Pension Plans and Other Postretirement Benefits (Tables)

3 Months Ended

Mar. 31, 2015

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Domestic and Foreign Pension and Postretirement Defined Benefit Plans

The components of pension and postretirement benefits cost (credit) for the three-month periods ended March 31, 2015 and 2014 are shown the table below. The 2015 period includes results of the plans we acquired in the Rockwood acquisition.

	Three Months Ended   March 31,
	2015			2014
	(In thousands)
Pension Benefits Cost (Credit):
Service cost	$	1,979		$	2,841
Interest cost	9,564			8,169
Expected return on assets	(11,082		)	(10,205		)
Actuarial loss(a)	—			15,432
Amortization of prior service benefit	30			(273		)
Total net pension benefits cost	$	491		$	15,964
Postretirement Benefits Cost (Credit):
Service cost	$	66		$	54
Interest cost	668			760
Expected return on assets	(65		)	(85		)
Amortization of prior service benefit	(24		)	(24		)
Settlements/curtailments(b)	(2,594		)	—
Total net postretirement benefits cost (credit)	$	(1,949	)	$	705
Total net pension and postretirement benefits cost (credit)	$	(1,458	)	$	16,669

(a) In connection with a realignment of our operating segments effective January 1, 2014, in the fourth quarter of 2013 we initiated a workforce reduction plan which resulted in a reduction of approximately 230 employees worldwide. This workforce reduction triggered a net curtailment gain of approximately $0.8 million in the first quarter of 2014 for our U.S. defined benefit plan which covers non-represented employees and our supplemental executive retirement plan (SERP). In connection with the curtailment, we were required to remeasure the related assets and obligations for these two plans. As of the January 31, 2014 remeasurement date, the weighted-average discount rate for all of our domestic pension plans was 4.97% compared to 5.14% at December 31, 2013. Taking into account the discount rate reduction and actual return on plan assets through January 31, 2014, we recorded a mark-to-market actuarial loss (net of the curtailment gain) of $15.4 million in the first quarter of 2014 related to these two plans.

(b) We assumed responsibility for one domestic OPEB plan in connection with the acquisition of Rockwood which covered a small number of active employees and retirees. This plan was terminated in the first quarter of 2015 and provisions were made for the affected employees and retirees to receive benefits under an existing plan. A gain of $2.6 million was recognized in the first quarter of 2015 related to the termination of this plan.

Rockwood Holdings, Inc. | Pension Plan

Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]

Domestic and Foreign Pension and Postretirement Defined Benefit Plans

The following table sets forth the benefit obligations, plan assets, funded status and weighted-average assumption percentages for the defined benefit pension plans acquired in the Rockwood acquisition, as of the Acquisition Closing Date (in thousands):

	U.S.			Foreign
Benefit obligation	$	39,126		$	417,312
Fair value of plan assets	29,314			110,289
Funded status	$	(9,812	)	$	(307,023	)
Weighted-average assumption percentages:
Discount rate	4.09		%	2.36		%
Expected return on plan assets	6.03		%	5.78		%
Rate of compensation increase	—		%	2.79		%

Schedule of Expected Benefit Payments

The current forecast of benefit payments related to the defined benefit pension plans acquired in the Rockwood acquisition, which reflect expected future service, amounts to (in millions):

	U.S.		Foreign
Remainder of 2015	$	1.4	$	12.0
2016	$	1.6	$	16.4
2017	$	1.7	$	16.0
2018	$	1.9	$	16.8
2019	$	2.0	$	16.9
2020-2024	$	11.1	$	89.8