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Pensions and Postretirement Benefits Other than Pensions
 12 Months Ended
Dec. 31, 2020
Retirement Benefits [Abstract]  
Pensions and Postretirement Benefits Other than Pensions Pensions and Postretirement Benefits Other than PensionsThe Company has a number of plans providing pension and retirement benefits. These plans include defined benefit and defined contribution plans. The plans cover substantially all U.S. domestic employees. There are also plans that cover employees in the U.K. and Germany. The Company has an unfunded, nonqualified supplemental retirement benefit plan in the U.S. covering certain employees whose participation in the qualified plan is limited by provisions of the Internal Revenue Code.
For defined benefit plans, benefits are generally based on compensation and length of service for salaried employees and length of service for hourly employees. In the U.S., the Company froze the pension benefits in its Spectrum (salaried employees) Plan in 2009. In 2012, the Company closed the U.S. pension plans for the bargaining units to new participants. Certain grandfathered participants in the bargaining unit plans continue to accrue pension benefits. Employees of certain of the Company’s international operations in the U.K. and Germany are covered by either contributory or non-contributory trusted pension plans. In 2012, the Company froze the benefits in the U.K. pension plan.
Participation in the Company’s defined contribution plans is voluntary. The Company matches plan participants’ contributions up to various limits. Participants’ contributions are limited based on their compensation and, for certain supplemental contributions which are not eligible for Company matching, based on their age. Certain employees covered by collective bargaining units receive company contributions. Expense for the defined contribution plans was $9,533, $13,370 and $12,424 for 2020, 2019 and 2018, respectively. In 2020, the Company temporarily suspended the Company match of plan participant contributions in response to the COVID-19 pandemic. The Company match was resumed in the fourth quarter of 2020.
The Company currently provides retiree health care and life insurance benefits to a portion of its U.S. salaried and hourly employees. U.S. salaried and non-bargained hourly employees hired on or after January 1, 2003 are not eligible for retiree health care or life insurance coverage. The Company has reserved the right to modify or terminate certain of these salaried benefits at any time.
The Company has implemented household caps on the amounts of retiree medical benefits it will provide to certain retirees in the U.S. The caps do not apply to individuals who retired prior to certain specified dates. Costs in excess of these caps will be paid by plan participants. The Company implemented increased cost sharing in 2004 in the retiree medical coverage provided to certain eligible current and future retirees. Since then, cost sharing has expanded such that nearly all covered retirees pay a charge to be enrolled.
In accordance with U.S. GAAP, the Company recognizes the funded status (i.e., the difference between the fair value of plan assets and the projected benefit obligation) of its pension and OPEB plans and the net unrecognized actuarial losses and unrecognized prior service costs in the Consolidated Balance Sheets. The unrecognized actuarial losses and unrecognized prior service costs (components of Accumulated other comprehensive loss in the Equity section of the balance sheet) will be subsequently recognized as net periodic benefit costs pursuant to the Company’s historical accounting policy for amortizing such amounts. Further, actuarial gains and losses that arise in subsequent periods and are not recognized as net periodic benefit costs in the same periods will be recognized as a component of other comprehensive income.
The following table reflects changes in the projected obligations and fair market values of assets in all defined benefit pension and other postretirement benefit plans of the Company:
 2020 Pension Benefits2019 Pension BenefitsOther Postretirement Benefits
 DomesticInternationalTotalDomesticInternationalTotal20202019
Change in benefit obligation:
Projected Benefit Obligation at beginning of year$1,106,877 $446,686 $1,553,563 $1,004,751 $404,629 $1,409,380 $241,550 $251,798 
Service cost - employer9,946 — 9,946 8,906 — 8,906 1,439 1,573 
Interest cost33,143 8,417 41,560 39,499 11,061 50,560 7,320 9,887 
Actuarial loss/(gain) 102,678 54,268 156,946 113,828 48,721 162,549 (8,277)(9,664)
Benefits paid(66,339)(14,744)(81,083)(63,176)(14,542)(77,718)(8,371)(12,044)
Plan amendment2,581 219 2,800 3,069 — 3,069 — — 
Settlements— (16,653)(16,653)— (18,196)(18,196)— — 
Foreign currency translation effect— 11,941 11,941 — 15,013 15,013 — — 
Projected Benefit Obligation at December 31$1,188,886 $490,134 $1,679,020 $1,106,877 $446,686 $1,553,563 $233,661 $241,550 
Change in plans’ assets:
Fair value of plans’ assets at beginning of year$1,047,214 $379,342 $1,426,556 $912,129 $349,001 $1,261,130 $— $— 
Actual return on plans’ assets132,137 37,926 170,063 159,949 38,139 198,088 — — 
Employer contribution4,638 10,914 15,552 38,312 10,587 48,899 — — 
Benefits paid(66,339)(14,744)(81,083)(63,176)(14,542)(77,718)— — 
Settlements— (16,653)(16,653)— (18,196)(18,196)— — 
Foreign currency translation effect— 12,475 12,475 — 14,353 14,353 — — 
Fair value of plans’ assets at December 31$1,117,650 $409,260 $1,526,910 $1,047,214 $379,342 $1,426,556 $— $— 
Funded status$(71,236)$(80,874)$(152,110)$(59,663)$(67,344)$(127,007)$(233,661)$(241,550)
Amounts recognized in the balance sheets:
Accrued liabilities— — — (300)— (300)(12,266)(14,334)
Postretirement benefits other than pensions— — — — — — (221,395)(227,216)
Pension benefits(71,236)(80,874)(152,110)(59,363)(67,344)(126,707)— — 

The actuarial loss for the Company's pension benefit obligations in 2020 and 2019 was primarily related to changes in discount rates (see assumptions below) and, to a lesser extent, changes in the mortality assumptions for the Company’s U.S. plans.

The actuarial loss/(gain) for the Company's other postretirement benefit obligation in 2020 and 2019 was related to a decrease in the discount rates (see assumptions below). These actuarial losses were offset by gains related to a decrease in the expected utilization of retiree medical benefits and variances between actual participant experience and expected participant experience.
Included in Accumulated other comprehensive loss at December 31, 2020 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service costs of $7,266 ($5,454 net of tax) and unrecognized actuarial losses of $417,906 ($391,362 net of tax).
Included in Accumulated other comprehensive loss at December 31, 2019 are the following amounts that have not yet been recognized in net periodic benefit cost: unrecognized prior service credits of $5,780 ($4,338 net of tax) and unrecognized actuarial losses of $413,676 ($384,507 net of tax).
The prior service cost and actuarial loss included in accumulated other comprehensive loss that are expected to be recognized in net periodic benefit cost during the fiscal year-ended December 31, 2021 are $1,714 and $33,550, respectively.
The accumulated benefit obligation for all defined benefit pension plans was $1,675,825 and $1,552,037 at December 31, 2020 and 2019, respectively.
In 2020 and 2019, lump-sum distributions out of the U.K. pension plan of $16,653 and $18,196, respectively, were made from plan assets. The vested benefit obligation associated with these former employees was approximately 3 percent of the U.K. plan's benefit obligation in 2020 and 4 percent in 2019. Due to the size of the lump-sum distributions, in accordance with U.S. GAAP, the Company was required to recognize a non-cash settlement charge of $4,155 and $4,262 for 2020 and 2019, respectively, settlements out of the U.K. plan.
Additionally, in both 2020 and 2019, an amendment to separate domestic pension plans resulted in a retroactive increase in benefit levels for plan participants and have been accounted for as a prior service cost deferred in Accumulated other comprehensive loss, to be amortized as a component of net periodic benefit cost in future periods. The domestic pension plan projected benefit obligation increased $2,581 and $3,069, respectively, as a result of the separate amendments in 2020 and 2019.
On October 26, 2018, in Lloyds Banking Group Pensions Trustees Limited vs. Lloyds Bank plc and Others, the High Court of Justice in the United Kingdom issued a ruling ("Court Ruling") requiring Lloyds Bank plc to equalize benefits payable to men and women under its U.K. defined benefit pension plan. The Court Ruling noted that the formulas used to determine guaranteed minimum pension (GMP) benefits violated gender-pay equality laws due to differences in the way benefits were calculated for men and women. As a result of this ruling, the U.K. pension plan was required to amend its benefit formulas and account for the higher pension payments resulting from GMP equalization. In accordance with ASC 715, this Court Ruling represents a change to the U.K. pension plan resulting in a retroactive increase in benefit levels for plan participants and has been accounted for as a prior service cost deferred in Other comprehensive loss, to be amortized as a component of net periodic benefit cost in future periods. The U.K. pension plan projected benefit obligation increased $3,704 as a result of the amendment required due to the Court Ruling.
Weighted average assumptions used to determine benefit obligations at December 31:
 Pension BenefitsOther Postretirement Benefits
 2020201920202019
All plans
Discount rate2.00 %2.78 %2.36 %3.12 %
Domestic plans
Discount rate2.28 %3.09 %2.36 %3.12 %
International plans
Discount rate1.29 %1.99 %— — 
At December 31, 2020, the weighted average assumed annual rate of increase in the cost of medical benefits was 7.00 percent trending linearly to 4.50 percent per annum in 2030.
The following tables disclose the amount of net periodic benefit costs for the twelve months ended December 31, 2020 and 2019 for the Company’s defined benefit plans and other postretirement benefits:
 Pension Benefits - Domestic
Twelve Months Ended December 31,
 202020192018
Components of net periodic benefit cost:
Service cost$9,946 $8,906 $10,363 
Interest cost33,143 39,499 36,840 
Expected return on plan assets(55,410)(48,034)(54,035)
Amortization of actuarial loss31,533 32,432 32,939 
Amortization of prior service cost1,251 703 — 
Net periodic benefit cost$20,463 $33,506 $26,107 
 Pension Benefits - International
Twelve Months Ended December 31,
 202020192018
Components of net periodic benefit cost:
Interest cost$8,417 $11,061 $11,161 
Expected return on plan assets(8,892)(11,554)(12,073)
Amortization of actuarial loss4,146 3,411 4,264 
Amortization of prior service cost267 309 — 
Effect of settlements4,155 4,262 — 
Net periodic benefit cost$8,093 $7,489 $3,352 
 Other Post Retirement Benefits
Twelve Months Ended December 31,
 202020192018
Components of net periodic benefit cost:
Service cost$1,439 $1,573 $1,948 
Interest cost7,320 9,887 9,251 
Amortization of actuarial gain(422)— — 
Amortization of prior service credit(89)(409)(541)
Net periodic benefit cost$8,248 $11,051 $10,658 
Weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31:
 Pension BenefitsOther Postretirement Benefits
 202020192018202020192018
All plans
Discount rate2.78 %3.70 %3.20 %3.12 %4.05 %3.50 %
Expected return on plan assets4.75 %5.00 %5.34 %— %— %— %
Domestic plans
Discount rate3.09 %4.05 %3.50 %3.12 %4.05 %3.50 %
Expected return on plan assets5.68 %5.66 %6.25 %— %— %— %
International plans
Discount rate1.99 %2.80 %2.50 %— %— %— %
Expected return on plan assets2.45 %3.34 %3.19 %— %— %— %
The following table lists the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets at December 31, 2020 and 2019.
 Domestic PlansInternational Plans
 2020201920202019
Projected benefit obligation $672,070 $606,138 $490,134 $446,686 
Accumulated benefit obligation 668,875 604,612 490,134 446,686 
Fair value of plan assets 570,958 530,548 409,260 379,342 
The following table lists the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Spectrum Plan, which had plan assets in excess of projected benefit obligations and accumulated benefit obligations at December 31, 2020 and 2019:
20202019
Projected benefit obligation$516,816 $500,739 
Accumulated benefit obligation 516,816 500,739 
Fair value of plan assets546,692 516,666 

The table below presents the weighted average asset allocations for the domestic and U.K. pension plans’ assets at December 31, 2020 and December 31, 2019 by asset category.
 U.S. PlansU.K. Plan
Asset Category2020201920202019
Fixed Income Collective Trust Funds and Securities64 %65 %70 %68 %
Equity Collective Trust Funds and Securities29 30 18 19 
Other Investment Collective Trust Funds and Securities3 3 11 12 
Cash4 2 1 1 
Total100 %100 %100 %100 %
The Company manages the plans' asset allocation relative to the liability profile and funded status of the plans. It is expected that as the plan’s funded status improves, the portfolio will take less risk as to preserve the funded status of the plan framework. The plans follow a glide path whereby a target return-seeking allocation is followed based upon a given funded ratio level. The plans' position with respect to the glide path is monitored and asset allocation and strategy changes to the plans' portfolio are made as appropriate. The plans' strategy is also monitored in relation to the capital markets, interest rates, and the regulatory environment. The assets of the Company’s pension plan in Germany consist of investments in German insurance contracts.
The fair value of U.S. plan assets was $1,117,650 and $1,047,214 at December 31, 2020 and 2019, respectively. The fair value of the U.K. plan assets was $407,336 and $377,536 at December 31, 2020 and 2019, respectively. The fair value of the German pension plan assets was $1,924 and $1,806 at December 31, 2020 and 2019, respectively.
The table below classifies the assets of the U.S. and U.K. plans using the Fair Value Hierarchy described in Note 10 - Fair Value Measurements.
  Fair Value Hierarchy
 TotalLevel 1Level 2Level 3
NAV(1)
December 31, 2020
United States plans
Cash and cash equivalents$41,621 $41,621 $— $— $— 
Collective Trust Funds - Equity319,143 — — — 319,143 
Collective Trust Funds - Fixed income718,702 — 30,019 — 688,683 
Collective Trust Funds - Real Estate38,184 — — — 38,184 
$1,117,650 $41,621 $30,019 $— $1,046,010 
United Kingdom plan
Cash and cash equivalents$1,755 $1,755 $— $— $— 
Equity securities73,963 73,963 — — — 
Fixed income securities288,068 288,068 — — — 
Other investments43,550 — 14,737 28,813 — 
$407,336 $363,786 $14,737 $28,813 $— 
December 31, 2019
United States plans
Cash & Cash Equivalents$23,867 $23,867 $— $— $— 
Collective Trust Funds - Equity309,794 — — — 309,794 
Collective Trust Funds - Fixed Income682,279 — 22,410 — 659,869 
Collective Trust Funds - Real Estate31,274 — — — 31,274 
$1,047,214 $23,867 $22,410 $— $1,000,937 
United Kingdom plan
Cash & Cash Equivalents$1,802 $1,802 $— $— $— 
Equity securities72,503 72,503 — — — 
Fixed income securities259,192 259,192 — — — 
Other investments44,039 — 13,859 30,180 — 
$377,536 $333,497 $13,859 $30,180 $— 
(1) Investments in common/ collective trusts invest primarily in publicly traded securities and are valued using net asset value (NAV) of units of a bank collective trust. Therefore, these amounts have not been classified in the fair value hierarchy and are presented in the tables to reconcile the fair value hierarchy to the total fair value of plan assets.
Plan assets are measured at fair value. While the Company believes its valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date. The Company’s valuation methodologies used for the plan assets measured at fair value are as follows:
Cash and cash equivalents – Cash and cash equivalents include cash on deposit and investments in money market mutual funds that invest mainly in short-term instruments and cash, both of which are valued using a market approach.
Equity securities – Common, preferred, and foreign stocks are valued using a market approach at the closing price on their principal exchange and are included in Level 1 of the fair value hierarchy.
Fixed income securities – Corporate and foreign bonds are valued using a market approach at the closing price reported on the active market on which the individual securities are traded and are included in Level 1 of the fair value hierarchy.
Collective trust funds – Collective trust funds are valued at the net asset value of units held at year end and are excluded from the fair value hierarchy. The Collective trust funds fair value has been included within the table above based on the underlying investment strategy.
•Equity Funds – Collective trust funds classified as Equity primarily invest in U.S. and non-U.S. securities in both small and large capitalization markets.
•Fixed Income Funds – Collective trust funds classified as Fixed Income primarily invest in debt securities, U.S. treasury securities, and fixed income securities.
•Real Estate Funds - Collective trust funds classified as Real Estate Funds are invested in global real estate securities.
The fair values of the Level 3 assets in the U.K. plan are determined by the fund manager using a discounted cash flow methodology. The future cash flows expected to be generated by the assets of the funds and made available to investors are estimated and then discounted back to the valuation date. The discount rate is derived by adding a risk premium to the risk-free interest rate applicable to the country in which the assets are located.
The following table details the activity in these investments for the years ended December 31, 2018, 2019 and 2020:
U.K. Plan
Level 3 Assets
Balance at January 1, 2018$38,070 
Change in fair value(7,294)
Foreign currency translation effect(1,838)
Balance at December 31, 201828,938 
Change in fair value97 
Foreign currency translation effect1,145 
Balance at December 31, 201930,180 
Change in fair value(2,172)
Foreign currency translation effect805 
Balance at December 31, 2020$28,813 
The Company had no minimum funding requirements for its domestic pension plans in 2020. Due to the potential impact of COVID-19 and related plans to manage capital resources, the Company reduced its level of funding to the domestic pension plans in 2020. In 2020, the Company contributed $15,552 to its domestic and international pension plans, and during 2021, the Company expects to contribute between $45,000 and $55,000 to its domestic and international pension plans.
The Company estimates its benefit payments for its domestic and international pension plans and other postretirement benefit plans during the next ten years to be as follows:
Pension
Benefits		Other
Postretirement
Benefits
2021$89,581 $12,266 
202290,470 12,676 
202390,385 12,801 
202491,921 12,889 
202592,164 12,987 
2026 through 2030456,605 62,913