XML 33 R18.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Employee Benefit Plans | 12 Months Ended
--- | ---
Sep. 30, 2017
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] |
Employee Benefit Plans | Employee Benefit Plans We maintain multiple employee benefit plans, covering employees at certain locations. Our qualified U.S. defined benefit pension plan is not open to new entrants. New employees are not eligible to participate in the pension plan. Instead, we make contributions for those employees to an employee-directed investment fund in the Moog Inc. Retirement Savings Plan ("RSP"). The Company’s contributions are based on a percentage of the employee’s eligible compensation and age. These contributions are in addition to the employer match on voluntary employee contributions. The RSP includes an Employee Stock Ownership Plan. As one of the investment alternatives, participants in the RSP can acquire our stock at market value. We match 25% of the first 2% of eligible compensation contributed to any investment selection. Shares are allocated and compensation expense is recognized as the employer share match is earned. At September 30, 2017, the participants in the RSP owned 1,575,347 Class B shares. The changes in projected benefit obligations and plan assets and the funded status of the U.S. and non-U.S. defined benefit plans are as follows:
| U.S. Plans |  | Non-U.S. Plans
| 2017 |  | 2016 |  | 2017 |  | 2016
Change in projected benefit obligation: |  |  |  |  |  |  |
Projected benefit obligation at prior year measurement date | $ | 979,055 |  |  | $ | 850,991 |  |  | $ | 219,308 |  |  | $ | 180,111 |
Service cost | 24,115 |  |  | 23,637 |  |  | 6,105 |  |  | 5,204 |
Interest cost | 30,573 |  |  | 37,659 |  |  | 3,121 |  |  | 4,928 |
Contributions by plan participants | — |  |  | — |  |  | 844 |  |  | 863 |
Actuarial (gains) losses | (30,339 | ) |  | 96,107 |  |  | (18,881 | ) |  | 38,265 |
Foreign currency exchange impact | — |  |  | — |  |  | 6,222 |  |  | (4,063 | )
Benefits paid | (60,891 | ) |  | (27,464 | ) |  | (4,703 | ) |  | (4,061 | )
Curtailments | — |  |  | — |  |  | (262 | ) |  | — |
Other | (747 | ) |  | (1,875 | ) |  | 2,720 |  |  | (1,939 | )
Projected benefit obligation at measurement date | $ | 941,766 |  |  | $ | 979,055 |  |  | $ | 214,474 |  |  | $ | 219,308 |
Change in plan assets: |  |  |  |  |  |  |
Fair value of assets at prior year measurement date | $ | 675,018 |  |  | $ | 578,783 |  |  | $ | 135,439 |  |  | $ | 117,693 |
Actual return on plan assets | 79,419 |  |  | 57,646 |  |  | (214 | ) |  | 19,926 |
Employer contributions | 63,597 |  |  | 67,928 |  |  | 7,655 |  |  | 6,155 |
Contributions by plan participants | — |  |  | — |  |  | 844 |  |  | 863 |
Benefits paid | (60,891 | ) |  | (27,464 | ) |  | (4,703 | ) |  | (4,061 | )
Foreign currency exchange impact | — |  |  | — |  |  | 2,919 |  |  | (3,801 | )
Other | (869 | ) |  | (1,875 | ) |  | (34 | ) |  | (1,336 | )
Fair value of assets at measurement date | $ | 756,274 |  |  | $ | 675,018 |  |  | $ | 141,906 |  |  | $ | 135,439 |
Funded status and amount recognized in assets and liabilities | $ | (185,492 | ) |  | $ | (304,037 | ) |  | $ | (72,568 | ) |  | $ | (83,869 | )
Amount recognized in assets and liabilities: |  |  |  |  |  |  |
Other assets - non-current | $ | — |  |  | $ | — |  |  | $ | 1,672 |  |  | $ | 108 |
Accrued and long-term pension liabilities | (185,492 | ) |  | (304,037 | ) |  | (74,240 | ) |  | (83,977 | )
Amount recognized in assets and liabilities | $ | (185,492 | ) |  | $ | (304,037 | ) |  | $ | (72,568 | ) |  | $ | (83,869 | )
Amount recognized in AOCIL, before taxes: |  |  |  |  |  |  |
Prior service cost (credit) | $ | 507 |  |  | $ | 694 |  |  | $ | (83 | ) |  | $ | (1,269 | )
Actuarial losses | 360,391 |  |  | 449,377 |  |  | 40,075 |  |  | 57,926 |
Amount recognized in AOCIL, before taxes | $ | 360,898 |  |  | $ | 450,071 |  |  | $ | 39,992 |  |  | $ | 56,657 |
U.S. plan assets included 1,001,034 shares of Class B common stock. Our funding policy is to contribute at least the amount required by law in the respective countries. The total accumulated benefit obligation as of the measurement date for all defined benefit pension plans was $1,064,195 in 2017 and $1,105,973 in 2016. At the measurement date in 2017, our plans had fair values of plan assets totaling $898,180. The following table provides aggregate information for the other pension plans, which have projected benefit obligations or accumulated benefit obligations in excess of plan assets:
|  | September 30, 2017 |  | October 1, 2016
Projected benefit obligation |  | $ | 1,047,605 |  |  | $ | 1,128,524 |
Accumulated benefit obligation |  | 969,161 |  |  | 1,045,034 |
Fair value of plan assets |  | 793,167 |  |  | 744,751 |
Weighted-average assumptions used to determine benefit obligations as of the measurement dates and weighted-average assumptions used to determine net periodic benefit cost are as follows:
| U.S. Plans |  | Non-U.S. Plans
| 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016 |  | 2015
Assumptions for net periodic benefit cost: |  |  |  |  |  |  |  |  |  |  |
Discount rate | n/a |  |  | 4.5 | % |  | 4.4 | % |  | n/a |  |  | 3.0 | % |  | 3.1 | %
Service cost discount rate | 4.0 | % |  | n/a |  |  | n/a |  |  | 2.0 | % |  | n/a |  |  | n/a |
Interest cost discount rate | 3.2 | % |  | n/a |  |  | n/a |  |  | 1.7 | % |  | n/a |  |  | n/a |
Return on assets | 7.5 | % |  | 7.7 | % |  | 8.0 | % |  | 3.6 | % |  | 4.1 | % |  | 4.5 | %
Rate of compensation increase | 3.5 | % |  | 4.1 | % |  | 4.1 | % |  | 2.3 | % |  | 2.6 | % |  | 3.0 | %
Assumptions for benefit obligations: |  |  |  |  |  |  |  |  |  |  |
Discount rate | 4.0 | % |  | 3.8 | % |  | 4.5 | % |  | 2.5 | % |  | 1.9 | % |  | 3.0 | %
Rate of compensation increase | 3.5 | % |  | 3.5 | % |  | 4.1 | % |  | 2.5 | % |  | 2.3 | % |  | 3.0 | %
Beginning in 2017, we changed the method used to estimate the service and interest cost components of net periodic pension cost. The new method uses the spot yield curve approach to estimate the service and interest costs by applying the specific spot rates along the yield curve used to determine the benefit obligation to the relevant projected cash outflows. Previously, these cost components were determined using a single-weighted average discount rate. This change does not affect the measurement of the projected benefit obligation. We have made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. We have accounted for this change as a change in accounting estimate and accordingly have accounted for it prospectively. The more granular application of the spot rates reduced the service and interest cost for the annual net periodic pension expense in 2017 by approximately $7,000. Pension plan investment policies and strategies are developed on a plan specific basis, which varies by country. The overall objective for the long-term expected return on both domestic and international plan assets is to earn a rate of return over time to meet anticipated benefit payments in accordance with plan provisions. The long-term investment objective of both the domestic and international retirement plans is to maintain the economic value of plan assets and future contributions by producing positive rates of investment return after subtracting inflation, benefit payments and expenses. Each of the plan’s strategic asset allocations is based on this long-term perspective and short-term fluctuations are viewed with appropriate perspective. The U.S. qualified defined benefit plan’s assets are invested for long-term investment results. To accommodate the long-term investment horizon while providing appropriate liquidity, the plan maintains a liquid cash reserve sufficient to allow the plan to meet its benefit payment, fee and expense obligations. Its assets are broadly diversified to help alleviate the risk of adverse returns in any one security or investment class. The international plans’ assets are invested in both low-risk and high-risk investments in order to achieve the long-term investment strategy objective. Investment risks for both domestic and international plans are considered within the context of the entire asset allocation, rather than on a security-by-security basis. The U.S. qualified defined benefit plan and certain international plans have investment committees that are responsible for formulating investment policies, developing manager guidelines and objectives and approving and managing qualified advisors and investment managers. The guidelines established for each of the plans define permitted investments within each asset class and apply certain restrictions such as limits on concentrated holdings in order to meet overall investment objectives. Pension obligations and the related costs are determined using actuarial valuations that involve several assumptions. The return on assets assumption reflects the average rate of return expected on funds invested or to be invested to provide for the benefits included in the projected benefit obligation. In determining the return on assets assumption, we consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and to provide adequate liquidity to meet immediate and future benefit payment requirements. In determining our U.S. pension expense for 2017, we assumed an average rate of return on U.S. pension assets of approximately 7.5% measured over a planning horizon with reasonable and acceptable levels of risk. The rate of return assumed an average of 55% in equity securities and 45% in fixed income securities. In determining our non-U.S. pension expense for 2017, we assumed an average rate of return on non-U.S. pension assets of approximately 3.6% measured over a planning horizon with reasonable and acceptable levels of risk. The rate of return assumed an average asset allocation of 30% in equity securities and 70% in fixed income securities. The weighted average asset allocations by asset category for the pension plans as of September 30, 2017 and October 1, 2016 are as follows:
| U.S. Plans |  | Non-U.S. Plans
| Target |  | 2017 Actual |  | 2016 Actual |  | Target |  | 2017 Actual |  | 2016 Actual
Asset category: |  |  |  |  |  |  |  |  |  |  |
Equity | 50%-60% |  | 57% |  | 55% |  | 20%-45% |  | 32% |  | 32%
Debt | 40%-50% |  | 43% |  | 36% |  | 30%-45% |  | 36% |  | 36%
Real estate and other | —% |  | —% |  | 9% |  | 25%-35% |  | 32% |  | 32%
The valuation methodologies used for pension plan assets measured at fair value have been applied consistently. Cash and cash equivalents: Direct cash holdings valued at cost, which approximates fair value. Money market funds: Institutional short-term investment vehicles valued daily. Shares of registered investment companies: Consists of both equity and fixed income mutual funds. Valued at quoted market prices that represent the net asset value of shares held by the plan at year end. Fixed income securities: Valued using methods, such as dealer quotes, available trade information, spreads, bids and offers provided by a pricing vendor. Equity securities: Traded on national exchanges are valued at the last reported sales price. Investments denominated in foreign currencies are translated into U.S. dollars using the last reported exchange rate. Employer securities: Valued at the closing price reported on the New York Stock Exchange. Interest in common collective trusts: The net asset value is used as a practical expedient to estimate fair value. This practical expedient would not be used if it is determined to be probable that the common collective trust will sell the investment for an amount different from the reported NAV. Investment in insurance contracts: Valued at contract value, which is the fair value of the underlying investment of the insurance company. Limited partnerships and hedge funds: Valued at net asset value of units held. The NAV is used as a practical expedient to estimate fair value. The NAV is based on the fair value of the underlying investments held by the fund less its liability. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different from the reported NAV. Securities or other assets for which market quotations are not readily available or for which market quotations do not represent the value at the time of pricing (including certain illiquid securities) are fair valued in accordance with procedures established under the supervision and responsibility of the Trustee of that investment. Such procedures may include the use of independent pricing services or affiliated advisor pricing, which use prices based upon yields or prices of securities of comparable quality, coupon, maturity and type, indications as to values from dealers, operating data and general market conditions. The following tables present the consolidated plan assets using the fair value hierarchy, which is described in Note 9 - Fair Value, as of September 30, 2017 and October 1, 2016.
U.S. Plans, September 30, 2017 | Level 1 |  | Level 2 |  | Level 3 |  | Total
Investments at fair value: |  |  |  |  |  |  |
Shares of registered investment companies: |  |  |  |  |  |  |
Equity funds | $ | 302,652 |  |  | $ | — |  |  | $ | — |  |  | $ | 302,652 |
Fixed income funds | 323,008 |  |  | — |  |  | — |  |  | 323,008 |
Employer securities | 83,246 |  |  | — |  |  | — |  |  | 83,246 |
Money market funds | — |  |  | 7,372 |  |  | — |  |  | 7,372 |
Cash and cash equivalents | 1,260 |  |  | — |  |  | — |  |  | 1,260 |
Insurance contract | — |  |  | — |  |  | 464 |  |  | 464 |
Total investments in fair value hierarchy | 710,166 |  |  | 7,372 |  |  | 464 |  |  | 718,002 |
Investments measured at NAV practical expedient (1) |  |  |  |  |  |  | 38,272 |
Total investments at fair value | $ | 710,166 |  |  | $ | 7,372 |  |  | $ | 464 |  |  | $ | 756,274 |
Non-U.S. Plans, September 30, 2017 | Level 1 |  | Level 2 |  | Level 3 |  | Total
Investments at fair value: |  |  |  |  |  |  |
Mutual funds: |  |  |  |  |  |  |
Equity funds | $ | — |  |  | $ | 15,529 |  |  | $ | — |  |  | $ | 15,529 |
Fixed income funds | — |  |  | 16,440 |  |  | — |  |  | 16,440 |
Equity securities | 8,080 |  |  | — |  |  | — |  |  | 8,080 |
Fixed income securities | — |  |  | 14,488 |  |  | — |  |  | 14,488 |
Unit linked life insurance funds | — |  |  | 41,054 |  |  | — |  |  | 41,054 |
Money market funds | — |  |  | 814 |  |  | — |  |  | 814 |
Cash and cash equivalents | 48 |  |  | — |  |  | — |  |  | 48 |
Insurance contracts and other | — |  |  | 5,492 |  |  | 39,961 |  |  | 45,453 |
Total investments in fair value hierarchy | 8,128 |  |  | 93,817 |  |  | 39,961 |  |  | 141,906 |
Investments measured at NAV practical expedient (1) |  |  |  |  |  |  | — |
Total investments at fair value | $ | 8,128 |  |  | $ | 93,817 |  |  | $ | 39,961 |  |  | $ | 141,906 |
U.S. Plans, October 1, 2016 | Level 1 |  | Level 2 |  | Level 3 |  | Total
Investments at fair value: |  |  |  |  |  |  |
Shares of registered investment companies: |  |  |  |  |  |  |
Equity funds | $ | — |  |  | $ | 214,374 |  |  | $ | — |  |  | $ | 214,374 |
Fixed income funds | — |  |  | 45,709 |  |  | — |  |  | 45,709 |
Fixed income securities | — |  |  | 24,097 |  |  | — |  |  | 24,097 |
Employer securities | 68,574 |  |  | — |  |  | — |  |  | 68,574 |
Money market funds | — |  |  | 18,962 |  |  | — |  |  | 18,962 |
Cash and cash equivalents | — |  |  | — |  |  | — |  |  | — |
Insurance contract | — |  |  | — |  |  | 589 |  |  | 589 |
Total investments in fair value hierarchy | 68,574 |  |  | 303,142 |  |  | 589 |  |  | 372,305 |
Investments measured at NAV practical expedient (1) |  |  |  |  |  |  | 302,713 |
Total investments at fair value | $ | 68,574 |  |  | $ | 303,142 |  |  | $ | 589 |  |  | $ | 675,018 |
Non-U.S. Plans, October 1, 2016 | Level 1 |  | Level 2 |  | Level 3 |  | Total
Investments at fair value: |  |  |  |  |  |  |
Mutual funds: |  |  |  |  |  |  |
Equity funds | $ | — |  |  | $ | 15,698 |  |  | $ | — |  |  | $ | 15,698 |
Fixed income funds | — |  |  | 17,187 |  |  | — |  |  | 17,187 |
Equity securities | 4,931 |  |  | — |  |  | — |  |  | 4,931 |
Fixed income securities | — |  |  | 12,633 |  |  | — |  |  | 12,633 |
Unit linked life insurance funds | — |  |  | 36,889 |  |  | — |  |  | 36,889 |
Money market funds | — |  |  | 553 |  |  | — |  |  | 553 |
Cash and cash equivalents | 73 |  |  | — |  |  | — |  |  | 73 |
Insurance contracts and other | — |  |  | 4,861 |  |  | 42,614 |  |  | 47,475 |
Total investments in fair value hierarchy | 5,004 |  |  | 87,821 |  |  | 42,614 |  |  | 135,439 |
Investments measured at NAV practical expedient (1) |  |  |  |  |  |  | — |
Total investments at fair value | $ | 5,004 |  |  | $ | 87,821 |  |  | $ | 42,614 |  |  | $ | 135,439 |
(1) Per adoption of ASU 2015-07, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. Prior year amounts have been reclassified to conform to the current year presentation. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total retirement plan assets. The following is a roll forward of the consolidated plan assets classified as Level 3 within the fair value hierarchy:
|  | U.S. Plans |  | Non-U.S. Plans |  | Total
Balance at October 3, 2015 |  | $ | 866 |  |  | $ | 28,936 |  |  | $ | 29,802 |
Return on assets |  | 32 |  |  | 11,723 |  |  | 11,755 |
Purchases from contributions to Plans |  | — |  |  | 3,472 |  |  | 3,472 |
Settlements paid in cash |  | (309 | ) |  | (2,231 | ) |  | (2,540 | )
Foreign currency translation |  | — |  |  | 714 |  |  | 714 |
Balance at October 1, 2016 |  | 589 |  |  | 42,614 |  |  | 43,203 |
Return on assets |  | 23 |  |  | (5,437 | ) |  | (5,414 | )
Purchases from contributions to Plans |  | — |  |  | 2,848 |  |  | 2,848 |
Settlements paid in cash |  | (148 | ) |  | (1,492 | ) |  | (1,640 | )
Foreign currency translation |  | — |  |  | 1,428 |  |  | 1,428 |
Balance at September 30, 2017 |  | $ | 464 |  |  | $ | 39,961 |  |  | $ | 40,425 |
The following table summarizes investments measured at fair value based on net asset value (NAV) per share as of September 30, 2017:
|  | Fair Value |  |  |  |  |  |
|  | September 30, 2017 |  | October 1, 2016 |  | Unfunded Commitments |  | Redemption Frequency |  | Redemption Notice Period
Limited partnerships (1) |  | $ | 35,821 |  |  | $ | 44,003 |  |  | $ | 5,738 |  |  | Varies |  | 10-45 days
Hedge funds (2) |  | 2,451 |  |  | 21,678 |  |  | — |  |  | Quarterly |  | 60 days
Interest in common collective trusts |  | — |  |  | 237,032 |  |  | — |  |  | Daily, Weekly |  | 0-5 days
Total |  | $ | 38,272 |  |  | $ | 302,713 |  |  | $ | 5,738 |  |  |  |  |
(1) | Investments in limited partnerships held by us invest primarily in emerging markets, equity and equity related securities. The strategy for the partnerships is to have exposure to certain markets or to securities that are judged to achieve superior earnings growth and/or judged undervalued relative to intrinsic value.
(2) | Hedge fund which invests primarily in global equity long and short positions. The primary strategy for the hedge funds is to seek risk-adjusted returns with volatility lower than the broad equity markets primarily through long and short investment opportunities in the global markets.
T he preceding methods may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although we believe the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. Pension expense for all defined benefit plans is as follows:
| U.S. Plans |  | Non-U.S. Plans
| 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016 |  | 2015
Service cost | $ | 24,115 |  |  | $ | 23,637 |  |  | $ | 23,635 |  |  | $ | 6,105 |  |  | $ | 5,204 |  |  | $ | 6,087 |
Interest cost | 30,573 |  |  | 37,659 |  |  | 34,031 |  |  | 3,121 |  |  | 4,928 |  |  | 4,814 |
Expected return on plan assets | (54,510 | ) |  | (50,383 | ) |  | (47,136 | ) |  | (4,643 | ) |  | (4,862 | ) |  | (5,166 | )
Amortization of prior service cost (credit) | 187 |  |  | 187 |  |  | 149 |  |  | (106 | ) |  | (103 | ) |  | (70 | )
Amortization of actuarial loss | 33,738 |  |  | 26,168 |  |  | 22,355 |  |  | 4,581 |  |  | 2,600 |  |  | 2,289 |
Curtailment gain | — |  |  | — |  |  | — |  |  | (147 | ) |  | — |  |  | — |
Settlement loss | — |  |  | 59 |  |  | 54 |  |  | — |  |  | 131 |  |  | 77 |
Pension expense for defined benefit plans | $ | 34,103 |  |  | $ | 37,327 |  |  | $ | 33,088 |  |  | $ | 8,911 |  |  | $ | 7,898 |  |  | $ | 8,031 |
The estimated net prior service cost and net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic benefit cost for pension plans in 2018 are $130 and $30,107, respectively. Benefits expected to be paid to the participants of the plans are:
|  | U.S. Plans |  | Non-U.S. Plans
2018 |  | $ | 33,611 |  |  | $ | 5,898 |
2019 |  | 35,998 |  |  | 6,599 |
2020 |  | 38,990 |  |  | 6,056 |
2021 |  | 42,710 |  |  | 6,668 |
2022 |  | 45,937 |  |  | 8,028 |
Five years thereafter |  | 277,764 |  |  | 45,651 |
We presently anticipate contributing approximately $64,400 to the U.S. plans and $7,300 to the non-U.S. plans in 2018. Pension expense for the defined contribution plans consists of:
|  | 2017 |  | 2016 |  | 2015
U.S. defined contribution plans |  | $ | 15,036 |  |  | $ | 14,128 |  |  | $ | 13,621 |
Non-U.S. defined contribution plans |  | 6,029 |  |  | 6,029 |  |  | 6,570 |
Total pension expense for defined contribution plans |  | $ | 21,065 |  |  | $ | 20,157 |  |  | $ | 20,191 |
We provide postretirement health care benefits to certain domestic retirees, who were hired prior to October 1, 1989. There are no plan assets. The changes in the accumulated benefit obligation of this unfunded plan for 2017 and 2016 are shown in the following table:
|  | September 30, 2017 |  | October 1, 2016
Change in Accumulated Postretirement Benefit Obligation (APBO): |  |  |  |
APBO at prior year measurement date |  | $ | 12,825 |  |  | $ | 12,532 |
Service cost |  | 118 |  |  | 161 |
Interest cost |  | 288 |  |  | 468 |
Contributions by plan participants |  | 1,699 |  |  | 1,944 |
Benefits paid |  | (2,448 | ) |  | (3,043 | )
Actuarial (gains) losses |  | (769 | ) |  | 763 |
Plan amendment |  | (1,200 | ) |  | — |
APBO at measurement date |  | $ | 10,513 |  |  | $ | 12,825 |
Funded status |  | $ | (10,513 | ) |  | $ | (12,825 | )
Accrued postretirement benefit liability |  | $ | 10,513 |  |  | $ | 12,825 |
Amount recognized in AOCIL, before taxes: |  |  |  |
Prior service credit |  | 1,200 |  |  | — |
Actuarial gains |  | 4,178 |  |  | 3,896 |
Amount recognized in AOCIL, before taxes |  | $ | 5,378 |  |  | $ | 3,896 |
The cost of the postretirement benefit plan is as follows:
|  | 2017 |  | 2016 |  | 2015
Service cost |  | $ | 118 |  |  | $ | 161 |  |  | $ | 226 |
Interest cost |  | 288 |  |  | 468 |  |  | 576 |
Amortization of actuarial gain |  | (487 | ) |  | (572 | ) |  | (106 | )
Net periodic postretirement benefit cost |  | $ | (81 | ) |  | $ | 57 |  |  | $ | 696 |
As of the measurement date, the assumed discount rate used in the accounting for the postretirement benefit obligation was 3.6% in 2017, 3.2% in 2016 and 3.9% in 2015. The assumed service cost discount rate and interest cost discount rate used in the accounting for the net periodic postretirement benefit cost were 3.4% and 2.5%, respectively, in 2017. The assumed discount rate used in the accounting for the net periodic postretirement benefit cost was 3.9% in 2016 and 4.5% in 2015. For measurement purposes, a 6.6% annual per capita rate of increase of medical and drug costs were assumed for 2018, gradually decreasing to 4.5% for 2028 and years thereafter. A one percentage point increase in this rate would increase our accumulated postretirement benefit obligation as of the measurement date in 2017 by $195, while a one percentage point decrease in this rate would decrease our accumulated postretirement benefit obligation by $185. There would be no material effect on the total service cost and interest cost components of the net periodic postretirement benefit cost given a one percentage point increase or decrease in this rate. Employee and management profit sharing reflects a discretionary payment based on our financial performance. Profit share expense was $26,534, $16,656 and $13,188 in 2017, 2016 and 2015, respectively.

X
- References No definition available. + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitExpenseAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration