Pension Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2015

Financial Assets Accounted for at Fair Value on Recurring Basis

The following table sets forth the assets of our pension and postretirement plans that were accounted for at fair value on a recurring basis as of December 31, 2014 (in thousands):

	December 31, 2014		Quoted Prices in Active Markets for Identical Items (Level 1)		Quoted Prices in Active Markets for Similar Items (Level 2)		Unobservable Inputs (Level 3)
Pension Assets:
Domestic Equity(a)	$	169,581	$	169,581	$	—	$	—
International Equity(b)	85,007		85,007		—		—
Fixed Income(c)	268,911		255,828		13,083		—
Absolute Return(d)	80,740		—		—		80,740
Cash	3,455		3,455		—		—
Total Pension Assets	$	607,694	$	513,871	$	13,083	$	80,740
Postretirement Assets:
Fixed Income(c)	$	4,439	$	—	$	4,439	$	—

(a) Consists primarily of U.S. stock funds that track or are actively managed and measured against the S&P 500 index.

(b) Consists primarily of international equity funds which invest in common stocks and other securities whose value is based on an international equity index or an underlying equity security or basket of equity securities.

(c) Consists primarily of debt obligations issued by governments, corporations, municipalities and other borrowers. Also includes insurance policies.

(d) Consists primarily of funds with holdings in private investment companies. See additional information about the Absolute Return investments below.

The following table sets forth the assets of our pension and postretirement plans that were accounted for at fair value on a recurring basis as of December 31, 2015 (in thousands):

	December 31, 2015		Quoted Prices in Active Markets for Identical Items (Level 1)		Quoted Prices in Active Markets for Similar Items (Level 2)		Unobservable Inputs (Level 3)
Pension Assets:
Domestic Equity(a)	$	168,945	$	166,612	$	2,333	$	—
International Equity(b)	143,976		87,311		56,665		—
Fixed Income(c)	287,809		240,143		47,666		—
Absolute Return(d)	83,127		—		—		83,127
Cash	6,930		6,930		—		—
Total Pension Assets	$	690,787	$	500,996	$	106,664	$	83,127
Postretirement Assets:
Fixed Income(c)	$	3,292	$	—	$	3,292	$	—

(a) Consists primarily of U.S. stock funds that track or are actively managed and measured against the S&P 500 index.

(b) Consists primarily of international equity funds which invest in common stocks and other securities whose value is based on an international equity index or an underlying equity security or basket of equity securities.

(c) Consists primarily of debt obligations issued by governments, corporations, municipalities and other borrowers. Also includes insurance policies.

(d) Consists primarily of funds with holdings in private investment companies. See additional information about the Absolute Return investments below.

Changes in Fair Value of Plans Level 3 Assets

The table below sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2015 (in thousands):

Absolute Return:	Year Ended December 31, 2015
Beginning Balance	$	80,740
Transfers in due to acquisition	103,237
Purchases	5,641
Sales	(103,035		)
Total losses relating to assets sold during the period(a)	(610		)
Total unrealized losses relating to assets still held at the reporting date(a)	(2,846		)
Ending Balance	$	83,127

(a) These losses are recognized in the consolidated balance sheets and are included as changes in plan assets in the tables above.

The table below sets forth a summary of changes in the fair value of the plans’ Level 3 assets for the year ended December 31, 2014 (in thousands):

Absolute Return:	Year Ended December 31, 2014
Beginning Balance	$	123,599
Purchases	50,506
Sales	(96,397		)
Total losses relating to assets sold during the period(a)	(158		)
Total unrealized gains relating to assets still held at the reporting date(a)	3,190
Ending Balance	$	80,740

(a) These (losses) gains are recognized in the consolidated balance sheets and are included as changes in plan assets in the tables above.

Schedule of Allocation of Plan Assets

The weighted-average target allocations as of the measurement date are as follows:

	Target Allocation
Equity securities	44	%
Fixed income	43	%
Absolute return	12	%
Other	1	%

Current Forecast of Benefit Payments, which Reflect Expected Future Service

The current forecast of benefit payments, which reflects expected future service and excludes plans associated with businesses that were divested in the first quarter of 2016, amounts to (in millions):

	U.S. Pension Plans		Foreign Pension Plans		Other Postretirement Benefits
2016	$	40.3	$	13.9	$	4.8
2017	$	41.4	$	14.7	$	4.7
2018	$	42.8	$	14.6	$	4.5
2019	$	43.8	$	14.5	$	4.3
2020	$	44.8	$	15.1	$	4.1
2021-2025	$	230.9	$	83.5	$	18.8

Total Pension Benefits

Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Plans

The following provides a reconciliation of benefit obligations, plan assets and funded status, as well as a summary of significant assumptions, for our defined benefit pension plans (in thousands):

	Year Ended December 31, 2015						Year Ended December 31, 2014
	U.S. Pension Plans			Foreign Pension Plans			U.S. Pension Plans			Foreign Pension Plans
Change in benefit obligations:
Benefit obligation at January 1	$	729,652		$	53,112		$	629,337		$	49,245
Service cost	1,233			6,034			7,029			1,746
Interest cost	31,231			9,875			30,491			1,571
Plan amendments	—			870			—			—
Actuarial (gain) loss	(55,851		)	(42,977		)	130,887			10,341
Benefits paid	(38,300		)	(16,118		)	(37,866		)	(3,913		)
Acquisitions	39,125			416,150			—			—
Divestitures(a)	—			—			(30,226		)	—
Reclass to liabilities held for sale	—			(26,608		)	—			—
Employee contributions	—			478			—			283
Foreign exchange gain	—			(26,708		)	—			(6,161		)
Settlements/curtailments	—			(582		)	—			—
Other	—			331			—			—
Benefit obligation at December 31	$	707,090		$	373,857		$	729,652		$	53,112
Change in plan assets:
Fair value of plan assets at January 1	$	598,250		$	9,444		$	605,604		$	10,941
Actual return on plan assets	(16,789		)	140			53,696			499
Employer contributions	1,606			16,392			7,042			2,940
Benefits paid	(38,300		)	(16,118		)	(37,866		)	(3,913		)
Acquisitions	29,314			109,875			—			—
Divestitures(a)	—			—			(30,226		)	—
Employee contributions	—			478			—			283
Foreign exchange loss	—			(3,237		)	—			(1,306		)
Settlements/curtailments	—			(582		)	—			—
Other	—			314			—			—
Fair value of plan assets at December 31	$	574,081		$	116,706		$	598,250		$	9,444
Funded status at December 31	$	(133,009	)	$	(257,151	)	$	(131,402	)	$	(43,668	)

(a) Reduction in benefit obligations and plan assets in 2014 is in connection with the sale of our antioxidant, ibuprofen and propofol businesses and assets which closed on September 1, 2014. See Note 3 “Divestitures” for additional information about this transaction.

	December 31, 2015						December 31, 2014
	U.S. Pension Plans			Foreign Pension Plans			U.S. Pension Plans			Foreign Pension Plans
Amounts recognized in consolidated balance sheets:
Current liabilities (accrued expenses)	$	(1,110	)	$	(7,498	)	$	(3,219	)	$	(1,316	)
Noncurrent liabilities (pension benefits)	(131,899		)	(249,653		)	(128,183		)	(42,352		)
Net pension liability	$	(133,009	)	$	(257,151	)	$	(131,402	)	$	(43,668	)
Amounts recognized in accumulated other comprehensive (loss) income:
Prior service benefit	$	(211	)	$	(1,052	)	$	(286	)	$	(321	)
Net amount recognized	$	(211	)	$	(1,052	)	$	(286	)	$	(321	)
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	4.67		%	2.89		%	4.19		%	1.85		%
Rate of compensation increase	—		%	3.17		%	—		%	3.40		%

Components of Pension Benefits Expense

The components of pension benefits cost (credit) are as follows (in thousands):

	Year Ended						Year Ended						Year Ended
	December 31, 2015						December 31, 2014						December 31, 2013
	U.S. Pension Plans			Foreign Pension Plans			U.S. Pension Plans			Foreign Pension Plans			U.S. Pension Plans			Foreign Pension Plans
Service cost	$	1,233		$	6,034		$	7,029		$	1,746		$	12,177		$	1,785
Interest cost	31,231			9,875			30,491			1,571			28,406			1,477
Expected return on assets	(41,635		)	(6,507		)	(39,714		)	(427		)	(38,975		)	(417		)
Actuarial loss (gain)	2,577			(35,813		)	116,705			10,270			(130,297		)	(2,619		)
Amortization of prior service benefit	75			43			(727		)	50			(741		)	52
Total net pension benefits (credit) cost	$	(6,519	)	$	(26,368	)	$	113,784		$	13,210		$	(129,430	)	$	278
Weighted-average assumption percentages:
Discount rate	4.18		%	2.34		%	5.14		%	3.41		%	4.10		%	3.12		%
Expected return on plan assets	6.85		%	5.63		%	6.91		%	4.00		%	7.25		%	4.35		%
Rate of compensation increase	—		%	3.16		%	3.50		%	3.16		%	3.50		%	3.36		%

Estimated Amounts to Be Amortized from Accumulated Other Comprehensive Income

The estimated amounts to be amortized from accumulated other comprehensive loss into net periodic pension costs during 2016 are as follows (in thousands):

	U.S. Pension Plans		Foreign Pension Plans
Amortization of prior service benefit	$	75	$	853

Other Postretirement Benefits

Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Plans

The following provides a reconciliation of benefit obligations, plan assets and funded status, as well as a summary of significant assumptions, for our postretirement benefit plans (in thousands):

	Year Ended December 31,
	2015			2014
	Other Postretirement Benefits			Other Postretirement Benefits
Change in benefit obligations:
Benefit obligation at January 1	$	64,500		$	62,832
Service cost	137			216
Interest cost	2,573			3,040
Actuarial (gain) loss	(5,682		)	3,741
Benefits paid	(5,042		)	(5,329		)
Acquisitions	2,607			—
Settlements/curtailments(a)	(2,594		)	—
Benefit obligation at December 31	$	56,499		$	64,500
Change in plan assets:
Fair value of plan assets at January 1	$	4,439		$	5,620
Actual return on plan assets	280			214
Employer contributions	3,615			3,934
Benefits paid	(5,042		)	(5,329		)
Fair value of plan assets at December 31	$	3,292		$	4,439
Funded status at December 31	$	(53,207	)	$	(60,061	)

(a) 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.

	December 31,
	2015			2014
	Other Postretirement Benefits			Other Postretirement Benefits
Amounts recognized in consolidated balance sheets:
Current liabilities (accrued expenses)	$	(3,560	)	$	(3,637	)
Noncurrent liabilities (postretirement benefits)	(49,647		)	(56,424		)
Net postretirement liability	$	(53,207	)	$	(60,061	)
Amounts recognized in accumulated other comprehensive (loss) income:
Prior service benefit	$	239		$	334
Net amount recognized	$	239		$	334
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	4.59		%	4.15		%
Rate of compensation increase	3.50		%	3.50		%

Components of Pension Benefits Expense

The components of postretirement benefits cost (credit) are as follows (in thousands):

	Year Ended December 31,
	2015			2014			2013
	Other Postretirement Benefits			Other Postretirement Benefits			Other Postretirement Benefits
Service cost	$	137		$	216		$	309
Interest cost	2,573			3,040			2,764
Expected return on assets	(244		)	(342		)	(413		)
Actuarial (gain) loss	(5,707		)	3,868			(6,120		)
Amortization of prior service benefit	(95		)	(95		)	(95		)
Settlements/curtailments	(2,594		)	—			—
Total net postretirement benefits (credit) cost	$	(5,930	)	$	6,687		$	(3,555	)
Weighted-average assumption percentages:
Discount rate	4.15		%	5.03		%	4.00		%
Expected return on plan assets	7.00		%	7.00		%	7.00		%
Rate of compensation increase	3.50		%	3.50		%	3.50		%

Estimated Amounts to Be Amortized from Accumulated Other Comprehensive Income

The estimated amounts to be amortized from accumulated other comprehensive loss into net periodic postretirement costs during 2016 are as follows (in thousands):

	Other Postretirement Benefits
Amortization of prior service benefit	$	(95	)