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Retirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2019
Changes in Benefit Obligations and Plan Assets as Well as Funded Status of Retirement Plans
The changes in benefit obligations and plan assets as well as the funded status of our retirement plans at December 31 were as follows:
 
Pension Benefits
 
Other
Postretirement Benefits
 
2019
 
2018
 
2019
 
2018
 
(Dollars in thousands)
Change in benefit obligation
 
 
 
 
 
 
 
Obligation at beginning of year
$
751,625

 
$
808,149

 
$
19,186

 
$
20,939

Service cost
12,505

 
14,238

 
80

 
99

Interest cost
28,316

 
25,316

 
759

 
640

Actuarial losses (gains)
103,918

 
(53,044
)
 
3,477

 
(2,031
)
Plan amendments
528

 
—

 
—

 
1,210

Benefits paid
(39,508
)
 
(38,335
)
 
(1,888
)
 
(1,764
)
Participants’ contributions
—

 
—

 
104

 
93

Foreign currency exchange rate changes
(1,875
)
 
(4,699
)
 
—

 
—

Obligation at end of year
855,509

 
751,625

 
21,718

 
19,186

Change in plan assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
732,502

 
825,806

 
—

 
—

Actual return on plan assets
174,014

 
(57,082
)
 
—

 
—

Employer contributions
2,062

 
2,113

 
1,784

 
1,671

Participants’ contributions
—

 
—

 
104

 
93

Benefits paid
(39,508
)
 
(38,335
)
 
(1,888
)
 
(1,764
)
Fair value of plan assets at end of year
869,070

 
732,502

 
—

 
—

Funded status
$
13,561

 
$
(19,123
)
 
$
(21,718
)
 
$
(19,186
)
 
Actuarial losses (gains) related to pension benefits were primarily the result of changes in discount rates used to calculate projected benefit obligations.
 
Pension Benefits
 
Other
Postretirement Benefits
 
2019
 
2018
 
2019
 
2018
 
(Dollars in thousands)
Amounts recognized in the consolidated
balance sheets
 
 
 
 
 
 
 
Non-current assets
$
122,552

 
$
76,443

 
$
—

 
$
—

Current liabilities
(2,225
)
 
(2,174
)
 
(1,794
)
 
(1,924
)
Non-current liabilities
(106,766
)
 
(93,392
)
 
(19,924
)
 
(17,262
)
Net amount recognized
$
13,561

 
$
(19,123
)
 
$
(21,718
)
 
$
(19,186
)
Amounts recognized in accumulated other
comprehensive loss (income)
 
 
 
 
 
 
 
Net actuarial loss (gain)
$
193,061

 
$
218,867

 
$
(3,123
)
 
$
(7,087
)
Prior service cost (credit)
1,179

 
765

 
(6,405
)
 
(8,735
)
Net amount recognized
$
194,240

 
$
219,632

 
$
(9,528
)
 
$
(15,822
)
Benefits Expected to Be Paid from Pension and Other Postretirement Benefit Plans, Which Reflect Future Years of Services and Medicare Subsidy Expected to Be Received
The benefits expected to be paid from our pension and other postretirement benefit plans, which reflect future years of service, are as follows (dollars in thousands):
 
Pension
Benefits
 
Other
Postretirement
Benefits
2020
$
42,916

 
$
1,798

2021
42,716

 
1,671

2022
43,807

 
1,527

2023
44,882

 
1,466

2024
45,793

 
1,416

2025-2029
237,935

 
6,463

 
$
458,049

 
$
14,341
Components of Net Periodic Benefit Cost
The components of the net periodic benefit credit for each of the years ended December 31 were as follows:
 
 
Pension Benefits
 
Other Postretirement Benefits
 
2019
 
2018
 
2017
 
2019
 
2018
 
2017
 
(Dollars in thousands)
Service cost
$
12,505

 
$
14,238

 
$
13,372

 
$
80

 
$
99

 
$
104

Interest cost
28,316

 
25,316

 
25,501

 
759

 
640

 
692

Expected return on plan assets
(60,567
)
 
(68,575
)
 
(63,010
)
 
—

 
—

 
—

Amortization of prior service cost
(credit)
115

 
173

 
313

 
(2,330
)
 
(1,392
)
 
(3,418
)
Amortization of actuarial losses
(gains)
16,399

 
7,378

 
7,077

 
(488
)
 
(506
)
 
(596
)
Net periodic benefit credit
$
(3,232
)
 
$
(21,470
)
 
$
(16,747
)
 
$
(1,979
)
 
$
(1,159
)
 
$
(3,218
)
Multiemployer Pension Plans Further information on these multiemployer plans for the years ended December 31, 2019, 2018 and 2017 is as follows:
Pension Fund
 
EIN/Pension Plan
Number
 
Pension
Protection
Act Zone
Status
 
 
FIP / RP
Status
Pending /
Implemented
 
Contributions
 
Surcharge
Imposed
2019
 
 
2018
 
 
2019
 
2018
 
2017
 
 
 
 
 
 
 
 
 
 
 
 
 
(Dollars in thousands)
 
 
Central States, Southeast & Southwest Areas Pension Fund (1)
 
36-6044243/001
 
Red
(2) 
 
Red
(2) 
 
Implemented
 
$
1,166

 
$
1,797

 
$
1,873

 
No
United Food & Commercial
Workers — Local 1 Pension Fund (3)
 
16-6144007/001
 
Red
(2) 
 
Red
 
 
Implemented
 
245

 
237

 
232

 
No
IAM National Pension Fund (4)
 
51-6031295/002
 
Red
 
 
Green
 
 
Implemented
 
2,667

 
2,587

 
2,722

 
Yes
All Other
 
 
 
 
 
 
 
 
 
 
 
707

 
671

 
1,596

 
 
Total Contributions
 
 
 
 
 
 
 
 
 
 
 
$
4,785

 
$
5,292

 
$
6,423

 
 

______________________
(1) 
The applicable collective bargaining agreements related to this pension fund expired at various times in 2019. In 2019, we withdrew completely from this pension fund. See Note 4 for further information.
(2) 
Under the Multiemployer Pension Reform Act of 2014, the status of this pension fund was critical and declining, as defined under such Act.
(3) 
The collective bargaining agreement related to this pension fund expires on December 31, 2020.
Weighted Average Asset Allocation for Pension Plans and Target Allocation
The weighted average asset allocation for our pension plans at December 31, 2019 and 2018 and target allocation for 2019 was as follows:
 
Target
Allocation
 
Actual Allocation
 
2019
 
2018
Equity securities—U.S.
49
%
 
47
%
 
47
%
Equity securities—International
9
%
 
10
%
 
10
%
Debt securities
42
%
 
42
%
 
42
%
Cash and cash equivalents
—

 
1
%
 
1
%
 
100
%
 
100
%
 
100
%
Fair Value of Plan Assets by Asset Category
The fair value of our plan assets by asset category consisted of the following at December 31:
 
2019
 
2018
 
(Dollars in thousands)
Equity securities—U.S.
$
414,260

 
$
350,728

Equity securities—International
86,822

 
73,415

Debt securities
362,020

 
304,128

Cash and cash equivalents
5,968

 
4,231

 
$
869,070

 
$
732,502
Benefit Obligation  
Weighted Average Actuarial Assumptions
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine the benefit obligations at December 31:
 
2019
 
2018
Discount rate
3.4
%
 
4.5
%
Expected return on plan assets
8.5
%
 
8.5
%
Rate of compensation increase
2.5
%
 
2.6
%
Health care cost trend rate:
 
 
 
Assumed for next year
6.3
%
 
6.4
%
Ultimate rate
4.3
%
 
4.3
%
Year that the ultimate rate is reached
2035

 
2035
Benefit Costs  
Weighted Average Actuarial Assumptions
Our principal domestic pension and other postretirement benefit plans used the following weighted average actuarial assumptions to determine net periodic benefit credit for the years ended December 31:
 
 
2019
 
2018
 
2017
Discount rate
4.5
%
 
3.8
%
 
4.4
%
Expected return on plan assets
8.5
%
 
8.5
%
 
8.5
%
Rate of compensation increase
2.6
%
 
2.6
%
 
2.8
%
Health care cost trend rate
6.4
%
 
6.2
%
 
6.4
%