Pension and Postretirement Benefits

12 Months Ended

Dec. 31, 2018

Pension and Other Postretirement Benefits [Abstract]

Pension And Other Postretirement Benefits Disclosure [Text Block]

Note 20 – 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, 2018 and 2017:

																Other Post-
				Pension Benefits												Retirement Benefits
				2018							2017					2018		2017
Change in benefit obligation				Foreign		U.S.		Total		Foreign		U.S.		Total		U.S.		U.S.
Gross benefit obligation at beginning
	of year			$	118,352	$	62,977	$	181,329	$	103,491	$	67,254	$	170,745	$	4,729	$	4,730
Service cost					3,426		383		3,809		3,219		337		3,556		7		8
Interest cost					2,254		1,847		4,101		2,066		1,932		3,998		130		144
Employee contributions					73		—		73		68		—		68		—		—
Plan settlements					(10)		—		(10)		—		(4,341)		(4,341)		—		—
Benefits paid					(1,639)		(4,330)		(5,969)		(2,503)		(4,031)		(6,534)		(317)		(448)
Plan expenses and premiums paid					(161)		—		(161)		(210)		—		(210)		—		—
Actuarial (gain) loss					(5,561)		(2,143)		(7,704)		(1,164)		1,826		662		(443)		295
Translation differences and other					(5,418)		—		(5,418)		13,385		—		13,385		—		—
Gross benefit obligation at end of year				$	111,316	$	58,734	$	170,050	$	118,352	$	62,977	$	181,329	$	4,106	$	4,729
Change in plan assets
Fair value of plan assets at
year	beginning of year			$	98,622	$	51,964	$	150,586	$	86,844	$	49,197	$	136,041	$	—	$	—
Actual return on plan assets					(2,670)		457		(2,213)		116		6,865		6,981		—		—
Employer contributions					5,269		1,574		6,843		2,867		4,574		7,441		317		448
Employee contributions					73		—		73		68		—		68		—		—
Plan settlements					(10)		—		(10)		—		(4,341)		(4,341)		—		—
Benefits paid					(1,639)		(4,330)		(5,969)		(2,503)		(4,031)		(6,534)		(317)		(448)
Plan expenses and premiums paid					(161)		(250)		(411)		(210)		(300)		(510)		—		—
Translation differences					(4,658)		—		(4,658)		11,440		—		11,440		—		—
Fair value of plan assets at end of year				$	94,826	$	49,415	$	144,241	$	98,622	$	51,964	$	150,586	$	—	$	—
Net benefit obligation recognized				$	(16,490)	$	(9,319)	$	(25,809)	$	(19,730)	$	(11,013)	$	(30,743)	$	(4,106)	$	(4,729)
Amounts recognized in the balance
	sheet consist of:
		Non-current assets		$	—	$	3,656	$	3,656	$	—	$	1,184	$	1,184	$	—	$	—
		Current liabilities			(206)		(559)		(765)		(89)		(560)		(649)		(446)		(459)
		Non-current liabilities			(16,284)		(12,416)		(28,700)		(19,641)		(11,637)		(31,278)		(3,660)		(4,270)
Net benefit obligation recognized				$	(16,490)	$	(9,319)	$	(25,809)	$	(19,730)	$	(11,013)	$	(30,743)	$	(4,106)	$	(4,729)
Amounts not yet reflected in net
	periodic benefit costs and included in
	accumulated other comprehensive loss:
		Prior service credit (cost)		$	1,497	$	—	$	1,497	$	1,744	$	(59)	$	1,685	$	—	$	—
		Accumulated loss			(20,089)		(25,310)		(45,399)		(22,598)		(27,133)		(49,731)		(338)		(823)

		AOCI			(18,592)		(25,310)		(43,902)		(20,854)		(27,192)		(48,046)		(338)		(823)
		Cumulative employer contributions
			in excess of or (below) net periodic
			benefit cost		2,102		15,991		18,093		1,124		16,179		17,303		(3,768)		(3,906)
Net benefit obligation recognized				$	(16,490)	$	(9,319)	$	(25,809)	$	(19,730)	$	(11,013)	$	(30,743)	$	(4,106)	$	(4,729)

The accumulated benefit obligation for all defined benefit pension plans was $165.3 million ($57.6 million U.S. and $107.7 million Foreign) and $176.3 million ($62.2 million U.S. and approximately $114.1 million Foreign) as of December 31, 2018 and 2017, respectively.

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

	2018							2017
	Foreign		U.S.		Total		Foreign		U.S.		Total
Projected benefit obligation	$	111,316	$	12,975	$	124,291	$	118,352	$	12,197	$	130,549
Accumulated benefit obligation		107,685		11,808		119,493		114,069		11,456		125,525
Fair value of plan assets		94,826		—		94,826		98,622		—		98,622

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

	2018							2017
	Foreign		U.S.		Total		Foreign		U.S.		Total
Projected benefit obligation	$	111,316	$	12,975	$	124,291	$	118,352	$	12,197	$	130,549
Fair value of plan assets		94,826		—		94,826		98,622		—		98,622

Components of net periodic benefit costs – pension plans:

	2018							2017
	Foreign		U.S.		Total		Foreign		U.S.		Total
Service cost	$	3,426	$	383	$	3,809	$	3,219	$	337	$	3,556
Interest cost		2,254		1,847		4,101		2,066		1,932		3,998
Expected return on plan assets		(2,228)		(2,803)		(5,031)		(1,994)		(3,067)		(5,061)
Settlement loss		2		—		2		—		1,946		1,946
Actuarial loss amortization		881		2,276		3,157		862		2,396		3,258
Prior service (credit) cost
amortization		(175)		59		(116)		(167)		63		(104)
Net periodic benefit cost	$	4,160	$	1,762	$	5,922	$	3,986	$	3,607	$	7,593

		2016
	Foreign		U.S.		Total
Service cost	$	2,378	$	298	$	2,676
Interest cost		2,314		2,114		4,428
Expected return on plan assets		(2,026)		(3,316)		(5,342)
Actuarial loss amortization		839		2,336		3,175
Prior service (credit) cost amortization		(164)		63		(101)
Net periodic benefit cost	$	3,341	$	1,495	$	4,836

Other changes recognized in other comprehensive income – pension plans:

			2018							2017
			Foreign		U.S.		Total		Foreign		U.S.		Total
Net (gain) loss arising during
	the period		$	(663)	$	453	$	(210)	$	715	$	(1,672)	$	(957)
Recognition of amortization in net
	periodic benefit cost
		Prior service credit (cost)		175		(59)		116		167		(63)		104
		Actuarial loss		(883)		(2,276)		(3,159)		(862)		(4,342)		(5,204)
Effect of exchange rates on amounts
		included in AOCI		(890)		—		(890)		2,308		—		2,308
Total recognized in other
		comprehensive (income) loss		(2,261)		(1,882)		(4,143)		2,328		(6,077)		(3,749)
Total recognized in net periodic
	benefit cost and other
	comprehensive loss (income)		$	1,899	$	(120)	$	1,779	$	6,314	$	(2,470)	$	3,844

			2016
				Foreign		U.S.		Total
Net gain arising during period			$	2,401	$	3,576	$	5,977
Recognition of amortization in net periodic benefit
		Prior service credit (cost)		164		(63)		101
		Actuarial loss		(839)		(2,336)		(3,175)
Effect of exchange rates on amounts included
	in AOCI			(1,347)		—		(1,347)

Total recognized in other comprehensive loss				379		1,177		1,556
Total recognized in net periodic benefit cost and
	other comprehensive loss		$	3,720	$	2,672	$	6,392

Components of net periodic benefit costs – other postretirement plan:

		2018		2017		2016
Service cost	$	7	$	8	$	10
Interest cost		130		144		142
Actuarial loss amortization		42		54		—
Net periodic benefit costs	$	179	$	206	$	152

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

			2018		2017		2016
Net (gain) loss arising during period		$	(443)	$	295	$	(401)
Amortization of actuarial loss in net periodic
	benefit costs		(42)		(54)		—
Total recognized in other comprehensive (income)
	loss		(485)		241		(401)
Total recognized in net periodic benefit cost and
	other comprehensive (income) loss	$	(306)	$	447	$	(249)

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

							Other Post-
	Pension Plans						Retirement
	Foreign		U.S.		Total		Benefits
Actuarial loss	$	769	$	2,330	$	3,099	$	—
Prior service credit		(169)		—		(169)		—
	$	600	$	2,330	$	2,930	$	—

Weighted-average assumptions used to determine benefit obligations as of December 31, 2018 and 2017:

					Other Postretirement
	Pension Benefits				Benefits
	2018		2017		2018		2017
U.S. Plans:
Discount rate	4.07	%	3.44	%	4.03	%	3.39	%
Rate of compensation increase	3.63	%	3.63	%	N/A		N/A

Foreign Plans:
Discount rate	2.47	%	2.31	%	N/A		N/A
Rate of compensation increase	2.89	%	2.89	%	N/A		N/A

Weighted-average assumptions used to determine net periodic benefit costs for the years ended December 31, 2018 and 2017:

						Other Postretirement
		Pension Benefits				Benefits
		2018		2017		2018		2017
U.S. Plans:
Discount rate		3.44	%	3.88	%	3.39	%	3.73	%
Expected long-term return on
	plan assets	5.95	%	7.00	%	N/A		N/A
Rate of compensation increase		3.63	%	3.63	%	N/A		N/A

Foreign Plans:
Discount rate		2.33	%	2.17	%	N/A		N/A
Expected long-term return on
	plan assets	2.22	%	2.12	%	N/A		N/A
Rate of compensation increase		2.89	%	2.48	%	N/A		N/A

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 as of December 31, 2018 and 2017:

		2018		2017
Health care cost trend rate for next year		6.20	%	6.40	%
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	$	11	$	(9)
Effect on postretirement benefit obligations		299		(311)

Plan Assets and Fair Value

The Company’s pension plan target asset allocation and the weighted-average asset allocations as of December 31, 2018 and 2017 by asset category were as follows:

Asset Category		Target		2018		2017
U.S. Plans
Equity securities		10	%	9	%	59	%
Debt securities		89	%	90	%	40	%
Other		1	%	1	%	1	%
	Total	100	%	100	%	100	%

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

During the year ended December 31, 2018, the Company elected to adjust its U.S. Plans’ asset allocation along a glide path based on the funded status of the U.S. Plan. As funded status improved, the assets were allocated more heavily to debt securities with lengthened duration to match projected liability movements.

As of December 31, 2018 and 2017, “Other” consisted principally of cash and cash equivalents (approximately 1% 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 net asset value (“NAV”), which is generally based on the underlying asset values of the pooled investments held in the trusts.

As of December 31, 2018, the U.S. pension plan commingled funds included approximately 10 percent of investments in equity securities and 90 percent of investments in fixed income securities. As of December 31, 2018, foreign pension plan commingled funds included approximately 30 percent of investments in 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.

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 plans 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 plans 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, 2018 and 2017, the U.S. and foreign plans’ investments measured at fair value on a recurring basis were as follows:

						Fair Value Measurements at December 31, 2018
				Total			Using Fair Value Hierarchy
U.S. Pension Assets				Fair Value			Level 1		Level 2		Level 3
Cash and cash equivalents				$	450		$	450	$	—	$	—
	Subtotal U.S. pension plan assets in fair value hierarchy			$	450		$	450	$	—	$	—
Commingled funds measured at NAV					48,965
		Total U.S. pension plan assets		$	49,415

Foreign Pension Assets
Cash and cash equivalents				$	209		$	209	$	—	$	—
Insurance contract					79,873			—		—		79,873
Diversified equity securities - registered investment companies					7,701			—		7,701		—
Fixed income - foreign registered investment companies					2,658			—		2,658		—
Real estate - registered investment companies					2,382			—		—		2,382
	Sub-total of foreign pension assets in fair value hierarchy			$	92,823		$	209	$	10,359	$	82,255
Commingled funds measured at NAV					2,003
		Total foreign pension assets		$	94,826

			Total pension assets in fair value hierarchy	$	93,273		$	659	$	10,359	$	82,255
			Total pension assets measured at NAV		50,968
			Total pension assets	$	144,241

						Fair Value Measurements at December 31, 2017
				Total			Using Fair Value Hierarchy
U.S. Pension Assets				Fair Value			Level 1		Level 2		Level 3
Cash and cash equivalents				$	449		$	449	$	—	$	—
Small capitalization common stock					1,508			1,508		—		—
	Subtotal U.S. pension plan assets in fair value hierarchy			$	1,957		$	1,957	$	—	$	—
Commingled funds measured at NAV					48,527
Pooled separate accounts measured at NAV					1,480
		Total U.S. pension plan assets		$	51,964

Foreign Pension Assets
Cash and cash equivalents				$	26		$	26	$	—	$	—
Insurance contract					82,092			—		—		82,092
Diversified equity securities - registered investment companies					9,002			—		9,002		—
Fixed income - foreign registered investment companies					2,951			—		2,951		—
Real estate - registered investment companies					2,428			—		—		2,428
	Subtotal foreign pension assets in fair value hierarchy			$	96,499		$	26	$	11,953	$	84,520
Commingled funds measured at NAV					2,123
		Total foreign pension plan assets		$	98,622

			Total pension assets in fair value hierarchy	$	98,456		$	1,983	$	11,953	$	84,520
			Total pension assets measured at NAV		52,130
			Total pension assets	$	150,586

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. 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, 2018 and 2017 were as follows:

			Insurance		Real Estate
			Contract		Fund		Total
Balance as of December 31, 2016		$	72,778	$	2,041	$	74,819
	Purchases		2,350		—		2,350
	Settlements		(1,661)		—		(1,661)
	Unrealized (losses) gains		(1,425)		188		(1,237)
	Currency translation adjustment		10,050		199		10,249
Balance as of December 31, 2017			82,092		2,428		84,520
	Purchases		4,707		—		4,707
	Settlements		(1,399)		—		(1,399)
	Unrealized (losses) gains		(1,817)		94		(1,723)
	Currency translation adjustment		(3,710)		(140)		(3,850)
Balance as of December 31, 2018		$	79,873	$	2,382	$	82,255

U.S. pension assets include Company common stock in the amount of $1.5 million (3% of total U.S. plan assets) as of December 31, 2017.

During the second quarter of 2017, the Company’s primary noncontributory U.S. pension plan (the “U.S. Pension Plan”) offered a cash settlement to its vested terminated participants, which allowed them to receive the value of their pension benefits as a single lump sum payment. As payments from the U.S. Pension Plan for this cash out offering exceeded the service and interest cost components of the U.S. Pension Plan expense for the year ended December 31, 2017, the Company recorded a settlement charge of approximately $1.9 million. This settlement charge represented the immediate recognition into expense of a portion of the unrecognized loss within AOCI on the balance sheet in proportion to the share of the projected benefit obligation that was settled by these payments. The gross pension benefit obligation was reduced by approximately $4.0 million as a result of these payments. The settlement charge was recognized through other expense, net, on the Company’s Consolidated Statements of Income.

In the fourth quarter of 2018, the Company began the process of terminating the U.S. Pension Plan after receiving Board of Director approval to do so. Prior to December 31, 2005, the U.S. Pension Plan covered substantially all employees of the Company’s U.S. subsidiary who had at least one year of eligible service and had attained age 21. Effective December 31, 2005, the U.S. Pension Plan was amended to freeze benefit accruals with respect to participants who were not part of a collective bargaining unit and effective after November 30, 2013, the U.S. Pension Plan was further amended to freeze benefit accruals for the remaining members of a collective bargaining unit. U.S. Pension Plan participants will have their benefits either converted into a lump sum cash payment or an annuity contract placed with an insurance carrier. The U.S. Pension Plan is fully-funded on a U.S. GAAP basis. In order to terminate the plan in accordance with IRS and pension benefit guaranty corporation requirements, the Company will be required to fully fund the plan on a termination basis and will commit to contribute the additional assets necessary, if any, to do so. The amount necessary to do so is not yet known but is currently estimated to be between $0 and $10 million. In addition, the Company expects to record a pension settlement charge at plan termination. This settlement charge will include the immediate recognition into expense of the unrecognized losses within AOCI on the balance sheet as of the plan termination date. The Company does not have a current estimate for this future settlement charge, however, the gross AOCI related to this plan was approximately $19 million as of December 31, 2018. The Company currently estimates that the U.S. Pension Plan termination will be completed during 2020.

Cash Flows

Contributions

The Company expects to make minimum cash contributions of approximately $5.2 million to its pension plans (approximately $0.5 million U.S. and $4.7 million Foreign) and approximately $0.4 million to its other postretirement benefit plan in 2019.

Estimated Future Benefit Payments

Excluding any impact related to the U.S. Pension Plan termination process noted above, the following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

							Other Post-
	Pension Benefits						Retirement
	Foreign		U.S.		Total		Benefits
2019	$	2,240	$	4,515	$	6,755	$	446
2020		2,443		4,286		6,729		422
2021		3,166		4,220		7,386		393
2022		3,124		4,237		7,361		367
2023		3,336		4,860		8,196		349
2024 to 2028		19,212		22,107		41,319		1,380

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 $1.6 million, $1.4 million and $0.9 million for the years ended December 31, 2018, 2017 and 2016, 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 U.S. employees. The plan allows for and the Company previously 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. During the first quarter of 2017, the Company began matching both non-elective and elective 401(k) contributions in cash, rather than stock. Total Company contributions were $3.1 million, $2.9 million and $2.7 million for the years ended December 31, 2018, 2017 and 2016, respectively.