BENEFIT PLANS

The Company maintains a number of retirement and other post-retirement employee benefit plans.

Certain subsidiaries sponsor defined contribution plans. Benefits are determined and funded annually based upon the terms of the plans. Amounts recognized as cost under these plans amounted to $16.0 million, $15.6 million, and $15.1 million for the years ended December 31, 2015, 2014, and 2013, respectively.

Certain subsidiaries sponsor defined benefit plans. Benefits are provided to employees primarily based upon years of service and employees’ compensation for certain periods during the last years of employment. Prior to 2002, the Company’s U.S. operations also provided post-retirement medical benefits to their employees. Contributions for medical benefits are related to employee years of service.

The following tables set forth the change in benefit obligation, the change in plan assets, the funded status, and amounts recognized in the consolidated financial statements for the Company’s defined benefit plans and post-retirement plan at December 31, 2015 and 2014:



	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Benefits						Total
	2015			2014			2015			2014			2015			2014			2015			2014
Change in benefit obligation:
Benefit obligation at beginning of year	$	164,367		$	138,147		$	863,639		$	814,200		$	3,754		$	5,295		$	1,031,760		$	957,642
Service cost, gross	837			893			31,514			28,579			—			170			32,351			29,642
Interest cost	6,431			6,396			14,071			21,445			139			240			20,641			28,081
Actuarial losses (gains)	(10,145		)	25,848			(4,959		)	117,902			113			477			(14,991		)	144,227
Plan amendments and other	—			—			(12,391		)	(453		)	163			(1,951		)	(12,228		)	(2,404		)
Benefits paid	(7,075		)	(6,917		)	(49,010		)	(35,279		)	(897		)	(477		)	(56,982		)	(42,673		)
Impact of foreign currency	—			—			(24,595		)	(82,755		)	—			—			(24,595		)	(82,755		)
Benefit obligation at end of year	$	154,415		$	164,367		$	818,269		$	863,639		$	3,272		$	3,754		$	975,956		$	1,031,760
Change in plan assets:
Fair value of plan assets at beginning of year	$	132,030		$	117,903		$	751,193		$	786,532		$	—		$	—		$	883,223		$	904,435
Actual return on plan assets	(5,907		)	2,974			(2,925		)	40,893			—			—			(8,832		)	43,867
Employer contributions	70			18,070			22,812			25,448			734			343			23,616			43,861
Plan participants’ contributions	—			—			12,850			13,409			163			134			13,013			13,543
Benefits paid	(7,075		)	(6,917		)	(49,010		)	(35,279		)	(897		)	(477		)	(56,982		)	(42,673		)
Impact of foreign currency and other	—			—			(9,323		)	(79,810		)	—			—			(9,323		)	(79,810		)
Fair value of plan assets at end of year	$	119,118		$	132,030		$	725,597		$	751,193		$	—		$	—		$	844,715		$	883,223
Funded status	$	(35,297	)	$	(32,337	)	$	(92,672	)	$	(112,446	)	$	(3,272	)	$	(3,754	)	$	(131,241	)	$	(148,537	)

Amounts recognized in the consolidated balance sheets consist of:



	U.S. Pension Benefits						Non-U.S. Pension Benefits						Other Benefits						Total
	2015			2014			2015			2014			2015			2014			2015			2014
Other non-current assets	$	—		$	—		$	32,786		$	38,922		$	—		$	—		$	32,786		$	38,922
Accrued and other liabilities	(92		)	(69		)	(4,508		)	(4,676		)	(483		)	(579		)	(5,083		)	(5,324		)
Pension and other post-retirement liabilities	(35,205		)	(32,268		)	(120,950		)	(146,692		)	(2,789		)	(3,175		)	(158,944		)	(182,135		)
Accumulated other comprehensive loss (income)	83,347			85,636			216,224			213,702			(9,943		)	(15,303		)	289,628			284,035
Total	$	48,050		$	53,299		$	123,552		$	101,256		$	(13,215	)	$	(19,057	)	$	158,387		$	135,498

The following amounts have been recognized in accumulated other comprehensive income (loss), before taxes, at December 31, 2015 and have not yet been recognized as a component of net periodic pension cost:



	U.S. Pension Benefits		Non-U.S. Pension Benefits			Other Benefits			Total			Total, After Tax
Plan amendments and prior service cost	$	—	$	(27,114	)	$	(3,028	)	$	(30,142	)	$	(23,079	)
Actuarial losses (gains)	83,347		243,338			(6,915		)	319,770			235,350
Total	$	83,347	$	216,224		$	(9,943	)	$	289,628		$	212,271

The following changes in plan assets and benefit obligations were recognized in other comprehensive income (loss), before taxes, for the year ended December 31, 2015:



	U.S. Pension Benefits			Non-U.S. Pension Benefits			Other Benefits		Total			Total, After Tax
Net actuarial losses (gains)	$	5,337		$	33,507		$	113	$	38,957		$	30,759
Plan amendments and prior service cost, net	—			(12,058		)	—		(12,058		)	(9,189		)
Amortization of:
Actuarial (losses) gains	(7,626		)	(15,084		)	1,877		(20,833		)	(15,134		)
Plan amendments and prior service cost	—			4,445			3,370		7,815			5,625
Impact of foreign currency	—			(8,288		)	—		(8,288		)	(5,835		)
Total	$	(2,289	)	$	2,522		$	5,360	$	5,593		$	6,226

The accumulated benefit obligations at December 31, 2015 and 2014 were $154.4 million and $164.4 million, respectively, for the U.S. defined benefit pension plan and $803.3 million and $834.7 million, respectively, for all non-U.S. plans. Certain of the plans included within non-U.S. pension benefits have accumulated benefit obligations which exceed the fair value of plan assets. The projected benefit obligation, the accumulated benefit obligation, and fair value of assets of these plans as of December 31, 2015 were $168.4 million, $158.2 million, and $42.9 million, respectively.

The assumed discount rates and rates of increase in future compensation levels used in calculating the projected benefit obligations vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows:



	U.S.						Non-U.S.
	2015		2014		2013		2015		2014		2013
Discount rate	4.27	%	4.00	%	4.75	%	1.31	%	1.65	%	2.73	%
Compensation increase rate	n/a		n/a		n/a		1.03	%	1.61	%	1.61	%
Expected long-term rate of return on plan assets	7.25	%	7.50	%	7.50	%	4.58	%	4.82	%	4.87	%

The assumed discount rates, rates of increase in future compensation levels, and the long-term rate of return used in calculating the net periodic pension cost vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows:



	U.S.						Non-U.S.
	2015		2014		2013		2015		2014		2013
Discount rate	4.00	%	4.75	%	3.75	%	1.65	%	2.73	%	2.50	%
Compensation increase rate	n/a		n/a		n/a		1.61	%	1.61	%	1.60	%
Expected long-term rate of return on plan assets	7.50	%	7.50	%	7.75	%	4.82	%	4.87	%	4.89	%

Net periodic pension cost and net periodic post-retirement benefit for the defined benefit plans and U.S. post-retirement plan includes the following components for the years ended December 31:



	U.S.									Non-U.S.									Other Benefits									Total
	2015			2014			2013			2015			2014			2013			2015			2014			2013			2015			2014			2013
Service cost, net	$	837		$	893		$	494		$	18,664		$	15,189		$	17,386		$	—		$	170		$	216		$	19,501		$	16,252		$	18,096
Interest cost on projected benefit obligations	6,431			6,396			5,755			14,071			21,445			19,566			139			240			405			20,641			28,081			25,726
Expected return on plan assets	(9,575		)	(8,549		)	(7,154		)	(36,832		)	(37,361		)	(35,048		)	—			—			—			(46,407		)	(45,910		)	(42,202		)
Recognition of actuarial losses/(gains) and prior service costs	7,626			4,800			7,782			10,639			292			3,545			(5,247		)	(2,215		)	(901		)	13,018			2,877			10,426
Net periodic pension cost / (benefit)	$	5,319		$	3,540		$	6,877		$	6,542		$	(435	)	$	5,449		$	(5,108	)	$	(1,805	)	$	(280	)	$	6,753		$	1,300		$	12,046

The amounts remaining in accumulated other comprehensive income (loss) that are expected to be recognized as a component of net periodic pension cost during 2016 are as follows:



	U.S. Pension Benefits		Non-U.S. Pension Benefits			Other Benefits			Total
Plan amendments and prior service costs	$	—	$	(3,889	)	$	(1,877	)	$	(5,766	)
Actuarial losses (gains)	7,561		17,935			(2,692		)	22,804
Total	$	7,561	$	14,046		$	(4,569	)	$	17,038

The projected post-retirement benefit obligation was principally determined using discount rates of 3.54% in 2015, 4.00% in 2014, and 4.75% in 2013. Net periodic post-retirement benefit cost was principally determined using discount rates of 4.00% in 2015, and 4.75% in 2014, and 3.75% in 2013. The health care cost trend rate was 8.0% in 2015, ranged from 7.75% to 8.50% in 2014, and was 8.0% 2013, decreasing to 5.00% in 2022. A one-percentage-point change in health care cost trend rates would have an immaterial impact on total service and interest cost components and the post-retirement benefit obligation.

The Company’s overall asset investment strategy is to achieve long-term growth while minimizing volatility by widely diversifying among asset types and strategies. Target asset allocations and investment return criteria are established by the pension committee or designated officers of each plan. Target asset allocation ranges for the U.S. pension plan include 33-53% in equity securities, 11-21% in fixed income securities, and 30-50% in other types of investments. International plan assets relate primarily to the Company’s Swiss plan with target allocations of 25-45% in equities, 35-55% in fixed income securities, and 15-25% in other types of investments. Actual results are monitored against targets and the trustees are required to report to the members of each plan, including an analysis of investment performance on an annual basis at a minimum. Day-to-day asset management is typically performed by third-party asset managers, reporting to the pension committees or designated officers.

The long-term rate of return on plan asset assumptions used to determine pension expense under U.S. GAAP are generally based on estimated future returns for the target investment mix determined by the trustees as well as historical investment performance.

The following table presents the fair value measurement of the Company’s plan assets by hierarchy level:



	December 31, 2015								December 31, 2014
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Observable Inputs for Identical Assets (Level 2)		Unobservable Inputs (Level 3)		Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Observable Inputs for Identical Assets (Level 2)		Unobservable Inputs (Level 3)		Total
Asset Category:
Cash and Cash Equivalents	$	86,135	$	—	$	—	$	86,135	$	140,959	$	—	$	—	$	140,959
Equity Securities:
Mettler-Toledo Stock	3,229		—		—		3,229		3,638		—		—		3,638
Equity Mutual Funds:
U.S.⁽¹⁾	6,320		27,614		—		33,934		7,377		30,268		—		37,645
International⁽²⁾	41,982		50,748		—		92,730		39,515		52,476		—		91,991
Emerging Markets⁽³⁾	95,065		6,117		—		101,182		72,360		6,679		—		79,039
Fixed Income Securities:
Corporate/Government	91,533		—		—		91,533		124,709		—		—		124,709
Bonds⁽⁴⁾
Fixed Income Mutual Funds:
Insurance Contracts⁽⁵⁾	—		20,351		1,367		21,718		—		23,288		1,388		24,676
Core Bond⁽⁶⁾	138,073		37,099		—		175,172		120,840		38,757		—		159,597
Real Asset Mutual Funds:
Real Estate⁽⁷⁾	65,597		—		—		65,597		61,849		—		—		61,849
Commodities⁽⁸⁾	21,092		3,880		33,505		58,477		20,920		3,118		28,196		52,234
Other Types of Investments:
Global Allocation Funds⁽⁹⁾	12,661		13,605		—		26,266		13,790		12,145		—		25,935
Multi-Strategy Fund of	—		—		88,742		88,742		—		—		80,951		80,951
Hedge Funds⁽¹⁰⁾
	$	561,687	$	159,414	$	123,614	$	844,715	$	605,957	$	166,731	$	110,535	$	883,223

_______________________________________


(1)	Represents primarily large capitalization equity mutual funds tracking the S&P 500 Index.


(2)	Represents all capitalization core and value equity mutual funds located primarily in Switzerland, the United Kingdom, and Canada.


(3)	Represents core and growth mutual funds and funds of mutual funds invested in emerging markets primarily in Eastern Europe, Latin America, and Asia.


(4)	Represents investments in high-grade corporate and government bonds located in Switzerland and the European Union.


(5)	Represents fixed and variable rate annuity contracts provided by insurance companies.


(6)	Represents fixed income mutual funds invested in the U.S., the United Kingdom, Switzerland, and European government bonds, high-grade corporate bonds, mortgage-backed securities, and collateralized mortgage obligations.


(7)	Represents mutual funds invested in real estate located primarily in Switzerland.


(8)	Represents commodity funds invested across a broad range of sectors.


(9)	Represents mutual funds invested globally in both equities and fixed income securities.


(10)	Represents primarily equity investments to profit from long and short equity positions, economic and government driven events and relative value, and tactical trading strategies.

The fair value of the Company’s stock and corporate and government bonds are valued at the year end closing price as reported on the securities exchange on which they are traded. Mutual funds are valued at the exchange-listed year end closing price or at the net asset value of shares held by the fund at the end of the year. Insurance contracts are valued by discounting the related cash flows using a current year end market rate or at cash surrender value, which is presumed to equal fair value. Funds of hedge funds are valued at the net asset value of shares held by the fund at the end of the year.

The following table presents a rollforward of activity for the years ended December 31, 2015 and 2014 for Level 3 asset categories:



	Multi- Strategy Fund of Hedge Funds			Commodities			Insurance Contract			Total
Balance at December 31, 2013	$	77,312		$	23,136		$	1,475		$	101,923
Actual return on plan assets:
Related to assets held at end of year	4,456			2,952			34			7,442
Related to assets sold during the year	4,811			—			—			4,811
Purchases	22,867			5,030			115			28,012
Sales	(21,649		)	—			(54		)	(21,703		)
Impact of foreign currency	(6,846		)	(2,922		)	(182		)	(9,950		)
Balance at December 31, 2014	$	80,951		$	28,196		$	1,388		$	110,535
Actual return on plan assets:
Related to assets held at end of year	6,453			2,408			22			8,883
Purchases	9,980			2,911			99			12,990
Sales	(8,317		)	—			—			(8,317		)
Impact of foreign currency	(325		)	(10		)	(142		)	(477		)
Balance at December 31, 2015	$	88,742		$	33,505		$	1,367		$	123,614

There were no transfers between any asset levels during the years ended December 31, 2015 and 2014.

The following benefit payments, which reflect expected future service as appropriate, are expected to be paid:



	U.S. Pension Benefits		Non-U.S. Pension Benefits		Other Benefits Net of Subsidy		Total
2016	$	7,484	$	40,900	$	483	$	48,867
2017	7,842		40,576		441		48,859
2018	8,181		40,616		381		49,178
2019	8,460		40,390		331		49,181
2020	8,782		40,746		263		49,791
2021-2025	47,773		193,094		973		241,840

The Company made voluntary incremental pension contributions of $18 million in 2014 to increase the funded status of its pension plans. The Company does not expect to receive any refunds from its benefit plans during 2016.

In 2016, the Company expects to make employer pension contributions of approximately $19.4 million to its non-U.S. pension plan and employer contributions of approximately $0.5 million to its U.S. post-retirement medical plan.

In early 2016, in order to reduce the size and potential volatility of our U.S. defined benefit pension plan obligation, we offered approximately 700 former employees who have deferred vested pension plan benefits a one-time option to receive a lump sum distribution of their benefits in early May 2016. The vested benefit obligation associated with these former employees is approximately $32 million, equivalent to 21% of the company's benefit obligation for this U.S. plan. Eligible participants have 45 days to make their election. If the percentage of benefits distributed through the lump sum option exceeds 18% of the benefit obligation associated with these former employees, we anticipate recognizing a one-time non-cash settlement charge of approximately $7 million to $13 million in the second quarter of 2016. The lump sum payments will be funded from existing pension plan assets.