EMPLOYEE BENEFIT PLANS

Defined Benefit Pension Plans

The Company sponsors defined benefit pension plans that cover certain U.S., Canadian, German, and United Kingdom employees and which provide benefits of stated amounts for each year of service of the employee. The Company uses a December 31 measurement date for the plans.

The following tables provide information regarding the Company’s defined benefit pension plans summarized by U.S. and international components.

Obligations and Funded Status



	U.S.						International
In thousands	2016			2015			2016			2015
Change in projected benefit obligation
Obligation at beginning of year	$	(46,120	)	$	(50,154	)	$	(195,311	)	$	(219,225	)
Service cost	(337		)	(381		)	(1,379		)	(2,015		)
Interest cost	(1,475		)	(1,914		)	(5,774		)	(7,091		)
Employee contributions	—			—			(195		)	(503		)
Plan curtailments and amendments	—			—			2,061			—
Benefits paid	3,893			3,628			9,427			8,028
Acquisition	—			—			(114,242		)	—
Actuarial gain (loss)	(1,473		)	2,701			(33,330		)	3,084
Effect of currency rate changes	—			—			19,192			22,411
Obligation at end of year	$	(45,512	)	$	(46,120	)	$	(319,551	)	$	(195,311	)
Change in plan assets
Fair value of plan assets at beginning of year	$	37,640		$	41,503		$	168,069		$	182,254
Actual return on plan assets	2,055			(235		)	20,066			6,572
Employer contributions	—			—			6,933			6,746
Employee contributions	—			—			195			503
Benefits paid	(3,893		)	(3,628		)	(9,427		)	(8,028		)
Acquisition	—			—			70,519			—
Effect of currency rate changes	—			—			(15,072		)	(19,978		)
Fair value of plan assets at end of year	$	35,802		$	37,640		$	241,283		$	168,069
Funded status
Fair value of plan assets	$	35,802		$	37,640		$	241,283		$	168,069
Benefit obligations	(45,512		)	(46,120		)	(319,551		)	(195,311		)
Funded status	$	(9,710	)	$	(8,480	)	$	(78,268	)	$	(27,242	)
Amounts recognized in the statement of financial position consist of:
Noncurrent assets	$	—		$	—		$	7,130		$	5,554
Current liabilities	—			—			(2,042		)	(362		)
Noncurrent liabilities	(9,709		)	(8,480		)	(83,356		)	(32,434		)
Net amount recognized	$	(9,709	)	$	(8,480	)	$	(78,268	)	$	(27,242	)
Amounts recognized in accumulated other comprehensive income (loss) consist of:
Initial net obligation	$	—		$	—		$	—		$	(275	)
Prior service cost	(8		)	(11		)	(56		)	(80		)
Net actuarial loss	(23,884		)	(23,305		)	(56,411		)	(41,782		)
Net amount recognized	$	(23,892	)	$	(23,316	)	$	(56,467	)	$	(42,137	)

The aggregate accumulated benefit obligation for the U.S. pension plans was $44.5 million and $45.2 million as of December 31, 2016 and 2015, respectively. The aggregate accumulated benefit obligation for the international pension plans was $312.2 million and $190.2 million as of December 31, 2016 and 2015, respectively.



	U.S.						International
In thousands	2016			2015			2016			2015
Information for pension plans with accumulated benefit obligations in
excess of Plan assets:
Projected benefit obligation	$	(45,512	)	$	(46,120	)	$	(255,682	)	$	(195,311	)
Accumulated benefit obligation	(44,530		)	(45,201		)	(249,729		)	(190,188		)
Fair value of plan assets	35,802			37,640			170,367			168,069
Information for pension plans with projected benefit obligations in
excess of plan assets:
Projected benefit obligation	$	(45,512	)	$	(46,120	)	$	(256,530	)	$	(135,168	)
Fair value of plan assets	35,802			37,640			171,133			102,372

Components of Net Periodic Benefit Costs



	U.S.									International
In thousands	2016			2015			2014			2016			2015			2014
Service cost	$	337		$	381		$	334		$	1,379		$	2,015		$	2,138
Interest cost	1,475			1,914			2,070			5,774			7,091			8,102
Expected return on plan assets	(2,076		)	(2,168		)	(2,476		)	(9,971		)	(9,591		)	(9,646		)
Amortization of initial net obligation and prior service cost	3			3			23			61			212			248
Amortization of net loss	914			1,062			2,197			1,818			2,379			2,768
Settlement and curtailment losses recognized				—			—			218			—			(390		)
Net periodic benefit cost	$	653		$	1,192		$	2,148		$	(721	)	$	2,106		$	3,220

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2016 are as follows:



In thousands	U.S.			International
Net loss arising during the year	$	(1,493	)	$	(20,956	)
Effect of exchange rates	—			4,747
Amortization, settlement, or curtailment recognition of net transition obligation	—			35
Amortization or curtailment recognition of prior service cost	3			27
Amortization or settlement recognition of net loss	914			1,818
Total recognized in other comprehensive loss	$	(576	)	$	(14,329	)
Total recognized in net periodic benefit cost and other comprehensive loss	$	(1,229	)	$	(13,608	)

The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed.



	U.S.						International
	2016		2015		2014		2016		2015		2014
Discount rate	3.95	%	4.21	%	3.95	%	2.51	%	3.56	%	3.48	%
Expected return on plan assets	5.70	%	5.70	%	5.70	%	6.07	%	5.81	%	5.79	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%	2.54	%	3.10	%	3.10	%

The discount rate is based on settling the pension obligation with high grade, high yield corporate bonds, and the rate of compensation increase is based on actual experience. The expected return on plan assets is based on historical performance as well as expected future rates of return on plan assets considering the current investment portfolio mix and the long-term investment strategy.

As of December 31, 2016 the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2017.



In thousands	U.S.		International
Net transition obligation	$	—	$	—
Prior service cost	3		26
Net actuarial loss	989		2,713
	$	992	$	2,739

Pension Plan Assets

The Company has established formal investment policies for the assets associated with our pension plans. Objectives include maximizing long-term return at acceptable risk levels and diversifying among asset classes. Asset allocation targets are based on periodic asset liability study results which help determine the appropriate investment strategies. The investment policies permit variances from the targets within certain parameters. The plan assets consist primarily of equity security funds, debt security funds, and temporary cash and cash equivalent investments. The assets held in these funds are generally actively managed and are valued at the net asset value per share multiplied by the number of shares held as of the measurement date. Generally, all plan assets are considered Level 2 based on the fair value valuation hierarchy (See Note 18 “Fair Value Measurement” included herein). Plan assets by asset category at December 31, 2016 and 2015 are as follows:



	U.S.				International
In thousands	2016		2015		2016		2015
Pension Plan Assets
Equity security funds	$	17,446	$	20,275	$	92,201	$	87,321
Debt security funds and other	17,038		16,441		145,003		77,173
Cash and cash equivalents	1,318		924		4,079		3,575
Fair value of plan assets	$	35,802	$	37,640	$	241,283	$	168,069

The U.S., Canadian and German pension plans have a target asset allocation of 50% equity securities and 50% debt securities. The United Kingdom plan has a target asset allocation of 30% equity securities and 70% debt securities. Investment policies are determined by the respective Plan’s Pension Committee and set forth in its Investment Policy. Rebalancing of the asset allocation occurs on a quarterly basis.

Cash Flows

The Company’s funding methods are based on governmental requirements and differ from those methods used to recognize pension expense. The Company expects to contribute $7.1 million and $0.5 million to the international and U.S. plans, respectively, during 2017.

Benefit payments expected to be paid to plan participants are as follows:



In thousands	U.S.		International
Year ended December 31,
2017	$	3,514	$	11,406
2018	3,347		11,088
2019	3,372		11,415
2020	3,357		12,090
2021	3,385		12,416
2022 through 2026	15,151		68,114

Post Retirement Benefit Plans

In addition to providing pension benefits, the Company has provided certain unfunded postretirement health care and life insurance benefits for a portion of North American employees. The Company is not obligated to pay health care and life insurance benefits to individuals who had retired prior to 1990.

The Company uses a December 31 measurement date for all post retirement plans. The following tables provide information regarding the Company’s post retirement benefit plans summarized by U.S. and international components.

Obligations and Funded Status



	U.S.						International
In thousands	2016			2015			2016			2015
Change in projected benefit obligation
Obligation at beginning of year	$	(12,959	)	$	(31,872	)	$	(3,290	)	$	(3,905	)
Service cost	(4		)	(9		)	(29		)	(38		)
Interest cost	(389		)	(1,233		)	(99		)	(128		)
Plan amendments	6			16,140			—			—
Benefits paid	720			1,478			133			125
Acquisition	(143		)	—			—			—
Actuarial gain (loss)	893			2,537			(42		)	37
Effect of currency rate changes	—			—			(98		)	619
Obligation at end of year	$	(11,876	)	$	(12,959	)	$	(3,425	)	$	(3,290	)
Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—		$	—		$	—
Employer contributions	720			1,478			133			125
Benefits paid	(720		)	(1,478		)	(133		)	(125		)
Fair value of plan assets at end of year	$	—		$	—		$	—		$	—
Funded status
Fair value of plan assets	$	—		$	—		$	—		$	—
Benefit obligations	(11,876		)	(12,959		)	(3,425		)	(3,290		)
Funded status	$	(11,876	)	$	(12,959	)	$	(3,425	)	$	(3,290	)
	U.S.						International
In thousands	2016			2015			2016			2015
Amounts recognized in the statement of financial position consist of:
Current liabilities	$	(1,084	)	$	(1,197	)	$	(185	)	$	(181	)
Noncurrent liabilities	(10,792		)	(11,762		)	(3,160		)	(3,109		)
Net amount recognized	$	(11,876	)	$	(12,959	)	$	(3,345	)	$	(3,290	)
Amounts recognized in accumulated other comprehensive income (loss)
consist of:
Initial net obligation	$	—		$	—		$	—		$	—
Prior service credit	21,134			22,837			15			21
Net actuarial (loss) gain	(20,023		)	(22,202		)	292			351
Net amount recognized	$	1,111		$	635		$	307		$	372

During 2015, the Company amended its medical plan that amongst other things, provided the participants with HRA funding contributions. The change resulted in a $16.1 million decrease to the accumulated projected benefit obligation.

Components of Net Periodic Benefit Cost



	U.S.									International
In thousands	2016			2015			2014			2016			2015			2014
Service cost	$	4		$	9		$	29		$	29		$	38		$	47
Interest cost	389			1,233			1,155			99			128			173
Amortization of initial net obligation and prior service cost	(1,709		)	(2,295		)	(2,730		)	(7		)	(7		)	(8		)
Amortization of net loss (gain)	1,287			1,356			1,330			(29		)	(30		)	(141		)
Net periodic benefit cost (credit)	$	(29	)	$	303		$	(216	)	$	92		$	129		$	71

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2016 are as follows:



In thousands	U.S.			International
Prior service credit	$	6		$	—
Net loss arising during the year	893			(42		)
Effect of exchange rates	—			13
Amortization or curtailment recognition of prior service cost	(1,709		)	(29		)
Amortization or settlement recognition of net loss (gain)	1,287			(7		)
Total recognized in other comprehensive income (loss)	$	477		$	(65	)
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	506		$	157

The weighted average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also the net periodic benefit cost for the following year. The discount rate is based on settling the pension obligation with high grade, high yield corporate bonds.



	U.S.						International
	2016		2015		2014		2016		2015		2014
Discount rate	3.76	%	3.95	%	3.95	%	3.46	%	3.80	%	3.96	%

As of December 31, 2016 the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2017.



In thousands	U.S.			International
Prior service cost	(1,519		)	(7		)
Net actuarial loss (gain)	1,225			(22		)
	$	(294	)	$	(29	)

The assumed health care cost trend rate for the U.S. plans grades from an initial rate of 6.45% to an ultimate rate of 4.50% by 2027 and for international plans from 6.42% to 4.50% by 2027. A 1.0% increase in the assumed health care cost trend rate will increase the service and interest cost components of the expense recognized for the U.S. and international post-retirement plans by less than $0.1 million for 2016, and increase the accumulated post-retirement benefit obligation by less than $0.1 million and $0.3 million, respectively. A 1.0% decrease in the assumed health care cost trend rate will decrease the service and interest cost components of the expense recognized for the U.S. and international post-retirement plans by less than $0.1 million for 2016, and decrease the accumulated post-retirement benefit obligation by less than $0.1 million and $0.2 million, respectively.

Cash Flows

Benefit payments expected to be paid to plan participants are as follows:



In thousands	U.S.		International
Year ended December 31,
2017	$	1,084	$	185
2018	1,045		194
2019	1,018		206
2020	986		210
2021	959		229
2022 through 2026	4,203		1,218

Defined Contribution Plans

The Company also participates in certain defined contribution plans and multiemployer pension plans. Costs recognized under these plans are summarized as follows:



	For the year ended December 31,
In thousands	2016		2015		2014
Multi-employer pension and health & welfare plans	$	2,054	$	2,584	$	2,405
401(k) savings and other defined contribution plans	23,062		21,399		19,925
Total	$	25,116	$	23,983	$	22,330

The 401(k) savings plan is a participant directed defined contribution plan that holds shares of the Company’s stock as one of the investment options. At December 31, 2016 and 2015, the plan held on behalf of its participants about 551,482 shares with a market value of $45.8 million, and 632,523 shares with a market value of $45.0 million, respectively.

Additionally, the Company has stock option based benefit and other plans further described in Note 12.

The Company contributes to several multi-employer defined benefit pension plans under collective bargaining agreements that cover certain of its union-represented employees. The risks of participating in such plans are different from the risks of single-employer plans. Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer ceases to contribute to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. If the Company ceases to have an obligation to contribute to the multi-employer plan in which it had been a contributing employer, it may be required to pay to the plan an amount based on the underfunded status of the plan and on the history of the Company’s participation in the plan prior to the cessation of its obligation to contribute. The amount that an employer that has ceased to have an obligation to contribute to a multi-employer plan is required to pay to the plan is referred to as a withdrawal liability.

The Company’s participation in multi-employer plans for the year ended December 31, 2016 is outlined in the table below. For plans that are not individually significant to the Company, the total amount of contributions is presented in the aggregate.



			Pension Protection Act Zone Status (b)		FIP/	Contributions by the Company													Expiration Dates of
					RP Status Pending/													Surcharge Imposed	Collective Bargaining
Pension Fund	EIN/PN (a)		2014	2013	Implemented (c)	2016				2015				2014				(d)	Agreements
Idaho Operating Engineers-	EIN #	91-6075538	Green	Green	No	$	1,306	(1	)	$	1,820	(1	)	$	1,745	(1	)	No	6/30/2018
Employers Pension Trust Fund	Plan#	001
Automobile Mechanics' Local No 701 Union and	EIN #	36-6042061	Red	Red	Yes (2)	$	748			$	764			$	660			No (3)	12/11/2017
Industry Pension Plan	Plan #	001
					Total Contributions	$	2,054			$	2,584			$	2,405


(1)	The Company’s contribution represents more than 5% of the total contributions to the plan.


(2)	The Pension Fund’s board adopted a Funding Improvement Plan on October 21, 2015, continuing the existing plan which increased the weekly pension fund contribution rates by $75 with corresponding decreases to the weekly welfare fund contribution rates until December 31, 2017.


(3)	Critical status triggered a 5% surcharge on employer contributions effective June 2012. Effective January 1, 2013, this surcharge increases to 10%. The surcharge ended on October 21, 2015 when the rehabilitation plan commenced.


(a)	The “EIN / PN” column provides the Employer Identification Number and the three-digit plan number assigned to a plan by the Internal Revenue Service.

(b)

The most recent Pension Protection Act Zone Status available for 2014 and 2013 is for plan years that ended in 2014 and 2013, respectively. The zone status is based on information provided to the Company and other participating employers by each plan and is certified by the plan’s actuary. A plan in the “red” zone has been determined to be in “critical status”, based on criteria established under the Internal Revenue Code (“Code”), and is generally less than 65% funded. A plan in the “yellow” zone has been determined to be in “endangered status”, based on criteria established under the Code, and is generally less than 80% funded. A plan in the “green” zone has been determined to be neither in “critical status” nor in “endangered status”, and is generally at least 80% funded.


(c)	The “FIP/RP Status Pending/Implemented” column indicates whether a Funding Improvement Plan, as required under the Code to be adopted by plans in the “yellow” zone, or a Rehabilitation Plan, as required under the Code to be adopted by plans in the “red” zone, is pending or has been implemented as of the end of the plan year that ended in 2016.


(d)	The “Surcharge Imposed” column indicates whether the Company’s contribution rate for 2016 included an amount in addition the contribution rate specified in the applicable collective bargaining agreement, as imposed by a plan in “critical status”, in accordance with the requirements of the Code.