The Company provides a defined contribution profit sharing plan for the benefit of substantially all the Company's domestic salaried and non-union hourly employees. The plan contains both contributory and noncontributory profit sharing arrangements, as defined. Aggregate charges included in the accompanying consolidated statement of income under this plan for both continuing and discontinued operations were approximately $4.6 million, $4.2 million and $3.8 million in 2019, 2018 and 2017, respectively. Certain of the Company's non-U.S. and union hourly employees participate in defined benefit pension plans.



	Pension Benefit
	2019			2018			2017
Service cost	$	1,050		$	1,120		$	1,150
Interest cost	1,070			1,100			1,290
Expected return on plan assets	(1,400		)	(1,520		)	(1,480		)
Settlements and curtailments	—			2,620			—
Amortization of net loss	580			860			1,010
Net periodic benefit expense	$	1,300		$	4,180		$	1,970

The service cost component of net periodic benefit expense is recorded in cost of goods sold and selling, general and administrative expenses, while non-service cost components are recorded in other expense, net in the accompanying consolidated statement of income.

During 2018, the Company recognized one-time settlement and curtailment charges of approximately $2.6 million, of which approximately $2.5 million was due to the purchase of an annuity contract to transfer certain U.S. retiree defined benefit obligations to an insurance company. The annuity contract was funded by plan assets.

The estimated net actuarial loss and prior service cost for defined benefit pension plans that is expected to be amortized from AOCI into net periodic benefit expense in 2020 is approximately $0.9 million.

Actuarial valuations of the Company's defined benefit pension plans were prepared as of December 31, 2019, 2018 and 2017. Weighted average assumptions used in accounting for the U.S. defined benefit pension plans are as follows:



	Pension Benefit
	2019		2018		2017
Discount rate for obligations	3.41	%	4.50	%	3.76	%
Discount rate for benefit costs	4.50	%	4.37	%	4.35	%
Rate of increase in compensation levels	N/A		N/A		N/A
Expected long-term rate of return on plan assets	7.13	%	7.13	%	7.13	%

The Company utilizes a high-quality (Aa or greater) corporate bond yield curve as the basis for its domestic discount rate for its pension benefit plans. Management believes this yield curve removes the impact of including additional required corporate bond yields (potentially considered in the above-median curve) resulting from the uncertain economic climate that does not necessarily reflect the general trend in high-quality interest rates.



	Pension Benefit
	2019		2018		2017
Discount rate for obligations	2.10	%	3.00	%	2.60	%
Discount rate for benefit costs	3.00	%	2.60	%	2.80	%
Rate of increase in compensation levels	3.00	%	3.30	%	3.30	%
Expected long-term rate of return on plan assets	4.60	%	4.60	%	4.60	%

The following provides a reconciliation of the changes in the Company's defined benefit pension plans' projected benefit obligations and fair value of assets for each of the years ended December 31, 2019 and 2018 and the funded status as of December 31, 2019 and 2018 (dollars in thousands):



	Pension Benefit
	2019			2018
Changes in Projected Benefit Obligations
Benefit obligations at January 1	$	(30,300	)	$	(39,030	)
Service cost	(1,050		)	(1,120		)
Interest cost	(1,070		)	(1,100		)
Participant contributions	(60		)	(60		)
Actuarial gain (loss)	(4,190		)	3,020
Benefit payments	900			1,200
Annuity purchase	—			5,480
Settlements and curtailments	—			210
Change in foreign currency	(810		)	1,100
Projected benefit obligations at December 31	$	(36,580	)	$	(30,300	)
Changes in Plan Assets
Fair value of plan assets at January 1	$	24,650		$	31,760
Actual return on plan assets	3,630			(1,520		)
Employer contributions	1,930			2,440
Participant contributions	60			60
Benefit payments	(900		)	(1,200		)
Annuity purchase	—			(5,480		)
Settlements	—			(210		)
Change in foreign currency	890			(1,200		)
Fair value of plan assets at December 31	$	30,260		$	24,650
Funded status at December 31	$	(6,320	)	$	(5,650	)



	Pension Benefit
	2019			2018
Amounts Recognized in Balance Sheet
Prepaid benefit cost	$	1,690		$	1,350
Current liabilities	(330		)	(340		)
Noncurrent liabilities	(7,680		)	(6,660		)
Net liability recognized at December 31	$	(6,320	)	$	(5,650	)



	Pension Benefit
	2019		2018
Amounts Recognized in Accumulated Other Comprehensive Loss
Unrecognized prior service cost	$	190	$	190
Unrecognized net loss	13,240		11,610
Total accumulated other comprehensive loss recognized at December 31	$	13,430	$	11,800



	Accumulated Benefit Obligations						Projected Benefit Obligations
	2019			2018			2019			2018
Benefit Obligations at December 31,
Total benefit obligations	$	(34,460	)	$	(28,410	)	$	(36,580	)	$	(30,300	)
Plans with benefit obligations exceeding plan assets
Benefit obligations	$	(14,840	)	$	(12,050	)	$	(14,910	)	$	(12,080	)
Plan assets	$	6,890		$	5,090		$	6,890		$	5,090

The assumptions regarding discount rates and expected return on plan assets can have a significant impact on amounts reported for benefit plans. A 25 basis point change in benefit obligation discount rates or 50 basis point change in expected return on plan assets would have the following effect (dollars in thousands):



	Pension Benefit
	December 31, 2019 Benefit Obligation			2019 Expense
Discount rate
25 basis point increase	$	(1,400	)	$	(100	)
25 basis point decrease	$	1,510		$	110
Expected return on assets
50 basis point increase	N/A			$	(150	)
50 basis point decrease	N/A			$	150

The Company's overall investment goal is to provide for capital growth with a moderate level of volatility by investing assets in targeted allocation ranges. Specific long term investment goals include total investment return, diversity to reduce volatility and risk, and to achieve an asset allocation profile that reflects the general nature and sensitivity of the plans' liabilities. Investment goals are established after a comprehensive review of current and projected financial statement requirements, plan assets and liability structure, market returns and risks as well as special requirements of the plans. The Company reviews investment goals and actual results annually to determine whether stated objectives are still relevant and the continued feasibility of achieving the objectives.



	Domestic Pension						Foreign Pension
			Actual						Actual
	Target		2019		2018		Target		2019		2018
Equity securities	60	%	62	%	58	%	33	%	30	%	29	%
Fixed income	36	%	34	%	39	%	45	%	46	%	47	%
Diversified growth^(a)	—	%	—	%	—	%	22	%	23	%	24	%
Cash and other	4	%	4	%	3	%	—		1	%	—	%
Total	100	%	100	%	100	%	100	%	100	%	100	%

^(a) Diversified growth funds invest in a broad range of asset classes including equities, investment grade and high yield bonds, commodities, property, private equity, infrastructure and currencies.

Actual allocations to each asset vary from target allocations due to periodic investment strategy changes, market value fluctuations and the timing of benefit payments and contributions. The expected long-term rate of return for both the domestic and foreign plans' total assets is based on the expected return of each of the above categories, weighted based on the target allocation for each class. Actual allocation is reviewed regularly and investments are rebalanced to their targeted allocation range when deemed appropriate.

In managing the plan assets, the Company reviews and manages risk associated with the funded status risk, interest rate risk, market risk, liquidity risk and operational risk. Investment policies reflect the unique circumstances of the respective plans and include requirements designed to mitigate these risks by including quality and diversification standards.

The following table summarizes the level under the fair value hierarchy (see Note 3, "Summary of Significant Accounting Policies") that the Company's pension plan assets are measured, on a recurring basis as of December 31, 2019 (dollars in thousands):



	Total		Level 1		Level 2		Level 3
Plan assets subject to leveling
Investment funds
Equity securities	$	4,300	$	4,300	$	—	$	—
Fixed income	2,320		2,320		—		—
Cash and cash equivalents	150		150		—		—
Plan assets measured at net asset value^(a)
Investment funds
Equity securities	7,040
Fixed income	10,890
Diversified growth	5,200
Cash and cash equivalents	360
Total	$	30,260	$	6,770	$	—	$	—

^(a) Certain investments that are measured at fair value using the net asset value per share as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amount presented in the fair value of plan assets.