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Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2017
Changes in Benefit Obligations and Plan Assets as Well as Funded Status of Retirement Plans
The changes in benefit obligations and plan assets as well as the funded status of our retirement plans at December 31 were as follows:
 
Pension Benefits
 
Other
Postretirement Benefits
 
2017
 
2016
 
2017
 
2016
 
(Dollars in thousands)
Change in benefit obligation
 
 
 
 
 
 
 
Obligation at beginning of year
$
726,421

 
$
685,295

 
$
21,698

 
$
28,022

Service cost
13,372

 
12,895

 
104

 
222

Interest cost
25,501

 
25,781

 
692

 
891

Actuarial losses
54,562

 
34,705

 
630

 
641

Acquisition
19,225

 
—

 
—

 
—

Special termination benefits
—

 
2,837

 
—

 
—

Plan amendments
147

 
472

 
(2
)
 
(5,636
)
Benefits paid
(43,598
)
 
(33,492
)
 
(2,325
)
 
(3,007
)
Curtailment gain
—

 
—

 
—

 
(305
)
Participants’ contributions
—

 
—

 
142

 
870

Foreign currency exchange rate changes
12,519

 
(2,072
)
 
—

 
—

Obligation at end of year
808,149

 
726,421

 
20,939

 
21,698

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
759,551

 
704,779

 
—

 
—

Actual return on plan assets
108,154

 
87,132

 
—

 
—

Employer contributions
1,699

 
1,132

 
2,183

 
2,137

Participants’ contributions
—

 
—

 
142

 
870

Benefits paid
(43,598
)
 
(33,492
)
 
(2,325
)
 
(3,007
)
Fair value of plan assets at end of year
825,806

 
759,551

 
—

 
—

Funded status
$
17,657

 
$
33,130

 
$
(20,939
)
 
$
(21,698
)
 
 
Pension Benefits
 
Other
Postretirement Benefits
 
2017
 
2016
 
2017
 
2016
 
(Dollars in thousands)
Amounts recognized in the consolidated
balance sheets
 
 
 
 
 
 
 
Non-current assets
$
118,892

 
$
104,089

 
$
—

 
$
—

Current liabilities
(2,227
)
 
(1,295
)
 
(2,083
)
 
(2,502
)
Non-current liabilities
(99,008
)
 
(69,664
)
 
(18,856
)
 
(19,196
)
Net amount recognized
$
17,657

 
$
33,130

 
$
(20,939
)
 
$
(21,698
)
Amounts recognized in accumulated other
comprehensive loss (income)
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
154,642

 
$
148,941

 
$
(5,561
)
 
$
(6,787
)
Prior service cost (credit)
938

 
1,105

 
(11,337
)
 
(14,753
)
Net amount recognized
$
155,580

 
$
150,046

 
$
(16,898
)
 
$
(21,540
)
Items to be Recognized in 2017 as Component of Net Periodic Cost
 
Pension Benefits
 
Other
Postretirement
Benefits
 
(Dollars in thousands)
Items to be recognized in 2018 as a component
of net periodic cost
 
 
 
Net actuarial loss (gain)
$
7,169

 
$
(474
)
Prior service cost (credit)
173

 
(2,602
)
Net periodic cost (credit) to be recorded in 2018
$
7,342

 
$
(3,076
)
Benefits Expected to Be Paid from Pension and Other Postretirement Benefit Plans, Which Reflect Future Years of Services and Medicare Subsidy Expected to Be Received
The benefits expected to be paid from our pension and other postretirement benefit plans, which reflect future years of service, are as follows (dollars in thousands):
 
Pension
Benefits
 
Other
Postretirement
Benefits
2018
$
39,502

 
$
2,083

2019
39,285

 
1,870

2020
40,842

 
1,545

2021
42,365

 
1,484

2022
43,434

 
1,427

2023-2027
231,373

 
6,373

 
$
436,801

 
$
14,782
Components of Net Periodic Benefit Cost
The components of the net periodic benefit credit for each of the years ended December 31 were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
(Dollars in thousands)
Service cost
$
13,372

 
$
12,895

 
$
15,562

 
$
104

 
$
222

 
$
444

Interest cost
25,501

 
25,781

 
28,066

 
692

 
891

 
1,281

Expected return on plan assets
(63,010
)
 
(58,504
)
 
(62,726
)
 
—

 
—

 
—

Amortization of prior service cost
(credit)
313

 
561

 
1,037

 
(3,418
)
 
(3,571
)
 
(3,057
)
Amortization of actuarial losses
(gains)
7,077

 
8,573

 
5,556

 
(596
)
 
(599
)
 
(348
)
Special termination benefits
—

 
2,837

 
—

 
—

 
—

 
—

Curtailment loss (gain)
—

 
183

 
(522
)
 
—

 
(823
)
 
—

Net periodic benefit credit
$
(16,747
)
 
$
(7,674
)
 
$
(13,027
)
 
$
(3,218
)
 
$
(3,880
)
 
$
(1,680
)
Effect of a One Percentage Point Change in Assumed Health Care Cost Trend Rates
A one percentage point change in the assumed health care cost trend rates would not have a significant impact on our service cost, interest cost or postretirement benefit obligation.
Multiemployer Pension Plans
Further information on these multiemployer plans for the years ended December 31, 2017, 2016 and 2015 is as follows:
Pension Fund
 
EIN/Pension Plan
Number
 
Pension
Protection
Act Zone
Status
 
 
FIP / RP
Status
Pending /
Implemented
 
Contributions
 
Surcharge
Imposed
2017
 
 
2016
 
 
2017
 
2016
 
2015
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
Central States, Southeast & Southwest Areas Pension Fund (1)
 
36-6044243/001
 
Red
(2) 
 
Red
(2) 
 
Implemented
 
$
1,873

 
$
1,979

 
$
1,996

 
No
United Food & Commercial
Workers — Local 1 Pension Fund (3)
 
16-6144007/001
 
Red
 
 
Red
 
 
Implemented
 
232

 
199

 
169

 
No
All Other
 
 
 
 
 
 
 
 
 
 
 
4,318

 
4,304

 
4,550

 
 
Total Contributions
 
 
 
 
 
 
 
 
 
 
 
$
6,423

 
$
6,482

 
$
6,715

 
 

______________________
(1) 
The applicable collective bargaining agreements related to this pension fund expire at various times in 2019.
(2) 
Under the Multiemployer Pension Reform Act of 2014, the status of this pension fund for each of 2017 and 2016 was critical and declining, as defined under such Act.
(3) 
The collective bargaining agreement related to this pension fund expires on March 31, 2018.
Weighted Average Asset Allocation for Pension Plans and Target Allocation
The weighted average asset allocation for our pension plans at December 31, 2017 and 2016 and target allocation for 2017 was as follows:
 
Target
Allocation
 
Actual Allocation
 
2017
 
2016
Equity securities—U.S.
49
%
 
47
%
 
47
%
Equity securities—International
9
%
 
10
%
 
10
%
Debt securities
42
%
 
42
%
 
42
%
Cash and cash equivalents
—

 
1
%
 
1
%
 
100
%
 
100
%
 
100
%
Fair Value of Plan Assets by Asset Category
The fair value of our plan assets by asset category consisted of the following at December 31:
 
2017
 
2016
 
(Dollars in thousands)
Equity securities—U.S.
$
391,527

 
$
357,789

Equity securities—International
82,571

 
76,189

Debt securities
347,612

 
321,597

Cash and cash equivalents
4,096

 
3,976

 
$
825,806

 
$
759,551
Benefit Obligation  
Weighted Average Actuarial Assumptions
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine the benefit obligations at December 31:
 
2017
 
2016
Discount rate
3.8
%
 
4.4
%
Expected return on plan assets
8.5
%
 
8.5
%
Rate of compensation increase
2.6
%
 
2.8
%
Health care cost trend rate:
 
 
 
Assumed for next year
6.2
%
 
6.4
%
Ultimate rate
4.9
%
 
4.5
%
Year that the ultimate rate is reached
2047

 
2047
Benefit Costs  
Weighted Average Actuarial Assumptions
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine net periodic benefit credit for the years ended December 31:
 
 
2017
 
2016
 
2015
Discount rate
4.4
%
 
4.7
%
 
4.1
%
Expected return on plan assets
8.5
%
 
8.5
%
 
8.5
%
Rate of compensation increase
2.8
%
 
3.1
%
 
3.0
%
Health care cost trend rate
6.4
%
 
6.6
%
 
6.7
%