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RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS (Tables)

12 Months Ended

Dec. 31, 2020

RETIREMENT ANNUITY AND GUARANTEED CONTINUOUS EMPLOYMENT PLANS

Obligations and Funded Status

Obligations and Funded Status


		December 31,
		2020						2019
		U.S. pension			Non-U.S.			U.S. pension			Non-U.S.
		plans			pension plans			plans			pension plans
Change in benefit obligations
Benefit obligations at beginning of year		$	492,511		$	176,858		$	438,945		$	168,811
Service cost			156			3,140			140			2,908
Interest cost			14,670			2,755			18,610			3,739
Plan participants' contributions			—			142			—			153
Acquisitions & other adjustments			—			11			—			(1,864)
Actuarial (gain) loss ⁽¹⁾			100,346			7,161			58,842			10,653
Benefits paid			(10,105)			(7,064)			(24,026)			(8,961)
Settlements/curtailments ⁽²⁾			(39,632)			(2,701)			—			(1,256)
Currency translation			—			9,839			—			2,675
Benefit obligations at end of year			557,946			190,141			492,511			176,858

Change in plan assets
Fair value of plan assets at beginning of year			589,551			105,673			512,078			100,187
Actual return on plan assets			72,596			8,403			100,744			9,743
Employer contributions			—			2,818			—			2,210
Plan participants' contributions			—			142			—			153
Acquisitions & other adjustments			—			—			—			(2,651)
Benefits paid			(8,875)			(4,403)			(23,271)			(6,120)
Settlements ⁽²⁾			(35,248)			(633)			—			(920)
Currency translation			—			5,058			—			3,071
Fair value of plan assets at end of year			618,024			117,058			589,551			105,673

Funded status at end of year			60,078			(73,083)			97,040			(71,185)
Unrecognized actuarial net loss			108,873			28,637			67,050			28,543
Unrecognized prior service cost			—			389			—			457
Unrecognized transition assets, net			—			27			—			30
Net amount recognized		$	168,951		$	(44,030)		$	164,090		$	(42,155)

(1)	Actuarial losses in 2020 were primarily the result of a decrease in the Company’s U.S. pension plan discount rate from 3.4% in 2019 to 2.2% in 2020.

(2)	Settlements in 2020 resulting from lump sum pension payments.

Amounts Recognized in Consolidated Balance Sheets

Amounts Recognized in Consolidated Balance Sheets


		December 31,
		2020						2019
		U.S. pension			Non-U.S.			U.S. pension			Non-U.S.
		plans			Pension plans			plans			pension plans
Prepaid pensions ⁽¹⁾		$	71,402		$	—		$	111,879		$	—
Accrued pension liability, current ⁽²⁾			(726)			(3,050)			(739)			(2,847)
Accrued pension liability, long-term ⁽³⁾			(10,598)			(70,033)			(14,100)			(68,338)
Accumulated other comprehensive loss, excluding tax effects			108,873			29,053			67,050			29,030
Net amount recognized in the balance sheets		$	168,951		$	(44,030)		$	164,090		$	(42,155)

(1)	Included in Other assets.

(2)	Included in Other current liabilities.

(3)	Included in Other liabilities.

Components of Pension Cost for Defined Benefit Plans

Components of Pension Cost for Defined Benefit Plans


		Year Ended December 31,
		2020						2019						2018
		U.S. pension			Non-U.S.			U.S. pension			Non-U.S.			U.S. pension			Non-U.S.
		plans			pension plans			plans			pension plans			plans			pension plans
Service cost		$	156		$	3,140		$	140		$	2,908		$	139		$	3,252
Interest cost			14,670			2,755			18,610			3,739			18,084			3,703
Expected return on plan assets			(23,377)			(4,217)			(24,980)			(4,430)			(27,052)			(5,057)
Amortization of prior service cost			—			57			—			58			—			1
Amortization of net loss			1,346			1,986			1,654			2,296			1,498			2,211
Settlement charges ⁽¹⁾			8,118			237			—			266			6,686			(397)
Defined benefit plans		$	913		$	3,958		$	(4,576)		$	4,837		$	(645)		$	3,713

(1)	Pension settlement charges resulting from lump sum pension payments.

Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets

Pension Plans with Accumulated Benefit Obligations in Excess of Plan Assets


		December 31,
		2020						2019
		U.S. pension			Non-U.S.			U.S. pension			Non-U.S.
		plans			pension plans			plans			pension plans
Projected benefit obligation		$	11,278		$	144,576		$	14,794		$	169,455
Accumulated benefit obligation			10,887			140,169			14,521			164,203
Fair value of plan assets			—			71,285			—			98,434

Benefits expected to be paid for the U.S. Plans

Benefit Payments for Plans

Benefits expected to be paid for the plans are as follows:


		U.S. pension			Non-U.S.
		Plans			pension plans
Estimated Payments
2021		$	559,078		$	8,968
2022			733			8,213
2023			2,413			7,846
2024			788			8,988
2025			1,054			9,167
2026 through 2030			5,321			40,379

Weighted average assumptions used to measure the net periodic benefit cost for the Company's significant defined benefit plans

Assumptions

Weighted average assumptions used to measure the benefit obligation for the Company’s significant defined benefit plans as of December 31, 2020 and 2019 were as follows:


		December 31,
		2020				2019
		U.S. pension		Non-U.S.		U.S. pension		Non-U.S.
		plans		pension plans		plans		pension plans
Discount Rate		2.2	%	1.3	%	3.4	%	1.7	%
Rate of increase in compensation		2.5	%	2.7	%	2.5	%	2.6	%

Weighted average assumptions used to measure the net periodic benefit cost for the Company’s significant defined benefit plans for each of the three years ended December 31 were as follows:


		December 31,
		2020				2019				2018
		U.S. pension		Non-U.S.		U.S. pension		Non-U.S.		U.S. pension		Non-U.S.
		plans		pension plans		plans		pension plans		plans		pension plans
Discount rate		3.4	%	1.7	%	4.4	%	2.3	%	3.7	%	2.0	%
Rate of increase in compensation		2.5	%	2.6	%	2.5	%	2.8	%	2.5	%	2.7	%
Expected return on plan assets		4.0	%	4.1	%	5.0	%	4.5	%	5.0	%	4.6	%

Pension plans' assets by level within the fair value hierarchy

The following table sets forth, by level within the fair value hierarchy, the pension plans’ assets as of December 31, 2020:


		Pension Plans' Assets at Fair Value as of December 31, 2020
		Quoted Prices in
		Active Markets						Significant
		for Identical			Significant Other			Unobservable
		Assets			Observable Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)			Total
Cash and cash equivalents		$	9,162		$	—		$	—		$	9,162
Fixed income securities ⁽¹⁾
U.S. government bonds			24,257			—			—			24,257
Corporate debt and other obligations			—			213,227			—			213,227
Investments measured at NAV ⁽²⁾
Common trusts and 103-12 investments ⁽³⁾												460,474
Private equity funds ⁽⁴⁾												27,962
Total investments at fair value		$	33,419		$	213,227		$	—		$	735,082

The following table sets forth, by level within the fair value hierarchy, the pension plans’ assets as of December 31, 2019:


		Pension Plans' Assets at Fair Value as of December 31, 2019
		Quoted Prices
		in Active Markets						Significant
		for Identical			Significant Other			Unobservable
		Assets			Observable Inputs			Inputs
		(Level 1)			(Level 2)			(Level 3)			Total
Cash and cash equivalents		$	11,263		$	—		$	—		$	11,263
Fixed income securities ⁽¹⁾
U.S. government bonds			46,048			—			—			46,048
Corporate debt and other obligations			—			482,203			—			482,203
Investments measured at NAV ⁽²⁾
Common trusts and 103-12 investments ⁽³⁾												124,389
Private equity funds ⁽⁴⁾												31,321
Total investments at fair value		$	57,311		$	482,203		$	—		$	695,224

(1)

Fixed income securities are primarily comprised of governmental and corporate bonds directly held by the plans. Governmental and corporate bonds are valued using both market observable inputs for similar assets that are traded on an active market and the closing price on the active market on which the individual securities are traded.

(2)	Certain assets that are measured at fair value using the net asset value ("NAV") practical expedient have not been classified in the fair value hierarchy.

(3)

Common trusts and 103-12 investments (collectively "Trusts") are comprised of a number of investment funds that invest in a diverse portfolio of assets including equity securities, corporate and governmental bonds, equity and credit indexes and money markets. Trusts are valued at the NAV as determined by their custodian. NAV represents the accumulation of the unadjusted quoted close prices on the reporting date for the underlying investments divided by the total shares outstanding at the reporting dates.

(4)

Private equity funds consist of four funds seeking capital appreciation by investing in private equity investment partnerships and venture capital companies. Private equity fund valuations are based on the NAV of the underlying assets. Funds are comprised of unrestricted and restricted publicly traded securities and privately held securities. Unrestricted securities are valued at the closing market price on the reporting date. Restricted securities may be

valued at a discount from such closing public market price, depending on facts and circumstances. Privately held securities are valued at fair value as determined by the fund directors and general partners.