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Pension, Health Care and Postretirement Benefits Other Than Pensions (Tables)
 12 Months Ended
Dec. 31, 2017
Retirement Benefits [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
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Net pension costs (credits):
 
 
 
 
 
 
 
 
 
 
 
Service costs
$
21,711

 
$
22,291

 
$
21,120

 
$
7,039

 
$
4,225

 
$
5,071

Interest costs
31,085

 
26,498

 
24,535

 
8,177

 
7,441

 
8,719

Expected returns on plan assets
(48,275
)
 
(50,197
)
 
(52,095
)
 
(9,070
)
 
(6,915
)
 
(9,296
)
Amortization of prior service costs
1,362

 
1,205

 
1,310

 
 
 
 
 
 
Amortization of actuarial losses
6,210

 
4,532

 
1,962

 
1,833

 
1,540

 
1,910

Ongoing pension costs (credits)
12,093

 
4,329

 
(3,168
)
 
7,979

 
6,291

 
6,404

Settlement costs (credits)
(1,990
)
 
 
 
 
 
71

 
4,231

 
3,255

Net pension costs (credits)
10,103

 
4,329

 
(3,168
)
 
8,050

 
10,522

 
9,659

Other changes in plan assets and projected benefit
obligation recognized in Cumulative other comprehensive loss (before taxes):
 
 
 
 
 
 
 
 
 
 
 
Net actuarial (gains) losses arising during the year
(65,829
)
 
18,926

 
15,359

 
(13,960
)
 
17,030

 
1,907

Prior service costs arising during the year
844

 
2,081

 


 
 
 
 
 
 
Amortization of actuarial losses
(4,220
)
 
(4,532
)
 
(1,962
)
 
(1,904
)
 
(1,540
)
 
(1,910
)
Amortization of prior service costs
(1,362
)
 
(1,205
)
 
(1,310
)
 
 
 
 
 
 
Exchange rate loss recognized during year
 
 
 
 
 
 
4,133

 
(11,627
)
 
(5,830
)
Total recognized in Cumulative other
comprehensive loss
(70,567
)
 
15,270

 
12,087

 
(11,731
)
 
3,863

 
(5,833
)
Total recognized in net pension costs (credits)
and Cumulative other comprehensive loss
$
(60,464
)
 
$
19,599

 
$
8,919

 
$
(3,681
)
 
$
14,385

 
$
3,826

 
 
 
 
 
 
 
 
 
 
 
 
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, 2017, 2016 and 2015. 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, 2017
 
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)
$
514,983

 
$
409,911

 
$
105,072

 
 
Fixed income investments (2)
380,902

 
146,816

 
234,086

 
 
Other assets (3)
39,196

 
 
 
39,196

 

Total investments in fair value hierarchy
935,081

 
$
556,727

 
$
378,354

 

Investments measured at NAV or its equivalent (4)
533,561

 
 
 
 
 
 
Total investments
$
1,468,642

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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

 
 
 
 
 
 
Total investments
$
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

 
 
 
 
 
 
Total investments
$
1,020,944

 
 
 
 
 
 



(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
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Accumulated benefit obligations
at end of year
$
913,363

 
$
630,159

 
$
621,873

 
$
308,164

 
$
172,047

 
$
172,426

Projected benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
Balances at beginning of year
$
632,797

 
$
624,791

 
$
653,338

 
$
206,873

 
$
201,854

 
$
234,524

Service costs
21,711

 
22,291

 
21,120

 
7,039

 
4,225

 
5,071

Interest costs
31,085

 
26,498

 
24,535

 
8,177

 
7,441

 
8,719

Actuarial losses (gains)
67,945

 
8,132

 
(40,602
)
 
(4,002
)
 
43,736

 
(3,045
)
Acquisition
246,894

 
 
 
 
 
115,045

 
 
 
 
Contributions and other
844

 
2,081

 

 
1,397

 
947

 
1,072

Settlements
(43,381
)
 
 
 
 
 
(758
)
 
(14,862
)
 
(18,707
)
Effect of foreign exchange
 
 
 
 
 
 
22,938

 
(30,360
)
 
(17,211
)
Benefits paid
(41,720
)
 
(50,996
)
 
(33,600
)
 
(7,112
)
 
(6,108
)
 
(8,569
)
Balances at end of year
916,175

 
632,797

 
624,791

 
349,597

 
206,873

 
201,854

Plan assets:
 
 
 
 
 
 
 
 
 
 
 
Balances at beginning of year
847,013

 
858,605

 
896,071

 
165,008

 
162,339

 
187,645

Actual returns on plan assets
182,049

 
39,404

 
(3,866
)
 
16,282

 
33,569

 
4,844

Acquisition
244,677

 
 
 
 
 
82,314

 
 
 
 
Contributions and other
 
 
 
 

 
6,048

 
15,019

 
11,424

Settlements
(43,381
)
 
 
 
 
 
(758
)
 
(14,862
)
 
(18,707
)
Effect of foreign exchange
 
 
 
 
 
 
18,222

 
(24,949
)
 
(14,298
)
Benefits paid
(41,720
)
 
(50,996
)
 
(33,600
)
 
(7,112
)
 
(6,108
)
 
(8,569
)
Balances at end of year
1,188,638

 
847,013

 
858,605

 
280,004

 
165,008

 
162,339

Excess (deficient) plan assets over
projected benefit obligations
$
272,463

 
$
214,216

 
$
233,814

 
$
(69,593
)
 
$
(41,865
)
 
$
(39,515
)
Assets and liabilities recognized in the
Consolidated Balance Sheets:
 
 
 
 
 
 
 
 

 
 
Deferred pension assets
$
272,463

 
$
214,216

 
$
233,814

 
$
24,280

 
$
11,313

 
$
11,068

Other accruals
 
 
 
 
 
 
(2,523
)
 
(1,522
)
 
(1,442
)
Other long-term liabilities
 
 

 


 
(91,350
)
 
(51,656
)
 
(49,141
)
 
$
272,463

 
$
214,216

 
$
233,814

 
$
(69,593
)
 
$
(41,865
)
 
$
(39,515
)
Amounts recognized in Cumulative other
comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
Net actuarial losses
$
(64,799
)
 
$
(134,847
)
 
$
(120,454
)
 
$
(33,873
)
 
$
(45,604
)
 
$
(41,741
)
Prior service costs
(5,496
)
 
(6,015
)
 
(5,138
)
 
 
 
 
 
 
 
$
(70,295
)
 
$
(140,862
)
 
$
(125,592
)
 
$
(33,873
)
 
$
(45,604
)
 
$
(41,741
)
Weighted-average assumptions used to
determine projected benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.60
%
 
4.20
%
 
4.40
%
 
2.73
%
 
3.21
%
 
4.20
%
Rate of compensation increase
3.33
%
 
3.38
%
 
3.14
%
 
3.69
%
 
4.43
%
 
4.00
%
Weighted-average assumptions used to
determine net pension costs:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.15
%
 
4.40
%
 
3.95
%
 
3.88
%
 
4.20
%
 
3.92
%
Expected long-term rate of
return on assets
5.00
%
 
6.00
%
 
6.00
%
 
4.75
%
 
4.70
%
 
4.84
%
Rate of compensation increase
3.30
%
 
3.14
%
 
4.00
%
 
4.33
%
 
4.00
%
 
3.70
%
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
 
2017
 
2016
 
2015
Benefit obligation:
 
 
 
 
 
Balance at beginning of year - unfunded
$
265,137

 
$
263,383

 
$
295,149

Service cost
2,105

 
2,244

 
2,485

Interest cost
10,749

 
11,009

 
11,182

Acquisition
17,010

 
 
 
 
Actuarial loss (gain)
11,637

 
7,548

 
(19,370
)
Plan amendments
 
 


 
(9,269
)
Benefits paid
(15,815
)
 
(19,047
)
 
(16,794
)
Balance at end of year - unfunded
$
290,823

 
$
265,137

 
$
263,383

Liabilities recognized in the Consolidated Balance Sheets:
 
 
 
 
 
Postretirement benefits other than pensions
$
(274,675
)
 
$
(250,397
)
 
$
(248,523
)
Other accruals
(16,148
)
 
(14,740
)
 
(14,860
)
 
$
(290,823
)
 
$
(265,137
)
 
$
(263,383
)
Amounts recognized in Cumulative other comprehensive loss:
 
 
 
 
 
Net actuarial losses
$
(44,147
)
 
$
(23,211
)
 
$
(15,664
)
Prior service credits
12,625

 
19,205

 
25,784

 
$
(31,522
)
 
$
(4,006
)
 
$
10,120

Weighted-average assumptions used to determine benefit obligation:
 
 
 
 
 
Discount rate
3.61
%
 
4.10
%
 
4.30
%
Health care cost trend rate - pre-65
7.00
%
 
6.00
%
 
6.00
%
Health care cost trend rate - post-65
5.00
%
 
5.50
%
 
5.00
%
Prescription drug cost increases
11.00
%
 
10.50
%
 
11.50
%
Employer Group Waiver Plan (EGWP) trend rate
11.00
%
 
10.60
%
 
11.50
%
Weighted-average assumptions used to determine net periodic benefit cost:
 
 
 
 
 
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
%
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
 
2017
 
2016
 
2015
Net periodic benefit cost:
 
 
 
 
 
Service cost
$
2,105

 
$
2,244

 
$
2,485

Interest cost
10,749

 
11,009

 
11,182

Amortization of actuarial losses
32

 


 
1,011

Amortization of prior service credit
(6,579
)
 
(6,578
)
 
(4,529
)
Ongoing pension costs (credits)
6,307

 
6,675

 
10,149

  Settlement (credits) costs
(9,332
)
 
 
 
 
  Net pension (credits) costs
(3,025
)
 
6,675

 
10,149

 
 
 
 
 
 
Other changes in projected benefit obligation recognized in
Cumulative other comprehensive loss (before taxes):
 
 
 
 
 
Net actuarial loss (gain) arising during the year
11,637

 
7,548

 
(19,370
)
Prior service credit arising during the year
 
 


 
(9,269
)
Amortization of actuarial losses
(32
)
 


 
(1,011
)
Settlement costs
9,332

 
 
 
 
Amortization of prior service credit
6,579

 
6,578

 
4,529

Total recognized in Cumulative other comprehensive loss
27,516

 
14,126

 
(25,121
)
Total recognized in net periodic benefit cost and
Cumulative other comprehensive loss
$
24,491

 
$
20,801

 
$
(14,972
)
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, 2017:

 
One-Percentage Point
 
Increase
 
(Decrease)
Effect on total of service and interest cost components
$
104

 
$
(124
)
Effect on the postretirement benefit obligation
$
2,655

 
$
(2,794
)
Retiree health care benefit cash payments
The Company expects to make retiree health care benefit cash payments as follows:
 
Expected Cash
Payments
2018
$
17,192

2019
18,139

2020
19,058

2021
19,541

2022
19,816

2023 through 2027
98,270

Total expected benefit cash payments
$
192,016