Employee Benefit Plans and Non-Qualified Plans (Tables)

12 Months Ended

Dec. 31, 2017

Summary of Expenses Recorded in the Financial Statements

The table below summarizes the expenses recorded in the Apergy financial statements for the Dover plans in which Apergy participates.


	Years Ended December 31,
	2017		2016		2015
Plan Name
Dover U.S. Pension Plan	$	3,922	$	4,643	$	4,783
Canada Salaried Pension Plan		554		1,615		513
Other non-qualified plans		108		121		123

Summary of Combined Balance Sheets Impact Associated with the Company's Single Employer Defined Benefit Plans

The following tables summarize the Combined Balance Sheets impact, including the benefit obligations, assets and funded status associated with the Company’s single employer defined benefit plans at December 31, 2017 and 2016.


	Non-U.S. Qualified Defined Benefit Plan						Non-Qualified Supplemental Benefits Plan
	2017			2016			2017			2016
Change in benefit obligation:
Benefit obligation at beginning of year	$	3,512		$	3,139		$	18,600		$	20,313
Service cost		106			102			—			—
Interest cost		137			129			621			719
Benefits paid		(99	)		(79	)		(1,710	)		(2,484	)
Actuarial loss (gain)		(22	)		170			(3,314	)		52
Currency translation and other		247			51			—			—

Benefit obligation at end of year		3,881			3,512			14,197			18,600

Change in plan assets:
Fair value of plan assets at beginning of year		3,391			3,056			—			—
Actual return on plan assets		290			198			—			—
Company contributions		166			165			1,710			2,484
Benefits paid		(99	)		(79	)		(1,710	)		(2,484	)
Currency translation and other		245			51			—			—

Fair value of plan assets at end of year		3,993			3,391			—			—

Funded (unfunded) status	$	112		$	(121	)	$	(14,197	)	$	(18,600	)

Amounts recognized in the Combined Balance Sheets consist of:
Assets and Liabilities:
Other assets and deferred charges	$	112		$	—		$	—		$	—
Accrued compensation and employee benefits		—			—			(1,547	)		(2,211	)
Other liabilities		—			(121	)		(12,650	)		(16,389	)

Total assets and liabilities		112			(121	)		(14,197	)		(18,600	)

Accumulated Other Comprehensive Loss (Income):
Net actuarial losses		1,449			1,632			6,078			9,721
Prior service cost		40			42			—			—
Net asset at transition, other		(20	)		(21	)		—			—
Deferred taxes		(397	)		(446	)		(2,670	)		(3,592	)

Total accumulated other comprehensive loss, net of tax		1,072			1,207			3,408			6,129

Net amount recognized at December 31,	$	1,184		$	1,086		$	(10,789	)	$	(12,471	)

Accumulated benefit obligations	$	3,881		$	3,512		$	14,197		$	18,600

Summary of Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets

Pension plans with accumulated benefit obligations in excess of plan assets consist of the following at December 31, 2017 and 2016:


	2017		2016
Projected benefit obligation (PBO)	$	—	$	3,512
Accumulated benefit obligation (ABO)		—		3,512
Fair value of plan assets		—		3,391

Components of the Net Periodic Benefit Cost

Components of the net periodic benefit cost were as follows:

Defined Benefit Plans


	Non-U.S. Qualified Defined Benefit Plan									Non-Qualified Supplemental Benefits Plan
	2017			2016			2015			2017			2016		2015
Service cost	$	106		$	102		$	118		$	—		$	—	$	—
Interest cost		137			129			130			621			719		708
Expected return on plan assets		(198	)		(186	)		(184	)		—			—		—
Amortization of:
Prior service cost		2			2			2			—			—		—
Recognized actuarial loss		68			58			57			330			305		284
Transition obligation		(1	)		(1	)		(1	)		—			—		—
Other		—			—			—			(1	)		—		—

Total net periodic benefit cost	$	114		$	104		$	122		$	950		$	1,024	$	992

Schedule of Amounts Expected to be Amortized from Accumulated Other Comprehensive Income (loss) into Net Periodic Benefit Cost

Amounts expected to be amortized from Accumulated other comprehensive income (loss) into net periodic benefit cost during 2018 are as follows:


	Non-U.S. Qualified Defined Benefit Plan			Non-Qualified Supplemental Benefits Plan
Amortization of:
Prior service cost	$	2		$	—
Recognized actuarial loss		55			205
Transition obligation		(1	)		—

Total	$	56		$	205

Weighted Average Assumptions Used in Determining the Benefit Obligations

The Company determines actuarial assumptions on an annual basis. The weighted average assumptions used in determining the benefit obligations were as follows:


	Non-U.S. Qualified Defined Benefit Plan						Non-Qualified Supplemental Benefits Plan
	2017			2016			2017			2016
Discount rate		3.50	%		3.75	%		3.35	%		3.55	%

Weighted Average Assumptions Used in Determining the Net Periodic Benefit Cost

The weighted average assumptions used in determining the net periodic benefit cost were as follows:


	Non-U.S. Qualified Defined Benefit Plan						Non-Qualified Supplemental Benefits Plan
	2017			2016			2017			2016
Discount rate		3.75	%		4.00	%		3.55	%		3.75	%
Expected return on plan assets		5.50	%		5.75	%		na			na

Actual and Target Weighted Average Asset Allocation

The Company’s actual and target weighted average asset allocation for our non-U.S. Corporate Pension Plan was as follows:


	2017			2016			Current Target
Equity securities		61	%		60	%		60	%
Fixed income		38	%		39	%		40	%
Real estate and other		1	%		1	%		—	%

Total		100	%		100	%		100	%

Fair Values of Pension Plan Assets by Asset Category within the Fair Value Hierarchy

The fair values of the non-U.S. pension plan assets by asset category within the fair value hierarchy (as defined in Note 10 — Fair Value Measurements) were as follows:


	Non-U.S. Qualified Defined Benefit Plan
	December 31, 2017								December 31, 2016
	Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value *
Mutual funds	$	2,399	$	1,594	$	—	$	3,993	$	2,104	$	1,287	$	—	$	3,391

Total	$	2,399	$	1,594	$	—	$	3,993	$	2,104	$	1,287	$	—	$	3,391

*	A revision was made to the fair value leveling hierarchy in the above table as of December 31, 2016. The change was from level 2 to 1. The valuation techniques were unchanged and the amounts revised were not material to the prior annual period.

Estimated Future Benefit Payments to Retirees

Estimated future benefit payments to retirees, which reflect expected future service, are as follows:


	Non-U.S. Qualified Defined Benefit Plan		Non-Qualified Supplemental Benefits Plan
2018	$	86	$	1,572
2019		94		1,472
2020		92		1,368
2021		100		1,261
2022		107		1,154
2023 - 2027		709		4,163