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Pensions and Other Post-Employment Benefits (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [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)
 
2017
 
2016
 
2017
 
2016
Change in benefit obligation
 
 
 
 
 
 
 
 
Benefit obligation at beginning of year
 
$
276,801

 
$
259,957

 
$
14,334

 
$
15,200

Acquisition
 
7,645

 
—

 
—

 
—

Service cost
 
8,760

 
8,060

 
91

 
105

Interest cost
 
9,949

 
10,820

 
398

 
562

Plan amendments
 
3,804

 
—

 
—

 
—

Actuarial loss (gain)
 
18,549

 
11,833

 
444

 
(191
)
Benefit payments from fund
 
(13,072
)
 
(10,509
)
 
—

 
—

Benefit payments directly by Company
 
(387
)
 
(1,116
)
 
(1,107
)
 
(1,362
)
Expenses paid from assets
 
(1,133
)
 
(611
)
 
—

 
—

Foreign currency exchange rate changes
 
2,812

 
(1,633
)
 
6

 
20

Benefit obligation at end of year
 
313,728

 
276,801

 
14,166

 
14,334

Change in plan assets
 
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
 
199,992

 
184,750

 
—

 
—

Acquisition
 
2,353

 
—

 
—

 
—

Actual return on plan assets
 
29,428

 
11,575

 
—

 
—

Employer contributions
 
16,338

 
16,136

 
—

 
—

Employee contributions
 
162

 
—

 
—

 
—

Benefit payments from fund
 
(13,072
)
 
(10,509
)
 
—

 
—

Expenses paid from assets
 
(1,133
)
 
(611
)
 
—

 
—

Foreign currency exchange rate changes
 
908

 
(1,349
)
 
—

 
—

Fair value of plan assets at end of year
 
234,976

 
199,992

 
—

 
—

Funded status at end of year
 
$
(78,752
)
 
$
(76,809
)
 
$
(14,166
)
 
$
(14,334
)
Amounts recognized in the Consolidated
Balance Sheets consist of:
 
 
 
 
 
 
 
 
Other assets
 
$
1,797

 
$
1,148

 
$
—

 
$
—

Other liabilities and accrued items
 
(2,490
)
 
(2,538
)
 
(1,412
)
 
(1,392
)
Retirement and post-employment benefits
 
(78,059
)
 
(75,419
)
 
(12,754
)
 
(12,942
)
 
 
$
(78,752
)
 
$
(76,809
)
 
$
(14,166
)
 
$
(14,334
)
Amounts recognized in other comprehensive income (before tax) consist of:
 
 
 
 
 
 
 
 
Net actuarial loss (gain)
 
$
119,114

 
$
121,719

 
$
24

 
$
(420
)
Net prior service (credit) cost
 
3,688

 
(390
)
 
(8,044
)
 
(9,541
)
 
 
$
122,802

 
$
121,329

 
$
(8,020
)
 
$
(9,961
)
Amortizations expected to be recognized during next fiscal year (before tax):
 
 
 
 
 
 
 
 
Amortization of net loss
 
$
8,077

 
$
6,591

 
$
—

 
$
—

Amortization of prior service credit
 
(123
)
 
(485
)
 
(1,497
)
 
(1,497
)
 
 
$
7,954

 
$
6,106

 
$
(1,497
)
 
$
(1,497
)
Additional information
 
 
 
 
 
 
 
 
Accumulated benefit obligation for all defined benefit pension plans
 
$
302,942

 
$
265,159

 
$
—

 
$
—

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

 
 
 
 
 
 
Aggregate benefit obligation
 
304,814

 
271,199

 
—

 
—

Aggregate fair value of plan assets
 
227,115

 
193,242

 
—

 
—

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

 
 
 
 
 
 
Aggregate accumulated benefit obligation
 
296,878

 
259,982

 
—

 
—

Aggregate fair value of plan assets
 
227,115

 
193,242

 
—

 
—
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block]
Components of net benefit cost and other amounts recognized in other comprehensive income (OCI)
  
 
Pension Benefits
 
Other Benefits
(Thousands)
 
2017

2016

2015

2017

2016

2015
Net benefit cost
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
8,760


$
8,060

 
$
9,195

 
$
91


$
105

 
$
115

Interest cost
 
9,949


10,820

 
10,446

 
398


562

 
554

Expected return on plan assets
 
(14,933
)

(14,241
)
 
(13,611
)
 
—


—

 
—

Amortization of prior service cost (benefit)
 
(274
)

(460
)
 
(450
)
 
(1,497
)

(1,497
)
 
(1,497
)
Recognized net actuarial loss
 
6,636


6,005

 
7,537

 
—


—

 
—

Net periodic cost
 
10,138

 
10,184

 
13,117

 
(1,008
)
 
(830
)
 
(828
)
Settlements
 
—

 
120

 
—

 
—

 
—

 
—

Total net benefit cost
 
$
10,138

 
$
10,304

 
$
13,117

 
$
(1,008
)
 
$
(830
)
 
$
(828
)
  
Pension Benefits
 
Other Benefits
(Thousands)
2017

2016

2015

2017

2016

2015
Change in other comprehensive income
 
 
 
 
 
 
 
 
 
 
 
OCI at beginning of year
$
121,329


$
112,518

 
$
121,341

 
$
(9,961
)

$
(11,267
)
 
$
(12,261
)
Increase (decrease) in OCI:


 
 
 
 


 
 
 
Recognized during year — prior service cost (credit)
274


460

 
450

 
1,497


1,497

 
1,497

Recognized during year — net actuarial (losses) gains
(6,636
)

(6,005
)
 
(7,537
)
 
—


—

 
—

Occurring during year — prior service cost
3,804


—

 
—

 
—


—

 
—

Occurring during year — net actuarial losses (gains)
4,055


14,279

 
(1,697
)
 
444


(191
)
 
(503
)
Other adjustments
—


120

 
—

 
—


—

 
—

Foreign currency exchange rate changes
(24
)

(43
)
 
(39
)
 
—


—

 
—

OCI at end of year
$
122,802

 
$
121,329

 
$
112,518

 
$
(8,020
)
 
$
(9,961
)
 
$
(11,267
)
Summary of key valuation assumptions
Summary of key valuation assumptions
In determining the projected benefit obligation and the net benefit cost, as of a December 31 measurement date, the Company used the following weighted-average assumptions:
 
 
Pension Benefits
 
Other Benefits
 
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Weighted-average assumptions used to determine benefit obligations at fiscal year end
 
 
 
 
 
 
 
 
 
 
 
 
Discount rate
 
3.53
%

4.02
%
 
4.27
%
 
3.43
%

3.68
%
 
3.88
%
Rate of compensation increase
 
3.93
%

4.04
%
 
4.05
%
 
4.00
%

4.00
%
 
4.00
%
Weighted-average assumptions used to determine net cost for the fiscal year
 


 
 
 
 


 
 
 
Discount rate
 
3.93
%

4.22
%
 
4.00
%
 
3.68
%

3.88
%
 
3.50
%
Expected long-term return on plan assets
 
6.89
%

6.90
%
 
7.15
%
 
N/A


N/A

 
N/A

Rate of compensation increase
 
3.91
%

3.93
%
 
3.95
%
 
4.00
%

4.00
%
 
4.00
%
Assumed health care trend rates
Assumed health care trend rates at fiscal year end
 
2017
 
2016
Health care trend rate assumed for next year
 
6.75%
 
7.00%
Rate that the trend rate gradually declines to (ultimate trend rate)
 
5.00%
 
5.00%
Year that the rate reaches the ultimate trend rate
 
2025
 
2025
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)
 
2017

2016
 
2017
 
2016
Effect on total of service and interest cost components
 
$
8

 
$
13

 
$
(8
)
 
$
(12
)
Effect on post-employment benefit obligation
 
212

 
259

 
(198
)
 
(241
)
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, 2017 and 2016 by asset category. The Company has some investments that are valued using net asset value (NAV) as the practical expedient and have not been classified in the fair value hierarchy. Refer to Note Q of the Consolidated Financial Statements for definitions of the fair value hierarchy.
 
 
December 31, 2017
(Thousands)
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash
 
$
10,604

 
$
10,604


$
—


$
—

Equity securities:
 
 
 





U.S. (a)
 
54,376

 
53,659


717


—

International (b)
 
39,010

 
35,016


3,994


—

Emerging markets (c)
 
15,843

 
15,586


257


—

Fixed-income securities:
 
 
 





Intermediate-term bonds (d)
 
34,187

 
25,653


8,534


—

Short-term bonds (e)
 
612

 
—


612


—

Global bonds (f)
 
7,492

 
4,986


2,506


—

Other types of investments:
 
 
 





Real estate fund (g)
 
6,617

 
6,284


333


—

Alternative strategies (h)
 
9,948

 
9,893

 
55

 
—

Accrued interest and dividends
 
114

 
114

 
—

 
—

Total
 
178,803

 
161,795

 
17,008

 
—

Investments measured at NAV:
 
 
 
 
 
 
 
 
Pooled investment fund (i)
 
21,378

 


 
 
 


Multi-strategy hedge funds (j)
 
3,970

 








Common/Collective trusts (k)
 
8,942

 
 
 
 
 
 
Intermediate-term bonds (d)
 
21,771

 
 
 
 
 
 
Private equity funds
 
112

 








Total assets at fair value
 
$
234,976

 


 


 


 
 
 
 
 
 
 
 
 
 
 
December 31, 2016
(Thousands)
 
Total
 
Level 1
 
Level 2
 
Level 3
Cash
 
$
10,124

 
$
10,124

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
 
U.S. (a)
 
53,983

 
53,358

 
625

 
—

International (b)
 
30,732

 
27,304

 
3,428

 
—

Emerging markets (c)
 
11,792

 
11,562

 
230

 
—

Fixed-income securities:
 
 
 
 
 
 
 
 
Intermediate-term bonds (d)
 
48,138

 
29,429

 
18,709

 
—

Short-term bonds (e)
 
3,150

 
—

 
3,150

 
—

Global bonds (f)
 
2,121

 
—

 
2,121

 
—

Other types of investments:
 
 
 
 
 
 
 
 
Real estate fund (g)
 
5,929

 
5,639

 
290

 
—

Alternative strategies (h)
 
9,036

 
8,981

 
55

 
—

Accrued interest and dividends
 
107

 
107

 
—

 
—

Total
 
175,112

 
146,504

 
28,608

 
—

Investments measured at NAV:
 
 
 
 
 
 
 
 
Pooled investment fund (i)
 
20,418

 
 
 
 
 


Multi-strategy hedge funds (j)
 
4,320

 
 
 
 
 


Private equity funds
 
142

 
 
 
 
 


Total assets at fair value
 
$
199,992

 


 


 




(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. Capital may be withdrawn from the multi-strategy hedge fund partnership on a monthly basis with a ten-day notice period.
(k)
Common/collective trust is valued based on the NAV per unit of the funds. The common/collective trust’s investment objective is to invest in fixed income and equity securities to provide income and/or total investment return through investments in U.S. and non-U.S. securities. The common/collective trust requires that the plan provide a 30-day notice to redeem any number of units from the trust.
Estimated Future Benefits payments
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
 
 
Other Benefits
(Thousands)
 
Pension Benefits
 
Gross Benefit
Payment
 
Net of
Medicare
Part D
Subsidy
2018
 
$
13,820

 
$
1,412

 
$
1,390

2019
 
12,827

 
1,478

 
1,458

2020
 
13,048

 
1,507

 
1,489

2021
 
13,681

 
1,426

 
1,410

2022
 
15,156

 
1,257

 
1,244

2023 through 2027
 
83,342

 
4,953

 
4,909