Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2019

Retirement Benefits, Description [Abstract]



	Pension Benefits									Other Post-retirement Benefits
	Year Ended December 31,									Year Ended December 31,
	2019			2018			2017			2019			2018		2017
Components of net periodic benefit cost:
Service cost	$	2,694		$	2,993		$	181		$	2		$	1	$	—
Interest cost	10,061			9,164			2,158			359			336		20
Expected return on assets	(11,979		)	(15,418		)	(2,994		)	—			—		—
Net periodic benefit cost	776			(3,261		)	(655		)	361			337		20
Net loss (gain) amortization	441			153			735			(32		)	—		—
Prior service cost amortization	15			—			—			—			—		—
Total amortization	456			153			735			(32		)	—		—
Net periodic benefit cost	$	1,232		$	(3,108	)	$	80		$	329		$	337	$	20

The cost of our 401(k) plan is outlined below (in thousands):



	Year Ended December 31,
	2019		2018		2017
Cost of 401(k) plan	$	3,428	$	1,847	$	1,978

Weighted Average Assumptions Used In Determining Net Periodic Benefit Cost And Benefit Obligations

The weighted average assumptions used in determining the net periodic benefit cost and benefit obligations for the post-retirement plans are shown below:



	Pension Benefits			Other Post-retirement Benefits
	Year Ended December 31,			Year Ended December 31,
	2019	2018	2017	2019	2018	2017
Net periodic benefit cost (1):
Discount rate – U.S.	3.93%	3.27%	3.86%	4.10%	3.48%	3.63%
Discount rate – Foreign	2.00%	1.97%	N/A	N/A	N/A	N/A
Expected return on plan assets - U.S. (2)	6.25%	7.00%	7.25%	N/A	N/A	N/A
Expected return on plan assets - Foreign	3.70%	3.53%	N/A	N/A	N/A	N/A
Rate of compensation increase - Foreign	3.15%	3.11%	N/A	N/A	N/A	N/A
Benefit obligations:
Discount rate – U.S.	2.83%	3.93%	3.27%	3.05%	4.10%	3.48%
Discount rate – Foreign	1.24%	2.00%	1.97%	N/A	N/A	N/A
Rate of compensation increase - Foreign	3.09%	3.14%	3.11%	N/A	N/A	N/A

(1) 2017 Assumption excludes those that would have been applicable for 21 days of CIRCOR's ownership of FH.
(2) 2017 excludes estimate of return on assets still held in the prior plan which had an expected long-term return on plan assets for the time since acquisition of 6.25% for 2017 for which CIRCOR is entitled to its portion of the return.

Schedule of Defined Benefit Plans Disclosures

The funded status of the defined benefit post-retirement plans and amounts recognized in the consolidated balance sheets, measured as of December 31, 2019 and December 31, 2018 were as follows (in thousands):



	Pension Benefits						Other Post-retirement Benefits
	December 31,						December 31,
	2019			2018			2019			2018

Change in projected benefit obligation:
Balance at beginning of year	$	363,334		$	399,638		$	10,276		$	11,685
Service cost	2,694			2,993			2			1
Interest cost	10,061			9,164			359			336
Amendments	—			341			—			—
Actuarial loss (gain)	37,243			(16,081		)	(12		)	(1,166		)
Exchange rate (gain) / loss	(1,692		)	(9,661		)	—			—
Benefits paid	(24,533		)	(23,060		)	(432		)	(580		)
Settlement payments	(3,451		)	—			—			—
Curtailments (1)	(1,477		)	—			—			—
Balance at end of year	$	382,179		$	363,334		$	10,193		$	10,276
Change in fair value of plan assets:
Balance at beginning of year	$	210,993		$	247,583		$	—		$	—
Actual return on assets	46,665			(15,183		)	—			(580		)
Exchange rate (gain) / loss	935			(2,430		)	—			—
Benefits paid	(24,533		)	(23,060		)	(432		)	—
Settlement payments	(3,451		)	—			—			—
Employer contributions	4,688			4,083			432			580
Fair value of plan assets at end of year (2)	$	235,297		$	210,993		$	—		$	—
Funded status:
Excess of benefit obligation over the fair value of plan assets	$	(146,882	)	$	(152,341	)	$	(10,193	)	$	(10,276	)
Pension plan accumulated benefit obligation (“ABO”)	$	382,179		$	363,334		N/A			N/A

(1) On December 31, 2019, the Company transitioned its defined benefit plan in Norway to a defined contribution plan.
(2) Refer to table below for further disclosure regarding the fair value of our plan assets.

The fair values of the Company’s pension plan assets as of December 31, 2019 and 2018 utilizing the fair value hierarchy were as follows (in thousands):



	December 31, 2019								December 31, 2018
	Measured at Net Asset Value (1)		Level 1		Level 2		Total		Measured at Net Asset Value (1,2)		Level 1		Level 2		Total
U.S. Plans:
Cash Equivalents:
Money Market Funds	$	2,284	$	—	$	—	$	2,284	$	3,831	$	—	$	—	$	3,831
Mutual Funds:
Bond Funds	—		—		—		—		—		—		—		—
Large Cap Funds	—		—		—		—		—		—		—		—
International Funds	28,036		—		—		28,036		20,295		—		—		20,295
Small Cap Funds	—		—		—		—		—		—		—		—
Blended Funds	—		—		—		—		—		—		—		—
Mid Cap Funds	—		—		—		—		—		—		—		—
Comingled Pools:
Opportunistic	12,480		—		—		12,480		15,461		—		—		15,461
Investment Grade	62,134		—		—		62,134		51,340		—		—		51,340
Non-U.S. Equity	20,363		—		—		20,363		17,432		—		—		17,432
U.S. Equity	81,209		—		—		81,209		70,059		—		—		70,059
Global Low Volatility	1,396		—		—		1,396		5,400		—		—		5,400
Insurance Contracts	—		—		806		806		—		—		—		—
Foreign Plans:
Cash	—		42		—		42		—		22		—		22
Equity	10,742		—		—		10,742		8,623		—		—		8,623
Non-U.S. government and corporate bonds	15,504		—		—		15,504		13,569		—		—		13,569
Insurance Contracts	271		—		30		301		240		—		3,542		3,782
Other	—		—		—		—		—		—		368		368
Total Fair Value	$	234,419	$	42	$	836	$	235,297	$	206,250	$	22	$	3,910	$	210,182

(1) Certain investments that are measured at fair value using NAV have not been classified in the fair value hierarchy. These investments, consisting of common/collective trusts, are valued using the NAV provided by the Trustee. The NAV is based on the underlying investments held by the fund that are traded in an active market, less its liabilities. These investments are able to be redeemed in the near-term.
(2) $0.8 million of pension plan asset receivable was excluded from the fiscal year 2018 leveling table above as CIRCOR did not yet control the assets.
In fiscal year 2019, the Company reimbursed Colfax $2.2 million from plan assets related to 2018 pension benefits paid, expenses and lost investment return on those payments.

The following information is presented as of December 31, 2019 and 2018 (in thousands):



	Pension Benefits						Other Post-retirement Benefits
	2019			2018			2019			2018
Funded status, end of year:
Fair value of plan assets	$	235,297		$	210,993		$	—		$	—
Projected Benefit obligation	(382,179		)	(363,334		)	(10,193		)	(10,276		)
Net pension liability	$	(146,882	)	$	(152,341	)	$	(10,193	)	$	(10,276	)
Post-retirement amounts recognized in the balance sheet consists of:
Non-current asset	$	3,917		$	1,776		$	—		$	—
Current liability	(3,998		)	(3,494		)	(669		)	(701		)
Non-current liability	(146,801		)	(150,623		)	(9,524		)	(9,575		)
Total	$	(146,882	)	$	(152,341	)	$	(10,193	)	$	(10,276	)
Amounts recognized in accumulated other comprehensive income consist of:
Net losses	$	30,872		$	28,497		$	(883	)	$	(902	)
Prior service cost	322			325			—			—
Total	$	31,194		$	28,822		$	(883	)	$	(902	)

Estimated future benefit expense to be recognized in other comprehensive income (loss):	2020
Amortization of net losses	$	277
Prior service cost	16
Total	$	293

Expected Benefit Payments

As of December 31, 2019, the benefit payments expected to be paid in each of the next five years and the aggregate for the five fiscal years thereafter were as follows (in thousands):



	2020		2021		2022		2023		2024		Thereafter
Pension Benefits - All Plans	$	23,055	$	22,799	$	22,516	$	22,238	$	21,789	$	101,297
Other Post-retirement Benefits	669		652		618		596		569		2,560
Expected benefit payments	$	23,724	$	23,451	$	23,134	$	22,834	$	22,358	$	103,857

Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates [Table Text Block]



	1% Increase		1% Decrease
Effect on total service and interest cost components for the year ended December 31, 2019	$	50	$	(40	)
Effect on post-retirement benefit obligation at December 31, 2019	1,359		(1,102		)

Schedule of Changes in Fair Value of Plan Assets [Table Text Block]

The fair values of the Company’s pension plan assets as of December 31, 2019 and 2018 utilizing the fair value hierarchy were as follows (in thousands):



	December 31, 2019								December 31, 2018
	Measured at Net Asset Value (1)		Level 1		Level 2		Total		Measured at Net Asset Value (1,2)		Level 1		Level 2		Total
U.S. Plans:
Cash Equivalents:
Money Market Funds	$	2,284	$	—	$	—	$	2,284	$	3,831	$	—	$	—	$	3,831
Mutual Funds:
Bond Funds	—		—		—		—		—		—		—		—
Large Cap Funds	—		—		—		—		—		—		—		—
International Funds	28,036		—		—		28,036		20,295		—		—		20,295
Small Cap Funds	—		—		—		—		—		—		—		—
Blended Funds	—		—		—		—		—		—		—		—
Mid Cap Funds	—		—		—		—		—		—		—		—
Comingled Pools:
Opportunistic	12,480		—		—		12,480		15,461		—		—		15,461
Investment Grade	62,134		—		—		62,134		51,340		—		—		51,340
Non-U.S. Equity	20,363		—		—		20,363		17,432		—		—		17,432
U.S. Equity	81,209		—		—		81,209		70,059		—		—		70,059
Global Low Volatility	1,396		—		—		1,396		5,400		—		—		5,400
Insurance Contracts	—		—		806		806		—		—		—		—
Foreign Plans:
Cash	—		42		—		42		—		22		—		22
Equity	10,742		—		—		10,742		8,623		—		—		8,623
Non-U.S. government and corporate bonds	15,504		—		—		15,504		13,569		—		—		13,569
Insurance Contracts	271		—		30		301		240		—		3,542		3,782
Other	—		—		—		—		—		—		368		368
Total Fair Value	$	234,419	$	42	$	836	$	235,297	$	206,250	$	22	$	3,910	$	210,182

(1) Certain investments that are measured at fair value using NAV have not been classified in the fair value hierarchy. These investments, consisting of common/collective trusts, are valued using the NAV provided by the Trustee. The NAV is based on the underlying investments held by the fund that are traded in an active market, less its liabilities. These investments are able to be redeemed in the near-term.
(2) $0.8 million of pension plan asset receivable was excluded from the fiscal year 2018 leveling table above as CIRCOR did not yet control the assets.
In fiscal year 2019, the Company reimbursed Colfax $2.2 million from plan assets related to 2018 pension benefits paid, expenses and lost investment return on those payments.