XML 83 R33.htm IDEA: XBRL DOCUMENT v3.6.0.2
Pension, Health Care and Postretirement Benefits Other Than Pensions (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Components of the net periodic benefit cost and cumulative other comprehensive loss related to pensions
The following table summarizes the components of the net pension costs and Cumulative other comprehensive loss related to the defined benefit pension plans:
 
Domestic
Defined Benefit Pension Plans
 
Foreign
Defined Benefit Pension Plans
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Net pension costs (credits):
 
 
 
 
 
 
 
 
 
 
 
Service costs
$
22,291

 
$
21,120

 
$
21,342

 
$
4,225

 
$
5,071

 
$
5,261

Interest costs
26,498

 
24,535

 
26,266

 
7,441

 
8,719

 
10,422

Expected returns on plan assets
(50,197
)
 
(52,095
)
 
(51,293
)
 
(6,915
)
 
(9,296
)
 
(10,836
)
Amortization of prior service costs
1,205

 
1,310

 
1,837

 
 
 
 
 
 
Amortization of actuarial losses
4,532

 
1,962

 
 
 
1,540

 
1,910

 
1,413

Ongoing pension costs (credits)
4,329

 
(3,168
)
 
(1,848
)
 
6,291

 
6,404

 
6,260

Settlement costs (credits)
 
 
 
 
 
 
4,231

 
3,255

 
(3,422
)
Net pension costs (credits)
4,329

 
(3,168
)
 
(1,848
)
 
10,522

 
9,659

 
2,838

Other changes in plan assets and projected benefit
obligation recognized in Cumulative other comprehensive loss (before taxes):
 
 
 
 
 
 
 
 
 
 
 
Net actuarial losses arising during the year
18,926

 
15,359

 
47,785

 
17,030

 
1,907

 
21,792

Prior service costs arising during the year
2,081

 
 
 
2,242

 
 
 
 
 
 
Amortization of actuarial losses
(4,532
)
 
(1,962
)
 
 
 
(1,540
)
 
(1,910
)
 
(1,413
)
Amortization of prior service costs
(1,205
)
 
(1,310
)
 
(1,837
)
 
 
 
 
 
 
Exchange rate loss recognized during year
 
 
 
 
 
 
(11,627
)
 
(5,830
)
 
(7,988
)
Total recognized in Cumulative other
comprehensive loss
15,270

 
12,087

 
48,190

 
3,863

 
(5,833
)
 
12,391

Total recognized in net pension costs (credits)
and Cumulative other comprehensive loss
$
19,599

 
$
8,919

 
$
46,342

 
$
14,385

 
$
3,826

 
$
15,229

 
 
 
 
 
 
 
 
 
 
 
 
Fair value of the defined benefit pension plan assets
The following tables summarize the fair value of the defined benefit pension plan assets at December 31, 2016, 2015 and 2014. The presentation is in accordance with the Retirement Benefits Topic of the ASC, as updated by ASU No. 2015-07 (see Note 1).
 
Fair value at December 31, 2016
 
Quoted Prices in 
Active Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable 
Inputs
(Level 2)
 
Significant
Unobservable 
Inputs
(Level 3)
Investments at fair value:
 
 
 
 
 
 
 
Equity investments (1)
$
393,045

 
$
321,152

 
$
71,893

 
 
Fixed income investments (2)
294,103

 
144,668

 
149,435

 
 
Other assets (3)
14,643

 
 
 
14,643

 
 
Total investments in fair value hierarchy
701,791

 
$
465,820

 
$
235,971

 

Investments measured at NAV or its equivalent (4)
310,230

 
 
 
 
 
 
Investments at fair value
$
1,012,021

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value at December 31, 2015
 
Quoted Prices in
Active Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable 
Inputs
(Level 2)
 
Significant
Unobservable Inputs
(Level 3)
Investments at fair value:
 
 
 
 
 
 
 
Equity investments (1)
$
435,690

 
$
372,033

 
$
63,657

 
 
Fixed income investments (2)
290,470

 
141,448

 
149,022

 
 
Other assets (3)
16,361

 
 
 
16,361

 
 
Total investments in fair value hierarchy
742,521

 
$
513,481

 
$
229,040

 

Investments measured at NAV or its equivalent (4)
278,423

 
 
 
 
 
 
Investments at fair value
$
1,020,944

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Fair value at December 31, 2014
 
Quoted Prices in
Active Markets for Identical
Assets
(Level 1)
 
Significant Other
Observable 
Inputs
(Level 2)
 
Significant
Unobservable Inputs
(Level 3)
Investments at fair value:
 
 
 
 
 
 
 
Equity investments (1)
$
487,357

 
$
404,542

 
$
82,815

 
 
Fixed income investments (2)
285,042

 
141,529

 
143,513

 
 
Other assets (3)
28,435

 
 
 
28,435

 
 
Total investments in fair value hierarchy
800,834

 
$
546,071

 
$
254,763

 

Investments measured at NAV or its equivalent (4)
282,882

 
 
 
 
 
 
Investments at fair value
$
1,083,716

 
 
 
 
 
 


(1) 
This category includes actively managed equity assets that track primarily to the S&P 500.
(2) 
This category includes government and corporate bonds that track primarily to the Barclays Capital Aggregate Bond Index.
(3) 
This category includes real estate and pooled investment funds.
(4) 
This category includes pooled investment funds and private equity funds that are measured at NAV or its equivalent using the practical expedient. Therefore, these investments are not classified in the fair value hierarchy.
Obligations, plan assets and assumption used for defined benefit pension plan
The following table summarizes the obligations, plan assets and assumptions used for the defined benefit pension plans, which are all measured as of December 31:
 
Domestic
Defined Benefit Pension Plans
 
Foreign
Defined Benefit Pension Plans
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Accumulated benefit obligations
at end of year
$
630,159

 
$
621,873

 
$
648,480

 
$
172,047

 
$
172,426

 
$
203,610

Projected benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
Balances at beginning of year
$
624,791

 
$
653,338

 
$
582,036

 
$
201,854

 
$
234,524

 
$
222,996

Service costs
22,291

 
21,120

 
21,342

 
4,225

 
5,071

 
5,261

Interest costs
26,498

 
24,535

 
26,266

 
7,441

 
8,719

 
10,422

Actuarial losses (gains)
8,132

 
(40,602
)
 
68,748

 
43,736

 
(3,045
)
 
32,551

Contributions and other
2,081

 
 
 
2,242

 
947

 
1,072

 
(6,692
)
Settlements
 
 
 
 
 
 
(14,862
)
 
(18,707
)
 
(3,370
)
Effect of foreign exchange
 
 
 
 
 
 
(30,360
)
 
(17,211
)
 
(18,987
)
Benefits paid
(50,996
)
 
(33,600
)
 
(47,296
)
 
(6,108
)
 
(8,569
)
 
(7,657
)
Balances at end of year
632,797

 
624,791

 
653,338

 
206,873

 
201,854

 
234,524

Plan assets:
 
 
 
 
 
 
 
 
 
 
 
Balances at beginning of year
858,605

 
896,071

 
870,386

 
162,339

 
187,645

 
184,963

Actual returns on plan assets
39,404

 
(3,866
)
 
72,256

 
33,569

 
4,844

 
20,240

Contributions and other
 
 
 
 
725

 
15,019

 
11,424

 
7,328

Settlements
 
 
 
 
 
 
(14,862
)
 
(18,707
)
 
(3,370
)
Effect of foreign exchange
 
 
 
 
 
 
(24,949
)
 
(14,298
)
 
(13,859
)
Benefits paid
(50,996
)
 
(33,600
)
 
(47,296
)
 
(6,108
)
 
(8,569
)
 
(7,657
)
Balances at end of year
847,013

 
858,605

 
896,071

 
165,008

 
162,339

 
187,645

Excess (deficient) plan assets over
projected benefit obligations
$
214,216

 
$
233,814

 
$
242,733

 
$
(41,865
)
 
$
(39,515
)
 
$
(46,879
)
Assets and liabilities recognized in the
Consolidated Balance Sheets:
 
 
 
 
 
 
 
 

 
 
Deferred pension assets
$
214,216

 
$
233,814

 
$
242,733

 
$
11,313

 
$
11,068

 
$
7,411

Other accruals
 
 
 
 
 
 
(1,522
)
 
(1,442
)
 
(810
)
Other long-term liabilities
 
 

 


 
(51,656
)
 
(49,141
)
 
(53,480
)
 
$
214,216

 
$
233,814

 
$
242,733

 
$
(41,865
)
 
$
(39,515
)
 
$
(46,879
)
Amounts recognized in Cumulative other
comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
Net actuarial losses
$
(134,847
)
 
$
(120,454
)
 
$
(107,057
)
 
$
(45,604
)
 
$
(41,741
)
 
$
(47,574
)
Prior service costs
(6,015
)
 
(5,138
)
 
(6,448
)
 
 
 
 
 
 
 
$
(140,862
)
 
$
(125,592
)
 
$
(113,505
)
 
$
(45,604
)
 
$
(41,741
)
 
$
(47,574
)
Weighted-average assumptions used to
determine projected benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.20
%
 
4.40
%
 
3.95
%
 
3.21
%
 
4.20
%
 
3.92
%
Rate of compensation increase
3.38
%
 
3.14
%
 
4.00
%
 
4.43
%
 
4.00
%
 
3.70
%
Weighted-average assumptions used to
determine net pension costs:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.40
%
 
3.95
%
 
4.65
%
 
4.20
%
 
3.92
%
 
4.89
%
Expected long-term rate of
return on assets
6.00
%
 
6.00
%
 
6.00
%
 
4.70
%
 
4.84
%
 
5.58
%
Rate of compensation increase
3.14
%
 
4.00
%
 
4.00
%
 
4.00
%
 
3.70
%
 
4.31
%
Obligation and the assumptions used for postretirement benefits other than pensions
The following table summarizes the obligation and the assumptions used for postretirement benefits other than pensions:
 
Postretirement Benefits Other than Pensions
 
2016
 
2015
 
2014
Benefit obligation:
 
 
 
 
 
Balance at beginning of year - unfunded
$
263,383

 
$
295,149

 
$
286,651

Service cost
2,244

 
2,485

 
2,434

Interest cost
11,009

 
11,182

 
12,782

Actuarial loss (gain)
7,548

 
(19,370
)
 
27,757

Plan amendments
 
 
(9,269
)
 
(19,043
)
Benefits paid
(19,047
)
 
(16,794
)
 
(15,432
)
Balance at end of year - unfunded
$
265,137

 
$
263,383

 
$
295,149

Liabilities recognized in the Consolidated Balance Sheets:
 
 
 
 
 
Postretirement benefits other than pensions
$
(250,397
)
 
$
(248,523
)
 
$
(277,892
)
Other accruals
(14,740
)
 
(14,860
)
 
(17,257
)
 
$
(265,137
)
 
$
(263,383
)
 
$
(295,149
)
Amounts recognized in Cumulative other comprehensive loss:
 
 
 
 
 
Net actuarial losses
$
(23,211
)
 
$
(15,664
)
 
$
(36,044
)
Prior service credits
19,205

 
25,784

 
21,043

 
$
(4,006
)
 
$
10,120

 
$
(15,001
)
Weighted-average assumptions used to determine benefit obligation:
 
 
 
 
 
Discount rate
4.10
%
 
4.30
%
 
3.90
%
Health care cost trend rate - pre-65
6.00
%
 
6.00
%
 
7.00
%
Health care cost trend rate - post-65
5.50
%
 
5.00
%
 
6.50
%
Prescription drug cost increases
10.50
%
 
11.50
%
 
6.50
%
Employer Group Waiver Plan (EGWP) trend rate
10.60
%
 
11.50
%
 
8.00
%
Weighted-average assumptions used to determine net periodic benefit cost:
 
 
 
 
 
Discount rate
4.30
%
 
3.90
%
 
4.60
%
Health care cost trend rate - pre-65
6.00
%
 
7.00
%
 
7.50
%
Health care cost trend rate - post-65
5.00
%
 
6.50
%
 
6.50
%
Prescription drug cost increases
11.50
%
 
6.50
%
 
7.00
%
Components of the net periodic benefit cost and cumulative other comprehensive loss related to postretirement benefits other than pensions
The following table summarizes the components of the net periodic benefit cost and Cumulative other comprehensive loss related to postretirement benefits other than pensions:
 
Postretirement Benefits Other than Pensions
 
2016
 
2015
 
2014
Net periodic benefit cost:
 
 
 
 
 
Service cost
$
2,244

 
$
2,485

 
$
2,434

Interest cost
11,009

 
11,182

 
12,782

Amortization of actuarial losses
 
 
1,011

 
 
Amortization of prior service credit
(6,578
)
 
(4,529
)
 
(503
)
Net periodic benefit cost
6,675

 
10,149

 
14,713

Other changes in projected benefit obligation recognized in
Cumulative other comprehensive loss (before taxes):
 
 
 
 
 
Net actuarial loss (gain) arising during the year
7,548

 
(19,370
)
 
27,757

Prior service credit arising during the year
 
 
(9,269
)
 
(19,043
)
Amortization of actuarial losses
 
 
(1,011
)
 
 
Amortization of prior service credit
6,578

 
4,529

 
503

Total recognized in Cumulative other comprehensive loss
14,126

 
(25,121
)
 
9,217

Total recognized in net periodic benefit cost and
Cumulative other comprehensive loss
$
20,801

 
$
(14,972
)
 
$
23,930
Significant effect on amounts reported for service and interest rate component and postretirement health care benefit obligation
A one-percentage-point change in assumed health care and prescription drug cost trend rates would have had the following effects at December 31, 2016:

 
One-Percentage Point
 
Increase
 
(Decrease)
Effect on total of service and interest cost components
$
86

 
$
(131
)
Effect on the postretirement benefit obligation
$
552

 
$
(1,221
)
Retiree health care benefit cash payments
The Company expects to make retiree health care benefit cash payments as follows:
 
Expected Cash
Payments
2017
$
14,740

2018
16,551

2019
17,398

2020
17,990

2021
18,334

2022 through 2026
93,300

Total expected benefit cash payments
$
178,313