Note

10:

Pension and Postretirement Benefits

Defined Contribution Plan

All U.S. employees have the option of contributing up to

percent of their pre-tax earnings to a

401

(k) plan, subject to IRS limitations. We match up to the

first

percent of each employee's pre-tax earnings, based on the employee’s contributions. All U.S. employees are eligible for a separate annual retirement contribution to the

401

(k) plan of

percent of pay, that is invested based on the election of the individual participant. The

percent contribution is in addition to our

percent matching contribution described above and is in lieu of participation in our defined benefit pension plan. The total contribution to the

401

(k) plan for

2018

was

$11,034

which included the cost of the

percent company match of

$5,293

and the additional

percent contribution of

$5,741.

The total contributions to the

401

(k) plan were

$10,899

and

$10,417

2017

and

2016,

respectively.

The defined contribution plan liability recorded in the Consolidated Balance Sheets was

$20,183

and

$6,307

2018

and

2017,

respectively for the U.S. Plan and several statutorily required non-U.S. Plans.

Defined Benefit Plan

Noncontributory defined benefit pension plans cover all U.S. employees employed prior to

January 1, 2007.

Benefits for these plans are based primarily on each employee’s years of service and average compensation. During

2011,

we made significant changes to our U.S. Pension Plan. The changes included: benefits under the U.S. Pension Plan were locked-in using service and salary as of

May 31, 2011,

participants

longer earn benefits for future service and salary as they had in the past, affected participants receive a

three

percent increase to the locked-in benefit for every year they continue to work for us and we are making a retirement contribution of

three

percent of eligible compensation to the

401

(k) Plan for those participants. The funding policy is consistent with the funding requirements of federal law and regulations. Plan assets consist principally of listed equity securities and bonds. During

2015,

we amended the U.S. Pension Plan to add a program for eligible employees to take a lump sum distribution.

lump sum payments were paid during

2018

and

2017.

Lump sum payments of

$8,399

were made during

2016

under this program. Other U.S. postretirement benefits are funded through a Voluntary Employees' Beneficiaries Association Trust.

Health care and life insurance benefits are provided for eligible retired employees and their eligible dependents. These benefits are provided through various insurance companies and health care providers. Costs are accrued during the years the employee renders the necessary service.

Certain non-U.S. subsidiaries provide pension benefits for their employees consistent with local practices and regulations. These plans are primarily defined benefit plans covering substantially all employees upon completion of a specified period of service. Benefits for these plans are generally based on years of service and annual compensation.

Following is a reconciliation of the beginning and ending balances of the benefit obligation and fair value of plan assets as of

December 1, 2018

and

December 2, 2017:

	Pension Benefits												Other Postretirement
	U.S. Plans						Non-U.S. Plans						Benefits
	2018			2017			2018			2017			2018			2017
Change in projected benefit obligation
Benefit obligation at beginning of year	$	379,359		$	362,213		$	223,982		$	202,176		$	43,325		$	42,721
Service cost		56			111			2,311			2,125			173			208
Interest cost		12,251			15,836			4,671			4,709			1,484			1,593
Participant contributions		-			-			-			-			330			200
Plan amendments		-			-			1,600			-			-			-
Actuarial (gain)/loss 1		(33,052	)		14,405			(3,377	)		(6,636	)		(5,225	)		2,078
Special termination benefits		-			6,518			-			12,156			-			-
Settlement payments		-			-			-			(62	)		-			-
Benefits paid		(21,725	)		(19,724	)		(10,059	)		(8,495	)		(3,245	)		(3,475	)
Foreign currency translation effect		-			-			(11,053	)		18,009			-			-
Benefit obligation at end of year		336,889			379,359			208,075			223,982			36,842			43,325

Change in plan assets
Fair value of plan assets at beginning of year		378,099			331,505			187,708			163,322			79,300			66,640
Acquisition		-			4,605			-			-			-			-
Actual return on plan assets		(11,768	)		60,176			(1,240	)		16,889			4,058			14,631
Employer contributions		1,854			1,537			2,237			1,863			2,467			1,304
Participant contributions		-			-			-			-			330			200
Other		-			-			-			(272	)		-			-
Benefits paid 2		(21,725	)		(19,724	)		(10,059	)		(8,223	)		(3,245	)		(3,475	)
Foreign currency translation effect		-			-			(9,191	)		14,129			-			-
Fair value of plan assets at end of year		346,460			378,099			169,455			187,708			82,910			79,300
Plan assets in excess of (less than) benefit obligation as of year end	$	9,571		$	(1,260	)	$	(38,620	)	$	(36,274	)	$	46,068		$	35,975

Actuarial gain in

2018

and actuarial loss in

2017

for the U.S. Plans is primarily due to assumption changes. Actuarial gains in

2018

and

2017

for the Non-U.S. Plans are due to both assumption changes and plan experience.

Amount excludes benefit payments made from sources other than plan assets.

Amounts in accumulated other comprehensive income (loss) that have not been recognized as components of net periodic benefit cost	Pension Benefits									Other Postretirement
	U.S. Plans				Non-U.S. Plans					Benefits
	2018		2017		2018		2017			2018		2017
Unrecognized actuarial loss	$	130,661	$	131,643	$	69,762	$	67,344		$	3,430	$	5,877
Unrecognized prior service cost (benefit)		4		32		1,520		(4	)		-		-
Ending balance	$	130,665	$	131,675	$	71,282	$	67,340		$	3,430	$	5,877

	Pension Benefits												Other Postretirement
	U.S. Plans						Non-U.S. Plans						Benefits
	2018			2017			2018			2017			2018			2017
Statement of financial position as of fiscal year-end
Non-current assets	$	28,396		$	19,520		$	9,467		$	10,912		$	48,872		$	39,163
Accrued benefit cost
Current liabilities		(1,493	)		(1,501	)		(2,077	)		(1,879	)		(201	)		(210	)
Non-current liabilities		(17,332	)		(19,279	)		(46,010	)		(45,307	)		(2,603	)		(2,978	)
Ending balance	$	9,571		$	(1,260	)	$	(38,620	)	$	(36,274	)	$	46,068		$	35,975

The accumulated benefit obligation of the U.S. pension and other postretirement plans was

$364,788

December 1, 2018

and

$409,376

December 2, 2017.

The accumulated benefit obligation of the non-U.S. pension plans was

$200,193

December 1, 2018

and

$214,512

December 2, 2017.

The following amounts relate to pension plans with accumulated benefit obligations in excess of plan assets as of

December 1, 2018

and

December 2, 2017:

	Pension Benefits and Other Postretirement Benefits
	U.S. Plans				Non-U.S. Plans
	2018		2017		2018		2017
Accumulated benefit obligation	$	23,289	$	25,349	$	115,725	$	120,459
Fair value of plan assets		4,514		4,669		75,397		82,631

The following amounts relate to pension plans with projected benefit obligations in excess of plan assets as of

December 1, 2018

and

December 2, 2017:

	Pension Benefits and Other Postretirement Benefits
	U.S. Plans				Non-U.S. Plans
	2018		2017		2018		2017
Projected benefit obligation	$	23,338	$	25,449	$	123,484	$	137,618
Fair value of plan assets		4,514		4,669		75,397		90,434

Information about the expected cash flows is as follows:

	Pension Benefits				Other
	U.S. Plans		Non-U.S. Plans		Postretirement Benefits
Employer contributions
2018	$	-	$	248	$	2,000
Expected benefit payments
2019	$	20,723	$	8,420	$	3,030
2020		20,757		8,227		3,011
2021		21,067		8,727		2,990
2022		21,418		8,806		2,958
2023		21,844		8,755		2,913
2024-2028		109,746		45,783		13,362

Components of net periodic benefit cost and other supplemental information for the years ended

December 1, 2018,

December 2, 2017

and

December 3, 2016

are as follows:

	Pension Benefits																		Other
	U.S. Plans									Non-U.S. Plans									Postretirement Benefits
Net periodic cost (benefit)	2018			2017			2016			2018			2017			2016			2018			2017			2016
Service cost	$	56		$	111		$	110		$	2,311		$	2,125		$	2,016		$	173		$	208		$	342
Interest cost		12,251			15,836			15,360			4,671			4,709			5,465			1,484			1,593			1,956
Expected return on assets		(26,167	)		(25,458	)		(24,776	)		(11,105	)		(9,853	)		(9,919	)		(6,896	)		(5,788	)		(5,470	)
Amortization:
Prior service cost (benefit)		29			29			29			(4	)		(4	)		(3	)		-			-			(41	)
Actuarial loss		5,904			5,905			5,271			2,901			3,492			3,106			60			1,010			2,169
Curtailment loss		-			-			-			-			-			19			-			-			-
Settlement charge		-			-			-			-			16			135			-			-			-
Net periodic (benefit) cost	$	(7,927	)	$	(3,577	)	$	(4,006	)	$	(1,226	)	$	485		$	819		$	(5,179	)	$	(2,977	)	$	(1,044	)

	Pension Benefits																		Other
Weighted-average assumptions used to	U.S. Plans									Non-U.S. Plans									Postretirement Benefits
determine benefit obligations	2018			2017			2016			2018			2017			2016			2018			2017			2016
Discount rate		4.50	%		3.72	%		4.08	%		2.29	%		2.12	%		2.31	%		4.37	%		3.54	%		3.85	%
Rate of compensation increase 1		4.50	%		4.50	%		4.50	%		1.75	%		1.71	%		1.47	%		N/A			N/A			N/A

Weighted-average assumptions used to
determine net costs for years ended	2018			2017			2016			2018			2017			2016			2018			2017			2016
Discount rate		3.72	%		4.08	%		4.28	%		2.10	%		2.15	%		2.83	%		3.54	%		3.85	%		4.02	%
Expected return on plan assets		7.75	%		7.75	%		7.75	%		6.20	%		6.21	%		6.20	%		8.75	%		8.75	%		8.75	%
Rate of compensation increase 1		4.50	%		4.50	%		4.50	%		1.75	%		1.47	%		1.58	%		N/A			N/A			N/A

Benefits under the U.S. Pension Plan were locked-in as of

May 31, 2011

and

longer include compensation increases. The

4.50

percent rate for

2018,

2017

and

2016

are for the supplemental executive retirement plan only.

The discount rate assumption is determined using an actuarial yield curve approach, which results in a discount rate that reflects the characteristics of the plan. The approach identifies a broad population of corporate bonds that meet the quality and size criteria for the particular plan. We use this approach rather than a specific index that has a certain set of bonds that

may

not

be representative of the characteristics of our particular plan. A higher discount rate decreases the present value of the pension obligations. The discount rate for the U.S. pension plan was

4.51

percent at

December 1, 2018,

compared to

3.73

percent at

December 2, 2017

and

4.10

percent at

December 3, 2016.

Net periodic pension cost for a given fiscal year is based on assumptions developed at the end of the previous fiscal year. A discount rate reduction of

0.5

percentage points at

December 1, 2018

would decrease pension and other postretirement plan expense approximately

$22

(pre-tax) in fiscal

2019.

Discount rates for non-U.S. plans are determined in a manner consistent with the U.S. plan.

For the U.S. Pension Plan, we adopted the Adjusted RP-

2014

mortality tables projected generationally using scale MP-

2018.

The expected long-term rate of return on plan assets assumption for the U.S. pension plan was

7.75

percent in

2018,

2017

and

2016.

Our expected long-term rate of return on U.S. plan assets was based on our target asset allocation assumption of

percent equities and

percent fixed-income. Management, in conjunction with our external financial advisors, determines the expected long-term rate of return on plan assets by considering the expected future returns and volatility levels for each asset class that are based on historical returns and forward-looking observations. For

2018,

the expected long-term rate of return on the target equities allocation was

8.25

percent and the expected long-term rate of return on the target fixed-income allocation was

5.6

percent. The total plan rate of return assumption included an estimate of the effect of diversification and the plan expense. A change of

0.5

percentage points for the expected return on assets assumption would impact U.S. net pension and other postretirement plan expense by approximately

$2,147

(pre-tax).

Management, in conjunction with our external financial advisors, uses the actual historical rates of return of the asset categories to assess the reasonableness of the expected long-term rate of return on plan assets.

The expected long-term rate of return on plan assets assumption for non-U.S. pension plans was a weighted-average of

6.20

percent in

2018

compared to

6.21

percent in

2017

and

6.20

percent in

2016.

The expected long-term rate of return on plan assets assumption used in each non-U.S. plan is determined on a plan-by-plan basis for each local jurisdiction and is based on expected future returns for the investment mix of assets currently in the portfolio for that plan. Management, in conjunction with our external financial advisors, develops expected rates of return for each plan, considers expected long-term returns for each asset category in the plan, reviews expectations for inflation for each local jurisdiction, and estimates the effect of active management of the plan’s assets. Our largest non-U.S. pension plans are in the United Kingdom and Germany, respectively. The expected long-term rate of return on plan assets for the United Kingdom was

6.75

percent and the expected long-term rate of return on plan assets for Germany was

5.75

percent. Management, in conjunction with our external financial advisors, uses actual historical returns of the asset portfolio to assess the reasonableness of the expected rate of return for each plan.

Assumed health care trend rates	2018			2017			2016
Health care cost trend rate assumed for next year		6.25	%		6.50	%		6.75	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)		0.25	%		5.00	%		5.00	%
Fiscal year that the rate reaches the ultimate trend rate	2024			2024			2023

The asset allocation for the company’s U.S. and non-U.S. pension plans at the end of

2018

and

2017

follows.

	U.S. Pension Plans									Non-U.S. Pension Plans									Other Postretirement Plans
	Target			Percentage of Plan Assets at Year-End						Target			Percentage of Plan Assets at Year-End						Target			Percentage of Plan Assets at Year-End
Asset Category	2018			2018			2017			2018			2018			2017			2018			2018			2017
Equities		60.0	%		59.5	%		63.3	%		49.0	%		50.8	%		51.5	%		0.0	%		0.0	%		0.0	%
Fixed income		40.0	%		40.0	%		37.6	%		51.0	%		48.7	%		47.9	%		0.0	%		0.0	%		0.0	%
Insurance		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		100.0	%		99.4	%		99.5	%
Cash		0.0	%		0.5	%		(0.9	)%		0.0	%		0.5	%		0.6	%		0.0	%		0.6	%		0.5	%
Total		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%		100	%

Plan Asset Management

Plan assets are held in trust and invested in mutual funds, separately managed accounts and other commingled investment vehicles holding U.S. and non-U.S. equity securities, fixed income securities and other investment classes. We employ a total return approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Futures and options

may

also be used to enhance risk-adjusted long-term returns while improving portfolio diversification and duration. Risk management is accomplished through diversification across asset classes, utilization of multiple investment managers and general plan-specific investment policies. Risk tolerance is established through careful consideration of the plan liabilities, plan funded status and our assessment of our overall liquidity position. This asset allocation policy mix is reviewed annually and actual versus target allocations are monitored regularly and rebalanced on an as-needed basis. Plan assets are invested using a combination of active and passive investment strategies. Passive, or “indexed” strategies, attempt to mimic rather than exceed the investment performance of a market benchmark. The plans’ active investment strategies employ multiple investment management firms which in aggregate cover a range of investment styles and approaches. Performance is monitored and compared to relevant benchmarks on a regular basis.

The U.S. pension plans consist of

two

plans: a pension plan and a supplemental executive retirement plan (“SERP”). There were

assets in the SERP in

2018

and

2017.

Consequently, all of the data disclosed in the asset allocation table for the U.S. pension plans pertain to our U.S. pension plan.

During

2018,

we maintained our assets within the allowed ranges of the target asset allocation mix of

percent equities and

percent fixed income plus or minus

percent and continued our focus to reduce volatility of plan assets in future periods and to more closely match the duration of the assets with the duration of the liabilities of the plan. We plan to maintain the portfolio at this target allocation in

2019.

The non-U.S. pension plans consist of all the pension plans administered by us outside the U.S., principally consisting of plans in Germany, the United Kingdom, France and Canada. During

2018

we maintained our assets for the non-U.S. pension plans at the specific target asset allocation mix determined for each plan plus or minus the allowed rate and continued our focus to reduce volatility of plan assets in future periods and to more closely match the duration of the assets with the duration of the liabilities of the individual plans. We plan to maintain the portfolios at their respective target asset allocations in

2019.

Other postretirement benefits plans consist of

two

U.S. plans: a retiree medical health care plan and a group term life insurance plan. There were

assets in the group term life insurance plan for

2018

and

2017.

Consequently, all of the data disclosed in the asset allocation table for other postretirement plans pertain to our retiree medical health care plan. Our investment strategy for other postretirement benefit plans is to own insurance policies that maintain an asset allocation nearly completely in equities. These equities are invested in a passive portfolio indexed to the S&P

500.

Our large weighting to equities in these plans is driven by the investment options available and the relative underfunded status of the plans.

Fair Value of Plan Assets

The following table presents plan assets categorized within a

three

-level fair value hierarchy as described in Note

13.

	December 1, 2018
U.S. Pension Plans	Level 1		Level 2		Level 3		Total Assets
Equities	$	121,086	$	85,007	$	-	$	206,094
Fixed income		33,892		104,484		266		138,642
Cash		1,222		148		-		1,370
Total categorized in the fair value hierarchy		156,200		189,639		266		346,105
Other investments measured at NAV 1								354
Total	$	156,200	$	189,639	$	266	$	346,460

Non-U.S. Pension Plans	Level 1		Level 2		Level 3		Total Assets
Equities	$	30,123	$	1,073	$	-	$	31,196
Fixed income		44,158		6,394		662		51,214
Cash		450		-		-		450
Total categorized in the fair value hierarchy		74,731		7,467		662		82,860
Other investments measured at NAV 1								86,595
Total	$	74,731	$	7,467	$	662	$	169,455

Other Postretirement Benefits	Level 1		Level 2		Level 3		Total Assets
Insurance	$	-	$	-	$	82,446	$	82,446
Cash		464		-		-		464
Total	$	464	$	-	$	82,446	$	82,910

	December 2, 2017
U.S. Pension Plans	Level 1			Level 2		Level 3		Total Assets
Equities	$	144,124		$	95,542	$	-	$	239,666
Fixed income		42,310			99,252		291		141,853
Cash		(3,893	)		126		-		(3,767	)
Total categorized in the fair value hierarchy		182,541			194,920		291		377,752
Other investments measured at NAV 1									347
Total	$	182,541		$	194,920	$	291	$	378,099

Non-U.S. Pension Plans	Level 1		Level 2		Level 3		Total Assets
Equities	$	35,118	$	1,185	$	-	$	36,303
Fixed income		46,725		6,618		660		54,003
Cash		549		-		-		549
Total categorized in the fair value hierarchy		82,392		7,803		660		90,855
Other investments measured at NAV 1								96,853
Total	$	82,392	$	7,803	$	660	$	187,708

Other Postretirement Benefits	Level 1		Level 2		Level 3		Total Assets
Insurance	$	-	$	-	$	78,894	$	78,894
Cash		406		-		-		406
Total	$	406	$	-	$	78,894	$	79,300

In accordance with ASC Topic

820

10,

Fair Value Measurement, certain investments that are measured at NAV (Net Asset Value per share) (or its equivalent) practical expedient have

not

been classified in the fair value hierarchy. The fair value amounts represented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statement of financial position.

The definitions of fair values of our pension and other postretirement benefit plan assets at

December 1, 2018

and

December 2, 2017

by asset category are as follows:

Equities

—Primarily publicly traded common stock for purposes of total return and to maintain equity exposure consistent with policy allocations. Investments include: (i) U.S. and non-U.S. equity securities and mutual funds valued at closing prices from national exchanges; and (ii) commingled funds valued at unit values or net asset values provided by the investment managers, which are based on the fair value of the underlying investments. Funds valued at net asset value have various investment strategies including seeking maximum total returns consistent with prudent investment management, seeking current income consistent with preservation of capital and daily liquidity and seeking to approximate the risk and return characterized by a specific index fund. There are

restrictions for redeeming holdings out of these funds and the funds have

unfunded commitments.

Fixed income

—Primarily corporate and government debt securities for purposes of total return and managing fixed income exposure to policy allocations. Investments include (i) mutual funds valued at closing prices from national exchanges, (ii) corporate and government debt securities valued at closing prices from national exchanges, (iii) commingled funds valued at unit values or net asset value provided by the investment managers, which are based on the fair value of the underlying investments, and (iv) an annuity contract, the value of which is determined by the provider and represents the amount the plan would receive if the contract were cashed out at year-end.

Insurance

—Insurance contracts for purposes of funding postretirement medical benefits. Fair values are the cash surrender values as determined by the providers which are the amounts the plans would receive if the contracts were cashed out at year end.

Cash

–

Cash balances on hand, accrued income and pending settlements of transactions for purposes of handling plan payments. Fair values are the cash balances as reported by the Trustees of the plans.

The following is a roll forward of the Level

investments of our pension and postretirement benefit plan assets during the year ended

December 1, 2018

and

December 2, 2017:

	Fixed Income
U.S. Pension Plans	2018			2017
Level 3 balance at beginning of year	$	291		$	320
Purchases, sales, issuances and settlements, net		(25	)		(29	)
Level 3 balance at end of year	$	266		$	291

	Fixed Income
Non-U.S. Pension Plans	2018			2017
Level 3 balance at beginning of year	$	660		$	569
Net transfers into / (out of) level 3		30			21
Net gains		6			3
Currency change effect		(34	)		67
Level 3 balance at end of year	$	662		$	660

	Insurance
Other Postretirement Benefits	2018			2017
Level 3 balance at beginning of year	$	78,894		$	66,064
Net transfers into / (out of) level 3		(422	)		(1,073	)
Purchases, sales, issuances and settlements, net		(671	)		(570	)
Net gains		4,645			14,473
Level 3 balance at end of year	$	82,446		$	78,894