XML 152 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Pensions and Other Postretirement Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Schedule of Plan Benefit Obligations

The following table sets forth the plan benefit obligations:

 

As of December 31, 2019

As of December 31, 2018

(in thousands)

Pension plans

Other postretirement benefits

Pension plans

Other postretirement benefits

Benefit obligation, beginning of year

$201,450

$51,127

$230,911

$58,531

Service cost

2,543

189

2,723

232

Interest cost

7,216

2,115

7,217

2,024

Plan participants' contributions

243

—

228

—

Actuarial (gain)/loss

22,645

4,686

(10,666)

(6,100)

Benefits paid

(8,404)

(3,782)

(7,814)

(3,473)

Settlements and curtailments

(1,768)

—

(13,807)

—

Plan amendments and other

152

—

534

—

Foreign currency changes

3,134

49

(7,876)

(87)

Benefit obligation, end of year

$227,211

$54,384

$201,450

$51,127

Accumulated benefit obligation

$218,006

$—

$193,870

$—

Weighted average assumptions used to

 

 

 

 

determine benefit obligations, end of year:

 

 

 

 

Discount rate — U.S. plan

3.40%

3.27%

4.41%

4.31%

Discount rate — non-U.S. plans

2.31%

3.05%

2.98%

3.65%

Compensation increase — U.S. plan

—

3.00%

—

3.00%

Compensation increase — non-U.S. plans

2.81%

3.00%

3.02%

3.00%

 

 

Schedule of Plan Assets

The following sets forth information about plan assets:

 

 

As of December 31, 2019

 

As of December 31, 2018

(in thousands)

 

Pension plans

 

Other postretirement benefits

 

Pension plans

 

Other postretirement benefits

Fair value of plan assets, beginning of year

 

$178,942

 

$—

 

$205,586

 

$—

Actual return on plan assets, net of expenses

 

32,367

 

—

 

(8,449)

 

—

Employer contributions

 

4,670

 

3,782

 

10,071

 

3,474

Plan participants' contributions

 

243

 

—

 

228

 

14

Benefits paid

 

(8,404)

 

(3,782)

 

(7,813)

 

(3,488)

Settlements

 

(260)

 

—

 

(13,029)

 

—

Foreign currency changes

 

4,197

 

—

 

(7,652)

 

—

Fair value of plan assets, end of year

 

$211,755

 

$—

 

$178,942

 

$—

Schedule of Funded Status of Plans

The funded status of the plans was as follows:

 

As of December 31, 2019

As of December 31, 2018

(in thousands)

Pension plans

Other postretirement benefits

Pension plans

Other postretirement benefits

Fair value of plan assets

$211,755

$—

$178,942

$—

Benefit obligation

227,211

54,384

201,450

51,127

Funded status

$(15,456)

$(54,384)

$(22,508)

$(51,127)

Accrued benefit cost, end of year

$(15,456)

$(54,384)

$(22,508)

$(51,127)

Amounts recognized in the consolidated balance sheet consist of the following:

 

 

 

Noncurrent asset

$21,337

$—

$14,206

$—

Current liability

(2,155)

(3,808)

(2,124)

(3,890)

Noncurrent liability

(34,638)

(50,576)

(34,590)

(47,237)

Net amount recognized

$(15,456)

$(54,384)

$(22,508)

$(51,127)

Amounts recognized in accumulated other comprehensive income consist of:

 

 

 

 

Net actuarial loss

$63,240

$28,119

$68,110

$25,660

Prior service cost/(credit)

639

(17,434)

1,020

(21,922)

Net amount recognized

$63,879

$10,685

$69,130

$3,738

 

 

Schedule of composition of the net pension plan funded status

The composition of the net pension plan funded status as of December 31, 2019 was as follows:

(in thousands)

U.S. plan

Non-U.S. plans

Total

Pension plans with pension assets

$(660)

$17,546

$16,886

Pension plans without pension assets

(6,799)

(25,543)

(32,342)

Total

$(7,459)

$(7,997)

$(15,456)

 

Schedule of Net Periodic Benefit Plan Cost

The composition of the net periodic benefit plan cost for the years ended December 31, 2019, 2018, and 2017, was as follows:

 

Pension plans

Other postretirement benefits

(in thousands)

2019

2018

2017

2019

2018

2017

Components of net periodic benefit cost:

 

 

 

 

 

 

Service cost

$2,543

$2,723

$2,720

$189

$232

$244

Interest cost

7,216

7,217

7,476

2,114

2,024

2,214

Expected return on assets

(8,285)

(8,873)

(8,152)

—

—

—

Amortization of prior service cost/(credit)

68

34

36

(4,488)

(4,488)

(4,488)

Amortization of net actuarial loss

2,253

2,219

2,628

2,227

2,956

2,811

Settlement

(16)

2,246

—

—

—

—

Curtailment (gain)/loss

466

(752)

—

—

—

—

Net periodic benefit cost

$4,245

$4,814

$4,708

$42

$724

$781

 

Weighted average assumptions used to determine net cost:

 

 

 

 

 

Discount rate — U.S. plan

4.41%

3.70%

4.20%

4.31%

3.59%

4.00%

Discount rate — non-U.S. plans

2.98%

2.83%

2.98%

3.65%

3.40%

3.70%

Expected return on plan assets — U.S. plan

4.57%

3.87%

4.40%

—

—

—

Expected return on plan assets — non-U.S. plans

4.45%

4.83%

4.46%

—

—

—

Rate of compensation increase — U.S. plan

—

—

—

3.00%

—

—

Rate of compensation increase — non-U.S. plans

3.02%

3.04%

3.29%

3.00%

3.00%

3.00%

 

Schedule of Pretax (gains)/Losses Recognized in Other Comprehensive Income

Pretax (gains)/losses on plan assets and benefit obligations recognized in other comprehensive income for the years ended December 31, 2019, 2018, and 2017, was as follows:

 

Pension plans

Other postretirement benefits

(in thousands)

2019

2018

2017

2019

2018

2017

Settlements/curtailments

$(450)

$(1,494)

$—

$—

$—

$—

Asset/liability loss/(gain)

(2,794)

6,411

(4,408)

4,685

(6,100)

2,743

Amortization of actuarial (loss)

(2,253)

(2,219)

(2,628)

(2,227)

(2,956)

(2,811)

Amortization of prior service cost/(credit)

(68)

(34)

(36)

4,488

4,488

4,488

Currency impact

316

(1,389)

1,930

—

—

2

Cost/(benefit) in Other comprehensive income

$(5,249)

$1,275

$(5,142)

$6,946

$(4,568)

$4,422

Schedule of Amounts That Will Be Amortized from Accumulated Other Comprehensive Income

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2020 are as follows:

(in thousands)

Total pension

Total

postretirement benefits

Actuarial loss

$2,409

$2,592

Prior service cost/(benefit)

32

(4,488)

Total

$2,441

$(1,896)

 

Schedule of Fair Value of Plan Assets

The following tables present plan assets as of December 31, 2019, and 2018, using the fair-value hierarchy, which has three levels based on the reliability of inputs used, as described in Note 17. Certain investments that are measured at fair value using net asset value (NAV) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table above. As of December 31, 2019 and 2018, there were no investments expected to be sold at a value materially different than NAV.

71

ALBANY INTERNATIONAL CORP.

Notes to Consolidated Financial Statements

4. Pensions and Other Postretirement Benefit Plans — (continued)

 

 

Assets at Fair Value as of December 31, 2019

 

 

(in thousands)

 

Quoted prices in active markets Level 1

 

Significant other observable inputs Level 2

 

Significant unobservable inputs Level 3

 

Total

Common Stocks and equity funds

 

$216

 

$—

 

$—

 

$216

Debt securities

 

—

 

92,721

 

—

 

92,721

Insurance contracts

 

—

 

—

 

3,244

 

3,244

Cash and short-term investments

 

2,793

 

—

 

—

 

2,793

Total investments in the fair value hierarchy

 

$3,009

 

$92,721

 

$3,244

 

98,974

Investments at net asset value:

 

 

 

 

 

 

 

 

Common Stocks and equity funds

 

 

 

 

 

 

 

56,846

Fixed income funds

 

 

 

 

 

 

 

52,751

Limited partnerships

 

 

 

 

 

 

 

3,184

Total plan assets

 

 

 

 

 

 

 

$211,755

Assets at Fair Value as of December 31, 2018

(in thousands)

Quoted prices in active markets Level 1

Significant other observable inputs Level 2

Significant unobservable inputs Level 3

Total

Common Stocks and equity funds

$284

$—

$—

$284

Debt securities

—

78,523

—

78,523

Insurance contracts

—

—

2,890

2,890

Cash and short-term investments

3,016

—

—

3,016

Total investments in the fair value hierarchy

$3,300

$78,523

$2,890

84,713

Investments at net asset value:

Common Stocks and equity funds

 

 

 

42,852

Fixed income funds

 

 

 

47,534

Limited partnerships

 

 

 

3,843

Total plan assets

 

 

 

$178,942

 

Reconciliation of Level 3 Assets

The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2019 and 2018:

(in thousands)

December 31, 2018

Net realized gains

Net unrealized gains

Net purchases, issuances and settlements

Net transfers (out of) Level 3

December 31, 2019

Insurance contracts -

 

 

 

 

 

 

total level 3 assets

$2,890

$—

$20

$334

$—

$3,244

(in thousands)

December 31, 2017

Net realized gains

Net unrealized gains

Net purchases, issuances and settlements

Net transfers (out of) Level 3

December 31, 2018

Insurance contracts -

 

 

 

 

 

total level 3 assets

$2,407

$—

$(45)

$528

$—

$2,890

 

Schedule of Asset Allocation

The asset allocation for the Company’s U.S. and non-U.S. pension plans for 2019 and 2018, and the target allocation, by asset category, are as follows:

 

United States Plan

 

Non-U.S. Plans

 

 

Target

 

Percentage of plan assets at plan measurement date

 

Target

 

Percentage of plan assets at plan measurement date

Asset category

 

Allocation

 

2019

 

2018

 

Allocation

 

2019

 

2018

Equity securities

 

—%

 

1%

 

1%

 

13%

 

13%

 

19%

Debt securities

 

100%

 

96%

 

94%

 

82%

 

80%

 

74%

Real estate

 

—%

 

2%

 

4%

 

1%

 

1%

 

1%

Other(1)

 

—%

 

1%

 

1%

 

4%

 

6%

 

6%

 

 

100%

 

100%

 

100%

 

100%

 

100%

 

100%

(1)

Other includes hedged equity and absolute return strategies, and private equity. The Company has procedures to closely monitor the performance of these investments and compares asset valuations to audited financial statements of the funds.

The targeted plan asset allocation is based on an analysis of the actuarial liabilities, a review of viable asset classes, and an analysis of the expected rate of return, risk, and other investment characteristics of various investment asset classes.

Schedule of Pension Plans with Projected Benefit Obligation in Excess of Plan Assets and for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets

At the end of 2019 and 2018, the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with projected benefit obligation and an accumulated benefit obligation in excess of plan assets were as follows:

Plans with projected

benefit obligation in

excess of plan assets

(in thousands)

2019

2018

Projected benefit obligation

$137,123

$123,261

Fair value of plan assets

100,330

86,547

 

Plans with accumulated

benefit obligation in

excess of plan assets

(in thousands)

2019

2018

Accumulated benefit obligation

$134,737

$120,869

Fair value of plan assets

100,330

86,062

 

Schedule of Expected Cash Flows

Information about expected cash flows for the pension and other benefit obligations are as follows:

(in thousands)

Pension plans

Other postretirement benefits

Expected employer contributions and direct employer payments in the next fiscal year

$2,446

$3,808

Expected benefit payments

2020

7,905

3,808

2021

8,537

3,738

2022

8,755

3,683

2023

9,068

3,631

2024

9,531

3,555

2025-2029

53,652

16,569