Pension Plans and Other Postretirement Benefits (Tables)

12 Months Ended

Dec. 31, 2017

Financial Assets Accounted for at Fair Value on Recurring Basis

The following tables set forth the assets of our pension and postretirement plans that were accounted for at fair value on a recurring basis as of December 31, 2017 and 2016 (in thousands):



	December 31, 2017		Quoted Prices in Active Markets for Identical Items (Level 1)		Quoted Prices in Active Markets for Similar Items (Level 2)		Unobservable Inputs (Level 3)
Pension Assets:
Domestic Equity^(a)	$	163,160	$	160,976	$	2,184	$	—
International Equity^(b)	130,935		101,366		29,569		—
Fixed Income^(c)	269,365		231,506		37,859		—
Absolute Return Measured at Net Asset Value^(d)	96,414		—		—		—
Total Pension Assets	$	659,874	$	493,848	$	69,612	$	—
Postretirement Assets:
Fixed Income^(c)	$	834	$	—	$	834	$	—



	December 31, 2016		Quoted Prices in Active Markets for Identical Items (Level 1)		Quoted Prices in Active Markets for Similar Items (Level 2)		Unobservable Inputs (Level 3)
Pension Assets:
Domestic Equity^(a)	$	146,683	$	143,987	$	2,696	$	—
International Equity^(b)	116,649		83,839		32,810		—
Fixed Income^(c)	255,401		230,309		25,092		—
Absolute Return Measured at Net Asset Value^(d)	86,112		—		—		—
Cash	2,112		2,112		—		—
Total Pension Assets	$	606,957	$	460,247	$	60,598	$	—
Postretirement Assets:
Fixed Income^(c)	$	2,232	$	—	$	2,232	$	—


(a)	Consists primarily of U.S. stock funds that track or are actively managed and measured against the S&P 500 index.


(b)	Consists primarily of international equity funds which invest in common stocks and other securities whose value is based on an international equity index or an underlying equity security or basket of equity securities.


(c)	Consists primarily of debt obligations issued by governments, corporations, municipalities and other borrowers. Also includes insurance policies.

(d)

Consists primarily of funds with holdings in private investment companies. See additional information about the Absolute Return investments below. Holdings in private investment companies are measured at fair value using the net asset value per share as a practical expedient and have not been categorized in the fair value hierarchy. The fair value amounts of $96.4 million and $86.1 million as of December 31, 2017 and 2016, respectively, are included in this table to permit reconciliation to the reconciliation of plan assets table above.

Schedule of Allocation of Plan Assets

The weighted-average target allocations as of the measurement date are as follows:



	Target Allocation
Equity securities	43	%
Fixed income	44	%
Absolute return	13	%

Current Forecast of Benefit Payments, which Reflect Expected Future Service

The current forecast of benefit payments, which reflects expected future service, amounts to (in millions):



	U.S. Pension Plans		Foreign Pension Plans		Other Postretirement Benefits
2018	$	41.2	$	13.9	$	4.6
2019	$	43.2	$	9.1	$	4.4
2020	$	43.9	$	10.2	$	4.2
2021	$	44.3	$	10.8	$	3.9
2022	$	44.6	$	10.0	$	3.9
2023-2027	$	224.2	$	59.0	$	18.2

Pension Plans

Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Plans

The following provides a reconciliation of benefit obligations, plan assets and funded status, as well as a summary of significant assumptions, for our defined benefit pension plans (in thousands):



	Year Ended December 31, 2017						Year Ended December 31, 2016
	U.S. Pension Plans			Foreign Pension Plans			U.S. Pension Plans			Foreign Pension Plans
Change in benefit obligations:
Benefit obligation at January 1	$	665,688		$	246,280		$	682,839		$	245,747
Service cost	985			2,547			1,028			3,133
Interest cost	28,614			5,128			30,514			6,570
Actuarial loss	30,539			2,783			7,357			28,083
Benefits paid	(39,863		)	(9,524		)	(56,050		)	(9,793		)
Divestitures	—			—			—			(6,372		)
Employee contributions	—			215			—			245
Foreign exchange loss (gain)	—			30,711			—			(21,724		)
Settlements/curtailments	—			(3,065		)	—			(427		)
Other	—			(69		)	—			818
Benefit obligation at December 31	$	685,963		$	275,006		$	665,688		$	246,280

Change in plan assets:
Fair value of plan assets at January 1	$	538,082		$	68,875		$	555,084		$	64,911
Actual return on plan assets	80,613			6,260			37,725			12,534
Employer contributions	1,564			9,316			1,323			10,911
Benefits paid	(39,863		)	(9,524		)	(56,050		)	(9,793		)
Employee contributions	—			215			—			245
Foreign exchange gain (loss)	—			7,470			—			(10,492		)
Settlements/curtailments	—			(3,065		)	—			—
Other	—			(69		)	—			559
Fair value of plan assets at December 31	$	580,396		$	79,478		$	538,082		$	68,875

Funded status at December 31	$	(105,567	)	$	(195,528	)	$	(127,606	)	$	(177,405	)



	December 31, 2017						December 31, 2016
	U.S. Pension Plans			Foreign Pension Plans			U.S. Pension Plans			Foreign Pension Plans
Amounts recognized in consolidated balance sheets:
Current liabilities (accrued expenses)	$	(1,267	)	$	(5,217	)	$	(1,100	)	$	(5,216	)
Noncurrent liabilities (pension benefits)	(104,300		)	(190,311		)	(126,506		)	(172,189		)
Net pension liability	$	(105,567	)	$	(195,528	)	$	(127,606	)	$	(177,405	)

Amounts recognized in accumulated other comprehensive (loss) income:
Prior service benefit	$	(60	)	$	(269	)	$	(136	)	$	(322	)
Net amount recognized	$	(60	)	$	(269	)	$	(136	)	$	(322	)

Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	4.03		%	1.94		%	4.43		%	2.00		%
Rate of compensation increase	—		%	3.18		%	—		%	3.18		%

Components of Pension and Postretirement Benefits Expense

The components of pension benefits (credit) cost from continuing operations are as follows (in thousands):



	Year Ended						Year Ended						Year Ended
	December 31, 2017						December 31, 2016						December 31, 2015
	U.S. Pension Plans			Foreign Pension Plans			U.S. Pension Plans			Foreign Pension Plans			U.S. Pension Plans			Foreign Pension Plans
Service cost	$	985		$	2,547		$	1,028		$	3,133		$	1,233		$	3,909
Interest cost	28,614			5,128			30,514			6,570			30,235			6,405
Expected return on assets	(36,243		)	(4,441		)	(36,445		)	(4,027		)	(40,495		)	(3,670		)
Actuarial (gain) loss	(13,910		)	483			5,988			19,418			2,665			(27,043		)
Amortization of prior service benefit	75			56			75			859			75			43
Total net pension benefits (credit) cost^(a)	$	(20,479	)	$	3,773		$	1,160		$	25,953		$	(6,287	)	$	(20,356	)

Weighted-average assumption percentages:
Discount rate	4.43		%	2.00		%	4.67		%	2.76		%	4.19		%	2.22		%
Expected return on plan assets	6.89		%	6.16		%	6.89		%	6.66		%	6.88		%	5.76		%
Rate of compensation increase	—		%	3.18		%	—		%	3.16		%	—		%	3.15		%


(a)	For the years ended December 31, 2016 and 2015, $10.8 million and $6.2 million, respectively, of net pension benefits credit is included in Income from discontinued operations (net of tax) in the consolidated statements of income. See Note 3, “Divestitures,” for additional information.

Estimated Amounts to Be Amortized from Accumulated Other Comprehensive Income

The estimated amounts to be amortized from accumulated other comprehensive loss into net periodic pension costs during 2018 are as follows (in thousands):



	U.S. Pension Plans		Foreign Pension Plans
Amortization of prior service benefit	$	60	$	40

Other Postretirement Benefits

Reconciliation of Benefit Obligations, Plan Assets and Funded Status of Plans

The following provides a reconciliation of benefit obligations, plan assets and funded status, as well as a summary of significant assumptions, for our postretirement benefit plans (in thousands):



	Year Ended December 31,
	2017			2016
	Other Postretirement Benefits			Other Postretirement Benefits
Change in benefit obligations:
Benefit obligation at January 1	$	56,141		$	56,499
Service cost	121			115
Interest cost	2,340			2,483
Actuarial loss	2,008			1,529
Benefits paid	(3,963		)	(4,485		)
Benefit obligation at December 31	$	56,647		$	56,141

Change in plan assets:
Fair value of plan assets at January 1	$	2,232		$	3,292
Actual return on plan assets	104			442
Employer contributions	2,461			2,983
Benefits paid	(3,963		)	(4,485		)
Fair value of plan assets at December 31	$	834		$	2,232

Funded status at December 31	$	(55,813	)	$	(53,909	)



	December 31,
	2017			2016
	Other Postretirement Benefits			Other Postretirement Benefits
Amounts recognized in consolidated balance sheets:
Current liabilities (accrued expenses)	$	(3,810	)	$	(3,371	)
Noncurrent liabilities (postretirement benefits)	(52,003		)	(50,538		)
Net postretirement liability	$	(55,813	)	$	(53,909	)

Amounts recognized in accumulated other comprehensive (loss) income:
Prior service benefit	$	48		$	143
Net amount recognized	$	48		$	143

Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate	3.99		%	4.35		%
Rate of compensation increase	3.50		%	3.50		%

Components of Pension and Postretirement Benefits Expense

The components of postretirement benefits cost (credit) from continuing operations are as follows (in thousands):



	Year Ended December 31,
	2017			2016			2015
	Other Postretirement Benefits			Other Postretirement Benefits			Other Postretirement Benefits
Service cost	$	121		$	115		$	137
Interest cost	2,340			2,483			2,573
Expected return on assets	(110		)	(187		)	(263		)
Actuarial loss (gain)	2,014			1,275			(5,707		)
Amortization of prior service benefit	(95		)	(95		)	(95		)
Total net postretirement benefits cost (credit)^(a)	$	4,270		$	3,591		$	(3,355	)

Weighted-average assumption percentages:
Discount rate	4.35		%	4.59		%	4.15		%
Expected return on plan assets	7.00		%	7.00		%	7.00		%
Rate of compensation increase	3.50		%	3.50		%	3.50		%


(a)	For the year ended December 31, 2015, $2.6 million of net postretirement benefits credit is included in Income from discontinued operations (net of tax) in the consolidated statements of income. See Note 3, “Divestitures,” for additional information.

Estimated Amounts to Be Amortized from Accumulated Other Comprehensive Income

The estimated amounts to be amortized from accumulated other comprehensive loss into net periodic postretirement costs during 2018 are as follows (in thousands):



	Other Postretirement Benefits
Amortization of prior service benefit	$	(48	)