Note 17. Pension and Postretirement Benefits

Domestic Plans

We have frozen defined benefit pension plans held in trust for certain employees which we funded. We also maintain certain unfunded defined benefit pension plans which provide supplemental benefits to select management employees. These plans use traditional defined benefit formulas based on years of service and final average compensation. Funding policies provide that payments to defined benefit pension trusts shall be at least equal to the minimum funding required by applicable regulations.

We also have certain defined benefit postretirement plans that provide medical and life insurance for certain eligible employees, retirees, and dependents. The related postretirement benefit liabilities are recognized over the period that services are provided by employees. In addition, we retained the obligations for these benefits for retirees of certain sold businesses. While the plans have no funding requirements, we may fund the plans.

The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) of our pension plans consist of the following:

	December 31,
(in thousands)	2017			2016			2015
Net periodic benefit cost:
Service cost	$	64		$	98		$	101
Interest cost		803			1,032			1,018
Expected return on plan assets		(176	)		(256	)		(380	)
Recognized net actuarial loss		433			423			492
Net periodic benefit cost		1,124			1,297			1,231
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net actuarial loss (gain)		114			1			(963	)
Reversal of amortization item:
Net actuarial loss		(433	)		(423	)		(492	)
Total recognized in other comprehensive income (loss)		(319	)		(422	)		(1,455	)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	805		$	875		$	(224	)

The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) of our postretirement benefit plans consist of the following:

	December 31,
(in thousands)	2017			2016			2015
Net periodic benefit cost:
Service cost	$	92		$	99		$	152
Interest cost		413			573			619
Amortization of prior service credit		(431	)		(503	)		(552	)
Recognized net actuarial loss		164			295			528
Net periodic benefit cost		238			464			747
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net actuarial loss (gain)		237			(790	)		(1,248	)
Prior service credit		816			73			3
Reversal of amortization item:
Net actuarial loss		(164	)		(295	)		(528	)
Prior service credit		431			503			552
Total recognized in other comprehensive income (loss)		1,320			(509	)		(1,221	)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	1,558		$	(45	)	$	(474	)

The following table indicates the funded status of the plans as of December 31:

													Postretirement
	Funded Plans						Unfunded Plans						Benefit Plans
(in thousands)	2017			2016			2017			2016			2017			2016
Change in benefit obligation:
Benefit obligation at beginning of year	$	15,027		$	14,906		$	9,825		$	10,049		$	13,619		$	14,573
Service cost		—			—			64			97			92			99
Interest cost		492			629			311			403			413			573
Actuarial adjustments		618			240			175			(221	)		237			(790	)
Plan amendments		—			—			—			—			816			73
Benefits paid		(697	)		(748	)		(518	)		(503	)		(1,370	)		(909	)
Benefit obligation at end of year		15,440			15,027			9,857			9,825			13,807			13,619
Change in plan assets:
Fair value of plan assets at beginning of year		10,416			10,479			—			—			—			—
Actual return on plan assets		855			273			—			—			—			—
Company contributions		1,016			412			518			503			1,370			909
Benefits paid		(697	)		(748	)		(518	)		(503	)		(1,370	)		(909	)
Fair value of plan assets at end of year		11,590			10,416			—			—			—			—
Funded status at end of year	$	(3,850	)	$	(4,611	)	$	(9,857	)	$	(9,825	)	$	(13,807	)	$	(13,619	)

The net amounts recognized in the Consolidated Balance Sheets under the caption “Pension and postretirement benefits” as of December 31 are as follows:

									Postretirement
	Funded Plans				Unfunded Plans				Benefit Plans
(in thousands)	2017		2016		2017		2016		2017		2016
Other current liabilities	$	—	$	—	$	809	$	699	$	1,112	$	1,094
Non-current liabilities		3,850		4,611		9,048		9,126		12,695		12,525
Net amount recognized	$	3,850	$	4,611	$	9,857	$	9,825	$	13,807	$	13,619

Amounts recognized in AOCI as of December 31 are as follows:

													Postretirement
	Funded Plans						Unfunded Plans						Benefit Plans						Total			Total
(in thousands)	2017			2016			2017			2016			2017			2016			2017			2016
Net actuarial loss	$	8,681		$	9,090		$	2,587		$	2,496		$	2,784		$	2,710		$	14,052		$	14,296
Prior service credit		—			—			—			—			(351	)		(1,598	)		(351	)		(1,598	)
Subtotal		8,681			9,090			2,587			2,496			2,433			1,112			13,701			12,698
Less tax effect		(3,292	)		(3,447	)		(981	)		(947	)		(923	)		(422	)		(5,196	)		(4,816	)
Total	$	5,389		$	5,643		$	1,606		$	1,549		$	1,510		$	690		$	8,505		$	7,882

The estimated net actuarial loss for the postretirement benefit plans that is expected to be amortized from AOCI into net periodic benefit cost in 2018 is approximately $0.2 million. The estimated prior service credit for the postretirement benefit plans that is expected to be amortized from AOCI into net periodic benefit credit in 2018 is approximately $0.2 million.

The estimated net actuarial loss that is expected to be amortized from AOCI into net periodic benefit cost in 2018 is approximately $0.1 million for the unfunded benefit plans and $0.4 million for the funded benefit plans.

The fair value of the domestic plans’ assets by asset class are as follows:

			Fair Value Measurements at December 31, 2017
			Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Domestic pension plans:
Fixed income securities	$	5,787	$	5,787	$	—	$	—
Equity securities		5,390		5,390		—		—
Cash		214		214		—		—
Other		199		—		199		—
Total	$	11,590	$	11,391	$	199	$	—

			Fair Value Measurements at December 31, 2016
			Quoted Prices in Active Markets		Significant Other Observable Inputs		Significant Unobservable Inputs
(in thousands)	Total		(Level 1)		(Level 2)		(Level 3)
Domestic pension plans:
Fixed income securities	$	5,352	$	5,352	$	—	$	—
Equity securities		4,580		4,580		—		—
Cash		280		280		—		—
Other		204		—		204		—
Total	$	10,416	$	10,212	$	204	$	—

We employ a total return investment approach whereby a mix of equities and fixed income securities is used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed income securities. Furthermore, equity securities are diversified across U.S. and non-U.S. stocks, as well as growth and value. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews and annual liability measurements.

We utilize a building-block approach in determining the long-term expected rate of return on plan assets. Historical markets are studied and long-term historical relationships between equity securities and fixed income securities are preserved consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return also considers diversification and rebalancing. Peer data and historical returns are reviewed relative to our assumed rates for reasonableness and appropriateness.

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

(in thousands)	Funded Plans		Unfunded Plans		Postretirement Benefit Plans
2018	$	1,434	$	823	$	1,132
2019	$	927	$	738	$	1,127
2020	$	997	$	740	$	1,100
2021	$	921	$	725	$	1,066
2022	$	990	$	709	$	1,039
2023-2027	$	4,859	$	3,259	$	4,685

Foreign Pension Plans

Certain of our foreign operations also maintain defined benefit pension plans held in trust for certain employees which are funded by the companies, and unfunded defined benefit pension plans providing supplemental benefits to select management employees. These plans use traditional defined benefit formulas based on years of service and final average compensation. Funding policies provide that payments to defined benefit pension trusts shall be at least equal to the minimum funding required by applicable regulations. The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) included the following:

	December 31,
(in thousands)	2017			2016			2015
Net periodic benefit cost:
Service cost	$	530		$	488		$	503
Interest cost		492			488			505
Expected return on plan assets		(602	)		(558	)		(583	)
Recognized net actuarial loss		155			162			160
Settlement		777			—			—
Net periodic benefit cost		1,352			580			585
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net actuarial loss		(106	)		158			182
Reversal of amortization of net actuarial loss		(155	)		(162	)		(160	)
Total recognized in other comprehensive income (loss)		(261	)		(4	)		22
Total recognized in net periodic benefit cost and other comprehensive income	$	1,091		$	576		$	607

The following table represents the funded status of the plans as of December 31:

	Funded Plans						Unfunded Plans
(in thousands)	2017			2016			2017			2016
Change in benefit obligation:
Benefit obligation at beginning of year	$	10,488		$	9,744		$	2,486		$	2,470
Service cost		530			488			—			—
Interest cost		406			400			87			87
Actuarial adjustments		658			395			(54	)		105
Benefits paid		(3,231	)		(818	)		(182	)		(177	)
Translation adjustment		670			279			245			1
Benefit obligation at end of year		9,521			10,488			2,582			2,486
Change in plan assets:
Fair value of plan assets at beginning of year		10,576			9,705			—			—
Actual return on plan assets		764			617			—			—
Company contributions		710			795			182			177
Benefits paid		(3,231	)		(818	)		(182	)		(177	)
Translation adjustment		674			277			—			—
Fair value of plan assets at end of year		9,493			10,576			—			—
Funded status at end of year	$	(28	)	$	88		$	(2,582	)	$	(2,486	)

The net amounts recognized in the Consolidated Balance Sheets under the caption “Pension and postretirement benefits” as of December 31 were as follows:

	Funded Plans						Unfunded Plans
(in thousands)	2017			2016			2017		2016
Non-current assets	$	(15	)	$	(88	)	$	—	$	—
Other current liabilities		—			—			188		170
Non-current liabilities		43			—			2,394		2,316
Net amount recognized	$	28		$	(88	)	$	2,582	$	2,486

Net actuarial losses for the foreign funded plans recognized in AOCI were $2.5 million ($1.8 million after-tax) as of December 31, 2017 and $3.3 million ($2.5 million after-tax) as of December 31, 2016. Net actuarial losses for the foreign unfunded plans recognized in AOCI were $0.7 million ($0.5 million after-tax) as of December 31, 2017 and $0.4 million ($0.3 million after-tax) as of December 31, 2016.

The fair value information related to the foreign pension plans’ assets is summarized in the following tables:

			Fair Value Measurements at Reporting Date Using
(in thousands)	December 31, 2017		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserved Inputs (Level 3)
Assets:
Fixed income securities	$	4,414	$	4,414	$	—	$	—
Equity securities		4,889		4,466		423		—
Other		190		190		—		—
Total	$	9,493	$	9,070	$	423	$	—

			Fair Value Measurements at Reporting Date Using
(in thousands)	December 31, 2016		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobserved Inputs (Level 3)
Assets:
Fixed income securities	$	4,082	$	4,082	$	—	$	—
Equity securities		4,518		4,130		388		—
Other		1,976		1,976		—		—
Total	$	10,576	$	10,188	$	388	$	—

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

(in thousands)	Funded Plans		Unfunded Plans
2018	$	365	$	191
2019	$	376	$	190
2020	$	378	$	190
2021	$	396	$	190
2022	$	496	$	189
2023-2027	$	2,499	$	935

Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets

The accumulated benefit obligations in excess of plan assets as of December 31 were as follows:

	Domestic Plans
	Funded Plans				Unfunded Plans
(in thousands)	2017		2016		2017		2016
Projected benefit obligation	$	15,440	$	15,027	$	9,857	$	9,825
Accumulated benefit obligation	$	15,440	$	15,027	$	9,826	$	9,737
Fair value of plan assets	$	11,590	$	10,416	$	—	$	—

	Foreign Plans
	Funded Plans				Unfunded Plans
(in thousands)	2017		2016		2017		2016
Projected benefit obligation	$	9,521	$	10,488	$	2,582	$	2,486
Accumulated benefit obligation	$	8,819	$	9,906	$	2,582	$	2,486
Fair value of plan assets	$	9,493	$	10,576	$	—	$	—

Contributions

In aggregate for both the domestic and foreign plans, we anticipate contributing $1.1 million to the funded pension plans, $1.0 million to the unfunded pension plans, and $1.1 million to the postretirement benefit plans in 2018.

Weighted-Average Assumptions

Weighted-average assumptions used to determine benefit obligations as of December 31 were as follows:

	Domestic Plans
	Funded Plans						Unfunded Plans						Postretirement Benefit Plans						Foreign Plans
	2017			2016			2017			2016			2017			2016			2017			2016
Discount rate		3.63	%		4.12	%		3.55	%		3.99	%		3.59	%		4.08	%		3.15	%		3.52	%
Rate of compensation increase	N/A			N/A				3.00	%		3.00	%	N/A			N/A				2.26	%		2.34	%

Weighted-average assumptions used to determine net periodic benefit costs as of December 31 were as follows:

	Domestic Plans
	Funded Plans						Unfunded Plans						Postretirement Benefit Plans						Foreign Plans
	2017			2016			2017			2016			2017			2016			2017			2016
Discount rate		4.07	%		4.33	%		3.99	%		4.25	%		4.08	%		4.30	%		3.71	%		3.77	%
Expected return on plan assets		5.50	%		2.25	%	N/A			N/A				0.00	%		0.00	%		5.09	%		4.53	%
Rate of compensation increase	N/A			N/A				3.00	%		3.00	%	N/A			N/A				2.26	%		2.34	%

The assumed health care cost trend rate used in measuring the December 31, 2017 accumulated postretirement benefit obligation was 7.5%, declining one-third percent each year to the ultimate rate of 4.5% by the year 2026 and remaining at that level thereafter. The assumed health care cost trend rate used in measuring the December 31, 2016 accumulated postretirement benefit obligation was 7.0%, declining one-quarter percent each year to the ultimate rate of 4.5% by the year 2026 and remaining at that level thereafter.

A one-percentage-point increase in the assumed health care cost trend rate for each year would increase the accumulated postretirement benefit obligation as of December 31, 2017 by approximately $1.4 million and the total of service and interest cost components by approximately $0.1 million. A one-percentage-point decrease in the assumed health care cost trend rate for each year would decrease the accumulated postretirement benefit obligation as of December 31, 2017 by approximately $1.1 million and the total of service and interest cost components by approximately $0.1 million.

Multi-employer Plans

We contribute to defined benefit pension plans under the terms of collective-bargaining agreements that cover our union-represented employees. The financial risks of participating in these multi-employer pension plans generally include the fact that assets contributed to the plan by one employer may be used to provide benefits to employees of other participating employers. Furthermore, if a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. In addition, if we were to discontinue participating in some of our multi-employer pension plans, we may be required to pay those plans a withdrawal liability amount based on the underfunded status of the plan. We also contribute to defined contribution plans pursuant to collective-bargaining agreements, which are generally not subject to the funding risks inherent in defined benefit pension plans. The overall level of contributions to our multi-employer plans may significantly vary from year to year based on the demand for union-represented labor to support our operations. We do not have any minimum contribution requirements for future periods pursuant to our collective-bargaining agreements for individually significant multi-employer plans.

Our participation in multi-employer pension plans for 2017 is outlined in the following table. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2017 and 2016 relates to the plan’s year end as of December 31, 2016 and 2015, respectively, and is based on information received from the plan. Among other factors, plans in the red zone are generally less than 65% funded, plans in the yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented.

		Plan		Pension Protection Act Zone Status		FIP/RP Status Pending/ Implemented	Viad Contributions						Surcharge Paid	Expiration Date of Collective- Bargaining Agreement(s)
(in thousands)	EIN	No.		2017	2016		2017		2016		2015
Pension Fund:
Western Conference of Teamsters Pension Plan	91-6145047		1	Green	Green	No	$	7,809	$	6,684	$	5,632	No	3/31/2020
Southern California Local 831—Employer Pension Fund⁽¹⁾	95-6376874		1	Green	Green	No		3,087		2,805		2,485	No	8/31/2019
Chicago Regional Council of Carpenters Pension Fund	36-6130207		1	Green	Yellow	Yes		2,390		2,532		1,887	No	5/31/2019
IBEW Local Union No 357 Pension Plan A	88-6023284		1	Green	Green	No		1,682		1,402		1,150	No	6/16/2018
Electrical Contractors Assoc. Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Plan #2	51-6030753		2	Green	Green	No		1,099		845		1,190	No	6/6/2021
Central States, Southeast and Southwest Areas Pension Plan	36-6044243		1	Red	Red	Yes		1,060		1,151		948	No	12/31/2018
Southern California IBEW-NECA Pension Fund	95-6392774		1	Yellow	Yellow	Yes		905		701		835	Yes	continuous
Southwest Carpenters Pension Trust	95-6042875		1	Green	Green	No		883		791		750	No	6/30/2018
New England Teamsters & Trucking Industry Pension	04-6372430		1	Red	Red	Yes		772		552		381	No	3/31/2022
Machinery Movers Riggers & Mach Erect Local 136 Supplemental Retirement Plan⁽¹⁾	36-1416355		11	Red	Red	Yes		719		1,203		502	Yes	6/30/2019
Sign Pictorial & Display Industry Pension Plan⁽¹⁾	94-6278490		1	Green	Green	No		654		526		541	No	3/31/2018
All other funds⁽²⁾								2,900		3,585		4,259
Total contributions to defined benefit plans								23,960		22,777		20,560
Total contributions to other plans								2,613		2,995		1,428
Total contributions to multi-employer plans							$	26,573	$	25,772	$	21,988

⁽¹⁾	We contributed more than 5% of total plan contributions for the 2016 and 2015 plan years based on the plans’ Form 5500s.

⁽²⁾	Represents participation in 35 pension funds during 2017.

Other Employee Benefits

We match U.S. employee contributions to the 401(k) plan with shares of our common stock held in treasury up to 100% of the first 3% of a participant’s salary plus 50% of the next 2%. The expense associated with our match was $4.2 million for 2017, $3.9 million for 2016, and $3.7 million for 2015.