Defined Contribution Plans, Pension and Other Post-Retirement Benefit Plans

Defined Contribution Plans — We sponsor various 401(k) employee savings plans covering all eligible employees. Eligible employees can contribute on a pre-tax basis to the plan. In accordance with the terms of the 401(k) plans, we elect to match a certain percentage of the participants’ contributions to the plans, as defined. We recognized expense associated with these plans of $2.8 million in 2015 and $2.2 million in 2014 and 2013.

Pension and Other Post-Retirement Benefit Plans — We sponsor pension and other post-retirement benefit plans that cover certain hourly and salaried employees in the U.S. and United Kingdom. Our policy is to make annual contributions to the plans to fund the minimum contributions as required by local regulations.

The change in benefit obligation, plan assets and funded status as of December 31 consisted of the following (in thousands):



	U.S. Pension Plans						Non-U.S. Pension Plans						Other Post-Retirement Benefit Plans
	2015			2014			2015			2014			2015			2014
Change in benefit obligation:
Benefit obligation — Beginning of year	$	50,764		$	42,029		$	43,569		$	43,271		$	515		$	686
Service cost	135			84			—			—			—			—
Interest cost	1,846			1,887			1,470			1,758			18			28
Participant contributions	—			—			—			—			11			14
Benefits paid	(2,062		)	(2,007		)	(1,676		)	(1,590		)	(117		)	(100		)
Actuarial loss (gain)	(3,319		)	8,771			(2,263		)	2,642			4			(113		)
Exchange rate changes	—			—			(1,914		)	(2,512		)	—			—
Benefit obligation at end of year	47,364			50,764			39,186			43,569			431			515
Change in plan assets:
Fair value of plan assets — Beginning of year	35,660			33,542			35,752			35,044			—			—
Actual return on plan assets	532			2,035			328			3,599			—			—
Employer contributions	2,140			2,090			818			733			106			86
Participant contributions	—			—			—			—			11			14
Benefits paid	(2,062		)	(2,007		)	(1,676		)	(1,590		)	(117		)	(100		)
Exchange rate changes	—			—			(1,614		)	(2,034		)	—			—
Fair value of plan assets at end of year	36,270			35,660			33,608			35,752			—			—
Funded status	$	(11,094	)	$	(15,104	)	$	(5,578	)	$	(7,817	)	$	(431	)	$	(515	)

Amounts recognized in the consolidated balance sheets at December 31 consist of (in thousands):



	U.S. Pension Plans				Non-U.S. Pension Plans				Other Post-Retirement Benefit Plans
	2015		2014		2015		2014		2015		2014
Current liabilities	$	—	$	—	$	—	$	—	$	74	$	81
Noncurrent liabilities	11,094		15,104		5,578		7,818		356		434
Net amount recognized	$	11,094	$	15,104	$	5,578	$	7,818	$	430	$	515

The components of net periodic benefit cost for the years ended December 31 are as follows (in thousands):



	U.S. Pension Plans									Non-U.S. Pension Plans									Other Post-Retirement Benefit Plans
	2015			2014			2013			2015			2014			2013			2015			2014			2013
Service cost	$	135		$	84		$	108		$	—		$	—		$	—		$	—		$	—		$	—
Interest cost	1,846			1,887			1,704			1,470			1,758			1,761			18			28			29
Expected return on plan assets	(2,673		)	(2,514		)	(2,202		)	(1,597		)	(1,891		)	(1,878		)	—			—			—
Amortization of prior service cost	—			—			—			—			—			—			6			6			(122		)
Recognized actuarial loss (gain)	457			159			421			275			249			302			(121		)	(158		)	(157		)
Net periodic benefit cost	(235		)	(384		)	31			148			116			185			(97		)	(124		)	(250		)
Net (benefit) cost	$	(235	)	$	(384	)	$	31		$	148		$	116		$	185		$	(97	)	$	(124	)	$	(250	)

Amounts Recognized in Accumulated Other Comprehensive Income (Loss) — Amounts recognized in accumulated other comprehensive income (loss) at December 31 are as follows (in thousands):



	U.S. Pension Plans						Non-U.S. Pension Plans						Other Post-Retirement Benefit Plans
	2015		2014		2013		2015		2014		2013		2015			2014			2013
Net actuarial loss (gain)	$	15,471	$	17,105	$	8,014	$	8,784	$	10,227	$	10,130	$	(497	)	$	(620	)	$	(682	)
Prior service cost	—		—		—				—		—		69			75			81
	$	15,471	$	17,105	$	8,014	$	8,784	$	10,227	$	10,130	$	(428	)	$	(545	)	$	(601	)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) — Amounts recognized as other changes in plan assets and benefit obligations in other comprehensive income for the year ended December 31 are as follows (in thousands):



	U.S. Pension Plans						Non-U.S. Pension Plans						Other Post- Retirement Benefit Plans
	2015			2014			2015			2014			2015			2014
Actuarial loss (gain)	$	(1,178	)	$	9,251		$	(994	)	$	934		$	4		$	(113	)
Amortization of actuarial (gain) loss	(457		)	(159		)	(275		)	(249		)	121			158
Prior Service credit	—			—			—			—			(6		)	(6		)
Total recognized in other comprehensive income (loss)	$	(1,635	)	$	9,092		$	(1,269	)	$	685		$	119		$	39

The estimated actuarial loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $0.5 million. The estimated actuarial gain for the other post-retirement benefit plans that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year is $0.1 million.

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



	U.S. Pension Plans				Non-U.S. Pension Plans				Other Post- Retirement Benefit Plans
	2015		2014		2015		2014		2015		2014
Discount rate	4.05	%	3.73	%	3.90	%	3.50	%	4.05	%	3.73	%

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



	U.S. Pension Plans						Non-U.S. Pension Plans						Other Post-Retirement Benefit Plans
	2015		2014		2013		2015		2014		2013		2015		2014		2013
Discount rate	3.73	%	4.57	%	3.67	%	3.50	%	4.40	%	4.20	%	3.73	%	4.57	%	3.67	%
Expected return on plan assets	7.50	%	7.50	%	7.50	%	4.60	%	5.80	%	5.80	%	N/A		N/A		N/A

The rate of return assumptions are based on projected long-term market returns for the various asset classes in which the plans are invested, weighted by the target asset allocations. An incremental amount for active plan asset management and diversification, where appropriate, is included in the rate of return assumption. Our pension plan investment strategy is reviewed annually.

We employ a total return investment approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets taking into consideration a prudent level of risk. The intent of this strategy is to minimize plan expenses by outperforming plan liabilities over the long run. Risk tolerance is established through careful consideration of plan liabilities, plan funded status and corporate financial condition. The investment portfolio contains a diversified blend of equity, balanced, fixed income and real estate investments. Furthermore, equity investments are diversified across U.S. and non-U.S. stocks, as well as growth, value and small and large capitalizations. Other assets such as real estate are used judiciously to enhance long-term returns while improving portfolio diversification. Derivatives may be used to gain market exposure in an efficient and timely manner; however, derivatives may not be used to leverage the portfolio beyond the market value of the underlying investments. Investment risk is measured and monitored on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews. We expect to contribute approximately $3.0 million to our pension plans and our other post-retirement benefit plans in 2016.

Our current investment allocation target for our pension plans for 2015 and our weighted-average asset allocations of our pension assets for the years ended December 31, by asset category, are as follows:



	Target Allocation		U.S. Pension Plans		Non-U.S. Pension Plans
	U.S.	Non-U.S.	2015	2014	2015	2014
Cash and cash equivalents	—	—	1.2	0.1	0.4	0.5
Equity/balanced securities	55	60	51.0	54.1	61.1	59.3
Fixed income securities	25	40	24.0	24.4	38.5	39.3
Real estate	20	—	23.8	21.4	—	0.9
	100%	100%	100%	100%	100%	100%

The following descriptions relate to our plan assets:

Equity Securities — The equity category includes common stocks issued by U.S., United Kingdom and other international companies, equity funds that invest in common stocks and unit linked insurance policies. All equity investments generally allow near-term (within 90 days of the measurement date) liquidity and are held in issues that are actively traded to facilitate transactions at minimum cost.

Balanced — The balanced category includes funds primarily invested in a mix of equity and fixed income securities where the allocations are at the discretion of the investment manager. All investments generally allow near-term (within 90 days of the measurement date) liquidity and are held in issues that are actively traded to facilitate transactions at minimum cost.

Fixed Income Securities — The fixed income category includes U.S. dollar-denominated and United Kingdom and other international marketable bonds and convertible debt securities as well as fixed income funds that invest in these instruments. All investments generally allow near-term liquidity and are held in issues that are actively traded to facilitate transactions as minimum cost.

The fair value of fixed income securities is determined by either direct or indirect quoted market prices. When the value of assets held in separate accounts is not published, the value is based on the underlying holdings, which are primarily direct quoted market prices on regulated financial exchanges.

Real Estate — Real estate provides an indirect investment into a diversified and multi-sector portfolio of property assets. The fair value of real estate investments is valued by the fund managers. The fund managers value the real estate investments via independent third-party appraisals on a periodic basis. Assumptions used to revalue the properties are updated every quarter.

The fair values of our pension plan assets by asset category and by level as described in Note 2 for the years ended December 31, 2015 and 2014 are as follows (in thousands):



	December 31, 2015
			Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
	Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	551	$	551	$	—	$	—
Equities:
U.S. large value	4,222		4,222		—		—
U.S. large growth	3,961		3,961		—		—
International blend	7,874		—		7,874		—
Emerging markets	2,429		2,429		—		—
Balanced	20,528		—		20,528		—
Fixed income securities:
Government bonds	4,298		—		4,298		—
Corporate bonds	17,368		—		17,368		—
Real Estate:	—
U.S. property	8,645		—		—		8,645
Total pension fund assets	$	69,876	$	11,163	$	50,068	$	8,645

	December 31, 2014
			Quoted Prices in Active Markets for Identical Assets		Significant Observable Inputs		Significant Unobservable Inputs
	Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	223	$	223	$	—	$	—
Equities:
U.S. large value	4,356		4,356		—		—
U.S. large growth	4,213		4,213		—		—
International blend	6,490		—		6,490		—
International growth	2,590		2,590		—		—
Emerging markets	2,656		2,656		—		—
Balanced	20,202		—		20,202		—
Fixed income securities:
Government bonds	4,540		—		4,540		—
Corporate bonds	18,186		—		18,186		—
Real Estate:	—
U.S. property	7,622		—		—		7,622
U.K. property	335		—		—		335
Total pension fund assets	$	71,413	$	14,038	$	49,418	$	7,957

The fair value of our pension plan assets measured using significant unobservable inputs (Level 3) at December 31 are as follows (in thousands):



	2015			2014
Beginning balance	$	7,957		$	9,610
Actual return on plan assets:
Relating to assets held at reporting date	1,018			903
Relating to assets sold during the period	2			231
Purchases, sales and settlements, net	(322		)	(2,204		)
Foreign currency translation adjustment	(10		)	(583		)
Ending balance	$	8,645		$	7,957

For measurement purposes, a 6% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2015. The rate was assumed to decrease gradually to 5% through 2018 and remain constant thereafter. Assumed health care cost trend rates can have a significant effect on the amounts reported for other post-retirement benefit plans.

Differences in the ultimate health care cost trend rates within the range indicated below would have had the following impact on 2015 other post-retirement benefit results (in thousands):



Increase (Decrease) from change in health care cost trend rates	1 Percentage Point Increase		1 Percentage Point Decrease
Other post-retirement benefit expense	$	2	$	(2	)
Other post-retirement benefit liability	$	8	$	(8	)

The following table summarizes our expected future benefit payments of our pension and other post-retirement benefit plans (in thousands):



Year	Pension Plans		Other Post- Retirement Benefit Plans
2016	$	3,863	$	74
2017	$	3,894	$	77
2018	$	4,134	$	68
2019	$	4,377	$	46
2020	$	4,570	$	32
2021 to 2025	$	23,729	$	106