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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2016
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] |
Employee Benefit Plans | Note 11: Employee Benefit Plans Defined Benefit Plans The Company maintains defined benefit plans for employees of certain of its foreign subsidiaries. Such plans conform to local practice in terms of providing minimum benefits mandated by law, collective agreements or customary practice. The Company recognizes the aggregate amount of all overfunded plans as assets and the aggregate amount of all underfunded plans as liabilities in its financial statements. The Company's expected long-term rate of return on plan assets is updated at least annually, taking into consideration its asset allocation, historical returns on similar types of assets and the current economic environment. For estimation purposes, the Company assumes its long-term asset mix will generally be consistent with the current mix. The Company determines its discount rates using highly rated corporate bond yields and government bond yields. Benefits under all of the Company's plans are valued utilizing the projected unit credit cost method. The Company's policy is to fund its defined benefit plans in accordance with local requirements and regulations. The funding is primarily driven by the Company's current assessment of the economic environment and projected benefit payments of its foreign subsidiaries. The Company's measurement date for determining its defined benefit obligations for all plans is December 31 of each year. The Company recognizes actuarial gains and losses in the period the Company's annual pension plan actuarial valuations are prepared, which generally occurs during the fourth quarter of each year, or during any interim period where a revaluation is deemed necessary. The total liability at December 31, 2016 includes $8.3 million of accrued pension liabilities assumed by the Company in connection with the Fairchild acquisition. 2014 Activity and Effect of Voluntary Retirement Programs The Company recorded a pension curtailment gain of $6.6 million included in Restructuring, asset impairments and other, net for the year ended December 31, 2014 related to the former System Solution Group voluntary retirement programs and KSS facility closure. The Company recognized approximately $7.4 million of actuarial losses associated with these programs for the year ended December 31, 2014. The following is a summary of the status of the Company's foreign defined benefit pension plans and the net periodic pension cost (dollars in millions):
|  | Year Ended December 31,
|  | 2016 |  | 2015 |  | 2014
Service cost |  | $ | 9.0 |  |  | $ | 8.4 |  |  | $ | 9.3 |
Interest cost |  | 4.5 |  |  | 3.8 |  |  | 5.7 |
Expected return on plan assets |  | (3.9 | ) |  | (3.5 | ) |  | (3.4 | )
Curtailment gain |  | — |  |  | — |  |  | (6.6 | )
Actuarial and other (gain) loss |  | 10.1 |  |  | (5.0 | ) |  | 12.3 |
Total net periodic pension cost |  | $ | 19.7 |  |  | $ | 3.7 |  |  | $ | 17.3 |
Weighted average assumptions |  |  |  |  |  |
Discount rate |  | 1.60 | % |  | 1.82 | % |  | 1.64 | %
Expected return on plan assets |  | 3.20 | % |  | 2.46 | % |  | 2.25 | %
Rate of compensation increase |  | 3.05 | % |  | 2.96 | % |  | 3.03 | %
|  | December 31,
|  | 2016 |  | 2015
Change in projected benefit obligation (PBO) |  |  |  |
Projected benefit obligation at the beginning of the year |  | $ | 234.4 |  |  | $ | 241.8 |
Service cost |  | 9.0 |  |  | 8.4 |
Interest cost |  | 4.5 |  |  | 3.8 |
Net actuarial (gain) loss |  | 10.6 |  |  | (5.2 | )
Acquired PBO from Fairchild |  | 17.4 |  |  | — |
Benefits paid by plan assets |  | (4.9 | ) |  | (3.8 | )
Benefits paid by the Company |  | (5.9 | ) |  | (2.7 | )
Translation gain and other |  | (3.3 | ) |  | (7.9 | )
Projected benefit obligation at the end of the year |  | $ | 261.8 |  |  | $ | 234.4 |
Accumulated benefit obligation at the end of the year |  | $ | 222.4 |  |  | $ | 198.2 |
Change in plan assets |  |  |  |
Fair value of plan assets at the beginning of the year |  | $ | 147.2 |  |  | $ | 145.7 |
Acquired assets from Fairchild |  | 9.1 |  |  | — |
Actual return on plan assets |  | 4.4 |  |  | 3.3 |
Benefits paid from plan assets |  | (4.9 | ) |  | (3.8 | )
Employer contributions |  | 6.1 |  |  | 7.3 |
Translation and other loss |  | (2.2 | ) |  | (5.3 | )
Fair value of plan assets at the end of the year |  | $ | 159.7 |  |  | $ | 147.2 |
Plans with underfunded or non-funded projected benefit obligation |  |  |  |
Projected benefit obligation |  | $ | 256.1 |  |  | $ | 229.3 |
Fair value of plan assets |  | 152.9 |  |  | 140.8 |
Plans with underfunded or non-funded accumulated benefit obligation |  |  |  |
Accumulated benefit obligation |  | $ | 138.9 |  |  | $ | 158.1 |
Fair value of plan assets |  | $ | 63.7 |  |  | $ | 95.8 |
Amounts recognized in the balance sheet consist of |  |  |  |
Current liabilities |  | (0.1 | ) |  | (0.1 | )
Non-current liabilities |  | (102.0 | ) |  | (87.1 | )
Funded status |  | $ | (102.1 | ) |  | $ | (87.2 | )
As of December 31, 2016 and 2015, respectively, the assets of the Company's foreign plans were invested 18% and 18% in equity securities, 20% and 21% in debt securities, including corporate bonds, 44% and 47% in insurance and investment contracts, 3% and 3% in cash and 15% and 11% in other investments, including foreign government securities, equity securities and mutual funds. This asset allocation is based on the anticipated required funding amounts, timing of benefit payments, historical returns on similar assets and the influence of the current economic environment. The long term rate of return on plan assets was determined using the weighted-average method, which incorporates factors that include the historical inflation rates, interest rate yield curve and current market conditions. Plan Assets The Company's overall investment strategy is to focus on stable and low credit risk investments aimed at providing a positive rate of return to the plan assets. The Company has an investment mix with a wide diversification of asset types and fund strategies that are aligned with each region and foreign location's economy and market conditions. Investments in government securities are generally guaranteed by the respective government offering the securities. Investments in corporate bonds, equity securities, and foreign mutual funds are made with the expectation that these investments will give an adequate rate of long-term returns despite periods of high volatility. Other types of investments include investments in cash deposits, money market funds and insurance contracts. The fair value measurement of plan assets in the Company's foreign pension plans as of December 31, 2016 and 2015, was as follows (in millions):
|  | December 31, 2016
|  | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Asset Category |  |  |  |  |  |  |  |
Cash/Money Markets |  | $ | 4.9 |  |  | $ | 4.9 |  |  | $ | — |  |  | $ | — |
Foreign Government/Treasury Securities (1) |  | 15.6 |  |  | 15.6 |  |  | — |  |  | — |
Corporate Bonds, Debentures (2) |  | 32.0 |  |  | — |  |  | 32.0 |  |  | — |
Equity Securities (3) |  | 28.8 |  |  | — |  |  | 28.8 |  |  | — |
Mutual Funds |  | 8.8 |  |  | — |  |  | 8.8 |  |  | — |
Investment and Insurance Annuity Contracts (4) |  | 69.6 |  |  | — |  |  | 22.4 |  |  | 47.2 |
|  | $ | 159.7 |  |  | $ | 20.5 |  |  | $ | 92.0 |  |  | $ | 47.2 |
|  | December 31, 2015
|  | Total |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  | Significant Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Asset Category |  |  |  |  |  |  |  |
Cash/Money Markets |  | $ | 4.6 |  |  | $ | 4.6 |  |  | $ | — |  |  | $ | — |
Foreign Government/Treasury Securities (1) |  | 9.0 |  |  | 8.3 |  |  | 0.7 |  |  | — |
Corporate Bonds, Debentures (2) |  | 30.3 |  |  | — |  |  | 29.7 |  |  | 0.6 |
Equity Securities (3) |  | 26.7 |  |  | — |  |  | 26.7 |  |  | — |
Mutual Funds |  | 7.7 |  |  | — |  |  | 7.7 |  |  | — |
Investment and Insurance Annuity Contracts (4) |  | 68.9 |  |  | — |  |  | 21.9 |  |  | 47.0 |
|  | $ | 147.2 |  |  | $ | 12.9 |  |  | $ | 86.7 |  |  | $ | 47.6 |
_______________________
(1) | Includes investments primarily in guaranteed return securities.
(2) | Includes investments in government bonds and corporate bonds of developed countries, emerging market government bonds, emerging market corporate bonds and convertible bonds.
(3) | Includes investments in equity securities of developed countries and emerging markets.
(4) | Includes certain investments with insurance companies which guarantee a minimum rate of return on the investment.
When available, the Company uses observable market data, including pricing on recently closed market transactions and quoted prices, which are included in Level 2. When data is unobservable, valuation methodologies using comparable market data are utilized and included in Level 3. Activity during the year ended December 31, 2016 for plan assets with fair value measurement using significant unobservable inputs (Level 3) was as follows (in millions):
|  | Corporate Bonds, Debentures |  | Investment and Insurance Contracts |  | Total
Balance at December 31, 2014 |  | $ | 0.7 |  |  | $ | 51.5 |  |  | $ | 52.2 |
Actual return on plan assets |  | (0.1 | ) |  | — |  |  | (0.1 | )
Purchase, sales and settlements |  | — |  |  | 0.6 |  |  | 0.6 |
Foreign currency impact |  | — |  |  | (5.1 | ) |  | (5.1 | )
Balance at December 31, 2015 |  | $ | 0.6 |  |  | $ | 47.0 |  |  | $ | 47.6 |
Actual return on plan assets |  | — |  |  | 3.3 |  |  | 3.3 |
Purchase, sales and settlements |  | (0.6 | ) |  | (0.4 | ) |  | (1.0 | )
Foreign currency impact |  | — |  |  | (2.7 | ) |  | (2.7 | )
Balance at December 31, 2016 |  | $ | — |  |  | $ | 47.2 |  |  | $ | 47.2 |
The expected benefit payments for the Company's defined benefit plans by year from 2017 through 2021 and the five years thereafter are as follows (in millions):
2017 |  | $ | 3.8 |
2018 |  | 4.9 |
2019 |  | 5.6 |
2020 |  | 7.3 |
2021 |  | 10.8 |
Five years thereafter |  | 73.7 |
Total |  | $ | 106.1 |
The total underfunded status was $102.1 million at December 31, 2016. The Company expects to contribute $8.3 million during 2017 to its foreign defined benefit plans. Defined Contribution Plans The Company has a deferred compensation savings plan for all eligible U.S. employees established under the provisions of Section 401(k) of the Internal Revenue Code. Eligible employees may contribute a percentage of their salary subject to certain limitations. The Company has elected to have a matching contribution of 100% of the first 4% of employee contributions. The Company recognized $14.0 million, $13.6 million and $8.5 million of expense relating to matching contributions in 2016, 2015 and 2014, respectively. Certain foreign subsidiaries have defined contribution plans in which eligible employees participate. The Company recognized compensation expense of $8.9 million, $3.1 million and $3.2 million relating to these plans for the years ended 2016, 2015 and 2014, respectively.

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