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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract] |
Employee Benefit Plans | Employee Benefit Plans Pension and Profit-Sharing Benefits The Company provides a defined contribution profit sharing plan for the benefit of substantially all the Company's domestic salaried and non-union hourly employees. The plan contains both contributory and noncontributory profit sharing arrangements, as defined. Aggregate charges included in the accompanying statement of operations under this plan for both continuing and discontinued operations were approximately $5.2 million, $5.8 million and $5.6 million in 2015, 2014 and 2013, respectively. Certain of the Company's foreign and union hourly employees participate in defined benefit pension plans. Postretirement Benefits The Company provides postretirement medical and life insurance benefits, none of which are pre-funded, for certain of its retired employees. Plan Assets, Expenses and Obligations Plan assets, expenses and obligations for pension and postretirement benefit plans disclosed herein include both continuing and discontinued operations. Net periodic pension and postretirement benefit expense (income) recorded in the Company's statement of operations for defined benefit pension plans and postretirement benefit plans include the following components:
|  | Pension Benefit |  | Postretirement Benefit
|  | 2015 |  | 2014 |  | 2013 |  | 2015 |  | 2014 |  | 2013
|  | (dollars in thousands)
Service cost |  | $ | 890 |  |  | $ | 760 |  |  | $ | 680 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Interest cost |  | 1,580 |  |  | 1,760 |  |  | 1,610 |  |  | 20 |  |  | 30 |  |  | 40 |
Expected return on plan assets |  | (1,840 | ) |  | (2,070 | ) |  | (1,810 | ) |  | — |  |  | — |  |  | — |
Settlement/curtailment |  | 2,750 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of net (gain)/loss |  | 1,340 |  |  | 1,120 |  |  | 1,280 |  |  | (30 | ) |  | (90 | ) |  | (80 | )
Net periodic benefit expense (income) |  | $ | 4,720 |  |  | $ | 1,570 |  |  | $ | 1,760 |  |  | $ | (10 | ) |  | $ | (60 | ) |  | $ | (40 | )
During the second quarter of 2015, the Company recognized a one-time settlement charge associated with annuitizing the defined benefit obligations for certain current and former Cequent employees. The settlement charge of approximately $2.8 million is included in the income (loss) from discontinued operations in the accompanying consolidated statement of operations. The estimated net actuarial loss and prior service cost for the defined benefit pension and postretirement benefit plans that is expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2016 is approximately $0.9 million. Actuarial valuations of the Company's defined benefit pension and postretirement plans were prepared as of December 31, 2015, 2014 and 2013. Weighted-average assumptions used in accounting for the U.S. defined benefit pension plans and postretirement benefit plans are as follows:
|  | Pension Benefit |  | Postretirement Benefit
|  | 2015 |  | 2014 |  | 2013 |  | 2015 |  | 2014 |  | 2013
Discount rate for obligations |  | 4.62 | % |  | 4.17 | % |  | 5.01 | % |  | 4.21 | % |  | 3.89 | % |  | 4.48 | %
Discount rate for benefit costs |  | 4.17 | % |  | 5.01 | % |  | 4.24 | % |  | 3.89 | % |  | 4.48 | % |  | 3.69 | %
Rate of increase in compensation levels |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |
Expected long-term rate of return on plan assets |  | 7.50 | % |  | 7.50 | % |  | 7.50 | % |  | N/A |  |  | N/A |  |  | N/A |
The Company utilizes a high-quality (Aa) corporate bond yield curve as the basis for its domestic discount rate for its pension and postretirement benefit plans. Management believes this yield curve removes the impact of including additional required corporate bond yields (potentially considered in the above-median curve) resulting from the uncertain economic climate that does not necessarily reflect the general trend in high-quality interest rates. Actuarial valuations of the Company's non-U.S. defined benefit pension plans were prepared as of December 31, 2015, 2014 and 2013. Weighted-average assumptions used in accounting for the non-U.S. defined benefit pension plans are as follows:
|  | Pension Benefit
|  | 2015 |  | 2014 |  | 2013
Discount rate for obligations |  | 3.80 | % |  | 3.70 | % |  | 4.50 | %
Discount rate for benefit costs |  | 3.70 | % |  | 4.50 | % |  | 4.50 | %
Rate of increase in compensation levels |  | 3.90 | % |  | 3.80 | % |  | 4.10 | %
Expected long-term rate of return on plan assets |  | 4.90 | % |  | 5.60 | % |  | 5.40 | %
The Company reviews the employee demographic assumptions annually and updates these assumptions as necessary. During 2014, the mortality assumptions were updated to incorporate a new set of mortality tables. This resulted in an increase in the projected benefit obligation of the Company's defined benefit pension and postretirement benefit plans. The following provides a reconciliation of the changes in the Company's defined benefit pension and postretirement benefit plans' projected benefit obligations and fair value of assets for each of the years ended December 31, 2015 and 2014 and the funded status as of December 31, 2015 and 2014:
|  | Pension Benefit |  | Postretirement Benefit
|  | 2015 |  | 2014 |  | 2015 |  | 2014
|  | (dollars in thousands)
Changes in Projected Benefit Obligations |  |  |  |  |  |  |  |
Benefit obligations at January 1 |  | $ | (43,730 | ) |  | $ | (38,230 | ) |  | $ | (660 | ) |  | $ | (810 | )
Service cost |  | (890 | ) |  | (760 | ) |  | — |  |  | — |
Interest cost |  | (1,580 | ) |  | (1,760 | ) |  | (20 | ) |  | (30 | )
Participant contributions |  | (60 | ) |  | (60 | ) |  | — |  |  | — |
Actuarial gain (loss) |  | (150 | ) |  | (6,470 | ) |  | 200 |  |  | 100 |
Benefit payments |  | 1,640 |  |  | 2,230 |  |  | 70 |  |  | 80 |
Settlement payments |  | 5,210 |  |  | — |  |  | — |  |  | — |
Change in foreign currency |  | 1,320 |  |  | 1,320 |  |  | — |  |  | — |
Projected benefit obligations at December 31 |  | $ | (38,240 | ) |  | $ | (43,730 | ) |  | $ | (410 | ) |  | $ | (660 | )
Changes in Plan Assets |  |  |  |  |  |  |  |
Fair value of plan assets at January 1 |  | $ | 32,610 |  |  | $ | 31,780 |  |  | $ | — |  |  | $ | — |
Actual return on plan assets |  | 50 |  |  | 1,830 |  |  | — |  |  | — |
Employer contributions |  | 3,640 |  |  | 2,340 |  |  | 70 |  |  | 80 |
Participant contributions |  | 60 |  |  | 60 |  |  | — |  |  | — |
Benefit payments |  | (1,640 | ) |  | (2,230 | ) |  | (70 | ) |  | (80 | )
Settlement payment |  | (5,210 | ) |  | — |  |  | — |  |  | — |
Change in foreign currency |  | (1,240 | ) |  | (1,170 | ) |  | — |  |  | — |
Fair value of plan assets at December 31 |  | $ | 28,270 |  |  | $ | 32,610 |  |  | $ | — |  |  | $ | — |
Funded status at December 31 |  | $ | (9,970 | ) |  | $ | (11,120 | ) |  | $ | (410 | ) |  | $ | (660 | )
|  | Pension Benefit |  | Postretirement Benefit
|  | 2015 |  | 2014 |  | 2015 |  | 2014
|  | (dollars in thousands)
Amounts Recognized in Balance Sheet |  |  |  |  |  |  |  |
Prepaid benefit cost |  | $ | 590 |  |  | $ | 790 |  |  | $ | — |  |  | $ | — |
Current liabilities |  | (320 | ) |  | (320 | ) |  | (50 | ) |  | (70 | )
Noncurrent liabilities |  | (10,240 | ) |  | (11,590 | ) |  | (360 | ) |  | (590 | )
Net liability recognized at December 31 |  | $ | (9,970 | ) |  | $ | (11,120 | ) |  | $ | (410 | ) |  | $ | (660 | )
|  | Pension Benefit |  | Postretirement Benefit
|  | 2015 |  | 2014 |  | 2015 |  | 2014
|  | (dollars in thousands)
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss |  |  |  |  |  |  |  |
Unrecognized prior-service cost |  | $ | 80 |  |  | $ | 90 |  |  | $ | — |  |  | $ | — |
Unrecognized net loss/(gain) |  | 18,570 |  |  | 21,420 |  |  | (840 | ) |  | (670 | )
Total accumulated other comprehensive (income) loss recognized at December 31 |  | $ | 18,650 |  |  | $ | 21,510 |  |  | $ | (840 | ) |  | $ | (670 | )
|  | Accumulated Benefit Obligations |  | Projected Benefit Obligations
|  | 2015 |  | 2014 |  | 2015 |  | 2014
|  | (dollars in thousands)
Benefit Obligations at December 31, |  |  |  |  |  |  |  |
Total benefit obligations |  | $ | (35,890 | ) |  | $ | (41,450 | ) |  | $ | (38,240 | ) |  | $ | (43,730 | )
Plans with benefit obligations exceeding plan assets |  |  |  |  |  |  |  |
Benefit obligations |  | $ | (17,940 | ) |  | $ | (40,630 | ) |  | $ | (37,560 | ) |  | $ | (42,910 | )
Plan assets |  | 9,200 |  |  | 31,000 |  |  | 27,000 |  |  | 31,000 |
The assumptions regarding discount rates and expected return on plan assets can have a significant impact on amounts reported for benefit plans. A 25 basis point change in benefit obligation discount rates or 50 basis point change in expected return on plan assets would have the following affect:
|  | December 31, 2015 Benefit Obligation |  | 2015 Expense
|  | Pension |  | Postretirement Benefit |  | Pension |  | Postretirement Benefit
|  | (dollars in thousands)
Discount rate |  |  |  |  |  |  |  |
25 basis point increase |  | $ | (1,370 | ) |  | $ | (10 | ) |  | $ | (90 | ) |  | $ | — |
25 basis point decrease |  | $ | 1,420 |  |  | $ | 10 |  |  | $ | 100 |  |  | — |
Expected return on assets |  |  |  |  |  |  |  |
50 basis point increase |  | N/A |  |  | N/A |  |  | $ | (150 | ) |  | N/A |
50 basis point decrease |  | N/A |  |  | N/A |  |  | $ | 150 |  |  | N/A |
The Company expects to make contributions of approximately $2.0 million to fund its pension plans during 2016. Plan Assets The Company's overall investment goal is to provide for capital growth with a moderate level of volatility by investing assets in targeted allocation ranges. Specific long term investment goals include total investment return, diversity to reduce volatility and risk, and to achieve an asset allocation profile that reflects the general nature and sensitivity of the plans' liabilities. Investment goals are established after a comprehensive review of current and projected financial statement requirements, plan assets and liability structure, market returns and risks as well as special requirements of the plans. The Company reviews investment goals and actual results annually to determine whether stated objectives are still relevant and the continued feasibility of achieving the objectives. The actual weighted average asset allocation of the Company's domestic and foreign pension plans' assets at December 31, 2015 and 2014 and target allocations by class, were as follows:
|  | Domestic Pension |  | Foreign Pension
|  |  |  | Actual |  |  |  | Actual
|  | Target |  | 2015 |  | 2014 |  | Target |  | 2015 |  | 2014
Equity securities |  | 50%-70% |  |  | 62 | % |  | 63 | % |  | 55 | % |  | 40 | % |  | 52 | %
Fixed income securities |  | 30%-50% |  |  | 36 | % |  | 35 | % |  | 45 | % |  | 46 | % |  | 48 | %
Cash and cash equivalents |  | — |  |  | 2 | % |  | 2 | % |  | — |  |  | 14 | % |  | — | %
Total |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
Actual allocations to each asset vary from target allocations due to periodic investment strategy changes, market value fluctuations and the timing of benefit payments and contributions. The expected long-term rate of return for both the domestic and foreign plans' total assets is based on the expected return of each of the above categories, weighted based on the target allocation for each class. Actual allocation is reviewed regularly and rebalancing investments to their targeted allocation range is performed when deemed appropriate. During 2015, the Company made higher than expected contributions to one of its foreign defined benefit plans as part of a recovery plan to reduce the plan's net funding deficit. As of December 31, 2015, the Company had not yet completed its investment allocation strategy with respect to the incremental contributions, with the funds remaining in a cash account and causing a deviation from the targeted asset allocation. In managing the plan assets, the Company reviews and manages risk associated with the funded status risk, interest rate risk, market risk, liquidity risk and operational risk. Investment policies reflect the unique circumstances of the respective plans and include requirements designed to mitigate these risks by including quality and diversification standards. The following table summarizes the level under the fair value hierarchy (see Note 3, "Summary of Significant Accounting Policies") that the Company's pension plan assets are measured on a recurring basis as of December 31, 2015:
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Equity Securities |  |  |  |  |  |  |  |
Investment funds |  | $ | 13,980 |  |  | $ | — |  |  | $ | 13,980 |  |  | $ | — |
Fixed Income Securities |  |  |  |  |  |  |  |
Investment funds |  | 7,920 |  |  | — |  |  | 7,920 |  |  | — |
Corporate bonds |  | 3,540 |  |  | — |  |  | 3,540 |  |  | — |
Other (a) |  | 110 |  |  | — |  |  | 110 |  |  | — |
Cash and cash equivalents |  |  |  |  |  |  |  |
Short term investment funds |  | 2,720 |  |  | 2,550 |  |  | 170 |  |  | — |
Total |  | $ | 28,270 |  |  | $ | 2,550 |  |  | $ | 25,720 |  |  | $ | — |
________________________________________ (a) Comprised of mortgage-backed, asset backed securities and non-government backed c.m.o.s. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
|  | Pension Benefit |  | Postretirement Benefit
|  | (dollars in thousands)
December 31, 2016 |  | $ | 1,490 |  |  | $ | 50 |
December 31, 2017 |  | 1,510 |  |  | 40 |
December 31, 2018 |  | 1,580 |  |  | 40 |
December 31, 2019 |  | 1,640 |  |  | 40 |
December 31, 2020 |  | 1,680 |  |  | 30 |
Years 2021-2025 |  | 9,420 |  |  | 130 |
The assumed health care cost trend rate used for purposes of calculating the Company's postretirement benefit obligation in 2015 was 7.5% for pre-65 plan participants, decreasing to an ultimate rate of 5.0% in 2022 and 7.0% for post-65 plan participants, decreasing to an ultimate rate of 5.0% in 2020. A one-percentage point change in the assumed health care cost trend would have the following effects:
|  | One Percentage-Point Increase |  | One Percentage-Point Decrease
|  | (dollars in thousands)
Effect on total service and interest cost |  | $ | — |  |  | $ | — |
Effect on postretirement benefit obligation |  | 30 |  |  | (30 | )

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