Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2019

Compensation And Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits

NOTE 11 – PENSION AND OTHER POSTRETIREMENT BENEFITS:

U.S. Pension Benefits

The Corporation has two qualified domestic defined benefit pension plans that cover substantially all of its U.S. employees. Measures have been taken over the past few years to freeze benefit accruals and participation in the plans and replace benefit accruals with employer contributions to defined contribution plans. As of December 31, 2019, benefit accruals and participation in the plans have been curtailed for all locations except one. The defined benefit pension plans are covered by the Employee Retirement Income Security Act of 1974 (“ERISA”); accordingly, the Corporation’s policy is to fund at least the minimum actuarially computed annual contribution required under ERISA. Minimum contributions for 2019 and 2018 approximated $1,257 and $1,211, respectively. Minimum contributions for 2020 are expected to approximate $4,412. The increase is principally due to amortization of pension funding credit balances created in earlier years from voluntary contributions previously made and expiration of legislation which reduced funding requirements for single employer plans. The fair value of the plan assets as of December 31, 2019, and 2018, approximated $195,667 and $182,541, respectively, in comparison to accumulated benefit obligations of $252,808 and $226,618 for the same periods. Employer contributions to the defined contribution plans totaled $3,140 and $3,169 for 2019 and 2018, respectively, and are expected to approximate $3,100 in 2020.

The Corporation also maintains nonqualified defined benefit pension plans for selected executives in addition to the benefits provided under one of the Corporation’s qualified defined benefit pension plans. The objectives of the nonqualified plans are to provide supplemental retirement benefits or restore benefits lost due to limitations set by the Internal Revenue Service. The assets of the nonqualified plans are held in a grantor tax trust known as a “Rabbi” trust and are subject to claims of the Corporation’s creditors, but otherwise must be used only for purposes of providing benefits under the plans. The fair market value of the trust at December 31, 2019, and 2018, which is included in other noncurrent assets, was $4,183 and $3,659, respectively. The plan is treated as a non-funded pension plan for financial reporting purposes. Accordingly, benefit payments would represent employer contributions. Accumulated benefit obligations approximated $8,481 and $6,852 at December 31, 2019, and 2018, respectively.

Employees at one location participate in a multi-employer plan, I.A.M. National Pension Fund, in lieu of the Corporation’s defined benefit pension plans. A multi-employer plan generally receives contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements. The assets contributed by one employer may be used to fund the benefits provided to employees of other employers in the plan because the plan assets, once contributed, are not restricted to individual employers. The latest report of summary plan information (for the 2018 plan year) provided by I.A.M. National Pension Fund indicates:

•

Approximately 1,700 employer locations contribute to the plan;

•

Approximately 100,000 active employees participate in the plan; and

•

Assets of approximately $12.1 billion and a funded status of approximately 89%.

Less than 100 of the Corporation’s employees participate in the plan and contributions are based on a rate per hour. The Corporation’s contributions to the plan were less than $250 for 2019 and 2018 and represent less than five percent of total contributions to the plan by all contributing employers. Contributions are expected to approximate $250 in 2020.

Foreign Pension Benefits

Employees of UES-UK participated in a defined benefit pension plan that was curtailed effective December 31, 2004, and replaced with a defined contribution pension plan. The UES-UK plans are non-U.S. plans and therefore are not covered by ERISA. Instead, when necessary, the Trustees and UES-UK agree to a recovery plan that estimates the amount of employer contributions, based on U.K. regulations, necessary to eliminate the funding deficit of the plan with such estimates subject to change based on the future investment performance of the plan’s assets. The plan became fully funded as of December 31, 2018; accordingly, no contributions were required in 2019, and none are expected for 2020. The U.S. dollar equivalent of employer contributions to the defined benefit pension plan approximated $982 in 2018. The fair value of the plan’s assets as of December 31, 2019, and 2018, approximated $57,900 (£43,913) and $49,651 (£38,991), respectively, in comparison to accumulated benefit obligations of $54,838 (£41,591) and $47,459 (£37,269) for the same periods. Contributions to the defined contribution pension plan approximated $355 and $363 in 2019 and 2018, respectively, and are expected to approximate $360 in 2020.

The Corporation has two additional foreign defined benefit pension plans, which are unfunded. Projected and accumulated benefit obligations approximated $7,501 and $6,878 at December 31, 2019, and 2018, respectively.

Other Postretirement Benefits

The Corporation provides a monthly reimbursement of postretirement health care benefits for up to a 6-year period principally to the bargaining groups of two subsidiaries. The plans cover participants and their spouses who retire under an existing pension plan on other than a deferred vested basis and at the time of retirement have also rendered 10 or more years of continuous service irrespective of age. Retiree life insurance is provided to substantially all retirees. The Corporation’s postretirement health care and life insurance plans are not funded or subject to any minimum regulatory funding requirements. Instead, benefit payments are made from the general assets of the Corporation at the time they are due.

Significant Activity

In 2019, the Corporation:

•

Amended the defined benefit pension plan for the hourly employees of the Avonmore Plant to provide for an early retirement option and incentive. Participants selecting the early retirement incentive received an enhanced benefit multiplier, which increased employee benefit obligations by $472 and expense of $236.

•

Recognized special termination benefits expense of $3,694 and a curtailment loss of $1,641 for shutdown benefits provided by the defined benefit pension plan document covering the hourly employees of ANR and as a result of negotiations. The special termination benefits expense and curtailment loss increased employee benefit obligations by similar amounts.

•

Recognized a curtailment gain of $7,639, principally resulting from the accelerated amortization of prior service credits, and reduced employee benefit obligations by $478 for the other postretirement benefit plan in connection with the sale of the Avonmore Plant and the completion of manufacturing activities at ANR.

•

Amended retiree health benefits provided by one of its other postretirement benefit plans to a stipend and reimbursement plan reducing employee benefit obligations by $4,632 and resulting in a curtailment gain of $15.

In 2018, the Corporation:

•

Offered a temporary early retirement incentive program to full-time salaried participants at certain locations that either met the eligibility requirements for an unreduced pension or attained age 55 and had 3.5 years of service under the plan. Participants selecting the early retirement incentive receive an unreduced pension, a lump sum payment ranging between $10 and $25 dependent upon the participant’s combined age and years of service, and one year of health insurance benefits. The early retirement incentive program increased employee benefit obligations and associated expense by $1,476 and is recorded as a special termination benefit

•

Ratified one of its collective bargaining agreements whereby employee participation in a domestic defined benefit pension plan was frozen effective June 1, 2018. Benefit accruals were replaced with employer contributions to the defined contribution plan equaling a non-elective contribution of 3% of compensation and a matching contribution of up to 4% of compensation. The plan freeze resulted in remeasurement of the liability, reducing the liability by $1,726, and a curtailment loss of $21.

Actuarial losses (gains) were comprised of the following components:

	U.S. Pension Benefits					Foreign Pension Benefits					Other Postretirement Benefits
	2019		2018			2019		2018			2019		2018
Changes in assumptions	$	27,380	$	(16,642	)	$	6,277	$	(5,298	)	$	1,116	$	(914	)
GMP equalization		0		0			0		982			0		0
Other		295		(420	)		831		(1,446	)		134		(229	)
Total actuarial losses (gains)	$	27,675	$	(17,062	)	$	7,108	$	(5,762	)	$	1,250	$	(1,143	)

Changes in actuarial assumptions principally include the effect of changes in discount rates and mortality tables which are used to estimate plan liabilities. A 1/4 percentage point decrease in the discount rate would increase projected and accumulated benefit obligations by approximately $8,700. Conversely, a 1/4 percentage point increase in the discount rate would decrease projected and accumulated benefit obligations by approximately $8,700. It is not possible to quantify the effects of future changes to mortality tables.

In 2018, the High Court of Justice in the United Kingdom issued a ruling requiring equalization of benefits for participants under U.K. defined benefit pension plans. The inequities arose from statutory differences related to Guaranteed Minimum Pension (GMP) benefits that are included in U.K. defined benefit pension plans. The impact of the GMP equalization for the UES-UK defined benefit pension plan approximated $982, which was recognized as a prior service cost and will be amortized over the average remaining lifetime of the participants, or approximately 25 years at December 31, 2019.

Reconciliations

The following table provides a reconciliation of projected benefit obligations (“PBO”), plan assets and the funded status of the plans for the Corporation’s defined benefit plans calculated using a measurement date as of the end of the respective years.

	U.S. Pension Benefits^(a)						Foreign Pension Benefits^(b)						Other Postretirement Benefits
	2019			2018			2019			2018			2019			2018
Change in projected benefit obligations:
PBO at January 1	$	233,790		$	254,976		$	54,337		$	64,613		$	15,810		$	16,979
Service cost		633			1,225			444			477			286			457
Interest cost		9,018			8,473			1,399			1,391			390			494
Plan amendments		472			0			0			0			(4,632	)		0
Special termination benefits		3,694			1,350			0			0			(478	)		126
Plan curtailments		1,458			(1,726	)		0			0			0			0
Foreign currency exchange rate changes		0			0			1,586			(3,434	)		0			0
Actuarial losses (gains)		27,675			(17,062	)		7,108			(5,762	)		1,250			(1,143	)
Participant contributions		0			0			0			0			99			104
Benefits paid from plan assets		(14,435	)		(13,043	)		(1,879	)		(2,282	)		0			0
Benefits paid by the Corporation		(403	)		(403	)		(656	)		(666	)		(1,327	)		(1,207	)
PBO at December 31	$	261,902		$	233,790		$	62,339		$	54,337		$	11,398		$	15,810

Change in plan assets:
Fair value of plan assets at January 1	$	182,541		$	199,138		$	49,651		$	56,419		$	0		$	0
Actual return on plan assets		26,304			(4,765	)		8,164			(2,477	)		0			0
Foreign currency exchange rate changes		0			0			1,964			(2,991	)		0			0
Corporate contributions		1,660			1,614			656			1,648			1,228			1,103
Participant contributions		0			0			0			0			99			104
Gross benefits paid		(14,838	)		(13,446	)		(2,535	)		(2,948	)		(1,327	)		(1,207	)
Fair value of plan assets at December 31	$	195,667		$	182,541		$	57,900		$	49,651		$	0		$	0

Funded status of the plans:
Fair value of plan assets	$	195,667		$	182,541		$	57,900		$	49,651		$	0		$	0
Less benefit obligations		261,902			233,790			62,339			54,337			11,398			15,810
Funded status at December 31	$	(66,235	)	$	(51,249	)	$	(4,439	)	$	(4,686	)	$	(11,398	)	$	(15,810	)

(a)	Includes the nonqualified defined benefit pension plan.

(b)	Includes the overfunded U.K. defined benefit pension plan and two smaller underfunded defined benefit pension plans.

The following table provides a summary of amounts recognized in the consolidated balance sheets.

	U.S. Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
	2019			2018			2019			2018			2019			2018
Employee benefit obligations:
Prepaid pensions^(a)	$	0		$	0		$	3,062		$	2,192		$	0		$	0
Accrued payrolls and employee benefits^(b)		(464	)		(436	)		0			0			(1,305	)		(1,395	)
Employee benefit obligations^(c)		(65,771	)		(50,813	)		(7,501	)		(6,878	)		(10,093	)		(14,415	)
Total employee benefit obligations	$	(66,235	)	$	(51,249	)	$	(4,439	)	$	(4,686	)	$	(11,398	)	$	(15,810	)

Accumulated other comprehensive loss:^(d)
Net actuarial loss (gain)	$	57,883		$	45,041		$	19,673		$	22,149		$	(538	)	$	(2,123	)
Prior service cost (credit)		79			91			(7,371	)		(7,402	)		(7,850	)		(12,202	)
Total accumulated other comprehensive loss	$	57,962		$	45,132		$	12,302		$	14,747		$	(8,388	)	$	(14,325	)

(a)	Represents the overfunded U.K. defined benefit pension plan which is recorded as a noncurrent asset in the consolidated balance sheet.

(b)	Recorded as a current liability in the consolidated balance sheet.

(c)	Recorded as a noncurrent liability in the consolidated balance sheet.

(d)	Amounts are pre-tax.

Estimated benefit payments for subsequent years are as follows:

	U.S. Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits
2020	$	16,041	$	1,898	$	1,319
2021		15,878		1,947		1,038
2022		15,945		1,995		997
2023		15,947		1,820		984
2024		15,863		2,588		962
2025-2029		76,016		12,456		3,183
Total benefit payments	$	155,690	$	22,704	$	8,483

Investment Policies and Strategies

The investment policies and strategies are determined and monitored by the Board of Directors for the U.S. pension plans and by the Trustees (as appointed by UES-UK and the employees of UES-UK) for the UES-UK pension plan, each of whom employ their own investment managers to manage the plan’s assets in accordance with the policy guidelines. The U.S defined benefit pension plans follow a glide-path strategy whereby target asset allocations are rebalanced based on projected payment obligations and the funded status of the plans. Pension assets of the UES-UK plan historically have been invested with the objective of maximizing long-term returns while minimizing material losses to meet future benefit obligations as they become due. In 2019, the Trustees revised its investment strategy with the objective of the plan reaching self-sufficiency in a three-to-five-year period, without additional corporate contributions, and adopted a liability-matching portfolio whereby a higher percentage of plan assets are invested in fixed-income securities.

Attempts to minimize risk include allowing temporary changes to the allocation mix in response to market conditions, diversifying investments among asset categories (e.g., equity securities, fixed-income securities, alternative investments, cash and cash equivalents) and within these asset categories (e.g., economic sector, industry, geographic distribution, size) and consulting with independent financial and legal counsels to assure that the investments and their expected returns and risks are consistent with the goals of the Board of Directors or Trustees.

Investments in equity securities are primarily in common stocks of publicly traded U.S. and international companies across a broad spectrum of industry sectors. Investments in fixed-income securities are principally A-rated or better bonds with maturities of less than ten years, preferred stocks and convertible bonds. Investments in equity and fixed-income securities are either direct or through designated mutual funds. The Corporation believes there are no significant concentrations of risk associated with the plans’ assets. With respect to the U.S. pension plans, the following investments are prohibited unless otherwise approved by the Board of Directors: stock of the Corporation, futures and options except for hedging purposes, unregistered or restricted stock, warrants, margin trading, short-selling, real estate excluding public or real estate partnerships, and commodities including art, jewelry and gold. The UES-UK pension plan invests in specific funds. Any investments other than those specifically identified would be considered prohibited.

The following table summarizes target asset allocations (within +/-5% considered acceptable) and major asset categories. Certain investments are classified differently for target asset allocation purposes and external reporting purposes. In the latter part of 2018, the Corporation changed investment managers for one of its domestic defined benefit pension plans; accordingly, at December 31, 2018, there was temporarily a higher amount in cash and cash equivalents. The Corporation intends to continue to liquidate its alternative investments to provide additional flexibility with investment allocation.

	U.S. Pension Benefits									Foreign Pension Benefits
	Target Allocation			Percentage of Plan Assets						Target Allocation			Percentage of Plan Assets
	Dec. 31, 2019			2019			2018			Dec. 31, 2019			2019			2018
Equity Securities		54	%		45	%		25	%		14	%		14	%		50	%
Fixed-Income Securities		43	%		42	%		45	%		75	%		75	%		35	%
Alternative Investments		0	%		10	%		10	%		11	%		11	%		15	%
Other (primarily cash and cash equivalents)		3	%		3	%		20	%		0	%		0	%		0	%

Fair Value Measurement of Plan Assets

Equity securities, exchange-traded funds and mutual funds are actively traded on exchanges and price quotes for these investments are readily available. Similarly, fixed-income securities and mutual funds consist of debt securities of U.S. and U.K. corporations and governments where price quotes for these investments are readily available. Commingled funds are not traded publicly, but the underlying assets (such as stocks and bonds) held in these funds are traded on active markets and the prices for the underlying assets are readily observable. For securities not actively traded, the fair value may be based on third-party appraisals, discounted cash flow analysis, benchmark yields and inputs that are currently observable in markets for similar securities.

Investment Strategies

The significant investment strategies of the various funds are summarized below.

Fund	Investment Strategy	Primary Investment Objective
Temporary Investment Funds	Invests primarily in a diversified portfolio of investment grade money market instruments.	Achieve a market level of current income while maintaining stability of principal and liquidity.
Various Equity Funds	Each fund maintains a diversified holding in common stock of applicable companies (e.g., common stock of small capitalization companies if a small-cap fund, common stock of medium capitalization companies if a mid-cap fund, common stock of foreign corporations if an international fund, etc.).	Outperform the fund’s related index.
Various Fixed Income Funds	Invests primarily in a diversified portfolio of fixed-income securities of varying maturities or in commingled funds which invest in a diversified portfolio of fixed-income securities of varying maturities.	To achieve a rate of return that matches or exceeds the expected growth in plan liabilities.
Alternative Investments – Managed Funds	Invests in equities and equity-like asset classes and strategies (such as public equities, venture capital, private equity, real estate, natural resources and hedged strategies) and fixed-income securities approved by the Board of Directors of the Corporation.	Generate a minimum annual inflation adjusted return of 5% and outperform a traditional 70/30 equities/bond portfolio.
Alternative Investments –Absolute Return Funds	Invests in a diversified portfolio of alternative investment styles and strategies approved by the Trustees of the UES-UK defined benefit pension plan.	Generate long-term capital appreciation while maintaining a low correlation with the traditional global financial markets.

Categories of Plan Assets

Asset categories based on the nature and risks of the U.S. Pension Benefit Plans’ assets as of December 31, 2019, are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total
Equity Securities:
U.S.
Consumer discretionary	$	4,054	$	0	$	0		$	4,054
Consumer staples		3,368		0		0			3,368
Energy		1,405		0		0			1,405
Financial		3,612		0		0			3,612
Healthcare		6,952		0		0			6,952
Industrials		6,941		0		0			6,941
Information technology		7,443		0		0			7,443
Materials		844		0		0			844
Mutual funds		51,259		0		0			51,259
Real estate		272		0		0			272
Telecommunications		2,994		0		0			2,994
Utilities		516		0		0			516
Total Equity Securities		89,660		0		0			89,660
Fixed-Income Securities:
Corporate bonds		0		45,289		0			45,289
Treasury bonds		15,751		0		0			15,751
Agency bonds		0		10,752		0			10,752
Mutual funds		7,802		0		0			7,802
Total Fixed-Income Securities		23,553		56,041		0			79,594
Alternative Investments:
Managed funds^(a)		0		0		19,341			19,341
Total Alternative Investments		0		0		19,341			19,341
Other:
Cash and cash equivalents^(b)		7,038		0		0			7,038
Other^(c)		100		0		(66	)		34
Total Other		7,138		0		(66	)		7,072
Total assets	$	120,351	$	56,041	$	19,275		$	195,667

(a)	Includes approximately 81.0% in alternative investments (real assets, commodities and resources, absolute return funds) and 19.0% in cash and cash equivalents.

(b)	Includes investments in temporary funds.

(c)	Includes accrued receivables and pending broker settlements.

Asset categories based on the nature and risks of the U.S. Pension Benefit Plans’ assets as of December 31, 2018, are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity Securities:
U.S.
Consumer discretionary	$	891	$	0	$	0	$	891
Consumer staples		602		0		0		602
Energy		415		0		0		415
Financial		1,075		0		0		1,075
Healthcare		1,718		0		0		1,718
Industrials		780		0		0		780
Information technology		1,632		0		0		1,632
Materials		177		0		0		177
Mutual funds		36,883		0		0		36,883
Telecommunications		560		0		0		560
Utilities		264		0		0		264
Total Equity Securities		44,997		0		0		44,997
Fixed-Income Securities:
Corporate bonds		0		44,786		0		44,786
Treasury bonds		25,605		0		0		25,605
Agency bonds		0		10,334		0		10,334
Total Fixed-Income Securities		25,605		55,120		0		80,725
Alternative Investments:
Managed funds^(a)		0		0		23,673		23,673
Total Alternative Investments		0		0		23,673		23,673
Other:
Cash and cash equivalents^(b)		33,146		0		0		33,146
Total Other		33,146		0		0		33,146
Total assets	$	103,748	$	55,120	$	23,673	$	182,541

(a)	Includes approximately 74.0% in alternative investments (real assets, commodities and resources, absolute return funds) and 26.0% in cash and cash equivalents.

(b)	Includes investments in temporary funds.

Asset categories based on the nature and risks of the Foreign Pension Benefit Plan’s assets as of December 31, 2019, are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity Securities:
Commingled funds (U.K.)	$	0	$	4,874	$	0	$	4,874
Commingled funds (International)		0		3,291		0		3,291
Total Equity Securities		0		8,165		0		8,165
Fixed-Income Securities:
Commingled funds (U.K.)		0		43,168		0		43,168
Alternative Investments:
Absolute return funds		0		0		6,495		6,495
Cash and cash equivalents		72		0		0		72
Total assets	$	72	$	51,333	$	6,495	$	57,900

Asset categories based on the nature and risks of the Foreign Pension Benefit Plan’s assets as of December 31, 2018, are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity Securities:
Commingled funds (U.K.)	$	0	$	3,949	$	0	$	3,949
Commingled funds (International)		0		20,645		0		20,645
Total Equity Securities		0		24,594		0		24,594
Fixed-Income Securities:
Commingled funds (U.K.)		0		17,332		0		17,332
Alternative Investments:
Absolute return funds		0		0		7,569		7,569
Cash and cash equivalents		156		0		0		156
Total assets	$	156	$	41,926	$	7,569	$	49,651

The table below sets forth a summary of changes in the fair value of the Level 3 plan assets for the U.S. and foreign pension benefits plans for the year ended December 31, 2019, and 2018.

	U.S. Pension Benefits						Foreign Pension Benefits
	2019			2018			2019			2018
Fair value as of January 1	$	23,673		$	49,838		$	7,569		$	9,637
Withdrawals		(4,921	)		(26,131	)		(1,791	)		(1,037	)
Realized gains (losses)		1,445			9,061			(701	)		(436	)
Change in net unrealized (losses) gains		(856	)		(9,095	)		1,189			(98	)
Other, primarily impact from changes in foreign currency exchange rates		0			0			229			(497	)
Fair value as of December 31	$	19,341		$	23,673		$	6,495		$	7,569

Net Periodic Pension and Other Postretirement Benefit Costs

The actual return on the fair value of plan assets is included in determining the funded status of the plans. In determining net periodic pension benefit costs, the expected long-term rate of return on the market-related value of plan assets is used. Differences between the actual return on plan assets and the expected long-term rate of return on plan assets are classified as part of unrecognized actuarial gains or losses and are recorded as a component of accumulated other comprehensive loss on the consolidated balance sheet. When these gains or losses exceed 10% of the greater of the projected benefit obligation or the market-related value of plan assets, they are amortized to net periodic pension and other postretirement benefit costs over the average remaining service period or life expectancy of the employees expected to receive benefits under the plans. When the gains or losses are less than 10% of the greater of the projected benefit obligation or the market-related value of plan assets, they are included in net periodic pension and other postretirement benefit costs indirectly as a result of lower/higher interest costs arising from a decrease/increase in the projected benefit obligation.

Net periodic pension and other postretirement benefit costs include the following components for each of the years.

	U.S. Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
	2019			2018			2019			2018			2019			2018
Service cost	$	633		$	1,225		$	444		$	477		$	286		$	457
Interest cost		9,018			8,473			1,399			1,391			390			494
Expected return on plan assets		(12,623	)		(13,282	)		(2,321	)		(2,580	)		0			0
Amortization of:
Prior service cost (credit)		64			44			(284	)		(336	)		(1,804	)		(1,607	)
Actuarial loss (gain)		1,153			1,471			669			727			(336	)		(231	)
Effect of plan amendment		236			0			0			0			0			0
Special termination benefits		3,694			1,350			0			0			0			126
Curtailment loss (gain)		1,641			21			0			0			(7,654	)		0
Total net periodic pension and other postretirement benefit costs	$	3,816		$	(698	)	$	(93	)	$	(321	)	$	(9,118	)	$	(761	)

Assumptions

Assumptions are reviewed on an annual basis. The expected long-term rate of return on plan assets is an estimate of average rates of earnings expected to be earned on funds invested or to be invested to provide for the benefits included in the projected benefit obligation. Since these benefits will be paid over many years, the expected long-term rate of return is reflective of current investment returns and investment returns over a longer period. Consideration is also given to target and actual asset allocations, inflation and real risk-free return. The discount rates used in determining future pension obligations and other postretirement benefits for each of the plans are based on rates of return on high-quality fixed-income investments currently available and expected to be available during the period to maturity of the pension and other postretirement benefits. High-quality fixed-income investments are defined as those investments which have received one of the two highest ratings given by a recognized rating agency with maturities of 10+ years. Assumptions about wage increases are not relevant since substantially all the benefits available under the defined benefit pension plans are either frozen or based on a multiplier, versus wages.

The discount rates used to determine the benefit obligations as of December 31, 2019, and 2018, are summarized below.

U.S. Pension

Benefits

Foreign Pension

Benefits