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Pension Plans and Other Postretirement Benefits (Tables)
 12 Months Ended
Dec. 31, 2016
Financial Assets Accounted for at Fair Value on Recurring Basis
The following tables set forth the assets of our pension and postretirement plans that were accounted for at fair value on a recurring basis as of December 31, 2016 and 2015 (in thousands):
 
December 31, 2016
 
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)
$
146,683

 
$
143,987

 
$
2,696

 
$
—

International Equity(b)
116,649

 
83,839

 
32,810

 
—

Fixed Income(c)
255,401

 
230,309

 
25,092

 
—

Absolute Return Measured at Net Asset Value(d)
86,112

 
—

 
—

 
—

Cash
2,112

 
2,112

 
—

 
—

Total Pension Assets
$
606,957

 
$
460,247

 
$
60,598

 
$
—

Postretirement Assets:
 
 
 
 
 
 
 
Fixed Income(c)
$
2,232

 
$
—

 
$
2,232

 
$
—


 
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)
$
163,408

 
$
161,075

 
$
2,333

 
$
—

International Equity(b)
115,949

 
84,019

 
31,930

 
—

Fixed Income(c)
254,560

 
231,411

 
23,149

 
—

Absolute Return Measured at Net Asset Value(d)
80,746

 
—

 
—

 
—

Cash
5,332

 
5,332

 
—

 
—

Total Pension Assets
$
619,995

 
$
481,837

 
$
57,412

 
$
—

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. Holdings in private investment companies are measured at fair value using the net asset value per share as a practical expedient and have not been categorized in the fair value hierarchy as a result of the adoption of new accounting guidance effective January 1, 2016 on a retrospective basis. The fair value amounts of $86.1 million and $80.7 million as of December 31, 2016 and 2015, respectively, are included in this table to permit reconciliation to the reconciliation of plan assets table above. See Note 1, “Summary of Significant Accounting Policies,” for additional information.
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
42
%
Absolute return
13
%
Other
1
%
Current Forecast of Benefit Payments, which Reflect Expected Future Service
The current forecast of benefit payments, which reflects expected future service, amounts to (in millions):
 
U.S. Pension Plans
 
Foreign Pension Plans
 
Other Postretirement Benefits
2017
$
39.6

 
$
9.2

 
$
4.7

2018
$
40.9

 
$
8.7

 
$
4.5

2019
$
41.9

 
$
8.2

 
$
4.3

2020
$
42.7

 
$
9.0

 
$
4.0

2021
$
43.1

 
$
9.6

 
$
3.8

2022-2026
$
219.2

 
$
51.2

 
$
18.2
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, 2016
 
Year Ended December 31, 2015
 
U.S. Pension Plans
 
Foreign Pension Plans
 
U.S. Pension Plans
 
Foreign Pension Plans
Change in benefit obligations:
 
 
 
 
 
 
 
Benefit obligation at January 1
$
682,839

 
$
245,747

 
$
729,652

 
$
53,112

Service cost
1,028

 
3,133

 
1,233

 
3,909

Interest cost
30,514

 
6,570

 
30,235

 
6,405

Plan amendments
—

 
—

 
—

 
864

Actuarial loss (gain)
7,357

 
28,083

 
(54,140
)
 
(30,978
)
Benefits paid
(56,050
)
 
(9,793
)
 
(37,512
)
 
(11,283
)
Acquisitions
—

 
—

 
13,371

 
270,618

Divestitures
—

 
(6,372
)
 
—

 
—

Reclass to liabilities held for sale
—

 
—

 
—

 
(26,608
)
Employee contributions
—

 
245

 
—

 
256

Foreign exchange gain
—

 
(21,724
)
 
—

 
(20,105
)
Settlements/curtailments
—

 
(427
)
 
—

 
(161
)
Other
—

 
818

 
—

 
(282
)
Benefit obligation at December 31
$
665,688

 
$
246,280

 
$
682,839

 
$
245,747

 
 
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at January 1
$
555,084

 
$
64,911

 
$
598,250

 
$
9,444

Actual return on plan assets
37,725

 
12,534

 
(16,306
)
 
630

Employer contributions
1,323

 
10,911

 
1,398

 
11,864

Benefits paid
(56,050
)
 
(9,793
)
 
(37,512
)
 
(11,283
)
Acquisitions
—

 
—

 
9,254

 
56,418

Employee contributions
—

 
245

 
—

 
256

Foreign exchange loss
—

 
(10,492
)
 
—

 
(2,189
)
Settlements/curtailments
—

 
—

 
—

 
(161
)
Other
—

 
559

 
—

 
(68
)
Fair value of plan assets at December 31
$
538,082

 
$
68,875

 
$
555,084

 
$
64,911

 
 
 
 
 
 
 
 
Funded status at December 31
$
(127,606
)
 
$
(177,405
)
 
$
(127,755
)
 
$
(180,836
)


 
December 31, 2016
 
December 31, 2015
 
U.S. Pension Plans
 
Foreign Pension Plans
 
U.S. Pension Plans
 
Foreign Pension Plans
Amounts recognized in consolidated balance sheets:
 
 
 
 
 
 
 
Current liabilities (accrued expenses)
$
(1,100
)
 
$
(5,216
)
 
$
(1,110
)
 
$
(7,498
)
Noncurrent liabilities (pension benefits)
(126,506
)
 
(172,189
)
 
(126,645
)
 
(173,338
)
Net pension liability
$
(127,606
)
 
$
(177,405
)
 
$
(127,755
)
 
$
(180,836
)
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive income (loss):
 
 
 
 
 
 
 
Prior service benefit
$
(136
)
 
$
(322
)
 
$
(211
)
 
$
(1,046
)
Net amount recognized
$
(136
)
 
$
(322
)
 
$
(211
)
 
$
(1,046
)
 
 
 
 
 
 
 
 
Weighted-average assumptions used to determine benefit obligations at December 31:
 
 
 
 
 
 
 
Discount rate
4.43
%
 
2.00
%
 
4.67
%
 
2.76
%
Rate of compensation increase
—
%
 
3.18
%
 
—
%
 
3.16
%
Components of Pension and Postretirement Benefits Expense
The components of pension benefits cost (credit) from continuing operations are as follows (in thousands):
 
Year Ended
 
Year Ended
 
Year Ended
 
December 31, 2016
 
December 31, 2015
 
December 31, 2014
 
U.S. Pension Plans
 
Foreign Pension Plans
 
U.S. Pension Plans
 
Foreign Pension Plans
 
U.S. Pension Plans
 
Foreign Pension Plans
Service cost
$
1,028

 
$
3,133

 
$
1,233

 
$
3,909

 
$
7,029

 
$
1,746

Interest cost
30,514

 
6,570

 
30,235

 
6,405

 
30,491

 
1,571

Expected return on assets
(36,445
)
 
(4,027
)
 
(40,495
)
 
(3,670
)
 
(39,714
)
 
(427
)
Actuarial loss (gain)
5,988

 
19,418

 
2,665

 
(27,043
)
 
116,705

 
10,270

Amortization of prior service benefit
75

 
859

 
75

 
43

 
(727
)
 
50

Total net pension benefits cost (credit)(a)
$
1,160

 
$
25,953

 
$
(6,287
)
 
$
(20,356
)
 
$
113,784

 
$
13,210

 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumption percentages:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
4.67
%
 
2.76
%
 
4.19
%
 
2.22
%
 
5.14
%
 
3.41
%
Expected return on plan assets
6.89
%
 
6.66
%
 
6.88
%
 
5.76
%
 
6.91
%
 
4.00
%
Rate of compensation increase
—
%
 
3.16
%
 
—
%
 
3.15
%
 
3.50
%
 
3.16
%


(a)
For the years ended December 31, 2016 and 2015, $10.8 million and $6.2 million, respectively, of net pension benefits credit is included in Income (loss) from discontinued operations (net of tax) in the consolidated statements of income. See Note 3, “Divestitures,” for additional information.
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 2017 are as follows (in thousands):
 
U.S. Pension Plans
 
Foreign Pension Plans
Amortization of prior service benefit
$
75

 
$
36
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,
 
2016
 
2015
 
Other Postretirement Benefits
 
Other Postretirement Benefits
Change in benefit obligations:
 
 
 
Benefit obligation at January 1
$
56,499

 
$
64,500

Service cost
115

 
137

Interest cost
2,483

 
2,573

Actuarial loss (gain)
1,529

 
(5,690
)
Benefits paid
(4,485
)
 
(5,021
)
Benefit obligation at December 31
$
56,141

 
$
56,499

 
 
 
 
Change in plan assets:
 
 
 
Fair value of plan assets at January 1
$
3,292

 
$
4,439

Actual return on plan assets
442

 
280

Employer contributions
2,983

 
3,594

Benefits paid
(4,485
)
 
(5,021
)
Fair value of plan assets at December 31
$
2,232

 
$
3,292

 
 
 
 
Funded status at December 31
$
(53,909
)
 
$
(53,207
)


 
December 31,
 
2016
 
2015
 
Other Postretirement Benefits
 
Other Postretirement Benefits
Amounts recognized in consolidated balance sheets:
 
 
 
Current liabilities (accrued expenses)
$
(3,371
)
 
$
(3,560
)
Noncurrent liabilities (postretirement benefits)
(50,538
)
 
(49,647
)
Net postretirement liability
$
(53,909
)
 
$
(53,207
)
 
 
 
 
Amounts recognized in accumulated other comprehensive income (loss):
 
 
 
Prior service benefit
$
143

 
$
239

Net amount recognized
$
143

 
$
239

 
 
 
 
Weighted-average assumptions used to determine benefit obligations at December 31:
 
 
 
Discount rate
4.35
%
 
4.59
%
Rate of compensation increase
3.50
%
 
3.50
%
Components of Pension and Postretirement Benefits Expense
The components of postretirement benefits cost (credit) from continuing operations are as follows (in thousands):
 
Year Ended December 31,
 
2016
 
2015
 
2014
 
Other Postretirement Benefits
 
Other Postretirement Benefits
 
Other Postretirement Benefits
Service cost
$
115

 
$
137

 
$
216

Interest cost
2,483

 
2,573

 
3,040

Expected return on assets
(187
)
 
(263
)
 
(342
)
Actuarial loss (gain)
1,275

 
(5,707
)
 
3,868

Amortization of prior service benefit
(95
)
 
(95
)
 
(95
)
Total net postretirement benefits cost (credit)(a)
$
3,591

 
$
(3,355
)
 
$
6,687

 
 
 
 
 
 
Weighted-average assumption percentages:
 
 
 
 
 
Discount rate
4.59
%
 
4.15
%
 
5.03
%
Expected return on plan assets
7.00
%
 
7.00
%
 
7.00
%
Rate of compensation increase
3.50
%
 
3.50
%
 
3.50
%


(a)
For the year ended December 31, 2015, $2.6 million of net postretirement benefits credit is included in Income (loss) from discontinued operations (net of tax) in the consolidated statements of income. See Note 3, “Divestitures,” for additional information.
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 2017 are as follows (in thousands):
 
Other Postretirement Benefits
Amortization of prior service benefit
$
(95
)