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Pensions and Other Post-Employment Benefits (Tables)
 12 Months Ended
Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]  
Obligation and funded status of the company's pension and other post-retirement benefit plans
The obligation and funded status of the Company’s pension and other post-employment benefit plans are shown below. The Pension Benefits column aggregates defined benefit pension plans in the U.S., Germany, and England, and the U.S. supplemental retirement plans. The Other Benefits column includes the domestic retiree medical and life insurance plan.
  
 
Pension Benefits
 
Other Benefits
(Thousands)
 
2014
 
2013
 
2014
 
2013
Change in benefit obligation
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
 
$
221,748

 
$
253,839

 
$
31,398

 
$
34,294

Service cost
 
7,963

 
9,724

 
138

 
305

Interest cost
 
10,339

 
9,936

 
675

 
1,243

Plan amendments
 
—

 
—

 
(14,034
)
 
—

Actuarial (gain) loss
 
43,476

 
(28,581
)
 
223

 
(2,396
)
Benefit payments from fund
 
(8,387
)
 
(22,893
)
 
—

 
—

Benefit payments directly by Company
 
(1,236
)
 
(136
)
 
(1,968
)
 
(2,271
)
Expenses paid from assets
 
(570
)
 
(613
)
 
—

 
—

Medicare Part D subsidy
 
—

 
—

 
108

 
223

Foreign currency exchange rate changes
 
(1,548
)
 
472

 
—

 
—

Benefit obligation at end of year
 
271,785

 
221,748

 
16,540

 
31,398

Change in plan assets
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
173,494

 
163,436

 
—

 
—

Actual return on plan assets
 
6,852

 
23,824

 
—

 
—

Employer contributions
 
16,145

 
9,615

 
—

 
—

Benefit payments from fund
 
(8,387
)
 
(22,893
)
 
—

 
—

Expenses paid from assets
 
(569
)
 
(613
)
 
—

 
—

Foreign currency exchange rate changes
 
(349
)
 
125

 
—

 
—

Fair value of plan assets at end of year
 
187,186

 
173,494

 
—

 
—

Funded status at end of year
 
$
(84,599
)
 
$
(48,254
)
 
$
(16,540
)
 
$
(31,398
)
Amounts recognized in the Consolidated
Balance Sheets consist of:
 
 
 
 
 
 
 
 
Other assets
 
$
1,703

 
$
1,321

 
$
—

 
$
—

Other liabilities and accrued items
 
(753
)
 
(1,138
)
 
(1,472
)
 
(2,663
)
Retirement and post-employment benefits
 
(85,549
)
 
(48,437
)
 
(15,068
)
 
(28,735
)
 
 
$
(84,599
)
 
$
(48,254
)
 
$
(16,540
)
 
$
(31,398
)
Amounts recognized in other comprehensive income (before tax) consist of:
 
 
 
 
 
 
 
 
Net actuarial loss
 
$
122,641

 
$
78,983

 
$
275

 
$
52

Net prior service (credit) cost
 
(1,300
)
 
(1,734
)
 
—

 
—

 
 
$
121,341

 
$
77,249

 
$
275

 
$
52

Amortizations expected to be recognized during next fiscal year (before tax):
 
 
 
 
 
 
 
 
Amortization of net loss
 
$
7,558

 
$
5,100

 
$
—

 
$
—

Amortization of prior service credit
 
(450
)
 
(434
)
 
—

 
—

 
 
$
7,108

 
$
4,666

 
$
—

 
$
—

Additional information
 
 
 
 
 
 
 
 
Accumulated benefit obligation for all defined benefit pension plans
 
$
260,536

 
$
213,585

 
$
—

 
$
—

For defined benefit pension plans with benefit obligations in excess of plan assets:
 

 
 
 
 
 
 
Aggregate benefit obligation
 
266,377

 
216,567

 
—

 
—

Aggregate fair value of plan assets
 
180,075

 
166,992

 
—

 
—

For defined benefit pension plans with accumulated benefit obligations in excess of plan assets:
 

 
 
 
 
 
 
Aggregate accumulated benefit obligation
 
255,128

 
208,404

 
—

 
—

Aggregate fair value of plan assets
 
180,075

 
166,992

 
—

 
—
Components of net periodic benefit cost and other amounts recognized in other comprehensive income
  
Pension Benefits
 
Other Benefits
(Thousands)
2014

2013

2012

2014

2013

2012
Change in other comprehensive income
 
 
 
 
 
 
 
 
 
 
 
OCI at beginning of year
$
77,249


$
124,955

 
$
104,056

 
$
52


$
2,587

 
$
1,180

Increase (decrease) in OCI:


 
 
 
 


 
 
 
Recognized during year — prior service cost (credit)
434


340

 
335

 
1,498


(115
)
 
(87
)
Recognized during year — net actuarial (losses) gains
(5,263
)

(7,912
)
 
(5,605
)
 
—


—

 
—

Occurring during year — prior service cost
—


—

 
117

 
(14,034
)

—

 
—

Occurring during year — net actuarial losses (gains)
49,037


(40,143
)
 
25,995

 
223


(2,397
)
 
1,494

Other adjustments
—


(3
)
 
—

 
—


(23
)
 
—

Foreign currency exchange rate changes
(116
)

12

 
57

 
—


—

 
—

OCI at end of year
$
121,341

 
$
77,249

 
$
124,955

 
$
(12,261
)
 
$
52

 
$
2,587

Components of net benefit cost and other amounts recognized in other comprehensive income (OCI)
  
 
Pension Benefits
 
Other Benefits
(Thousands)
 
2014

2013

2012

2014

2013

2012
Net benefit cost
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
7,963


$
9,724

 
$
7,915

 
$
138


$
305

 
$
285

Interest cost
 
10,339


9,936

 
9,912

 
675


1,243

 
1,439

Expected return on plan assets
 
(12,419
)

(12,261
)
 
(11,934
)
 
—


—

 
—

Amortization of prior service cost (benefit)
 
(434
)

(340
)
 
(335
)
 
(1,498
)

115

 
87

Recognized net actuarial loss
 
5,263


7,912

 
5,605

 
—


—

 
—

Net periodic cost
 
10,712

 
14,971

 
11,163

 
(685
)
 
1,663

 
1,811

Settlements
 
7

 
—

 
—

 
—

 
—

 
—

Total net benefit cost
 
$
10,719

 
$
14,971

 
$
11,163

 
$
(685
)
 
$
1,663

 
$
1,811
Summary of key valuation assumptions
Summary of key valuation assumptions
 
 
Pension Benefits
 
Other Benefits
 
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Weighted-average assumptions used to determine benefit obligations at fiscal year end
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
4.00
%

4.80
%
 
3.99
%
 
3.50
%

4.50
%
 
3.75
%
Rate of compensation increase
 
3.96
%

4.43
%
 
4.44
%
 
4.00
%

4.50
%
 
4.50
%
Weighted-average assumptions used to determine net cost for the fiscal year
 


 
 
 
 


 
 
 
Discount rate
 
4.79
%

3.97
%
 
4.81
%
 
4.13
%

3.75
%
 
4.50
%
Expected long-term return on plan assets
 
7.15
%

7.44
%
 
7.65
%
 
N/A


N/A

 
N/A

Rate of compensation increase
 
4.42
%

4.42
%
 
4.43
%
 
4.50
%

4.50
%
 
4.50
%
Assumed health care trend rates
Assumed health care trend rates at fiscal year end
 
2014
 
2013
Health care trend rate assumed for next year
 
7.00%
 
7.50%
Rate that the trend rate gradually declines to (ultimate trend rate)
 
5.00%
 
5.00%
Year that the rate reaches the ultimate trend rate
 
2019
 
2019
Effects of A one-percentage-point change in assumed health care cost trend rates
A one-percentage-point change in assumed health care cost trend rates would have the following effects:
 
 
 
1-Percentage-
Point Increase
 
1-Percentage-
Point Decrease
(Thousands)
 
2014

2013
 
2014
 
2013
Effect on total of service and interest cost components
 
$
15

 
$
30

 
$
(14
)
 
$
(26
)
Effect on post-employment benefit obligation
 
427

 
602

 
(392
)
 
(567
)
Summary of fair values of the Company's defined benefit pension plan assets
The following tables present the fair values of the Company’s defined benefit pension plan assets as of December 31, 2014 and 2013 by asset category. Refer to Note H to the Consolidated Financial Statements for definitions of fair value hierarchy.
 
 
December 31, 2014
  
 
Total
 
Level 1
 
Level 2
 
Level 3
(Thousands)
 
 
 
 
 
 
 
 
Cash
 
$
6,173

 
$
6,173


$
—


$
—

Equity securities:
 
 
 





U.S. (a)
 
60,028

 
49,625


10,403


—

International (b)
 
28,372

 
25,361


3,011


—

Emerging markets (c)
 
13,498

 
13,300


198


—

Fixed-income securities:
 
 
 





Intermediate-term bonds (d)
 
18,635

 
14,755


3,880


—

Short-term bonds (e)
 
3,631

 
—


3,631


—

Global bonds (f)
 
30,030

 
26,795


3,235


—

Other types of investments:
 
 
 





Real estate fund (g)
 
6,513

 
6,433


80


—

Alternative strategies (h)
 
8,477

 
8,382

 
95

 
—

Pooled investment fund (i)
 
6,613

 
—

 
—

 
6,613

Multi-strategy hedge funds (j)
 
4,962

 
—


—


4,962

Private equity funds
 
254

 
—


—


254

Total
 
$
187,186

 
$
150,824

 
$
24,533

 
$
11,829

 
 
 
 
 
 
 
 
 
 
 
December 31, 2013
  
 
Total
 
Level 1
 
Level 2
 
Level 3
(Thousands)
 
 
 
 
 
 
 
 
Cash
 
$
6,568

 
$
6,568

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
 
U.S. (a)
 
63,321

 
54,095

 
9,226

 
—

International (b)
 
27,403

 
23,911

 
3,492

 
—

Emerging markets (c)
 
14,165

 
13,908

 
257

 
—

Fixed income securities:
 
 
 
 
 
 
 
 
Intermediate-term bonds (d)
 
21,874

 
14,482

 
7,392

 
—

Short-term bonds (e)
 
11,608

 
11,608

 
—

 
—

Global bonds (f)
 
12,728

 
10,879

 
1,849

 
—

Other types of investments:
 
 
 
 
 
 
 
 
Real estate fund (g)
 
9,943

 
9,882

 
61

 
—

Multi-strategy hedge funds (j)
 
5,467

 
—

 
—

 
5,467

Private equity funds
 
417

 
—

 
—

 
417

Total
 
$
173,494

 
$
145,333

 
$
22,277

 
$
5,884


(a)
Mutual funds that invest in various sectors of the U.S. market.
(b)
Mutual funds that invest in non-U.S. companies primarily in developed countries that are generally considered to be value stocks.
(c)
Mutual funds that invest in non-U.S. companies in emerging market countries.
(d)
Includes a mutual fund that employs a value-oriented approach to fixed income investment management and a mutual fund that invests primarily in investment-grade debt securities.
(e)
Includes a mutual fund that seeks a market rate of return for a fixed-income portfolio with low relative volatility of returns, investing generally in U.S. and foreign debt securities maturing in five years or less.
(f)
Mutual funds that invest in domestic and foreign sovereign securities, fixed income securities, mortgage-backed and asset-backed bonds, convertible bonds, high-yield bonds, and emerging market bonds.
(g)
Includes a mutual fund that typically invests at least 80% of its assets in equity and debt securities of companies in the real estate industry or related industries or in companies which own significant real estate assets at the time of investment.
(h)
Includes a mutual fund that tactically allocates assets to global equity, fixed income, and alternative strategies.
(i)
Includes a fund that invests in a broad portfolio of hedge funds.
(j)
Includes a hedge fund that employs multiple strategies to multiple asset classes with low correlations.
Summary of fair value of company's defined benefit pension plan Level 3 assets
The following table summarizes changes in the fair value of the Company’s defined benefit pension plan Level 3 assets measured using significant unobservable inputs during 2014 and 2013:
(Thousands)
 
Total
 
Pooled Investment Fund
 
Multi-strategy Hedge Funds
 
Private Equity Funds
Balance as of January 1, 2013
 
$
4,836

 
$
—

 
$
4,191

 
$
645

Actual return:
 
 
 
 
 
 
 
 
On assets still held at reporting date
 
1,183

 
—

 
1,276

 
(93
)
On assets sold during the period
 
229

 
—

 
—

 
229

Purchases, sales, and settlements
 
(364
)
 
—

 
—

 
(364
)
Balance as of December 31, 2013
 
$
5,884

 
$
—

 
$
5,467

 
$
417

Actual return:
 
 
 
 
 
 
 
 
On assets still held at reporting date
 
(406
)
 
113


(505
)

(14
)
On assets sold during the period
 
(20
)
 
—


—


(20
)
Purchases, sales, and settlements
 
6,371

 
6,500


—


(129
)
Balance as of December 31, 2014
 
$
11,829

 
$
6,613

 
$
4,962

 
$
254
Estimated Future Benefits payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
 
 
Other Benefits
  
 
Pension Benefits
 
Gross Benefit
Payment
 
Net of
Medicare
Part D
Subsidy
(Thousands)
 
 
 
 
 
 
2015
 
$
9,672

 
$
1,472

 
$
1,435

2016
 
9,894

 
1,483

 
1,447

2017
 
12,320

 
1,566

 
1,533

2018
 
11,202

 
1,597

 
1,565

2019
 
12,581

 
1,541

 
1,512

2020 through 2024
 
72,765

 
6,442

 
6,334