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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2020
Retirement Benefits [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 consolidated statement of operations under this plan for both continuing and discontinued operations were approximately $3.4 million, $4.6 million and $4.2 million in 2020, 2019 and 2018, respectively. Certain of the Company's non-U.S. and union hourly employees participate in defined benefit pension plans. Plan Assets, Expenses and Obligations Net periodic pension benefit expense recorded in the Company's consolidated statement of operations for defined benefit pension plans include the following components (dollars in thousands):
|  | Pension Benefit |  |
|  | 2020 |  | 2019 |  | 2018 |  |  |  |  |  |
Service cost |  | $ | 1,230 |  |  | $ | 1,050 |  |  | $ | 1,120 |  |  |  |  |  |  |
Interest cost |  | 930 |  |  | 1,070 |  |  | 1,100 |  |  |  |  |  |  |
Expected return on plan assets |  | (1,450) |  |  | (1,400) |  |  | (1,520) |  |  |  |  |  |  |
Settlements and curtailments |  | — |  |  | — |  |  | 2,620 |  |  |  |  |  |  |
Amortization of net loss |  | 890 |  |  | 580 |  |  | 860 |  |  |  |  |  |  |
Net periodic benefit expense |  | $ | 1,600 |  |  | $ | 1,300 |  |  | $ | 4,180 |  |  |  |  |  |  |
The service cost component of net periodic benefit expense is recorded in cost of goods sold and selling, general and administrative expenses, while non-service cost components are recorded in other expense, net in the accompanying consolidated statement of operations. During 2018, the Company recognized one-time settlement and curtailment charges of approximately $2.6 million, of which approximately $2.5 million was due to the purchase of an annuity contract to transfer certain U.S. retiree defined benefit obligations to an insurance company. The annuity contract was funded by plan assets. Actuarial valuations of the Company's defined benefit pension plans were prepared as of December 31, 2020, 2019 and 2018. Weighted average assumptions used in accounting for the U.S. defined benefit pension plans are as follows:
|  | Pension Benefit |  |
|  | 2020 |  | 2019 |  | 2018 |  |  |  |  |  |
Discount rate for obligations |  | 2.79 | % |  | 3.41 | % |  | 4.50 | % |  |  |  |  |  |
Discount rate for benefit costs |  | 3.41 | % |  | 4.50 | % |  | 4.37 | % |  |  |  |  |  |
Rate of increase in compensation levels |  | N/A |  | N/A |  | N/A |  |  |  |  |  |
Expected long-term rate of return on plan assets |  | 6.13 | % |  | 7.13 | % |  | 7.13 | % |  |  |  |  |  |
The Company utilizes a high-quality (Aa or greater) corporate bond yield curve as the basis for its domestic discount rate for its pension 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. Weighted average assumptions used in accounting for the non-U.S. defined benefit pension plans are as follows:
|  | Pension Benefit
|  | 2020 |  | 2019 |  | 2018
Discount rate for obligations |  | 1.50 | % |  | 2.10 | % |  | 3.00 | %
Discount rate for benefit costs |  | 2.10 | % |  | 3.00 | % |  | 2.60 | %
Rate of increase in compensation levels |  | 2.80 | % |  | 3.00 | % |  | 3.30 | %
Expected long-term rate of return on plan assets |  | 4.10 | % |  | 4.60 | % |  | 4.60 | %
The following provides a reconciliation of the changes in the Company's defined benefit pension plans' projected benefit obligations and fair value of assets for each of the years ended December 31, 2020 and 2019 and the funded status as of December 31, 2020 and 2019 (dollars in thousands):
|  | Pension Benefit
|  | 2020 |  | 2019
Changes in Projected Benefit Obligations |  |  |  |
Benefit obligations at January 1 |  | $ | (36,580) |  |  | $ | (30,300) |
Service cost |  | (1,230) |  |  | (1,050) |
Interest cost |  | (930) |  |  | (1,070) |
Participant contributions |  | (60) |  |  | (60) |
Actuarial loss (a) |  | (2,420) |  |  | (4,190) |
Benefit payments |  | 1,140 |  |  | 900 |
Change in foreign currency |  | (750) |  |  | (810) |
Projected benefit obligations at December 31 |  | $ | (40,830) |  |  | $ | (36,580) |
Changes in Plan Assets |  |  |  |
Fair value of plan assets at January 1 |  | $ | 30,260 |  |  | $ | 24,650 |
Actual return on plan assets |  | 4,780 |  |  | 3,630 |
Employer contributions |  | 1,140 |  |  | 1,930 |
Participant contributions |  | 60 |  |  | 60 |
Benefit payments |  | (1,140) |  |  | (900) |
Change in foreign currency |  | 960 |  |  | 890 |
Fair value of plan assets at December 31 |  | $ | 36,060 |  |  | $ | 30,260 |
Funded status at December 31 |  | $ | (4,770) |  |  | $ | (6,320) |
__________________________ (a) The actuarial losses for the year ended December 31, 2020 and 2019 were primarily due to a decrease in the discount rate utilized in measuring the projected benefit obligations, partially offset by other assumptions and experience gains.
|  | Pension Benefit |  |
|  | 2020 |  | 2019 |  |  |  |
Amounts Recognized in Balance Sheet |  |  |  |  |  |  |  |
Other assets |  | $ | 4,470 |  |  | $ | 1,690 |  |  |  |  |
Current liabilities |  | (340) |  |  | (330) |  |  |  |  |
Noncurrent liabilities |  | (8,900) |  |  | (7,680) |  |  |  |  |
Net liability recognized at December 31 |  | $ | (4,770) |  |  | $ | (6,320) |  |  |  |  |
|  | Pension Benefit |  |
|  | 2020 |  | 2019 |  |  |  |
Amounts Recognized in Accumulated Other Comprehensive Loss |  |  |  |  |  |  |  |
Unrecognized prior service cost |  | $ | 170 |  |  | $ | 190 |  |  |  |  |
Unrecognized net loss |  | 11,470 |  |  | 13,240 |  |  |  |  |
Total accumulated other comprehensive loss recognized at December 31 |  | $ | 11,640 |  |  | $ | 13,430 |  |  |  |  |
|  | Accumulated Benefit Obligations |  | Projected Benefit Obligations
|  | 2020 |  | 2019 |  | 2020 |  | 2019
Benefit Obligations at December 31, |  |  |  |  |  |  |  |
Total benefit obligations |  | $ | (38,410) |  |  | $ | (34,460) |  |  | $ | (40,830) |  |  | $ | (36,580) |
Plans with benefit obligations exceeding plan assets |  |  |  |  |  |  |  |
Benefit obligations |  | $ | (16,820) |  |  | $ | (14,840) |  |  | $ | (16,940) |  |  | $ | (14,910) |
Plan assets |  | $ | 7,700 |  |  | $ | 6,890 |  |  | $ | 7,700 |  |  | $ | 6,890 |
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 effect (dollars in thousands):
|  | Pension Benefit |  |
|  | December 31, 2020 Benefit Obligation |  |  |  | 2020 Expense |  |
Discount rate |  |  |  |  |  |  |  |
25 basis point increase |  | $ | (1,580) |  |  |  |  | $ | (110) |  |  |
25 basis point decrease |  | $ | 1,760 |  |  |  |  | $ | 110 |  |  |
Expected return on assets |  |  |  |  |  |  |  |
50 basis point increase |  | N/A |  |  |  | $ | (170) |  |  |
50 basis point decrease |  | N/A |  |  |  | $ | 170 |  |  |
The Company expects to make contributions of approximately $3.6 million to fund its pension plans during 2021. 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, 2020 and 2019 and target allocations by class, were as follows:
|  | Domestic Pension |  | Foreign Pension
|  |  |  | Actual |  |  |  | Actual
|  | Target |  | 2020 |  | 2019 |  | Target |  | 2020 |  | 2019
Equity securities |  | 60 | % |  | 67 | % |  | 62 | % |  | 33 | % |  | 33 | % |  | 30 | %
Fixed income |  | 36 | % |  | 32 | % |  | 34 | % |  | 45 | % |  | 44 | % |  | 46 | %
Diversified growth(a) |  | — | % |  | — | % |  | — | % |  | 22 | % |  | 22 | % |  | 23 | %
Cash and other |  | 4 | % |  | 1 | % |  | 4 | % |  | — |  |  | 1 | % |  | 1 | %
Total |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
________________________________________ (a) Diversified growth funds invest in a broad range of asset classes including equities, investment grade and high yield bonds, commodities, property, private equity, infrastructure and currencies. 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 investments are rebalanced to their targeted allocation range when deemed appropriate. 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, 2020 (dollars in thousands):
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Plan assets subject to leveling |  |  |  |  |  |  |  |
Investment funds |  |  |  |  |  |  |  |
Equity securities |  | $ | 5,160 |  |  | $ | 5,160 |  |  | $ | — |  |  | $ | — |
Fixed income |  | 2,500 |  |  | 2,500 |  |  | — |  |  | — |
Cash and cash equivalents |  | 310 |  |  | 310 |  |  | — |  |  | — |
Plan assets measured at net asset value(a) |  |  |  |  |  |  |  |
Investment funds |  |  |  |  |  |  |  |
Equity securities |  | 9,180 |  |  |  |  |  |  |
Fixed income |  | 12,880 |  |  |  |  |  |  |
Diversified growth |  | 5,870 |  |  |  |  |  |  |
Cash and cash equivalents |  | 160 |  |  |  |  |  |  |
Total |  | $ | 36,060 |  |  | $ | 7,970 |  |  | $ | — |  |  | $ | — |
________________________________________ (a) Certain investments that are measured at fair value using the net asset value per share as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amount presented in the fair value of plan assets. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years (dollars in thousands):
|  | Pension Benefit
2021 |  | $ | 1,160 |
2022 |  | 1,210 |
2023 |  | 1,240 |
2024 |  | 1,310 |
2025 |  | 1,350 |
Years 2026-2030 |  | 7,710 |

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