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Pension and other postretirement benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Defined Benefit Plan Disclosure [Line Items]  
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 pension and postretirement benefit plans for the years ended December 31, 2019, 2018 and 2017:
PensionOther Benefits
201920182017201920182017
(Dollars in thousands)
Service cost$2,768  $1,500  $2,887  $9  $50  $279  
Interest cost16,000  14,816  15,137  1,391  1,389  1,577  
Expected return on plan assets(27,426) (29,666) (26,809) —  —  —  
Net amortization and deferral7,013  6,777  6,734  (1) 136  275  
Curtailments—  —  —  —  677  —  
Settlements—  486  —  —  —  —  
Net benefit expense (income)$(1,645) $(6,087) $(2,051) $1,399  $2,252  $2,131  
Weighted Average Assumptions used in Determining Net Periodic Benefit Cost
The following table provides the weighted average assumptions for U.S. and foreign plans used in determining net benefit cost:
PensionOther Benefits
201920182017201920182017
Discount rate4.3 %3.6 %4.2 %4.2 %3.6 %4.1 %
Rate of return7.7 %7.8 %8.1 %
Initial healthcare trend rate7.4 %7.8 %7.9 %
Ultimate healthcare trend rate5.0 %5.0 %5.0 %
Pension and Postretirement Benefit Plans
The following table provides summarized information with respect to the pension and postretirement benefit plans, measured as of December 31, 2019 and 2018:
PensionOther Benefits
2019201820192018
Under FundedUnder Funded
(Dollars in thousands)
Benefit obligation, beginning of year$416,470  $462,158  $42,115  $48,903  
Service cost2,768  1,500  9  50  
Interest cost16,000  14,816  1,391  1,389  
Actuarial (gain) loss57,525  (38,446) 1,551  (6,058) 
Currency translation229  (1,780) —  —  
Benefits paid(20,350) (19,314) (5,090) (2,790) 
Medicare Part D reimbursement—  —  66  101  
Plan amendments—  157  —  —  
Curtailments—  (162) —  520  
Settlements—  (1,420) —  —  
Administrative costs(2,406) (1,039) —  —  
Projected benefit obligation, end of year470,236  416,470  40,042  42,115  
Fair value of plan assets, beginning of year362,807  386,307  
Actual return on plan assets69,918  (13,275) 
Contributions12,695  12,687  
Benefits paid(20,350) (19,314) 
Settlements—  (1,420) 
Administrative costs(2,406) (1,039) 
Currency translation636  (1,139) 
Fair value of plan assets, end of year423,300  362,807  
Funded status, end of year$(46,936) $(53,663) $(40,042) $(42,115) 
Amounts Recognized in the Consolidated Balance Sheet
The following table sets forth the amounts recognized in the consolidated balance sheet with respect to the pension and postretirement plans:
PensionOther Benefits
2019201820192018
(Dollars in thousands)
Other assets$2,449  $2,837  $—  $—  
Payroll and benefit-related liabilities(1,617) (1,729) (5,091) (3,972) 
Pension and postretirement benefit liabilities(47,768) (54,771) (34,951) (38,143) 
Accumulated other comprehensive loss213,989  205,910  1,916  364  
$167,053  $152,247  $(38,126) $(41,751) 
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, 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 amendments157  —  (27) 130  
Impact of currency translation—  (682) 183  (499) 
Balance at December 31, 2018191  205,719  (74,429) 131,481  
Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
Net amortization and deferral(18) (6,995) 1,631  (5,382) 
         Settlements—  —  —  —  
Amounts arising during the period:
Actuarial changes in benefit obligation—  15,033  (3,457) 11,576  
Curtailments—  —  —  —  
Plan amendments—  —  —  —  
Settlements—  —  —  —  
Impact of currency translation—  59  (15) 44  
Balance at December 31, 2019$173  $213,816  $(76,270) $137,719  
 
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, 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) 
Plan amendments—  —  —  —  
Balance at December 31, 201871  293  (465) (101) 
Reclassification adjustments related to components of Net Periodic Benefit Cost recognized during the period:
Net amortization and deferral(64) 65  —  1  
Amounts arising during the period:
Actuarial changes in benefit obligation—  1,551  (360) 1,191  
Balance at December 31, 2019$7  $1,909  $(825) $1,091  
Fair Values of Pension Plan Assets
The following table provides the fair values of the pension plan assets at December 31, 2019 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$650  $650  —  —  
Money market funds5  5  —  —  
Equity securities:
Managed volatility (b)72,334  72,334  —  —  
U.S. small/mid-cap equity (c)10,014  10,014  —  —  
World equity (excluding U.S.) (d)48,285  48,285  —  —  
Common equity securities – Teleflex Incorporated38,359  38,359  —  —  
Fixed income securities:
Intermediate duration fund (e)38,500  38,500  —  —  
Long duration bond fund (f)107,143  107,143  —  —  
Corporate bond fund (g)13,107  13,107  —  —  
Global credit fund (h)929  929  —  —  
Emerging markets debt fund (i)9,974  9,974  —  —  
Corporate, government and foreign bonds29,714  29,714  —  —  
Asset backed – home loans316  —  $316  —  
Other types of investments:
Multi asset funds  (j)8,246  4,759  3,487  —  
Contract with insurance company (k)9,849  —  —  $9,849  
Other5  —  —  5  
Total investments at fair value$387,430  $373,773  $3,803  $9,854  
Investments measured at net asset value (l)35,870  
Total$423,300  
The following table provides the fair values of the 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 funds7  7  —  —  
Equity securities:
Managed volatility (b)71,306  71,306  —  —  
U.S. small/mid-cap equity (c)15,379  15,379  —  —  
World equity (excluding U.S.) (d)24,589  24,589  —  —  
Common equity securities – Teleflex Incorporated30,216  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 bonds30,418  30,418  —  —  
Asset backed – home loans367  —  $367  —  
Other types of investments:
Multi asset funds  (j)6,905  3,676  3,229  
Contract with insurance company (k)10,092  —  —  $10,092  
Other5  —  —  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  
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 U.S. and non-U.S. 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 U.S. 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 U.S. 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 U.S. 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 U.S. 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 U.S. 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 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 $0.1 million:
PensionOther Benefits
(Dollars in thousands)
2020$21,226  $5,084  
202121,820  4,555  
202222,653  4,013  
202323,187  3,344  
202423,875  3,139  
Years 2025 — 2029127,256  11,623  
Pension  
Defined Benefit Plan Disclosure [Line Items]  
Weighted Average Assumptions used in Determining Net Periodic Benefit Cost
The following table provides the weighted average assumptions for U.S. and foreign plans used in determining benefit obligations:
PensionOther Benefits
2019201820192018
Discount rate3.2 %4.3 %3.1 %4.2 %
Rate of compensation increase2.8 %2.6 %
Initial healthcare trend rate6.6 %7.4 %
Ultimate healthcare trend rate5.0 %5.0 %