Benefits Plans Disclosure | BENEFIT PLANS The Company maintains a number of retirement and other post-retirement employee benefit plans. Certain subsidiaries sponsor defined contribution plans. Benefits are determined and funded annually based upon the terms of the plans. Amounts recognized as cost under these plans amounted to $24.8 million, $19.3 million, and $18.8 million for the years ended December 31, 2021, 2020, and 2019, respectively. Certain subsidiaries sponsor defined benefit plans. Benefits are provided to employees primarily based upon years of service and employees’ compensation for certain periods during the last years of employment. Prior to 2002, the Company’s U.S. operations also provided post-retirement medical benefits to their employees. Contributions for medical benefits are related to employee years of service. The following tables set forth the change in benefit obligation, the change in plan assets, the funded status, and amounts recognized in the consolidated financial statements for the Company’s defined benefit plans and post-retirement plan at December 31, 2021 and 2020: U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits Total 2021 2020 2021 2020 2021 2020 2021 2020 Change in benefit obligation: Benefit obligation at beginning of year $ 149,947 $ 142,450 $ 1,091,811 $ 961,263 $ 1,030 $ 1,295 $ 1,242,788 $ 1,105,008 Service cost, gross 1,498 1,304 35,675 33,995 — — 37,173 35,299 Interest cost 2,194 3,556 3,347 4,778 8 25 5,549 8,359 Actuarial losses (gains) (3,399) 10,733 1,904 43,508 37 (70) (1,458) 54,171 Plan amendments and other — — (23,196) 112 — — (23,196) 112 Benefits paid (8,334) (8,096) (39,911) (39,412) (200) (220) (48,445) (47,728) Impact of foreign currency — — (42,297) 87,567 — — (42,297) 87,567 Benefit obligation at end of year $ 141,906 $ 149,947 $ 1,027,333 $ 1,091,811 $ 875 $ 1,030 $ 1,170,114 $ 1,242,788 Change in plan assets: Fair value of plan assets at beginning of year $ 109,462 $ 102,812 $ 984,322 $ 861,962 $ — $ — $ 1,093,784 $ 964,774 Actual return on plan assets 12,307 9,223 52,922 39,535 — — 65,229 48,758 Employer contributions 88 5,523 27,088 26,249 200 220 27,376 31,992 Plan participants’ contributions — — 16,102 15,681 — — 16,102 15,681 Benefits paid (8,334) (8,096) (39,911) (39,412) (200) (220) (48,445) (47,728) Impact of foreign currency — — (32,262) 80,307 — — (32,262) 80,307 Fair value of plan assets at end of year $ 113,523 $ 109,462 $ 1,008,261 $ 984,322 $ — $ — $ 1,121,784 $ 1,093,784 Funded status $ (28,383) $ (40,485) $ (19,072) $ (107,489) $ (875) $ (1,030) $ (48,330) $ (149,004) The change in the benefit obligation for 2021 and 2020 is primarily related to the impact of foreign currency and a plan amendment within one of the Company's non-U.S. plans. The accumulated benefit obligations at December 31, 2021 and 2020 were $141.9 million and $149.9 million, respectively, for the U.S. defined benefit pension plan and $867.0 million and $920.3 million, respectively, for all non-U.S. plans. Certain of the plans included within non-U.S. pension benefits have accumulated benefit obligations which exceed the fair value of plan assets. The projected benefit obligation, the accumulated benefit obligation, and fair value of assets of these plans as of December 31, 2021 were $181.3 million, $174.1 million, and $40.3 million, respectively. The projected benefit obligation, the accumulated benefit obligation, and fair value of assets of these plans as of December 31, 2020 were $216.7 million, $205.3 million, and $57.4 million, respectively. Amounts recognized in the consolidated balance sheets consist of: U.S. Pension Benefits Non-U.S. Pension Benefits Other Benefits Total 2021 2020 2021 2020 2021 2020 2021 2020 Other non-current assets $ — $ — $ 122,049 $ 51,619 $ — $ — $ 122,049 $ 51,619 Accrued and other liabilities (136) (133) (5,289) (5,549) (129) (153) (5,554) (5,835) Pension and other post-retirement liabilities (28,246) (40,353) (135,833) (153,559) (746) (877) (164,825) (194,789) Accumulated other comprehensive loss (income) 56,648 69,296 259,714 332,280 (742) (891) 315,620 400,685 Total $ 28,266 $ 28,810 $ 240,641 $ 224,791 $ (1,617) $ (1,921) $ 267,290 $ 251,680 The following amounts have been recognized in accumulated other comprehensive income (loss), before taxes, at December 31, 2021 and have not yet been recognized as a component of net periodic pension cost: U.S. Pension Non-U.S. Pension Other Benefits Total Total, After Tax 2021 2020 2021 2020 2021 2020 2021 2020 2021 2020 Plan amendments and prior service cost $ — $ — $ (29,446) $ (9,857) $ (426) $ (501) $ (29,872) $ (10,358) $ (24,118) $ (8,262) Actuarial losses (gains) 56,648 69,296 289,160 342,137 (316) (390) 345,492 411,043 272,118 $ 322,947 Total $ 56,648 $ 69,296 $ 259,714 $ 332,280 $ (742) $ (891) $ 315,620 $ 400,685 $ 248,000 $ 314,685 The following changes in plan assets and benefit obligations were recognized in other comprehensive income (loss), before taxes, for the year ended December 31, 2021: U.S. Pension Non-U.S. Pension Other Benefits Total Total, After Tax Net actuarial losses (gains) $ (9,732) $ (15,507) $ 37 $ (25,202) $ (19,293) Plan amendment — (23,196) — (23,196) (18,831) Amortization of: Actuarial (losses) gains (2,916) (24,899) 37 (27,778) (21,958) Plan amendments and prior service cost — 3,174 75 3,249 2,632 Impact of foreign currency — (12,138) — (12,138) (9,235) Total $ (12,648) $ (72,566) $ 149 $ (85,065) $ (66,685) The assumed discount rates and rates of increase in future compensation levels used in calculating the projected benefit obligations vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows: U.S. Non-U.S. 2021 2020 2021 2020 Discount rate 2.57 % 2.22 % 0.40 % 0.32 % Compensation increase rate n/a n/a 0.85 % 0.86 % Expected long-term rate of return on plan assets 5.75 % 5.75 % 3.78 % 3.73 % Interest crediting rate n/a n/a 1.00 % 0.50 % The assumed discount rates, rates of increase in future compensation levels, and the long-term rate of return used in calculating the net periodic pension cost vary according to the economic conditions of the country in which the retirement plans are situated. The weighted average rates used for the purposes of the Company’s plans are as follows: U.S. Non-U.S. 2021 2020 2019 2021 2020 2019 Discount rate 2.22 % 3.03 % 4.11 % 0.63 % 0.51 % 1.22 % Compensation increase rate n/a n/a n/a 0.85 % 0.86 % 0.87 % Expected long-term rate of return on plan assets 5.75 % 6.25 % 6.50 % 3.78 % 3.76 % 3.84 % Net periodic pension cost and net periodic post-retirement benefit for the defined benefit plans and U.S. post-retirement plan include the following components for the years ended December 31: U.S. Non-U.S. Other Benefits Total 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 Service cost, net $ 1,498 $ 1,304 $ 1,063 $ 19,558 $ 18,314 $ 15,534 $ — $ — $ — $ 21,056 $ 19,618 $ 16,597 Interest cost on projected benefit obligations 2,194 3,556 4,585 3,347 4,778 10,192 8 25 64 5,549 8,359 14,841 Expected return on plan assets (5,974) (6,094) (5,887) (35,511) (33,067) (29,162) — — — (41,485) (39,161) (35,049) Recognition of actuarial losses/(gains) and prior service cost 2,916 2,578 2,374 21,725 16,134 13,784 (112) (103) (691) 24,529 18,609 15,467 Net periodic pension cost/(benefit) $ 634 $ 1,344 $ 2,135 $ 9,119 $ 6,159 $ 10,348 $ (104) $ (78) $ (627) $ 9,649 $ 7,425 $ 11,856 The projected post-retirement benefit obligation was principally determined using discount rates of 1.94% in 2021 and 1.47% in 2020. Net periodic post-retirement benefit cost was principally determined using discount rates of 1.47% in 2021, 2.54% in 2020, and 3.75% in 2019. The health care cost trend rate was 5.9% in 2021, 6.0% in 2020, and 6.2% in 2019, decreasing to 4.50% in 2029. The Company’s overall asset investment strategy is to achieve long-term growth while minimizing volatility by widely diversifying among asset types and strategies. Target asset allocations and investment return criteria are established by the pension committee or designated officers of each plan. Target asset allocation ranges for the U.S. pension plan include 40-60% in equity securities, 23-33% in fixed income securities, and 15-25% in other types of investments. International plan assets relate primarily to the Company’s Swiss plan with target allocations of 24-45% in equities, 35-55% in fixed income securities, and 15-25% in other types of investments. Actual results are monitored against targets and the trustees are required to report to the members of each plan, including an analysis of investment performance on an annual basis at a minimum. Day-to-day asset management is typically performed by third-party asset managers, reporting to the pension committees or designated officers. The long-term rate of return on plan asset assumptions used to determine pension expense under U.S. GAAP is generally based on estimated future returns for the target investment mix determined by the trustees as well as historical investment performance. The following table presents the fair value measurement of the Company’s plan assets by hierarchy level: December 31, 2021 December 31, 2020 Quoted Observable Unobservable Total Quoted Observable Unobservable Total Asset Category: Cash and Cash Equivalents $ 92,207 $ — $ — $ 92,207 $ 166,614 $ — $ — $ 166,614 Equity Securities: Mettler-Toledo Stock 3,639 — — 3,639 3,767 — — 3,767 Equity Mutual Funds: U.S. (1) 8,197 43,287 — 51,484 7,467 30,460 — 37,927 International (2) 100,197 23,022 — 123,219 83,309 41,027 — 124,336 Emerging Markets (3) 157,814 3,315 — 161,129 131,103 966 — 132,069 Fixed Income Securities: Corporate/Government Bonds (4) 87,772 — — 87,772 92,085 — — 92,085 Fixed Income Mutual Funds: Insurance Contracts (5) — 38,555 1,787 40,342 — 43,055 1,793 44,848 Core Bond (6) 107,394 71,608 — 179,002 72,061 64,111 — 136,172 Real Asset Mutual Funds: Real Estate (7) — 153,954 — 153,954 117,089 15,864 — 132,953 Commodities (8) 50,525 — — 50,525 53,088 — — 53,088 Other Types of Investments: Debt Securities (9) 41,628 — — 41,628 43,060 — — 43,060 Global Allocation Funds (10) 5,680 — — 5,680 12,359 — — 12,359 Multi-Strategy Fund of Hedge Funds (11) — 16,103 — 16,103 — — — — Insurance Linked Securities (12) 19,287 — — 19,287 19,038 — — 19,038 Total assets in fair value hierarchy $ 674,340 $ 349,844 $ 1,787 $ 1,025,971 $ 801,040 $ 195,483 $ 1,793 $ 998,316 Investments measured at net asset value: International (13) 3,568 2,930 Emerging Markets (13) 7,211 7,262 Multi-Strategy Fund of Hedge Funds (13) 85,034 85,276 Total pension assets at fair value $ 1,121,784 $ 1,093,784 _______________________________________ (1) Represents primarily large capitalization equity mutual funds tracking the S&P 500 Index. (2) Represents all capitalization core and value equity mutual funds located primarily in Switzerland, the United Kingdom, and Canada. (3) Represents core and growth mutual funds and funds of mutual funds invested in emerging markets primarily in Eastern Europe, Latin America, and Asia. (4) Represents investments in high-grade corporate and government bonds located in Switzerland and the European Union. (5) Represents fixed and variable rate annuity contracts provided by insurance companies. (6) Represents fixed income mutual funds invested in the U.S., the United Kingdom, Switzerland, and European government bonds, high-grade corporate bonds, mortgage-backed securities, and collateralized mortgage obligations. (7) Represents mutual funds invested in real estate located primarily in Switzerland. (8) Represents commodity funds invested across a broad range of sectors. (9) Represents a loan to a wholly owned subsidiary of the Company. See Note 10 for additional disclosure. (10) Represents mutual funds invested globally in both equities and fixed income securities. (11) Represents currency hedged versions of the non-currency hedged equity funds held in the United Kingdom. (12) Represents a broadly diversified portfolio of assets that carry exposure to insurance risks, particularly insurance linked securities. (13) Investments that are measured using the net asset value (NAV) per share practical expedient have not been categorized in the fair value hierarchy. The amounts presented above are intended to permit reconciliation of the fair value hierarchy to the fair value of total plan assets in order to determine the amounts included in the consolidated balance sheet. The fair values of the Company’s stock and corporate and government bonds are valued at the year-end closing price as reported on the securities exchange on which they are traded. Mutual funds are valued at the exchange-listed year-end closing price or at the net asset value of shares held by the fund at the end of the year. Insurance contracts are valued by discounting the related cash flows using a current year-end market rate or at cash surrender value, which is presumed to equal fair value. Funds of hedge funds are valued at the net asset value of shares held by the fund at the end of the year. The following table presents a roll-forward of activity for the years ended December 31, 2021 and 2020 for Level 3 asset categories: Insurance Balance at December 31, 2019 $ 1,486 Actual return on plan assets related to assets held at end of year 22 Purchases 99 Impact of foreign currency 186 Balance at December 31, 2020 $ 1,793 Actual return on plan assets related to assets held at end of year 26 Purchases 70 Impact of foreign currency (102) Balance at December 31, 2021 $ 1,787 There were no transfers between any asset levels during the years ended December 31, 2021 and 2020. The following benefit payments, which reflect expected future service as appropriate, are expected to be paid: U.S. Pension Non-U.S. Pension Other Benefits, Net of Total 2022 $ 8,715 $ 48,030 $ 129 $ 56,874 2023 8,789 48,345 111 57,245 2024 8,848 50,636 99 59,583 2025 8,859 49,528 88 58,475 2026 8,809 50,121 78 59,008 2027-2031 42,737 251,739 269 294,745 In 2022, the Company expects to make employer pension contributions of approximately $28.2 million to its non-U.S. pension plan and employer contributions of approximately $0.1 million to its U.S. post-retirement medical plan. |