Employee Benefit Plans

12 Months Ended

Dec. 31, 2014

Employee Benefit Plan [Abstract]

Employee Benefit Plans

14.  EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plans.

The Company maintains both qualified and non-qualified defined benefit pension plans for its U.S. employees employed prior to April 1, 2010.  Generally, the Company computes the benefits based on average earnings over a period prescribed by the plans and credited length of service.  The Company's non-qualified defined benefit pension plan, affected in October 1995, provides compensating pension benefits for participants whose benefits have been curtailed under the qualified plan due to Internal Revenue Code limitations.

Although not required to make contributions under IRS regulations, the following table summarizes the Company's contributions to the defined benefit pension plans for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2014		2013		2012
Company contributions	$	16,484	$	22,536	$	267

The following table summarizes the Company's pension expense for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2014		2013		2012
Pension expense	$	18,543	$	19,348	$	16,542

The following table summarizes the status of these defined benefit plans for U.S. employees for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2014			2013
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	214,059		$	212,159
Service cost		10,015			11,182
Interest cost		10,474			8,511
Actuarial (gain) / loss		55,107			(12,742	)
Benefits paid		(19,588	)		(5,052	)
Projected benefit obligation at end of year		270,065			214,059
Change in plan assets:
Fair value of plan assets at beginning of year		152,446			114,807
Actual return on plan assets		7,747			20,155
Actual contributions during the year		16,484			22,536
Benefits paid		(19,588	)		(5,052	)
Fair value of plan assets at end of year		157,090			152,446
Funded status at end of year	$	(112,976	)	$	(61,613	)
(Some amounts may not reconcile due to rounding.)

Amounts recognized in the consolidated balance sheets for the periods indicated:

	At December 31,
(Dollars in thousands)	2014			2013
Other assets (due beyond one year)	$	-		$	-
Other liabilities (due within one year)		(5,469	)		(17,000	)
Other liabilities (due beyond one year)		(107,507	)		(44,613	)
Net amount recognized in the consolidated balance sheets	$	(112,976	)	$	(61,613	)

Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated:

	At December 31,
(Dollars in thousands)	2014			2013
Prior service cost	$	(21	)	$	(70	)
Accumulated income (loss)		(102,671	)		(53,318	)
Accumulated other comprehensive income (loss)	$	(102,692	)	$	(53,387	)
(Some amounts may not reconcile due to rounding.)

Other changes in other comprehensive income (loss) for the periods indicated are as follows:

	Years Ended December 31,
(Dollars in thousands)	2014			2013
Other comprehensive income (loss) at December 31, prior year	$	(53,387	)	$	(85,939	)
Net gain (loss) arising during period		(58,647	)		24,402
Recognition of amortizations in net periodic benefit cost:
Prior service cost		49			49
Actuarial loss		9,294			8,101
Other comprehensive income (loss) at December 31, current year	$	(102,692	)	$	(53,387	)

Net periodic benefit cost for U.S. employees included the following components for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2014			2013			2012
Service cost	$	10,015		$	11,182		$	9,370
Interest cost		10,474			8,511			7,971
Expected return on assets		(11,288	)		(8,495	)		(7,743	)
Amortization of actuarial loss from earlier periods		4,341			8,101			6,896
Amortization of unrecognized prior service cost		49			49			49
Settlement		4,953			-			-
Net periodic benefit cost	$	18,543		$	19,348		$	16,542
Other changes recognized in other comprehensive income (loss):
Other comprehensive income (loss) attributable to change from prior year		49,305			(32,552	)
Total recognized in net periodic benefit cost and other
comprehensive income (loss)	$	67,847		$	(13,204	)
(Some amounts may not reconcile due to rounding.)

The estimated transition obligation, actuarial loss and prior service cost that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next year are $0 thousand, $9,005 thousand and $21 thousand, respectively.

The weighted average discount rates used to determine net periodic benefit cost for 2014, 2013 and 2012 were 5.00%, 4.00% and 4.60%, respectively.  The rate of compensation increase used to determine the net periodic benefit cost for 2014, 2013 and 2012 was 4.0%. The expected long-term rate of return on plan assets for 2014, 2013 and 2012 was 7.50%, 7.50% and 7.75%, respectively, and was based on expected portfolio returns and allocations.

The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation for years end 2014, 2013 and 2012 were 4.00%, 5.00% and 4.00%, respectively.

The following table summarizes the accumulated benefit obligation for the periods indicated:

	At December 31,
(Dollars in thousands)	2014		2013
Qualified Plan	$	200,205	$	147,803
Non-qualified Plan		19,167		29,774
Total	$	219,371	$	177,577

The following table displays the plans with projected benefit obligations in excess of plan assets for the periods indicated:

	At December 31,
(Dollars in thousands)	2014		2013
Qualified Plan
Projected benefit obligation	$	243,525	$	179,512
Fair value of plan assets		157,090		152,446
Non-qualified Plan
Projected benefit obligation	$	26,540	$	34,547
Fair value of plan assets		-		-

The following table displays the plans with accumulated benefit obligations in excess of plan assets for the periods indicated:

	At December 31,
(Dollars in thousands)	2014		2013
Qualified Plan
Accumulated benefit obligation	$	200,205		N/A
Fair value of plan assets		157,090		N/A
Non-qualified Plan
Accumulated benefit obligation	$	19,167	$	29,774
Fair value of plan assets		-		-
(N/A, not applicable)

The following table displays the expected benefit payments in the periods indicated:

(Dollars in thousands)
2015	$	9,683
2016		6,297
2017		7,619
2018		9,120
2019		11,350
Next 5 years		63,370

Plan assets consist of shares in investment trusts with approximately 76%, 15% and 9% of the underlying assets consisting of equity securities, fixed maturities and cash, respectively.  The Company manages the qualified plan investments for U.S. employees.  The assets in the plan consist of debt and equity mutual funds.  Due to the long term nature of the plan, the target asset allocation has historically been 70% equities and 30% bonds.

The following tables present the fair value measurement levels for the qualified plan assets at fair value for the periods indicated:

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	December 31, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash	$	-	$	-	$	-	$	-
Short-term investments, which approximates fair value (a)		14,328		14,328		-		-
Mutual funds, fair value
Fixed income (b)		23,948		23,948		-		-
Equities (c)		96,762		96,762		-		-
Multi-strategy equity fund, fair value (d)		10,629		-		-		10,629
Private equity limited partnerships (e)		11,423		-		-		11,423
Total	$	157,090	$	135,037	$	-	$	22,053
(Some amounts may not reconcile due to rounding.)

(a)   This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars.

(b)   This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 50% in U.S. securities and 50% in international securities.

(c)   This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 90% in U.S. equities and 10% in international equities.

(d)   This category consists of a privately held fund of U.S. and international equity funds and may include currency hedges for the foreign funds. The fair value is provided by the external investment manager.

(e)   This category consists of private equity limited partnerships.

			Fair Value Measurement Using:
			Quoted Prices
			in Active		Significant
			Markets for		Other		Significant
			Identical		Observable		Unobservable
			Assets		Inputs		Inputs
(Dollars in thousands)	December 31, 2013		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash	$	-	$	-	$	-	$	-
Short-term investments, which approximates fair value (a)		10,590		10,590		-		-
Mutual funds, fair value
Fixed income (b)		24,630		24,630		-		-
Equities (c)		97,305		97,305		-		-
Multi-strategy equity fund, fair value (d)		10,765		-		-		10,765
Private equity limited partnerships (e)		9,156		-		-		9,156
Total	$	152,446	$	132,525	$	-	$	19,921
(Some amounts may not reconcile due to rounding.)

(a)   This category includes high quality, short-term money market instruments, which are issued and payable in U.S. dollars.

(b)   This category includes fixed income funds, which invest in investment grade securities of corporations, governments and government agencies with approximately 50% in U.S. securities and 50% in international securities.

(c)   This category includes funds, which invest in small, mid and multi-cap equity securities including common stocks, securities convertible into common stock and securities with common stock characteristics, such as rights and warrants, with approximately 90% in U.S. equities and 10% in international equities.

(d)   This category consists of a privately held fund of U.S. and international equity funds and may include currency hedges for the foreign funds. The fair value is provided by the external investment manager.

(e)   This category consists of private equity limited partnerships.

The following table presents the activity under Level 3, fair value measurements using significant unobservable inputs for fixed maturity investments, for the period indicated:

	Year Ended December 31,
(Dollars in thousands)	2014			2013
Assets:
Balance, beginning of period	$	19,921		$	14,616
Actual return on plan assets:
Realized gains (losses) relating to assets sold during the period		75			7
Unrealized gains (losses) relating to assets still held at the reporting date		331			2,589
Purchases and capital contributions		3,390			2,951
Investment income earned on assets		-			-
Sales and capital distributions		(1,664	)		(242	)
Transfers in and/or (out) of Level 3		-			-
Balance, end of period	$	22,053		$	19,921
The amount of total gains (losses) for the period included in changes in
net assets attributable to the change in unrealized gains (losses)
relating to assets still held at the reporting date	$	256		$	2,582
(Some amounts may not reconcile due to rounding.)

The Company does not expect to make any contributions to the qualified plan in 2015.

Defined Contribution Plans.

The Company also maintains both qualified and non-qualified defined contribution plans ("Savings Plan" and "Non-Qualified Savings Plan", respectively) covering U.S. employees.  Under the plans, the Company contributes up to a maximum 3% of the participants' compensation based on the contribution percentage of the employee.  The Non-Qualified Savings Plan provides compensating savings plan benefits for participants whose benefits have been curtailed under the Savings Plan due to Internal Revenue Code limitations.  In addition, effective for new hires (and rehires) on or after April 1, 2010, the Company will contribute between 3% and 8% of an employee's earnings for each payroll period based on the employee's age.  These contributions will be 100% vested after three years.

The following table presents the Company's incurred expenses related to these plans for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2014		2013		2012
Incurred expenses	$	4,676	$	3,903	$	3,209

In addition, the Company maintains several defined contribution pension plans covering non-U.S. employees.  Each non-U.S. office (Brazil, Canada and Singapore) maintains a separate plan for the non-U.S. employees working in that location.  The Company contributes various amounts based on salary, age and/or years of service.  The contributions as a percentage of salary for the branch offices range from 5.7% to 8.4%.  The contributions are generally used to purchase pension benefits from local insurance providers.  The following table presents the Company's incurred expenses related to these plans for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2014		2013		2012
Incurred expenses	$	479	$	462	$	412

Post-Retirement Plan.

The Company sponsors a Retiree Health Plan for employees employed prior to April 1, 2010.  This plan provides healthcare benefits for eligible retired employees (and their eligible dependants), who have elected coverage.  The Company anticipates that most covered employees will become eligible for these benefits if they retire while working for the Company.  The cost of these benefits is shared with the retiree.  The Company accrues the post-retirement benefit expense during the period of the employee's service.

The following medical cost trend rates were used to determine net cost and benefit obligations:  a healthcare inflation rate for pre-Medicare claims of 7.2% in 2014 was assumed to decrease gradually to 4.5% in 2027 and then remain at that level; and a healthcare inflation rate for post-Medicare claims of 6.3% in 2014 was assumed to decrease gradually to 4.5% in 2027 and then remain at that level.

Changes in the assumed healthcare cost trend can have a significant effect on the amounts reported for the healthcare plans.  A one percent change in the rate would have the following effects on:

	Percentage		Percentage
	Point Increase		Point Decrease
(Dollars in thousands)	($ Impact)		($ Impact)
a.  Effect on total service and interest cost components	$	674	$	(518	)
b.  Effect on accumulated post-retirement benefit obligation		8,442		(6,426	)

The following table presents the post-retirement benefit expenses for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2014		2013		2012
Post-retirement benefit expenses	$	3,196	$	3,801	$	3,141

The following table summarizes the status of this plan for the periods indicated:

	At December 31,
(Dollars in thousands)	2014			2013
Change in projected benefit obligation:
Benefit obligation at beginning of year	$	27,594		$	27,938
Service cost		1,619			1,899
Interest cost		1,320			1,164
Actuarial loss		6,475			(3,040	)
Benefits paid		(502	)		(366	)
Benefit obligation at end of year		36,506			27,594
Change in plan assets:
Fair value of plan assets at beginning of year		-			-
Employer contributions		502			366
Benefits paid		(502	)		(366	)
Fair value of plan assets at end of year		-			-
Funded status at end of year	$	(36,506	)	$	(27,594	)

Amounts recognized in the consolidated balance sheets for the periods indicated:

	At December 31,
(Dollars in thousands)	2014			2013
Other liabilities (due within one year)	$	(639	)	$	(463	)
Other liabilities (due beyond one year)		(35,867	)		(27,130	)
Net amount recognized in the consolidated balance sheets	$	(36,506	)	$	(27,594	)
(Some amounts may not reconcile due to rounding.)

Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive income (loss) for the periods indicated:

	At December 31,
(Dollars in thousands)	2014			2013
Accumulated income (loss)	$	(12,670	)	$	(6,452	)
Accumulated other comprehensive income (loss)	$	(12,670	)	$	(6,452	)

Other changes in other comprehensive income (loss) for the periods indicated are as follows:

	Years Ended December 31,
(Dollars in thousands)	2014			2013
Other comprehensive income (loss) at December 31, prior year	$	(6,452	)	$	(10,231	)
Net gain (loss) arising during period		(6,475	)		3,040
Recognition of amortizations in net periodic benefit cost:
Actuarial loss (gain)		257			739
Other comprehensive income (loss) at December 31, current year	$	(12,670	)	$	(6,452	)

Net periodic benefit cost included the following components for the periods indicated:

	Years Ended December 31,
(Dollars in thousands)	2014		2013			2012
Service cost	$	1,619	$	1,899		$	1,677
Interest cost		1,320		1,164			1,033
Net loss recognition		257		739			432
Net periodic cost	$	3,196	$	3,801		$	3,142
Other changes recognized in other comprehensive income (loss):
Other comprehensive gain (loss) attributable to change from prior year		6,218		(3,779	)
Total recognized in net periodic benefit cost and
other comprehensive income (loss)	$	9,414	$	22
(Some amounts may not reconcile due to rounding.)

The estimated transition obligation, actuarial loss and prior service cost that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year are $0 thousand, $843 thousand and $0 thousand, respectively.

The weighted average discount rates used to determine net periodic benefit cost for 2014, 2013 and 2012 were 5.00%, 4.00% and 4.60%, respectively.

The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation at year end 2014, 2013 and 2012 were 4.00%, 5.00% and 4.00%, respectively.

The following table displays the expected benefit payments in the years indicated:

(Dollars in thousands)
2015	$	639
2016		738
2017		794
2018		926
2019		1,054
Next 5 years		7,802