Pensions, Other Post Retirement and Post Employment Benefits

Pension Plans

The Company accounts for its pensions, other post-retirement and post-employment benefit plans in accordance with ASC Topic 715, Compensation—Retirement Benefits (“Topic 715”). The Company has defined benefit pension plans covering substantially all of its U.S. and Canadian employees and employees of certain subsidiaries in other countries. Benefits are generally based on the employee’s years of service and compensation. These plans are funded in conformity with the funding requirements of applicable government regulations.

The Company does not fund certain plans, as funding is not required. Approximately $51,200 of the total underfunded status of $80,685 and $51,500 of the total underfunded status of $67,551 relate to these unfunded pension plans as of December 31, 2014 and 2013, respectively. The Company plans to continue to fund its U.S. defined benefit plans to comply with the Pension Protection Act of 2006. In addition, the Company also intends to fund its UK and Canadian defined benefit plans in accordance with local regulations. Additional discretionary contributions are made when deemed appropriate to meet the long-term obligations of the plans.

In accordance with the provisions of Topic 715, the measurement date for defined benefit plans is December 31.

Postemployment Obligations

The Company has postemployment plans in various countries and accounts for these plans in accordance with Topic 715. The Company’s postemployment obligations consist primarily of payments to be made to employees upon termination of employment, as defined, and are accrued according to local statutory laws in the respective countries. The Company’s obligation for postemployment benefits amounted to $2,519 and $2,458 as of December 31, 2014 and 2013, respectively.

Benefit Obligations and Plan Assets

A summary of the changes in benefit obligations and plan assets as of December 31, 2014 and 2013 is presented below.



	Defined Benefit Plans
	2014			2013
Change in benefit obligation
Benefit obligation at beginning of year	$	161,101		$	168,736
Service cost	3,532			3,633
Interest cost	6,483			6,221
Plan participants’ contributions	101			108
Actuarial loss (gain)	27,965			(9,534		)
Currency translation impact	(10,583		)	272
Administrative expenses paid	(511		)	(665		)
Settlement/curtailment	(694		)	(716		)
Benefits paid	(9,229		)	(6,954		)
Benefit obligation at end of year	178,165			161,101
Change in plan assets
Fair value of plan assets at beginning of year	93,550			84,212
Actual return on plan assets	10,493			10,288
Employer contributions	8,168			8,076
Plan participants’ contributions	101			108
Settlement/curtailment	(694		)	(716		)
Administrative expenses paid	(511		)	(665		)
Currency translation impact	(4,398		)	(799		)
Benefits paid	(9,229		)	(6,954		)
Fair value of plan assets at end of year	97,480			93,550
Funded status (1)	$	(80,685	)	$	(67,551	)


(1)	In accordance with Topic 715, $3,568 and $3,803 of this amount is recorded in accrued expenses as of December 31, 2014 and 2013, respectively.

All of the Company’s pension plans that comprise the pension obligation amounts above have a projected benefit obligation equal to or in excess of plan assets as of the years ended December 31, 2014 and 2013. The accumulated benefit obligation was $167,679 and $152,988 as of the years ended December 31, 2014 and 2013, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows:



	December 31,
	2014		2013
Projected benefit obligation	$	178,165	$	135,102
Accumulated benefit obligation	$	167,679	$	130,110
Fair value of plan assets	$	97,479	$	69,322

Components of Net Periodic Benefit Cost



	Defined Benefit Plan
	2014			2013			2012
Service cost	$	3,532		$	3,633		$	3,867
Interest cost	6,483			6,221			6,708
Expected return on plan assets	(6,156		)	(5,555		)	(4,986		)
Amortization of prior service cost	—			11			13
Amortization of net loss	1,124			2,323			2,230
Net periodic benefit cost	$	4,983		$	6,633		$	7,832

The total unrecognized net loss recorded in Other Comprehensive Income at December 31, 2014 is $54,196. For defined benefit plans, the estimated net loss and prior service cost to be amortized from accumulated other comprehensive loss during 2015 is expected to be $2,668 and $0, respectively.



Additional Information	Defined Benefit Plans
	2014		2013
Change in funded status included in accumulated other comprehensive loss, net of tax	$	17,135	$	14,821

Assumptions

Weighted-average assumptions used to determine benefit obligations at December 31 are as follows:



	Defined Benefit Plans
	2014		2013
Discount rate	3.40	%	4.25	%
Rate of compensation increase	3.64	%	3.75	%

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31 are as follows:



	Defined Benefit Plans
	2014		2013
Discount rate	4.25	%	3.85	%
Expected long-term return on plan assets	6.63	%	6.71	%
Rate of compensation increase	3.75	%	3.56	%

The expected long-term return on plan assets is calculated based on a building-block approach, whereby the components are weighted based on the long-term allocation of pension plan assets.

Plan Assets

The percentage of fair value of total plan assets for funded plans are invested as follows:



	Plan Assets at December 31,
Asset Category	2014		2013
Marketable equities	56	%	60	%
Fixed income securities	44	%	40	%
Total	100	%	100	%

The Company’s plan assets are invested in the U.S., the United Kingdom (“UK”) and Canada. Plan asset investments are accounted for at cost on the trade date and are reported at fair value. Canadian plan assets totaling $25,292 and UK plan assets totaling $32,008 and US plan assets totaling $39,708 are classified as Level 2 within the fair value heirarchy. At December 31, 2014 and 2013 the Company had certain US plan assets totaling $236 and $3,027, respectively classified as Level 3 investments. During 2014, approximately $2,800 of the Level 3 assets were sold and reinvested in Level 2 investments. Level 2 valuations are based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. The Company measures fair value of its Level 3 investments through the use of a net asset value per share.

In general, plan assets are exposed to various risks, such as interest rate risk, credit risk, and overall market volatility. Due to the level of risk associated with certain investments, it is reasonably possible that changes in the values of investments will occur in the near term and that such changes could materially affect the amounts reported in the plan assets. The investment objective of the plans is to maximize the return on plan assets over a long time horizon, while meeting the plan obligations. Investment risk is substantially reduced by diversification of investments within particular asset classes. The expected future rate of return on plan assets is based on historic performance of bonds and equities and the higher returns expected by equity-based capital relative to debt capital. The agreements with the fund managers include a number of restrictions which are designed to ensure that only suitable investments are held. Generally, investment performance is provided to and reviewed by the Company on a quarterly basis. If any changes take place in the legal, regulatory or tax environment which impact the investment of the portfolios or the investment returns, the fund manager is expected to notify the Company immediately and to advise on their anticipated impact.

Details relating to the Company’s plan assets are as follows:

U.S. Plan Assets: Approximately 73% of the Company’s U.S. plan assets are invested in the U.S., of which 48% are invested in marketable equity securities and 52% are invested in fixed income securities managed by the fund manager. This allocation is in accordance with the strategic allocation adopted by the Company’s pension committee comprising of approximately 55% equity investment and 45% bond investment.

U.K. Plan Assets: Approximately 81% of the Company’s U.K. plan assets are invested in the U.K., of which 36% are invested in marketable equity securities and 67% are invested in fixed income securities managed by the fund manager. The trustees of the U.K. pension plan have adopted a strategic allocation comprising of 50% equity investment and 50% bond investment.

Canadian Plan Assets: Approximately 59% of the Company’s Canadian plan assets are invested in Canada, of which 55% are invested in marketable equity securities, 43% are invested in fixed income securities and 2% are cash managed by the fund manager. The Company’s pension committee has adopted a strategic allocation comprising of approximately 66% equity investment and 32% bond investment and 2% cash. As of December 31, 2014, assets were invested 85% in the fund manager’s Balanced Pension Trust Series O and 15% in the U.S. Pooled Pension Fund Series O. Investments are made with due consideration for the overall funds’ risk and expected return.

Contributions

The Company expects to make contributions of approximately $6,571 under its defined benefit plans in 2015.

Estimated Future Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:



	Defined Benefit Plans
2015	$	7,049
2016	6,667
2017	6,892
2018	6,895
2019	7,172
Years 2020 and thereafter	41,289

The Company sponsors various unfunded defined contribution plans that provide for retirement benefits to employees, some in accordance with local government requirements. The Company also maintains a funded retirement savings plan for U.S. employees which is qualified under Section 401(k) of the U.S. Internal Revenue Code. The plan allows eligible employees to contribute up to 99% of their compensation (subject to certain Internal Revenue Service limitations), with the Company matching 100% of the first 3% of employee compensation and 50% of the next 2% of employee compensation. The following represents the approximate matching contribution expense for the years ended December 31, 2014, 2013 and 2012:



	Year ended December 31,
	2014		2013		2012
Matching contribution expense	$	1,209	$	1,604	$	1,684