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Pension and other postretirement benefits (Tables)
 12 Months Ended
Dec. 31, 2014
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Net Benefit Cost of Pension and Postretirement Benefit Plans
The following table provides information regarding the net benefit cost of pension and postretirement benefit plans for continuing operations:
 
 
Pension
 
Other Benefits
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
 
(Dollars in thousands)
Service cost
$
1,794

 
$
1,819

 
$
2,331

 
$
424

 
$
663

 
$
704

Interest cost
18,000

 
16,842

 
16,561

 
2,169

 
2,707

 
2,122

Expected return on plan assets
(25,006
)
 
(23,122
)
 
(20,245
)
 
—

 
—

 
—

Net amortization and deferral
4,371

 
5,847

 
6,474

 
(7
)
 
1,348

 
761

Curtailment gain
—

 
—

 
(197
)
 
—

 
—

 
—

Settlement loss
—

 
—

 
106

 
—

 
—

 
—

Net benefit cost
$
(841
)
 
$
1,386

 
$
5,030

 
$
2,586

 
$
4,718

 
$
3,587
Weighted Average Assumptions used in Determining Net Periodic Benefit Cost
The following table provides the weighted average assumptions for United States and foreign plans used in determining net benefit cost:
 
 
Pension
 
Other Benefits
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Discount rate
5.0
%
 
4.3
%
 
4.3
%
 
4.7
%
 
3.8
%
 
4.0
%
Rate of return
8.3
%
 
8.3
%
 
8.3
%
 
—
%
 
—
%
 
—
%
Initial healthcare trend rate
—
%
 
—
%
 
—
%
 
7.5
%
 
8.2
%
 
8.5
%
Ultimate healthcare trend rate
—
%
 
—
%
 
—
%
 
5.0
%
 
5.0
%
 
5.0
%
The following table provides the weighted average assumptions for United States and foreign plans used in determining benefit obligations:
 
 
Pension
 
Other Benefits
 
2014
 
2013
 
2014
 
2013
Discount rate
4.1
%
 
5.0
%
 
4.0
%
 
4.7
%
Rate of compensation increase
3.0
%
 
3.0
%
 
—

 
—

Initial healthcare trend rate
—

 
—

 
7.3
%
 
7.0
%
Ultimate healthcare trend rate
—

 
—

 
5.0
%
 
5.0
%
Pension and Postretirement Benefit Plans
The following table provides summarized information with respect to the Company’s pension and postretirement benefit plans, measured as of December 31, 2014 and 2013:
 
 
Pension
 
Other Benefits
 
2014
 
2013
 
2014
 
2013
 
Under Funded
 
Under Funded
 
(Dollars in thousands)
Benefit obligation, beginning of year
$
367,731

 
$
397,184

 
$
52,448

 
$
55,609

Service cost
1,794

 
1,819

 
424

 
663

Interest cost
18,000

 
16,842

 
2,169

 
2,707

Actuarial loss (gain)
82,922

 
(30,755
)
 
1,273

 
(3,833
)
Currency translation
(2,973
)
 
861

 
—

 
—

Benefits paid
(17,988
)
 
(17,004
)
 
(3,287
)
 
(2,860
)
Medicare Part D reimbursement
—

 
—

 
127

 
162

Administrative costs
(1,522
)
 
(1,216
)
 
—

 
—

Projected benefit obligation, end of year
447,964

 
367,731

 
53,154

 
52,448

Fair value of plan assets, beginning of year
305,481

 
276,863

 
—

 
—

Actual return on plan assets
34,332

 
28,813

 
—

 
—

Contributions
9,539

 
17,724

 
—

 
—

Benefits paid
(17,988
)
 
(17,004
)
 
—

 
—

Settlements paid
—

 
—

 
—

 
—

Administrative costs
(1,522
)
 
(1,216
)
 
—

 
—

Currency translation
(1,012
)
 
301

 
—

 
—

Fair value of plan assets, end of year
328,830

 
305,481

 
—

 
—

Funded status, end of year
$
(119,134
)
 
$
(62,250
)
 
$
(53,154
)
 
$
(52,448
)
Amounts Recognized in the Consolidated Balance Sheet
The following table sets forth the amounts recognized in the consolidated balance sheet with respect to the plans:
 
 
Pension
 
Other Benefits
 
2014
 
2013
 
2014
 
2013
 
(Dollars in thousands)
Payroll and benefit-related liabilities
$
(1,779
)
 
$
(1,819
)
 
$
(3,268
)
 
$
(3,381
)
Pension and postretirement benefit liabilities
(117,355
)
 
(60,431
)
 
(49,886
)
 
(49,067
)
Accumulated other comprehensive loss
213,117

 
144,866

 
8,353

 
7,073

 
$
93,983

 
$
82,616

 
$
(44,801
)
 
$
(45,375
)
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss
The following tables set forth the amounts recognized in accumulated other comprehensive income (loss) with respect to the plans:
 
 
Pension
 
Prior Service
Cost (Credit)
 
Net (Gain)
or Loss
 
Deferred
Taxes
 
Accumulated
Other
Comprehensive
(Income) Loss,
Net of Tax
 
(Dollars in thousands)
Balance at December 31, 2012
$
216

 
$
186,700

 
$
(67,567
)
 
$
119,349

Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
 
 
 
 
 
 
 
Net amortization and deferral
(34
)
 
(5,813
)
 
1,947

 
(3,900
)
Amounts arising during the period:
 
 
 
 
 
 
 
Actuarial changes in benefit obligation
—

 
(36,446
)
 
13,206

 
(23,240
)
Impact of currency translation
—

 
243

 
(66
)
 
177

Balance at December 31, 2013
182

 
144,684

 
(52,480
)
 
92,386

Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
 
 
 
 
 
 
 
Net amortization and deferral
(34
)
 
(4,337
)
 
1,539

 
(2,832
)
Amounts arising during the period:
 
 
 
 
 
 
 
Actuarial changes in benefit obligation
—

 
73,596

 
(26,131
)
 
47,465

Impact of currency translation
—

 
(974
)
 
265

 
(709
)
Balance at December 31, 2014
$
148

 
$
212,969

 
$
(76,807
)
 
$
136,310

 
 
Other Benefits
 
Prior Service
Cost (Credit)
 
Initial
Obligation
 
Net (Gain) or
Loss
 
Deferred
Taxes
 
Accumulated
Other
Comprehensive
(Income) Loss,
Net of Tax
 
(Dollars in thousands)
Balance at December 31, 2012
$
(38
)
 
$
5

 
$
12,287

 
$
(4,346
)
 
$
7,908

Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
 
 
 
 
 
 
 
 
 
Net Amortization and deferral
55

 
(5
)
 
(1,398
)
 
492

 
(856
)
Amounts Arising During the period:
 
 
 
 
 
 
 
 
 
Actuarial changes in benefit obligation
—

 
—

 
(3,833
)
 
1,432

 
(2,401
)
Balance at December 31, 2013
17

 
—

 
7,056

 
(2,422
)
 
4,651

Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
 
 
 
 
 
 
 
 
 
Net Amortization and deferral
55

 
—

 
(48
)
 
(4
)
 
3

Amounts Arising During the period:
 
 
 
 
 
 
 
 
 
Actuarial changes in benefit obligation
—

 
—

 
1,273

 
(493
)
 
780

Balance at December 31, 2014
$
72

 
$
—

 
$
8,281

 
$
(2,919
)
 
$
5,434
Fair Values of Pension Plan Assets
The following table provides the fair values of the Company’s pension plan assets at December 31, 2014 by asset category:
 
 
Fair Value Measurements
Asset Category (a)
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
 
(Dollars in thousands)
Cash
 
$
659

 
$
659

 
$
—

 
$
—

Money market funds
 
31

 
31

 
—

 
—

Equity securities:
 
 
 
 
 
 
 
 
Managed volatility (b)
 
83,068

 
83,068

 
—

 
—

United States small/mid-cap equity (c)
 
20,312

 
20,312

 
—

 
—

World Equity (excluding United States) (d)
 
26,064

 
26,064

 
—

 
—

Common Equity Securities – Teleflex Incorporated
 
13,422

 
13,422

 
—

 
—

Diversified United Kingdom Equity
 
875

 
875

 
—

 
—

Diversified Global
 
2,884

 
2,884

 
—

 
—

Emerging Markets
 
1,266

 
1,266

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
Long duration bond fund (e)
 
92,553

 
92,553

 
—

 
—

UK corporate bond fund
 
2,719

 
2,719

 
—

 
—

UK Government bond fund
 
5,078

 
5,078

 
—

 
—

High yield bond fund (f)
 
11,618

 
11,618

 
—

 
—

Emerging markets debt fund (g)
 
8,531

 


 
8,531

 
—

Corporate, government and foreign bonds
 
81

 


 
81

 
—

Asset backed – home loans
 
782

 


 
782

 
—

Other types of investments:
 
 
 
 
 
 
 
 
Structured credit (h)
 
31,176

 


 
—

 
31,176

Hedge fund of funds (i)
 
23,171

 


 
—

 
23,171

UK Property Fund (j)
 
1,549

 


 
1,549

 
—

Multi asset fund  (k)
 
2,986

 
2,986

 
—

 
—

Other
 
5

 
—

 
—

 
5

Total
 
$
328,830

 
$
263,535

 
$
10,943

 
$
54,352

The following table provides the fair values of the Company’s pension plan assets at December 31, 2013 by asset category:
 
 
 
Fair Value Measurements
Asset Category (a)
 
Total
 
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
 
(Dollars in thousands)
Cash
 
$
472

 
$
472

 
$
—

 
$
—

Money market funds
 
310

 
310

 
—

 
—

Equity securities:
 
 
 
 
 
 
 
 
Managed volatility (b)
 
77,140

 
77,140

 
—

 
—

United States small/mid-cap equity (c)
 
19,760

 
19,760

 
—

 
—

World Equity (excluding United States) (d)
 
30,183

 
30,183

 
—

 
—

Common Equity Securities – Teleflex Incorporated
 
10,972

 
10,972

 
—

 
—

Diversified United Kingdom Equity
 
928

 
928

 
—

 
—

Diversified Global
 
2,319

 
2,319

 
—

 
—

Emerging Markets
 
1,270

 
1,270

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
Long duration bond fund (e)
 
76,608

 
76,608

 
—

 
—

UK corporate bond fund
 
2,569

 
2,569

 
—

 
—

UK Government bond fund
 
4,455

 
4,455

 
—

 
—

High yield bond fund (f)
 
12,754

 
12,754

 
—

 
—

Emerging markets debt fund (g)
 
9,003

 
—

 
9,003

 
—

Corporate, government and foreign bonds
 
87

 
—

 
87

 
—

Asset backed – home loans
 
847

 
—

 
847

 
—

Other types of investments:
 
 
 
 
 
 
 
 
Structured credit (h)
 
29,109

 
—

 
—

 
29,109

Hedge fund of funds (i)
 
22,540

 
—

 
—

 
22,540

UK Property Fund (j)
 
1,402

 
—

 
1,402

 
—

Multi asset fund  (k)
 
2,748

 
2,748

 
—

 
—

Other
 
5

 
—

 
—

 
5

Total
 
$
305,481

 
$
242,488

 
$
11,339

 
$
51,654


(a)
Information on asset categories described in notes (b)-(k) is derived from prospectuses and other material provided by the respective funds comprising the respective asset categories.
(b)
This category comprises mutual funds that invest in securities of United States and non-United States companies of all capitalization ranges that exhibit relatively low volatility.
(c)
This category comprises a mutual fund that invests at least 80% of its net assets in equity securities of small and mid-sized companies. The fund invests in common stocks or exchange traded funds holding common stock of United States companies with market capitalizations in the range of companies in the Russell 2500 Index.
(d)
This category comprises a mutual fund that invests at least 80% of its net assets in equity securities of foreign companies. These securities may include common stocks, preferred stocks, warrants, exchange traded funds based on an international equity index and derivative instruments whose value is based on an international equity index and derivative instruments whose value is based on an underlying equity security or a basket of equity securities. The fund invests in securities of foreign issuers located in developed and emerging market countries. However, the fund will not invest more than 30% of its assets in the common stocks or other equity securities of issuers located in emerging market countries.
(e)
This category comprises a mutual fund that invests in instruments or derivatives having economic characteristics similar to fixed income securities. The fund invests in investment grade fixed income instruments, including securities issued or guaranteed by the United States Government and its agencies and instrumentalities, corporate bonds, asset-backed securities, exchange traded funds, mortgage-backed securities and collateralized mortgage-backed securities. The fund invests primarily in long duration government and corporate fixed income securities, and uses derivative instruments, including interest rate swap agreements and Treasury futures contracts, for the purpose of managing the overall duration and yield curve exposure of the Fund’s portfolio of fixed income securities.
(f)
This category comprises a mutual fund that invests at least 80% of its net assets in higher-yielding fixed income securities, including corporate bonds and debentures, convertible and preferred securities and zero coupon obligations.
(g)
This category comprises a mutual fund that invests at least 80% of its net assets in fixed income securities of emerging market issuers, primarily in United States dollar-denominated debt of foreign governments, government-related and corporate issuers in emerging market countries and entities organized to restructure the debt of those issuers.
(h)
This category comprises a fund that invests primarily in collateralized debt obligations (“CDOs”) and other structured credit vehicles. The fund investments may include fixed income securities, loan participants, credit-linked notes, medium-term notes, pooled investment vehicles and derivative instruments.
(i)
This category comprises a hedge fund that invests in various other hedge funds. As of December 31, 2014 and 2013:
•
approximately 33% and 28%, respectively, of the assets of the hedge fund were invested in equity hedge based funds, including equity long/short and equity market neutral strategies;
•
approximately 10% and 18%, respectively, of the assets were held in tactical/directional based funds, including global macro, long/short equity, commodity and systematic quantitative strategies;
•
approximately 24% and 25%, respectively, of the assets were held in relative value based funds, including convertible and fixed income arbitrage, credit long/short and volatility arbitrage strategies;
•
approximately 33% and 23%, respectively, of the assets were held in funds with an event driven strategy; and
•
approximately 6% of the assets were held in cash as of December 31, 2013.
(j)
This category comprises a fund that invests primarily in UK freehold and leasehold property. The fund does not invest in higher risk activities such as developments. The fund may invest in indirect vehicles and property derivatives.
(k)
This category comprises a mutual fund that invests primarily in equities, bonds and alternatives.
Reconciliation of Changes in Level 3 Pension Assets Measured at Fair Value on Recurring Basis
The following table provides a reconciliation of changes in pension assets measured at fair value on a recurring basis, using Level 3 inputs, from December 31, 2012 through December 31, 2014:
 
 
(Dollars in thousands)
 
Balance at December 31, 2012
$
48,198

 
Unrealized gain on assets
3,456

 
Balance at December 31, 2013
51,654

 
Unrealized gain on assets
2,698

 
Balance at December 31, 2014
$
54,352

 
Expected Benefit Payments
The following table provides information about the Company’s expected benefit payments for U.S. and foreign plans for each of the five succeeding years and the aggregate of the five years thereafter, net of the annual average Medicare Part D subsidy of approximately $0.2 million:
 
 
Pension
 
Other Benefits
 
(Dollars in thousands)
2015
$
17,841

 
$
3,268

2016
18,449

 
3,362

2017
19,023

 
3,334

2018
19,653

 
3,367

2019
20,472

 
3,416

Years 2020 — 2024
114,185

 
18,229