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Pension and other postretirement benefits (Tables)
12 Months Ended
Dec. 31, 2018
Defined Benefit Plan [Abstract]  
Net Benefit Cost of Pension and Postretirement Benefit Plans
The following table provides information regarding the components of the net benefit expense (income) of the Company's pension and postretirement benefit plans for the years ended December 31, 20182017 and 2016:
 
Pension
 
Other Benefits
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
(Dollars in thousands)
Service cost
$
1,500

 
$
2,887

 
$
2,615

 
$
50

 
$
279

 
$
355

Interest cost
14,816

 
15,137

 
15,711

 
1,389

 
1,577

 
1,595

Expected return on plan assets
(29,666
)
 
(26,809
)
 
(24,786
)
 

 

 

Net amortization and deferral
6,777

 
6,734

 
6,567

 
136

 
275

 
454

Curtailments

 

 

 
677

 

 

Settlements
486

 

 

 

 

 

Net benefit expense (income)
$
(6,087
)
 
$
(2,051
)
 
$
107

 
$
2,252

 
$
2,131

 
$
2,404

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
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Discount rate
3.6
%
 
4.2
%
 
4.5
%
 
3.6
%
 
4.1
%
 
4.3
%
Rate of return
7.8
%
 
8.1
%
 
8.1
%
 
 
 
 
 
 
Initial healthcare trend rate
 
 
 
 
 
 
7.8
%
 
7.9
%
 
8.4
%
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
 
2018
 
2017
 
2018
 
2017
Discount rate
4.3
%
 
3.6
%
 
4.2
%
 
3.6
%
Rate of compensation increase
2.6
%
 
2.6
%
 
 
 
 
Initial healthcare trend rate
 
 
 
 
7.4
%
 
7.8
%
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, 2018 and 2017:
 
Pension
 
Other Benefits
 
2018
 
2017
 
2018
 
2017
 
Under Funded
 
Under Funded
 
(Dollars in thousands)
Benefit obligation, beginning of year
$
462,158

 
$
430,574

 
$
48,903

 
$
47,487

Service cost
1,500

 
2,887

 
50

 
279

Interest cost
14,816

 
15,137

 
1,389

 
1,577

Actuarial (gain) loss
(38,446
)
 
31,074

 
(6,058
)
 
2,278

Currency translation
(1,780
)
 
3,916

 

 

Benefits paid
(19,314
)
 
(19,144
)
 
(2,790
)
 
(3,095
)
Medicare Part D reimbursement

 

 
101

 
80

Plan amendments
157

 

 

 
297

Curtailments
(162
)
 

 
520

 

Settlements
(1,420
)
 

 



Administrative costs
(1,039
)
 
(2,286
)
 

 

Projected benefit obligation, end of year
416,470

 
462,158

 
42,115

 
48,903

Fair value of plan assets, beginning of year
386,307

 
340,265

 
 
 
 
Actual return on plan assets
(13,275
)
 
53,065

 
 
 
 
Contributions
12,687

 
12,670

 
 
 
 
Benefits paid
(19,314
)
 
(19,144
)
 
 
 
 
Settlements
(1,420
)
 

 
 
 
 
Administrative costs
(1,039
)
 
(2,286
)
 
 
 
 
Currency translation
(1,139
)
 
1,737

 
 
 
 
Fair value of plan assets, end of year
362,807

 
386,307

 
 
 
 
Funded status, end of year
$
(53,663
)
 
$
(75,851
)
 
$
(42,115
)
 
$
(48,903
)
Amounts Recognized in the Consolidated Balance Sheet
The following table sets forth the amounts recognized in the consolidated balance sheet with respect to the Company's pension and postretirement plans:
 
 
Pension
 
Other Benefits
 
2018
 
2017
 
2018
 
2017
 
(Dollars in thousands)
Other assets
$
2,837


$
1,596


$


$

Payroll and benefit-related liabilities
(1,729
)
 
(1,767
)
 
(3,972
)
 
(3,173
)
Pension and postretirement benefit liabilities
(54,771
)
 
(75,680
)
 
(38,143
)
 
(45,730
)
Accumulated other comprehensive loss
205,910

 
209,365

 
364

 
6,715

 
$
152,247

 
$
133,514

 
$
(41,751
)
 
$
(42,188
)
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss
The following tables set forth the amounts recognized in accumulated other comprehensive loss with respect to the plans:
 
Pension
 
Prior Service
Cost
 
Net (Gain)
or Loss
 
Deferred
Taxes
 
Accumulated
Other
Comprehensive
Loss,
Net of Tax
 
(Dollars in thousands)
Balance at December 31, 2016
$
79

 
$
209,706

 
$
(76,140
)
 
$
133,645

Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
 
 
 
 
 
 
 
Net amortization and deferral
(28
)
 
(6,706
)
 
2,395

 
(4,339
)
Amounts arising during the period:
 
 
 
 
 
 
 
Actuarial changes in benefit obligation

 
4,818

 
(1,119
)
 
3,699

Impact of currency translation

 
1,496

 
(413
)
 
1,083

Balance at December 31, 2017
51

 
209,314

 
(75,277
)
 
134,088

Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
 
 
 
 
 
 
 
Net amortization and deferral
(17
)
 
(6,760
)
 
1,579

 
(5,198
)
         Settlements


(486
)

83


(403
)
Amounts arising during the period:
 
 
 
 
 
 
 
Actuarial changes in benefit obligation

 
4,495

 
(1,012
)
 
3,483

Curtailments

 
(162
)
 
42

 
(120
)
Plan amendments
157

 

 
(27
)
 
130

Impact of currency translation

 
(682
)
 
183

 
(499
)
Balance at December 31, 2018
$
191

 
$
205,719

 
$
(74,429
)
 
$
131,481

 
 
Other Benefits
 
Prior Service
Cost
 
Net (Gain) or
Loss
 
Deferred
Taxes
 
Accumulated
Other
Comprehensive
Loss,
Net of Tax
 
(Dollars in thousands)
Balance at December 31, 2016
$
85

 
$
4,330

 
$
(1,464
)
 
$
2,951

Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
 
 
 
 
 
 
 
Net amortization and deferral
(77
)
 
(198
)
 
101

 
(174
)
Amounts arising during the period:
 
 
 
 
 
 
 
Actuarial changes in benefit obligation

 
2,278

 
(558
)
 
1,720

Plan amendments
297

 

 
(74
)
 
223

Balance at December 31, 2017
305

 
6,410

 
(1,995
)
 
4,720

Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
 
 
 
 
 
 
 
Net amortization and deferral
(77
)
 
(59
)
 
32

 
(104
)
        Curtailments
(157
)



39


(118
)
Amounts arising during the period:
 
 
 
 
 
 
 
Actuarial changes in benefit obligation

 
(6,058
)
 
1,459

 
(4,599
)
Balance at December 31, 2018
$
71

 
$
293

 
$
(465
)
 
$
(101
)
Fair Values of Pension Plan Assets
The following table provides the fair values of the Company’s pension plan assets at December 31, 2018 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
 
$
627

 
$
627

 

 

Money market funds
 
7

 
7

 

 

Equity securities:
 
 
 
 
 
 
 
 
Managed volatility (b)
 
71,306

 
71,306

 

 

United States small/mid-cap equity (c)
 
15,379

 
15,379

 

 

World Equity (excluding United States) (d)
 
24,589

 
24,589

 

 

Common Equity Securities – Teleflex Incorporated
 
30,216

 
30,216

 

 

Fixed income securities:
 
 
 
 
 
 
 
 
Intermediate duration fund (e)
 
26,958

 
26,958

 

 

Long duration bond fund (f)
 
90,661

 
90,661

 

 

Corporate bond fund (g)
 
12,162

 
12,162

 

 

Global credit fund (h)
 
647


647





Emerging markets debt fund (i)
 
7,923

 
7,923

 

 

Corporate, government and foreign bonds
 
30,418

 
30,418

 

 

Asset backed – home loans
 
367

 

 
$
367

 

Other types of investments:
 
 
 
 
 
 
 
 
Multi asset funds  (j)
 
6,905

 
3,676

 
3,229

 

Contract with insurance company (k)
 
10,092

 

 

 
$
10,092

Other
 
5

 

 

 
5

Total investments at fair value
 
$
328,262

 
$
314,569

 
$
3,596

 
$
10,097

Investments measured at net asset value (l)
 
34,545

 
 
 
 
 
 
Total
 
$
362,807

 


 


 


The following table provides the fair values of the Company’s pension plan assets at December 31, 2017 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
 
$
1,324

 
$
1,324

 

 

Money market funds
 
51

 
51

 

 

Equity securities:
 
 
 
 
 
 
 
 
Managed volatility (b)
 
79,964

 
79,964

 

 

United States small/mid-cap equity (c)
 
19,239

 
19,239

 

 

World Equity (excluding United States) (d)
 
32,294

 
32,294

 

 

Common Equity Securities – Teleflex Incorporated
 
29,087

 
29,087

 

 

Diversified Global
 
6,353

 
6,353

 

 

Fixed income securities:
 
 
 
 
 
 
 
 
Intermediate duration fund (e)
 
23,378

 
23,378

 

 

Long duration bond fund (f)
 
94,623

 
94,623

 

 

Corporate bond fund (g)
 
12,420

 
12,420

 

 

Emerging markets debt fund (i)
 
9,184

 
9,184

 

 

Corporate, government and foreign bonds
 
2,024

 
2,024

 

 

Asset backed – home loans
 
454

 

 
$
454

 

Other types of investments:
 
 
 
 
 
 
 
 
Multi asset funds  (j)
 
11,114

 
6,187

 
4,927

 


Other
 
5

 

 

 
$
5

Total investments at fair value
 
$
321,514

 
$
316,128

 
$
5,381

 
$
5

Investments measured at Net asset value (l)
 
64,793

 
 
 
 
 
 
Total
 
$
386,307

 


 


 



(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, 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 35% 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 United States and foreign corporate obligations, fixed income securities issued by sovereigns or agencies in both developed and emerging foreign markets, debt obligations issued by governments or other municipalities, and securities issued or guaranteed by the United States Government and its agencies. The fund will seek to maintain an effective average duration between three and ten years, and uses derivative instruments, including interest rate swap agreements and credit default swaps, 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 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.
(g)
This category comprises funds that invest primarily in higher-yielding fixed income securities, including corporate bonds and debentures, convertible and preferred securities and zero coupon obligations.
(h)
This category comprises a fund that invests primarily in a range of debt securities, including those issued by governments, institutions, or companies from a number of countries.
(i)
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.
(j)
This category comprises funds that may invest in equities, bonds, or derivatives.
(k)
This category comprises the asset established out of an agreement to purchase a bulk-annuity policy from an insurer to fully cover the liabilities for members of the pension plan. The asset value is based on the fair value of the contract as determined by the insurance company using inputs that are not observable.
(l)
This category comprises pooled institutional investments, primarily collective investment trusts. These funds are not listed on an exchange or traded in an active market and these investments are valued using their net asset value, which is generally based on the underlying asset values of the pooled investments held in the trusts. This category comprises the following funds:
a fund that invests primarily in collateralized debt obligations and other structured credit vehicles and may include fixed income securities, loan participations, credit-linked notes, medium-term notes, pooled investment vehicles and derivative instruments.
a hedge fund that invests in various other hedge funds.
funds that invest in underlying funds that acquire, manage, and dispose of real estate properties, with a focus on properties in the U.S. and the UK markets.
Expected Benefit Payments
The following table provides information about the Company’s expected benefit payments under its 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)
2019
$
20,852

 
$
3,972

2020
21,023

 
4,024

2021
21,795

 
3,893

2022
22,658

 
4,015

2023
23,161

 
3,795

Years 2024 — 2028
124,927

 
15,241