectively, representing the annual accrued benefits under this plan.

Defined Contribution Plan

The Company has a 401(k) plan with an employer match covering a majority of its domestic employees. The plan allows for and the Company has paid a nonelective contribution on behalf of participants who have completed one year of service equal to 3% of the eligible participants’ compensation in the form of Company common stock. Total Company contributions were $2.7 million, $2.6 million and $2.5 million for 2016, 2015 and 2014, respectively.