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	2018			2017			2018			2017
Change in projected benefit obligation
Obligation at beginning of year	$	(44,213	)	$	(45,512	)	$	(353,017	)	$	(319,551	)
Opening balance sheet adjustment	—			—			—			(5,321		)
Service cost	(349		)	(344		)	(2,611		)	(2,740		)
Interest cost	(1,332		)	(1,422		)	(7,047		)	(7,310		)
Employee contributions	—			—			(448		)	(880		)
Plan settlements and amendments	—			—			15,191			4,153
Benefits paid	3,476			3,079			13,453			12,906
Acquisition	—			—			(864		)	—
Actuarial gain (loss)	2,942			(14		)	6,740			(3,009		)
Effect of currency rate changes	—			—			19,337			(31,265		)
Obligation at end of year	$	(39,476	)	$	(44,213	)	$	(309,266	)	$	(353,017	)
Change in plan assets
Fair value of plan assets at beginning of year	$	37,432		$	35,802		$	281,602		$	241,283
Opening balance sheet adjustment	—			—			—			2,058
Actual return on plan assets	(1,983		)	4,223			(6,938		)	19,102
Employer contributions	—			486			10,821			13,479
Employee contributions	—			—			448			880
Benefits paid	(3,476		)	(3,079		)	(13,453		)	(12,905		)
Settlements	—			—			(16,601		)	(4,523		)
Effect of currency rate changes	—			—			(16,380		)	22,228
Fair value of plan assets at end of year	$	31,973		$	37,432		$	239,499		$	281,602
Funded status
Fair value of plan assets	$	31,973		$	37,432		$	239,499		$	281,602
Benefit obligations	(39,476		)	(44,213		)	(309,266		)	(353,017		)
Funded status	$	(7,503	)	$	(6,781	)	$	(69,767	)	$	(71,415	)
Amounts recognized in the statement of financial position consist of:
Noncurrent assets	$	—		$	—		$	8,910		$	10,577
Current liabilities	—			—			(2,062		)	(2,158		)
Noncurrent liabilities	(7,503		)	(6,781		)	(76,615		)	(79,834		)
Net amount recognized	$	(7,503	)	$	(6,781	)	$	(69,767	)	$	(71,415	)
Amounts recognized in accumulated other comprehensive income (loss) consist of:
Prior service cost	(3		)	(6		)	(1,419		)	(32		)
Net actuarial loss	(20,268		)	(20,418		)	(58,748		)	(54,043		)
Net amount recognized	$	(20,271	)	$	(20,424	)	$	(60,167	)	$	(54,075	)

The aggregate accumulated benefit obligation for the U.S. pension plans was $38.8 million and $43.3 million as of December 31, 2018 and 2017, respectively. The aggregate accumulated benefit obligation for the international pension plans was $301.1 million and $344.3 million as of December 31, 2018 and 2017, respectively.



	U.S.						International
In thousands	2018			2017			2018			2017
Information for pension plans with accumulated benefit obligations in
excess of Plan assets:
Projected benefit obligation	$	(39,476	)	$	(44,213	)	$	(251,010	)	$	(282,077	)
Accumulated benefit obligation	(38,805		)	(43,340		)	(243,613		)	(274,557		)
Fair value of plan assets	31,973			37,432			172,333			200,218
Information for pension plans with projected benefit obligations in
excess of plan assets:
Projected benefit obligation	$	(39,476	)	$	(44,213	)	$	(251,010	)	$	(283,106	)
Fair value of plan assets	31,973			37,432			172,333			201,115

Components of Net Periodic Benefit Costs



	U.S.									International
In thousands	2018			2017			2016			2018			2017			2016
Service cost	$	349		$	344		$	337		$	2,611		$	2,740		$	1,379
Interest cost	1,332			1,422			1,475			7,047			7,310			5,774
Expected return on plan assets	(1,780		)	(1,731		)	(2,076		)	(13,458		)	(12,412		)	(9,971		)
Amortization of initial net obligation and prior service cost	3			3			3			22			27			61
Amortization of net loss	970			989			914			2,149			2,846			1,818
Settlement and curtailment losses recognized	—			—			—			3,112			768			218
Net periodic benefit cost	$	874		$	1,027		$	653		$	1,483		$	1,279		$	(721	)

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2018 are as follows:



In thousands	U.S.			International
Net gain (loss) arising during the year	$	(820	)	$	(13,655	)
Effect of exchange rates	—			3,690
Amortization, settlement, or curtailment recognition of net transition obligation	—			3,112
Amortization or curtailment recognition of prior service cost	3			(1,388		)
Amortization or settlement recognition of net loss	970			2,149
Total recognized in other comprehensive gain	$	153		$	(6,092	)
Total recognized in net periodic benefit cost and other comprehensive gain	$	(721	)	$	(7,575	)

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
	2018		2017		2016		2018		2017		2016
Discount rate	4.30	%	3.56	%	3.95	%	2.53	%	2.40	%	2.51	%
Expected return on plan assets	5.15	%	4.95	%	5.70	%	5.10	%	5.02	%	6.07	%
Rate of compensation increase	3.00	%	3.00	%	3.00	%	2.61	%	2.54	%	2.54	%

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, 2018, the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2019.



In thousands	U.S.		International
Prior service cost	3		53
Net actuarial loss	826		2,512
	$	829	$	2,565

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. (See Note 20 “Fair Value Measurement” included herein). Plan assets by asset category at December 31, 2018 and 2017 are as follows:



	U.S.				International
In thousands	2018		2017		2018		2017
Pension Plan Assets
Equity security funds	$	13,162	$	18,122	$	95,058	$	100,453
Debt security funds and other	17,528		18,304		140,894		178,730
Cash and cash equivalents	1,283		1,006		3,547		2,419
Fair value of plan assets	$	31,973	$	37,432	$	239,499	$	281,602

The U.S. plan has a target asset allocation of 50% equity securities and 50% debt securities. The International plan has a target asset allocation of 31% equity securities, 40% debt securities and 29% in other investments. 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.

The following tables summarize our pension plan assets measured at fair value on a recurring basis by fair value hierarchy level (See Note 20):



	December 31, 2018
In thousands	NAV		Level 1		Level 2		Level 3		Total
US:
Equity	$	—	$	13,162	$	—	$	—	$	13,162
Debt Securities and other	—		4,523		13,005		—		17,528
Cash and cash equivalents	—		1,283		—		—		1,283
International:
Equity	$	3,710	$	34,848	$	56,500	$	—	$	95,058
Debt Securities and other	—		—		125,587		—		125,587
Insurance Contracts	—		—		5,383		9,924		15,307
Cash and cash equivalents	—		3,547		—		—		3,547
Total	$	3,710	$	57,363	$	200,475	$	9,924	$	271,472



	December 31, 2017
In thousands	NAV		Level 1		Level 2		Level 3		Total
US:
Equity	$	—	$	18,122	$	—	$	—	$	18,122
Debt Securities	—		4,273		14,031		—		18,304
Cash and cash equivalents	—		1,006		—		—		1,006
International:
Equity	$	4,586	$	38,647	$	95,641	$	—	$	138,874
Debt Securities	—		—		111,204		—		111,204
Insurance Contracts	—		—		15,893		13,123		29,016
Cash and cash equivalents	—		2,507		—		—		2,507
Total	$	4,586	$	64,555	$	236,769	$	13,123	$	319,033

The following table presents a reconciliation of Level 3 assets:



In thousands	Total
Balance at December 31, 2016	$	12,996
Net purchases, issuances, and settlements	778
Actual return of plan assets	375
Opening balance sheet adjustment	(1,308		)
Effect of currency rate changes	282
Balance at December 31, 2017	$	13,123
Net purchases, issuances, and settlements	(3,611		)
Actual return of plan assets	277
Transfers	658
Effect of currency rate changes	(523		)
Balance at December 31, 2018	$	9,924

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 $6.4 million to the international plans during 2019. The company does not expect to make contributions to the U.S. plans during 2019.

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



In thousands	U.S.		International
Year ended December 31,
2019	$	3,233	$	11,556
2020	3,242		12,017
2021	3,100		12,489
2022	3,095		13,353
2023	3,077		13,583
2024 through 2028	13,623		75,457

Postretirement 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 postretirement 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	2018			2017			2018			2017
Change in projected benefit obligation
Obligation at beginning of year	$	(11,345	)	$	(11,876	)	$	(3,720	)	$	(3,425	)
Service cost	(5		)	(5		)	(31		)	(28		)
Interest cost	(326		)	(350		)	(100		)	(98		)
Benefits paid	786			970			201			199
Actuarial gain (loss)	1,072			(84		)	646			(131		)
Effect of currency rate changes	—			—			335			(237		)
Obligation at end of year	$	(9,818	)	$	(11,345	)	$	(2,669	)	$	(3,720	)
Change in plan assets
Fair value of plan assets at beginning of year	$	—		$	—		$	—		$	—
Employer contributions	786			970			201			199
Benefits paid	(786		)	(970		)	(201		)	(199		)
Fair value of plan assets at end of year	$	—		$	—		$	—		$	—
Funded status
Fair value of plan assets	$	—		$	—		$	—		$	—
Benefit obligations	(9,818		)	(11,345		)	(2,669		)	(3,720		)
Funded status	$	(9,818	)	$	(11,345	)	$	(2,669	)	$	(3,720	)
	U.S.						International
In thousands	2018			2017			2018			2017
Amounts recognized in the statement of financial position consist of:
Current liabilities	$	(984	)	$	(1,046	)	$	(175	)	$	(208	)
Noncurrent liabilities	(8,834		)	(10,299		)	(2,494		)	(3,512		)
Net amount recognized	$	(9,818	)	$	(11,345	)	$	(2,669	)	$	(3,720	)
Amounts recognized in accumulated other comprehensive income (loss)
consist of:
Prior service credit	18,097			19,616			2			9
Net actuarial (loss) gain	(16,593		)	(18,882		)	748			154
Net amount recognized	$	1,504		$	734		$	750		$	163

Components of Net Periodic Benefit Cost



	U.S.									International
In thousands	2018			2017			2016			2018			2017			2016
Service cost	$	5		$	5		$	4		$	31		$	28		$	29
Interest cost	326			350			389			100			98			99
Amortization of initial net obligation and prior service cost	(1,519		)	(1,519		)	(1,709		)	(7		)	(7		)	(7		)
Amortization of net loss (gain)	1,216			1,225			1,287			(8		)	(23		)	(29		)
Net periodic benefit cost (credit)	$	28		$	61		$	(29	)	$	116		$	96		$	92

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income during 2018 are as follows:



In thousands	U.S.			International
Net loss arising during the year	1,072			646
Effect of exchange rates	—			(44		)
Amortization or curtailment recognition of prior service cost	(1,519		)	(7		)
Amortization or settlement recognition of net loss (gain)	1,216			(8		)
Total recognized in other comprehensive income (loss)	$	769		$	587
Total recognized in net periodic benefit cost and other comprehensive income (loss)	$	741		$	471

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
	2018		2017		2016		2018		2017		2016
Discount rate	4.17	%	3.43	%	3.76	%	3.49	%	3.21	%	3.46	%

As of December 31, 2018, the following table represents the amounts included in other comprehensive loss that are expected to be recognized as components of periodic benefit costs in 2019.



In thousands	U.S.			International
Prior service credit	(1,519		)	(2		)
Net actuarial loss (gain)	1,116			(88		)
Total	$	(403	)	$	(90	)

The assumed health care cost trend rate for the U.S. plans grades from an initial rate of 6.30% to an ultimate rate of 4.50% by 2028 and for international plans from 6.04% to 4.50% by 2027.

Cash Flows

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



In thousands	U.S.		International
Year ended December 31,
2019	$	983	$	175
2020	949		171
2021	920		181
2022	879		184
2023	854		196
2024 through 2028	3,661		912

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	2018		2017		2016
Multi-employer pension and health & welfare plans	$	965	$	1,522	$	2,054
401(k) savings and other defined contribution plans	27,869		23,209		23,062
Total	$	28,834	$	24,731	$	25,116

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, 2018 and 2017, the plan held on behalf of its participants about 442,239 shares with a market value of $31.1 million, and 495,274 shares with a market value of $40.3 million, respectively.

Additionally, the Company has stock option based benefit and other plans further described in Note 14.

The Company contributes to a multi-employer defined benefit pension plan under a collective bargaining agreement that covers 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, 2018 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)		2017	2016	Implemented (c)	2018			2017				2016				(d)	Agreements
Idaho Operating Engineers-	EIN #	91-6075538	Green	Green	No	$	965	(1)	$	1,020	(1	)	$	1,306	(1	)	No	8/6/2021
Employers Pension Trust Fund	Plan#	001
					Total Contributions	$	965		$	1,020			$	1,306


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


(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 2018 and 2017 is for plan years that ended in 2017 and 2016, 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 2018.


(d)	The “Surcharge Imposed” column indicates whether the Company’s contribution rate for 2018 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.