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Benefit Plans
 12 Months Ended
Dec. 31, 2016
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Benefits Plans Disclosure
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 $15.4 million, $16.0 million, and $15.6 million for the years ended December 31, 2016, 2015, and 2014, 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, 2016 and 2015:
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Other Benefits
 
Total
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Change in benefit obligation:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Benefit obligation at beginning of year
$
154,415

 
$
164,367

 
$
818,269

 
$
863,639

 
$
3,272

 
$
3,754

 
$
975,956

 
$
1,031,760

Service cost, gross
432

 
837

 
29,936

 
31,514

 
—

 
—

 
30,368

 
32,351

Interest cost
4,428

 
6,431

 
10,664

 
14,071

 
76

 
139

 
15,168

 
20,641

Actuarial losses (gains)
845

 
(10,145
)
 
42,786

 
(4,959
)
 
318

 
113

 
43,949

 
(14,991
)
Plan amendments and other
—

 
—

 
—

 
(12,391
)
 
150

 
163

 
150

 
(12,228
)
Benefits paid
(21,965
)
 
(7,075
)
 
(33,977
)
 
(49,010
)
 
(831
)
 
(897
)
 
(56,773
)
 
(56,982
)
Impact of foreign currency
—

 
—

 
(29,401
)
 
(24,595
)
 
—

 
—

 
(29,401
)
 
(24,595
)
Benefit obligation at end of year
$
138,155

 
$
154,415

 
$
838,277

 
$
818,269

 
$
2,985

 
$
3,272

 
$
979,417

 
$
975,956

Change in plan assets:
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 
Fair value of plan assets at beginning of year
$
119,118

 
$
132,030

 
$
725,597

 
$
751,193

 
$
—

 
$
—

 
$
844,715

 
$
883,223

Actual return on plan assets
6,876

 
(5,907
)
 
15,927

 
(2,925
)
 
—

 
—

 
22,803

 
(8,832
)
Employer contributions
74

 
70

 
22,291

 
22,812

 
681

 
734

 
23,046

 
23,616

Plan participants’ contributions
—

 
—

 
13,277

 
12,850

 
150

 
163

 
13,427

 
13,013

Benefits paid
(21,965
)
 
(7,075
)
 
(33,977
)
 
(49,010
)
 
(831
)
 
(897
)
 
(56,773
)
 
(56,982
)
Impact of foreign currency and other
—

 
—

 
(26,946
)
 
(9,323
)
 
—

 
—

 
(26,946
)
 
(9,323
)
Fair value of plan assets at end of year
$
104,103

 
$
119,118

 
$
716,169

 
$
725,597

 
$
—

 
$
—

 
$
820,272

 
$
844,715

Funded status
$
(34,052
)
 
$
(35,297
)
 
$
(122,108
)
 
$
(92,672
)
 
$
(2,985
)
 
$
(3,272
)
 
$
(159,145
)
 
$
(131,241
)

Amounts recognized in the consolidated balance sheets consist of:
 
U.S. Pension Benefits
 
Non-U.S. Pension Benefits
 
Other Benefits
 
Total
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
 
2016
 
2015
Other non-current assets
$
—

 
$
—

 
$
10,530

 
$
32,786

 
$
—

 
$
—

 
$
10,530

 
$
32,786

Accrued and other liabilities
(92
)
 
(92
)
 
(4,293
)
 
(4,508
)
 
(467
)
 
(483
)
 
(4,852
)
 
(5,083
)
Pension and other post-retirement liabilities
(33,960
)
 
(35,205
)
 
(128,345
)
 
(120,950
)
 
(2,518
)
 
(2,789
)
 
(164,823
)
 
(158,944
)
Accumulated other comprehensive loss (income)
69,528

 
83,347

 
255,855

 
216,224

 
(5,057
)
 
(9,943
)
 
320,326

 
289,628

Total
$
35,476

 
$
48,050

 
$
133,747

 
$
123,552

 
$
(8,042
)
 
$
(13,215
)
 
$
161,181

 
$
158,387


The following amounts have been recognized in accumulated other comprehensive income (loss), before taxes, at December 31, 2016 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
$
—

 
$
(21,516
)
 
$
(1,151
)
 
$
(22,667
)
 
$
(17,480
)
Actuarial losses (gains)
69,528

 
277,371

 
(3,906
)
 
342,993

 
254,924

Total
$
69,528

 
$
255,855

 
$
(5,057
)
 
$
320,326

 
$
237,444


The following changes in plan assets and benefit obligations were recognized in other comprehensive income (loss), before taxes, for the year ended December 31, 2016:
 
U.S. Pension
Benefits
 
Non-U.S. Pension
Benefits
 
Other Benefits
 
Total
 
Total, After Tax
Net actuarial losses (gains)
$
1,750

 
$
60,026

 
$
319

 
$
62,095

 
$
47,788

Amortization of:
 
 
 
 
 
 


 
 
Actuarial (losses) gains
(15,569
)
 
(17,999
)
 
1,875

 
(31,693
)
 
(22,414
)
Plan amendments and prior service cost
—

 
5,076

 
2,692

 
7,768

 
5,684

Impact of foreign currency
—

 
(7,472
)
 
—

 
(7,472
)
 
(5,885
)
Total
$
(13,819
)
 
$
39,631

 
$
4,886

 
$
30,698

 
$
25,173


The accumulated benefit obligations at December 31, 2016 and 2015 were $138.2 million and $154.4 million, respectively, for the U.S. defined benefit pension plan and $818.9 million and $803.3 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, 2016 were $214.1 million, $203.5 million, and $81.4 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.
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Discount rate
3.97
%
 
4.27
%
 
4.00
%
 
0.98
%
 
1.31
%
 
1.65
%
Compensation increase rate
n/a

 
n/a

 
n/a

 
0.85
%
 
1.03
%
 
1.61
%
Expected long-term rate of return on plan assets
6.75
%
 
7.25
%
 
7.50
%
 
4.09
%
 
4.58
%
 
4.82
%

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.
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
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
%

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
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
Service cost, net
$
432

 
$
837

 
$
893

 
$
16,804

 
$
18,664

 
$
15,189

 
$
—

 
$
—

 
$
170

 
$
17,236

 
$
19,501

 
$
16,252

Interest cost on projected benefit obligations
4,428

 
6,431

 
6,396

 
10,664

 
14,071

 
21,445

 
76

 
139

 
240

 
15,168

 
20,641

 
28,081

Expected return on plan assets
(7,781
)
 
(9,575
)
 
(8,549
)
 
(33,168
)
 
(36,832
)
 
(37,361
)
 
—

 
—

 
—

 
(40,949
)
 
(46,407
)
 
(45,910
)
Recognition of actuarial losses/(gains) and prior service costs
7,606

 
7,626

 
4,800

 
12,923

 
10,639

 
292

 
(4,567
)
 
(5,247
)
 
(2,215
)
 
15,962

 
13,018

 
2,877

Settlement charge
7,963

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
7,963

 
—

 
—

Net periodic pension cost / (benefit)
$
12,648

 
$
5,319

 
$
3,540

 
$
7,223

 
$
6,542

 
$
(435
)
 
$
(4,491
)
 
$
(5,108
)
 
$
(1,805
)
 
$
15,380

 
$
6,753

 
$
1,300


The amounts remaining in accumulated other comprehensive income (loss) that are expected to be recognized as a component of net periodic pension cost during 2017 are as follows:
 
U.S. Pension
Benefits
 
Non-U.S.
Pension Benefits
 
Other Benefits
 
Total
Plan amendments and prior service costs
$
—

 
$
(4,984
)
 
$
(779
)
 
$
(5,763
)
Actuarial losses (gains)
6,555

 
22,236

 
(1,895
)
 
26,896

Total
$
6,555

 
$
17,252

 
$
(2,674
)
 
$
21,133


The projected post-retirement benefit obligation was principally determined using discount rates of 3.41% in 2016, 3.54% in 2015, and 4.00% in 2014. Net periodic post-retirement benefit cost was principally determined using discount rates of 3.54% in 2016, and 4.00% in 2015, and 4.75% in 2014. The health care cost trend rate was 7.5% in 2016, was 8.0% in 2015, and ranged from 7.75% to 8.50% in 2014, 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 35-55% in equity securities, 18-28% in fixed income securities, and 20-40% in other types of investments. International plan assets relate primarily to the Company’s Swiss plan with target allocations of 24-45% 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, 2016
 
December 31, 2015
 
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
$
131,468

 
$
—

 
$
—

 
$
131,468

 
$
86,135

 
$
—

 
$
—

 
$
86,135

Equity Securities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Mettler-Toledo Stock
2,846

 
—

 
—

 
2,846

 
3,229

 
—

 
—

 
3,229

Equity Mutual Funds:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

U.S.(1)
5,860

 
24,257

 
—

 
30,117

 
6,320

 
27,614

 
—

 
33,934

International(2)
54,760

 
52,404

 
—

 
107,164

 
41,982

 
50,748

 
—

 
92,730

Emerging Markets(3)
78,999

 
793

 
—

 
79,792

 
95,065

 
774

 
—

 
95,839

Fixed Income Securities:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Corporate/Government
69,578

 
—

 
—

 
69,578

 
91,533

 
—

 
—

 
91,533

Bonds(4)
 
 
 
 
 
 
 
Fixed Income Mutual Funds:
 
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Insurance Contracts(5)
—

 
19,955

 
1,300

 
21,255

 
—

 
20,351

 
1,367

 
21,718

Core Bond(6)
121,884

 
52,955

 
—

 
174,839

 
138,073

 
37,099

 
—

 
175,172

Real Asset Mutual Funds:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Real Estate(7)
69,284

 
—

 
—

 
69,284

 
65,597

 
—

 
—

 
65,597

Commodities(8)
22,964

 
—

 
5,594

 
28,558

 
21,092

 
3,880

 
33,505

 
58,477

Other Types of Investments:
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Global Allocation Funds(9)
11,981

 
11,285

 
—

 
23,266

 
12,661

 
13,605

 
—

 
26,266

Total assets in fair value hierarchy
$
569,624

 
$
161,649

 
$
6,894

 
$
738,167

 
$
561,687

 
$
154,071

 
$
34,872

 
$
750,630

Investments measured at net asset value:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Emerging Markets (3)
 
 
 
 
 
 
4,407
 
 
 
 
 
 
 
5,343
Multi-Strategy Fund of Hedge Funds (10)
 
 
 
 
 
 
77,698
 
 
 
 
 
 
 
88,742
Total pension assets at fair value
 
 
 
 
 
 
$
820,272

 
 
 
 
 
 
 
$
844,715


_______________________________________
(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 investments in underlying globally diversified hedge funds. Investments that are measured using the net asset value (NAV) per share practical expedient have not been categorized in the fair value hierarchy. The amounts presented above are intended to permit reconciliation of the fair value hierarchy to the fair value of total plan assets in order to determine the amounts included in the Consolidated Balance Sheet.
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, 2016 and 2015 for Level 3 asset categories:
 
Commodities
 
Insurance
Contract
 
Total
Balance at December 31, 2014
$
28,196

 
$
1,388

 
$
29,584

Actual return on plan assets:
 

 
 

 
 

Related to assets held at end of year
2,408

 
22

 
2,430

Purchases
2,911

 
99

 
3,010

Impact of foreign currency
(10
)
 
(142
)
 
(152
)
Balance at December 31, 2015
$
33,505

 
$
1,367

 
$
34,872

Actual return on plan assets:
 

 
 

 
 

Related to assets held at end of year
—

 
25

 
25

Related to assets sold during the year
(2,857
)
 
—

 
(2,857
)
Sales
(21,278
)
 
(38
)
 
(21,316
)
Impact of foreign currency
(3,776
)
 
(54
)
 
(3,830
)
Balance at December 31, 2016
$
5,594

 
$
1,300

 
$
6,894


There were no transfers between any asset levels during the years ended December 31, 2016 and 2015.
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
2017
$
7,693

 
$
40,407

 
$
467

 
$
48,567

2018
7,927

 
40,263

 
414

 
48,604

2019
8,120

 
39,952

 
381

 
48,453

2020
8,350

 
40,919

 
265

 
49,534

2021
8,472

 
39,001

 
239

 
47,712

2022-2027
43,902

 
192,274

 
860

 
237,036


In 2017, the Company expects to make employer pension contributions of approximately $18.9 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 February 2016 the Company offered former employees a one-time option to receive a lump sum distribution of their vested pension plan benefits. Based upon the eligible participant acceptance, $14.6 million was paid from plan assets to these former employees in the second quarter of 2016 with a corresponding decrease in the benefit obligation. The Company incurred a one-time non-cash settlement charge recorded in other charges (income), net during the second quarter of 2016 of approximately $8.2 million, of which $8.0 million, $4.9 million after tax, was reclassified from accumulated other comprehensive income.