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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2015
Employee Benefit Plans [Abstract]  
Employee Benefit Plans
15.  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)
  
2015
    
2014
    
2013
  
Company contributions
  
$
5,949
    
$
16,484
    
$
22,536
  


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


   
Years Ended December 31,
  
(Dollars in thousands)
  
2015
    
2014
    
2013
  
Pension expense
  
$
22,682
    
$
18,543
    
$
19,348
  


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)
  
2015
    
2014
  
Change in projected benefit obligation:
        
Benefit obligation at beginning of year
  
$
270,065
    
$
214,059
  
Service cost
    
12,511
      
10,015
  
Interest cost
    
10,759
      
10,474
  
Actuarial (gain)/loss
    
(18,595
)
    
55,107
  
Benefits paid
    
(20,718
)
    
(19,588
)
Projected benefit obligation at end of year
    
254,022
      
270,065
  
                 
Change in plan assets:
                
Fair value of plan assets at beginning of year
    
157,090
      
152,446
  
Actual return on plan assets
    
(7,234
)
    
7,747
  
Actual contributions during the year
    
5,949
      
16,484
  
Benefits paid
    
(20,718
)
    
(19,588
)
Fair value of plan assets at end of year
    
135,087
      
157,090
  
                 
Funded status at end of year
  
$
(118,936
)
  
$
(112,976
)
                 
(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)
  
2015
    
2014
  
Other assets (due beyond one year)
  
$
-
    
$
-
  
Other liabilities (due within one year)
    
(1,869
)
    
(5,469
)
Other liabilities (due beyond one year)
    
(117,067
)
    
(107,507
)
Net amount recognized in the consolidated balance sheets
  
$
(118,936
)
  
$
(112,976
)

 

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)
  
2015
    
2014
  
Prior service cost
  
$
-
    
$
(21
)
Accumulated income (loss)
    
(91,920
)
    
(102,671
)
Accumulated other comprehensive income (loss)
  
$
(91,920
)
  
$
(102,692
)


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


   
Years Ended December 31,
  
(Dollars in thousands)
  
2015
    
2014
  
Other comprehensive income (loss) at December 31, prior year
  
$
(102,692
)
  
$
(53,387
)
Net gain (loss) arising during period
    
(259
)
    
(58,647
)
Recognition of amortizations in net periodic benefit cost:
                
Prior service cost
    
21
      
49
  
Actuarial loss
    
11,011
      
9,294
  
Other comprehensive income (loss) at December 31, current year
  
$
(91,920
)
  
$
(102,692
)
                 
(Some amounts may not reconcile due to rounding.)
                


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


   
Years Ended December 31,
  
(Dollars in thousands)
  
2015
    
2014
    
2013
  
Service cost
  
$
12,511
    
$
10,015
    
$
11,182
  
Interest cost
    
10,759
      
10,474
      
8,511
  
Expected return on assets
    
(11,620
)
    
(11,288
)
    
(8,495
)
Amortization of actuarial loss from earlier periods
    
9,243
      
4,341
      
8,101
  
Amortization of unrecognized prior service cost
    
21
      
49
      
49
  
Settlement
    
1,768
      
4,953
      
-
  
Net periodic benefit cost
  
$
22,682
    
$
18,543
    
$
19,348
  
                         
Other changes recognized in other comprehensive income (loss):
                        
Other comprehensive income (loss) attributable to change from prior year
    
(10,773
)
    
49,305
          
                         
Total recognized in net periodic benefit cost and other
                        
comprehensive income (loss)
  
$
11,909
    
$
67,847
          
                         
(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, $8,055 thousand and $0 thousand, respectively.

The weighted average discount rates used to determine net periodic benefit cost for 2015, 2014 and 2013 were 4.00%, 5.00% and 4.00%, respectively.  The rate of compensation increase used to determine the net periodic benefit cost for 2015, 2014 and 2013 was 4.0%.  The expected long-term rate of return on plan assets for 2015, 2014 and 2013 was 7.50% 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 2015, 2014 and 2013 were 4.38%, 4.00% and 5.00%, respectively.

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


   
At December 31,
  
(Dollars in thousands)
  
2015
    
2014
  
Qualified Plan
  
$
188,702
    
$
200,205
  
Non-qualified Plan
    
17,756
      
19,167
  
Total
  
$
206,458
    
$
219,371
  
                 
(Some amounts may not reconcile due to rounding.)
                


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)
  
2015
    
2014
  
Qualified Plan
        
Projected benefit obligation
  
$
229,719
    
$
243,525
  
Fair value of plan assets
    
135,087
      
157,090
  
Non-qualified Plan
                
Projected benefit obligation
  
$
24,303
    
$
26,540
  
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)
  
2015
    
2014
  
Qualified Plan
        
Accumulated benefit obligation
  
$
188,702
    
$
200,205
  
Fair value of plan assets
    
135,087
      
157,090
  
Non-qualified Plan
                
Accumulated benefit obligation
  
$
17,756
    
$
19,167
  
Fair value of plan assets
    
-
      
-
  


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


(Dollars in thousands)
    
2016
  
$
6,709
  
2017
    
7,779
  
2018
    
9,607
  
2019
    
12,139
  
2020
    
10,660
  
Next 5 years
    
67,416
  


Plan assets consist of shares in investment trusts with 80%, 17% and 3% 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, 2015
    
(Level 1)
    
(Level 2)
    
(Level 3)
  
Assets:
                
Cash
  
$
-
    
$
-
    
$
-
    
$
-
  
Short-term investments, which approximates fair value (a)
    
4,034
      
4,034
      
-
      
-
  
Mutual funds, fair value
                                
Fixed income (b)
    
22,537
      
22,537
      
-
      
-
  
Equities (c)
    
86,505
      
86,505
      
-
      
-
  
Multi-strategy equity fund, fair value (d)
    
10,673
      
-
      
-
      
10,673
  
Private equity limited partnerships (e)
    
11,338
      
-
      
-
      
11,338
  
Total
  
$
135,087
    
$
113,076
    
$
-
    
$
22,011
  
                                 
(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, 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.
 

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)
  
2015
    
2014
  
Assets:
        
Balance, beginning of period
  
$
22,053
    
$
19,921
  
Actual return on plan assets:
                
Realized gains (losses) relating to assets sold during the period
    
84
      
75
  
Unrealized gains (losses) relating to assets still held at the reporting date
    
601
      
331
  
Purchases and capital contributions
    
1,719
      
3,390
  
Investment income earned on assets
    
-
      
-
  
Sales and capital distributions
    
(2,446
)
    
(1,664
)
Transfers in and/or (out) of Level 3
    
-
      
-
  
Balance, end of period
  
$
22,011
    
$
22,053
  
                 
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
  
$
517
    
$
256
  
                 
(Some amounts may not reconcile due to rounding.)
                
 
The Company does not expect to make any contributions to the qualified plan in 2016.

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)
  
2015
    
2014
    
2013
  
Incurred expenses
  
$
5,468
    
$
4,676
    
$
3,903
  


In addition, the Company maintains several defined contribution pension plans covering non-U.S. employees.  Each non-U.S. office (Brazil, Canada, London, Belgium, Singapore, Ireland and Bermuda) 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 5.0% to 17.7%.  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)
  
2015
    
2014
    
2013
  
Incurred expenses
  
$
1,423
    
$
1,387
    
$
1,195
  

 

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 7.0% in 2015 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 6.2% in 2015 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
  
$
706
    
$
(537
)
b.  Effect on accumulated post-retirement benefit obligation
    
6,504
      
(5,064
)


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


   
Years Ended December 31,
  
(Dollars in thousands)
  
2015
    
2014
    
2013
  
Post-retirement benefit expenses
  
$
3,280
    
$
3,196
    
$
3,801
  


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


   
At December 31,
  
(Dollars in thousands)
  
2015
    
2014
  
Change in projected benefit obligation:
        
Benefit obligation at beginning of year
  
$
36,506
    
$
27,594
  
Service cost
    
1,794
      
1,619
  
Interest cost
    
1,187
      
1,320
  
Actuarial (gain)/loss
    
(7,231
)
    
6,475
  
Benefits paid
    
(568
)
    
(502
)
Benefit obligation at end of year
    
31,687
      
36,506
  
                 
Change in plan assets:
                
Fair value of plan assets at beginning of year
    
-
      
-
  
Employer contributions
    
568
      
502
  
Benefits paid
    
(568
)
    
(502
)
Fair value of plan assets at end of year
    
-
      
-
  
                 
Funded status at end of year
  
$
(31,687
)
  
$
(36,506
)


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


   
At December 31,
  
(Dollars in thousands)
  
2015
    
2014
  
Other liabilities (due within one year)
  
$
(654
)
  
$
(639
)
Other liabilities (due beyond one year)
    
(31,033
)
    
(35,867
)
Net amount recognized in the consolidated balance sheets
  
$
(31,687
)
  
$
(36,506
)
 

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)
  
2015
    
2014
  
Accumulated income (loss)
  
$
(5,139
)
  
$
(12,670
)
Accumulated other comprehensive income (loss)
  
$
(5,139
)
  
$
(12,670
)


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


   
Years Ended December 31,
  
(Dollars in thousands)
  
2015
    
2014
  
Other comprehensive income (loss) at December 31, prior year
  
$
(12,670
)
  
$
(6,452
)
Net gain (loss) arising during period
    
7,231
      
(6,475
)
Recognition of amortizations in net periodic benefit cost:
                
Actuarial loss (gain)
    
300
      
257
  
Other comprehensive income (loss) at December 31, current year
  
$
(5,139
)
  
$
(12,670
)


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


   
Years Ended December 31,   
(Dollars in thousands)
  
2015
    
2014
    
2013
  
Service cost
  
$
1,794
    
$
1,619
    
$
1,899
  
Interest cost
    
1,187
      
1,320
      
1,164
  
Net loss recognition
    
300
      
257
      
739
  
Net periodic cost
  
$
3,280
    
$
3,196
    
$
3,801
  
                         
Other changes recognized in other comprehensive income (loss):
                        
Other comprehensive gain (loss) attributable to change from prior year
    
(7,531
)
    
6,218
          
                         
Total recognized in net periodic benefit cost and
                        
other comprehensive income (loss)
  
$
(4,251
)
  
$
9,414
          
                         
(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, $193 thousand and $0 thousand, respectively.

The weighted average discount rates used to determine net periodic benefit cost for 2015, 2014 and 2013 were 4.00%, 5.00% and 4.00%, respectively.

The weighted average discount rates used to determine the actuarial present value of the projected benefit obligation at year end 2015, 2014 and 2013 were 4.38%, 4.00% and 5.00%, respectively.

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


2016
  
$
654
  
2017
    
717
  
2018
    
844
  
2019
    
972
  
2020
    
1,141
  
Next 5 years
    
8,157