Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2017

We expect to contribute approximately $2.1 million to all of our defined benefit pension plans during 2018. Benefit payments to all plan participants out of plan assets are expected to be the equivalent of:

Years ending December 31,	Amount
	(In thousands)
2018	$	3,643
2019		3,629
2020		3,641
2021		3,711
2022		3,708
Next 5 years		17,530

Funded Status of Defined Benefit Plans

The funded status of our defined benefit pension plans is presented in the table below.

	December 31,
	2016			2017
	(In thousands)
Change in projected benefit obligations (PBO):
Benefit obligations at beginning of the year	$	57,086		$	54,261
Interest cost		2,302			2,072
Participant contributions		6			5
Actuarial losses		292			596
Settlement gain		-			(315	)
Change in currency exchange rates		(1,804	)		908
Benefits paid		(3,621	)		(3,549	)
Benefit obligations at end of the year		54,261			53,978
Change in plan assets:
Fair value of plan assets at beginning of the year		44,067			42,268
Actual return on plan assets		3,278			3,726
Employer contributions		565			1,006
Participant contributions		6			5
Change in currency exchange rates		(2,027	)		766
Benefits paid		(3,621	)		(3,549	)
Fair value of plan assets at end of year		42,268			44,222
Funded status	$	(11,993	)	$	(9,756	)
Amounts recognized in the balance sheet:
Noncurrent pension asset	$	1,037		$	2,593
Accrued pension costs:
Current		(156	)		(155	)
Noncurrent		(12,874	)		(12,194	)
Total	$	(11,993	)	$	(9,756	)
Accumulated other comprehensive loss - actuarial losses, net	$	32,514		$	30,435
Total	$	20,521		$	20,679
Accumulated benefit obligations (ABO)	$	54,261		$	53,978

Changes in Other Comprehensive Income

The amounts shown in the table above for actuarial losses (gains) at December 31, 2016 and 2017 have not been recognized as components of our periodic defined benefit pension cost as of those dates. These amounts will be recognized as components of our periodic defined benefit cost in future years. These amounts, net of deferred income taxes, are recognized in our accumulated other comprehensive income (loss) at December 31, 2016 and 2017. We expect that $1.5 million of the unrecognized actuarial losses will be recognized as a component of our periodic defined benefit pension cost in 2018.

The table below details the changes in other comprehensive income during 2015, 2016 and 2017.

	Years ended December 31,
	2015			2016		2017
	(In thousands)
Changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
Net actuarial gain (loss) arising during the year	$	(2,373	)	$	122	$	498
Amortization of unrecognized net actuarial loss		1,340			1,474		1,704

Total	$	(1,033	)	$	1,596	$	2,202

Components of Net Periodic Defined Benefit Cost (Income)

The components of our net periodic defined benefit pension cost are presented in the table below. The amount shown below for the amortization of unrecognized actuarial losses in 2015, 2016 and 2017, net of deferred income taxes, was recognized as a component of our accumulated other comprehensive income (loss) at December 31, 2014, 2015 and 2016, respectively.

	Years ended December 31,
	2015			2016			2017
	(In thousands)
Net periodic pension cost:
Interest cost on PBO	$	2,376		$	2,302		$	2,072
Expected return on plan assets		(3,353	)		(2,911	)		(2,770	)
Recognized actuarial losses		1,340			1,474			1,704
Settlement cost		-			-			87

Total	$	363		$	865		$	1,093

Information Concerning Defined Benefit Pension Plans (Including Certain Plans for Which ABO Exceeds Fair Value of Plan Assets)

Certain information concerning our defined benefit pension plans (including information concerning certain plans for which ABO exceeds the fair value of plan assets as of the indicated date) is presented in the table below.

	December 31,
	2016		2017
	(In thousands)
PBO at end of the year
U.S. plan	$	44,967	$	44,709
U.K. plan		9,294		9,269

Total	$	54,261	$	53,978
Fair value of plan assets at end of the year
U.S. plan	$	31,937	$	32,360
U.K. plan		10,331		11,862

Total	$	42,268	$	44,222
Plans for which the ABO exceeds plan assets:
PBO	$	44,967	$	44,709
ABO		44,967		44,709
Fair value of plan assets		31,937		32,360

Summary of Assumptions Used to Determine Net Benefit Obligation

The weighted-average rate assumptions used in determining the net periodic pension cost for 2015, 2016 and 2017 are presented in the table below. Such weighted-average discount rates were determined using the projected benefit obligations as of the beginning of each year and the weighted-average long-term return on plan assets was determined using the fair value of plan assets as of the beginning of each year.

	Years ended December 31,
Rate	2015			2016			2017
Discount rate		3.8	%		4.0	%		3.7	%
Long-term rate of return on plan assets		7.2	%		7.0	%		6.9	%

Aggregate Fair Value of CMRT Pension Plan Assets by Fair Value Level

The CMRT unit value is determined semi-monthly, and the plans have the ability to redeem all or any portion of their investment in the CMRT at any time based on the most recent semi-monthly valuation. However, the plans do not have the right to individual assets held by the CMRT and the CMRT has the sole discretion in determining how to meet any redemption request. For purposes of our plan asset disclosure, we consider the investment in the CMRT as a Level 2 input because (i) the CMRT value is established semi-monthly and the plans have the right to redeem their investment in the CMRT, in part or in whole, at any time based on the most recent value and (ii) observable inputs from Level 1 or Level 2 (or assets not subject to classification in the fair value hierarchy) were used to value approximately 92% and 93% of the assets of the CMRT at December 31, 2016 and 2017, respectively, as noted below. CMRT assets not subject to classification in the fair value hierarchy consist principally of certain investments measured at net asset value per share in accordance with ASC 820-10.

The aggregate fair value of all of the CMRT assets, including funds of Contran and its other affiliates that also invest in the CMRT, and supplemental asset mix details of the CMRT are as follows:

	December 31,
	2016			2017
CMRT asset value (in millions)	$	637.8		$	672.4
CMRT assets comprised of:
Assets not subject to fair value hierarchy		30	%		31	%
Assets subject to fair value hierarchy:
Level 1		54			54
Level 2		8			8
Level 3		8			7

		100	%		100	%
CMRT asset mix:
Domestic equities, principally publicly traded		31	%		33	%
International equities, principally publicly traded		22			25
Fixed income securities, principally publicly traded		36			31
Privately managed limited partnerships		5			4
Hedge funds		5			5
Other, primarily cash		1			2

		100	%		100	%

The composition of our December 31, 2016 and 2017 pension plan assets by fair value level is shown in the table below.

	Fair Value Measurements
	Total		Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)
	(In thousands)
December 31, 2016:
CMRT	$	31,937	$	-	$	31,937
Other		10,331		10,331		-

Total	$	42,268	$	10,331	$	31,937

December 31, 2017:
CMRT	$	32,360	$	-	$	32,360
Other		11,862		11,862		-

Total	$	44,222	$	11,862	$	32,360

OPEB

Expected Benefit Payments

Postretirement benefits other than pensions - We provide certain health care and life insurance benefits for eligible retired employees. These plans are closed to new participants, and no additional benefits accrue to existing plan participants. The majority of all retirees are required to contribute a portion of the cost of their benefits and certain current and future retirees are eligible for reduced health care benefits at age 65. We have no OPEB plan assets, rather, we fund postretirement benefits as they are incurred, net of any contributions by the retiree. At December 31, 2017, we currently expect to contribute approximately $.4 million to all OPEB plans during 2018. Contribution to our OPEB plans to cover benefit payments expected to be paid to OPEB plan participants are summarized in the table below:

Years ending December 31,	Amount
	(In thousands)
2018	$	367
2019		325
2020		284
2021		247
2022		213
Next 5 years		671

Funded Status of Defined Benefit Plans

The funded status of our OPEB plans is presented in the table below.

	December 31,
	2016			2017
	(In thousands)
Change in accumulated OPEB obligations:
Obligations at beginning of the year	$	3,238		$	2,744
Interest cost		96			78
Actuarial gain		(263	)		(279	)
Net benefits paid		(327	)		(330	)
Obligations at end of the year		2,744			2,213
Fair value of plan assets		-			-
Funded status	$	(2,744	)	$	(2,213	)

Accrued OPEB costs recognized in the balance sheet:
Current	$	(434	)	$	(367	)
Noncurrent		(2,310	)		(1,846	)
Total	$	(2,744	)	$	(2,213	)
Accumulated other comprehensive loss:
Net actuarial losses	$	679		$	616
Total	$	679		$	616

Changes in Other Comprehensive Income

The table below details the changes in other comprehensive income during 2015, 2016 and 2017.

	Years ended December 31,
	2015			2016			2017
	(In thousands)
Changes in benefit obligations recognized in other comprehensive income (loss):
Net actuarial gain (loss) arising during the year	$	336		$	263		$	279
Amortization of unrecognized:
Actuarial gain		(101	)		(152	)		(216	)
Prior service credit		(621	)		(541	)		-

Total	$	(386	)	$	(430	)	$	63

Components of Net Periodic Defined Benefit Cost (Income)

The components of our periodic OPEB cost are presented in the table below. The amounts shown below for the amortization of unrecognized actuarial gains and prior service credit in 2015, 2016 and 2017, net of deferred income taxes, were recognized as components of our accumulated other comprehensive income at December 31, 2014, 2015 and 2016, respectively.

	Years ended December 31,
	2015			2016			2017
	(In thousands)
Net periodic OPEB cost (benefit):
Interest cost	$	108		$	96		$	78
Amortization of actuarial gain		(101	)		(152	)		(216	)
Amortization of prior service credit		(621	)		(541	)		-

Total	$	(614	)	$	(597	)	$	(138	)

Summary of Assumptions Used to Determine Net Benefit Obligation

A summary of our key actuarial assumptions used to determine the net benefit obligation as of December 31, 2016 and 2017 follows:

	2016			2017
Health care inflation:
Initial rate		6.5	%		6.3	%
Ultimate rate		4.5	%		5.0	%
Year of ultimate rate achievement		2021			2021
Discount rate		3.1	%		3.0	%