| Defined Benefit Plan, Description of Settlements and Curtailments | PENSION PLANS AND OTHER POSTRETIREMENT BENEFITS We have historically provided defined benefit retirement benefits to domestic employees under the Retirement Plan for Employees of Babcock & Wilcox Commercial Operations (the "Company Plan"), a noncontributory plan. As of 2006, the Company Plan was closed to new salaried plan entrants. In October 2012, we notified employees that, effective December 31, 2015, benefit accruals for those salaried employees covered by, and continuing to accrue service and salary adjusted benefits under the Company Plan will cease. Furthermore, beginning on January 1, 2016, we will make service-based, cash contributions to a defined contribution plan for those employees impacted by the plan freeze. Effective January 1, 2012, a defined contribution component was adopted applicable to Babcock & Wilcox Canada, Ltd. (the "Canadian Plans"). Any employee with less than two years of continuous service as of December 31, 2011 was required to enroll in the defined contribution component of the Canadian Plans as of January 1, 2012 or upon the completion of 6 months of continuous service, whichever is later. These and future employees will not be eligible to enroll in the defined benefit component of the Canadian Plans. Additionally, during the third quarter of 2014, benefit accruals under certain hourly Canadian pension plans were ceased with an effective date of January 1, 2015. This amendment to the Canadian Plans is reflected as a curtailment in 2014. As part of the spin-off transaction, we are splitting the Canadian defined benefit plans from BWC, but as of December 31, 2016, that split is not complete. We have not presented these plans as multi-employer plans because our portion is separately identifiable and we were able to assess the assets, liabilities and periodic expense in the same manner as if it were a separate plan in each period. We do not provide retirement benefits to certain non-resident alien employees of foreign subsidiaries. Retirement benefits for salaried employees who accrue benefits in a defined benefit plan are based on final average compensation and years of service, while benefits for hourly paid employees are based on a flat benefit rate and years of service. Our funding policy is to fund the plans as recommended by the respective plan actuaries and in accordance with the Employee Retirement Income Security Act of 1974, as amended, or other applicable law. Funding provisions under the Pension Protection Act accelerate funding requirements to ensure full funding of benefits accrued. We make available other benefits which include postretirement health care and life insurance benefits to certain salaried and union retirees based on their union contracts, and on a limited basis, to future retirees. Obligations and funded status Pension Benefits Year Ended December 31, Other Postretirement Benefits Year Ended December 31, (in thousands) 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation at beginning of period $ 1,205,163 $ 1,253,278 $ 31,889 $ 34,909 Service cost 1,680 13,677 23 24 Interest cost 40,875 49,501 897 1,143 Plan participants’ contributions — 156 574 276 Curtailments 266 — — — Settlements — — — — Transfers /Acquisition — 15,992 — 234 Amendments 231 244 (10,801 ) — Actuarial loss (gain) 43,410 (47,098 ) (7,162 ) (296 ) Loss (gain) due to transfer 3,641 (523 ) — — Foreign currency exchange rate changes (5,099 ) (11,450 ) 50 (367 ) Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Benefit obligation at end of period $ 1,211,720 $ 1,205,163 $ 11,907 $ 31,889 Change in plan assets: Fair value of plan assets at beginning of period $ 923,030 $ 999,515 $ — $ — Actual return on plan assets 76,570 (19,623 ) — — Employer contribution 3,986 8,711 2,989 3,758 Plan participants' contributions — 156 574 276 Settlements — — — — Transfers 2,744 13,974 — — Foreign currency exchange rate changes (5,015 ) (11,089 ) — — Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Fair value of plan assets at the end of period 922,868 923,030 — — Funded status $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amounts recognized in the balance sheet consist of: Accrued employee benefits $ (1,099 ) $ (1,927 ) $ (1,722 ) $ (4,620 ) Accumulated postretirement benefit obligation — — (10,185 ) (27,269 ) Pension liability (287,753 ) (281,711 ) — — Prepaid pension — 1,505 — — Accrued benefit liability, net $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amount recognized in accumulated comprehensive income (before taxes): Prior service cost (credit) $ 432 $ 1,976 $ (10,801 ) $ — Supplemental information: Plans with accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,183,345 $ 1,175,511 $ — $ — Accumulated benefit obligation $ 1,206,056 $ 1,172,591 $ 11,907 $ 31,889 Fair value of plan assets $ 894,105 $ 891,873 $ — $ — Plans with plan assets in excess of accumulated benefit obligation Projected benefit obligation $ 28,375 $ 29,652 $ — $ — Accumulated benefit obligation $ 28,375 $ 29,652 $ — $ — Fair value of plan assets $ 28,763 $ 31,157 $ — $ — Components of net periodic benefit cost (benefit) included in net income (loss) are as follows: Pension Benefits Other Benefits (in thousands) 2016 2015 2014 2016 2015 2014 Service cost $ 1,680 $ 13,677 $ 13,558 $ 23 $ 24 $ 18 Interest cost 40,875 49,501 51,181 897 1,143 1,087 Expected return on plan assets (61,939 ) (68,709 ) (64,023 ) — — — Amortization of prior service cost 250 307 274 — — — Recognized net actuarial loss (gain) 31,932 41,574 99,090 (7,822 ) (1,364 ) 2,245 Net periodic benefit cost (benefit) $ 12,798 $ 36,350 $ 100,080 $ (6,902 ) $ (197 ) $ 3,350 During 2016, we recorded adjustments to our benefit plan liabilities resulting from pension curtailment and settlement events. Lump sum payments from our Canadian pension plan during 2016 resulted in interim pension plan settlement charges totaling $1.2 million in 2016. Also, in May 2016, the closure of our West Point, Mississippi manufacturing facility resulted in a $1.8 million curtailment charge in our United States pension plan. These events also resulted in $27.5 million in interim MTM losses for these pension plans, the effects of which are reflected in "Recognized net actuarial loss" in the table above along with a $1.4 million loss for the annual MTM adjustment of our pension plans at December 31, 2016. We terminated the Babcock & Wilcox Retiree Medical Plan (the "Retiree OPEB plan") effective December 31, 2016. The Retiree OPEB plan was originally established to provide secondary medical insurance coverage for retirees that had reached the age of 65, up to a lifetime maximum cost. The Retiree OPEB plan had no plan assets, no accumulated other comprehensive income balance and no active participants as of the termination date. In exchange for terminating the Retiree OPEB plan, the participants had the option to enroll in a third-party health care exchange, which B&W agreed to contribute up to $750 a year for each of the next three years (beginning in 2017), provided the plan participant had not yet reached their lifetime maximum under the terminated Retiree OPEB plan. Based on the number of participants who did not enroll in the new benefit plan, we recognized a settlement gain of $7.2 million on December 31, 2016. Based on the number of participants who did enroll in the new benefit plan, we recognized a curtailment gain of $10.8 million on December 31, 2016 for the actuarially determined difference in the liability for these participants in the Retiree OPEB plan and the new plan. The settlement gain is reported in the "Recognized net actuarial loss" in the table above, and the curtailment gain was deferred in accumulated other comprehensive income and will be recognized in 2017, 2018 and 2019. Recognized net actuarial loss (gain) consists primarily of our reported actuarial loss (gain), curtailments and the difference between the actual return on plan assets and the expected return on plan assets. Total net mark to market adjustments for our pension and other postretirement benefit plans were losses of $24.1 million , $40.2 million and $101.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. In 2016 , the mark to market adjustment reflects $25.0 million of charges related to the Company Plan, including a $24.1 million remeasurement of our West Point plan made in the second quarter. Other significant pension items include a $2.1 million increase of our Diamond Power United Kingdom plan liability in the fourth quarter, a $3.9 million year to date increase in our Canadian plans, primarily resulting from a $1.2 million plan settlement and $2.9 million remeasurement made in the second quarter. This was partially offset by a $6.6 million actuarial gain on our domestic Medical and Life Insurance plan. As discussed in Note 5 , we have excluded the recognized net actuarial loss from our reportable segments and such amount has been reflected in Note 5 as the mark to market adjustment in the reconciliation of reportable segment income (loss) to consolidated operating income (loss). The recognized net actuarial loss and the affected consolidated and combined statements of operations line items are as follows: (in thousands) 2016 2015 2014 Cost of operations $ 21,208 $ 44,307 $ 94,204 Selling, general and administrative expenses 2,902 (4,097 ) 7,233 Other-net — — (102 ) Total $ 24,110 $ 40,210 $ 101,335 Additional information In 2016 , we have recognized expense (income) in other comprehensive income (loss) as a component of net periodic benefit cost of approximately $0.3 million for our pension benefits. No expense (income) was recognized for other postretirement benefits in 2016. In 2017, we do not expect to recognize any significant income or expense in other comprehensive income (loss) as a component of net periodic benefit cost or our pension benefits and other postretirement benefits. However, we expect to recognize a gain of approximately $3.6 million in our 2017 statement of operations related to the the reclassification from accumulated other comprehensive income of a portion of the Retiree OPEB curtailment gain discussed above. Assumptions Pension Benefits Other Benefits 2016 2015 2016 2015 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 4.13 % 3.98 % 3.66 % 3.41 % Rate of compensation increase 2.40 % 2.51 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 4.25 % 3.99 % 3.66 % 3.40 % Expected return on plan assets 6.70 % 6.98 % — % — % Rate of compensation increase 2.40 % 2.56 % — % — % The expected rate of return on plan assets is based on the long-term expected returns for the investment mix of assets currently in the portfolio. In setting this rate, we use a building-block approach. Historic real return trends for the various asset classes in the plan's portfolio are combined with anticipated future market conditions to estimate the real rate of return for each asset class. These rates are then adjusted for anticipated future inflation to determine estimated nominal rates of return for each asset class. The expected rate of return on plan assets is determined to be the weighted average of the nominal returns based on the weightings of the asset classes within the total asset portfolio. We use an expected return on plan assets assumption of 6.89% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2016 ). 2016 2015 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 8.50 % Rates to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches ultimate trend rate 2024 2024 Investment goals The overall investment strategy of the pension trusts is to achieve long-term growth of principal, while avoiding excessive risk and to minimize the probability of loss of principal over the long term. The specific investment goals that have been set for the pension trusts in the aggregate are (1) to ensure that plan liabilities are met when due and (2) to achieve an investment return on trust assets consistent with a reasonable level of risk. Allocations to each asset class for both domestic and foreign plans are reviewed periodically and rebalanced, if appropriate, to assure the continued relevance of the goals, objectives and strategies. The pension trusts for both our domestic and foreign plans employ a professional investment advisor and a number of professional investment managers whose individual benchmarks are, in the aggregate, consistent with the plans' overall investment objectives. The goals of each investment manager are (1) to meet (in the case of passive accounts) or exceed (for actively managed accounts) the benchmark selected and agreed upon by the manager and the trust and (2) to display an overall level of risk in its portfolio that is consistent with the risk associated with the agreed upon benchmark. The investment performance of total portfolios, as well as asset class components, is periodically measured against commonly accepted benchmarks, including the individual investment manager benchmarks. In evaluating investment manager performance, consideration is also given to personnel, strategy, research capabilities, organizational and business matters, adherence to discipline and other qualitative factors that may impact the ability to achieve desired investment results. Domestic plans: We sponsor the Retirement Plan for Employees of Babcock & Wilcox Commercial Operations domestic defined benefit plan. The assets of this plan are commingled for investment purposes with the Company's other sponsored domestic defined benefit plans and held by the Trustee in The Babcock & Wilcox Company Master Trust (the "Master Trust"). For the years ended December 31, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. The following is a summary of the asset allocations for the Master Trust at December 31, 2016 and 2015 by asset category: 2016 2015 Asset Category: Fixed Income (excluding United States Government Securities) 32 % 33 % Commingled and Mutual Funds 38 % 37 % United States Government Securities 20 % 18 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % — % Derivatives 1 % 4 % Other 2 % 1 % The target asset allocation for the domestic defined benefit plan is 55% fixed income and 45% equities. Foreign plans: We sponsor various plans through certain of our foreign subsidiaries. These plans are the Canadian Plans and the Diamond Power Specialty Limited Retirement Benefits Plan (the "Diamond United Kingdom Plan"). The combined weighted average asset allocations of these plans at December 31, 2016 and 2015 by asset category were as follows: 2016 2015 Asset Category: Equity Securities and Commingled Mutual Funds 44 % 48 % Fixed Income 55 % 51 % Other 1 % 1 % The target allocation for 2016 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 27 % 10 % Global Equity 23 % 12 % Fixed Income 50 % 78 % Fair value of plan assets See Note 22 for a detailed description of fair value measurements and the hierarchy established for valuation inputs. The following is a summary of total investments for our plans measured at fair value at December 31, 2016 : (in thousands) 12/31/2016 Level 1 Level 2 Fixed income $ 321,847 $ — $ 321,847 Equities 83,441 78,268 5,173 Commingled and mutual funds 349,348 4,609 344,739 U.S. government securities 156,599 156,599 — Cash and accrued items 11,630 9,391 2,239 Total pension and other postretirement benefit assets $ 922,865 $ 248,867 $ 673,998 The following is a summary of total investments for our plans measured at fair value at December 31, 2015 : (in thousands) 12/31/2015 Level 1 Level 2 Fixed income $ 347,269 $ — $ 347,269 Equities 79,761 79,761 — Commingled and mutual funds 330,216 — 330,216 U.S. government securities 155,975 155,975 — Cash and accrued items 9,809 539 9,270 Total pension and other postretirement benefit assets $ 923,030 $ 236,275 $ 686,755 The following is a summary of the changes in the Plans' Level 3 instruments measured on a recurring basis for the years ended December 31, 2016 and 2015 : Year ended December 31, (in thousands) 2016 2015 Balance at beginning of period $ — $ 51,108 Issuances and acquisitions — 1,266 Dispositions — (53,417 ) Realized gain — 3,915 Unrealized gain — (2,872 ) Balance at end of period $ — $ — During 2015, our Level 3 instruments included assets with no market price but rather calculations of net asset values per share or its equivalent. When appropriate, we adjusted these net asset values for contributions and distributions, if any, made during the period beginning on the latest net asset value valuation date and ending on our measurement date. We also considered available market data, relevant index returns, preliminary estimates from our investees and other data obtained through research and consultation with third party advisors in determining the fair value of our Level 3 instruments. All of our Level 3 assets were transferred to our former Parent during the spin-off transaction. Cash flows Domestic Plans Foreign Plans (in thousands) Pension Benefits Other Benefits Pension Benefits Other Benefits Expected employer contributions to trusts of defined benefit plans: 2017 $ 14,607 $ 2,100 $ 3,127 $ 155 Expected benefit payments: 2017 $ 68,492 $ 1,593 $ 2,769 $ 155 2018 69,965 1,459 2,835 155 2019 71,223 1,330 2,977 155 2020 72,267 859 3,050 157 2021 72,857 797 3,099 151 2022-2026 363,406 3,148 17,737 591 Defined contribution plans We provide benefits under The B&W Thrift Plan (the "Thrift Plan"). The Thrift Plan generally provides for matching employer contributions of 50% of participants' contributions up to 6% of compensation. These matching employer contributions are typically made in cash. We also provide service-based cash contributions under the Thrift Plan to employees not accruing benefits under our defined benefit plans. Amounts charged to expense for employer contributions under the Thrift Plan totaled approximately $13.4 million , $8.9 million and $7.4 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. We also provide benefits under the MEGTEC Union Plan, a defined contribution plan. The total employer contribution expense for the Union plan was approximately $0.3 million , $0.3 million and $0.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Matching employer contributions are made in cash. Effective December 31, 2016 , we merged the MEGTEC Non-union Plan and SPIG 401(k) defined contribution plans into the Thrift Plan. For the MEGTEC Non-union Plan, amounts charged to expense for our contributions were approximately $1.1 million , $1.1 million and $1.2 million in the years ended December 31, 2016 2015 and 2014 , respectively. Matching employer contributions are made in cash. The SPIG 401(k) plan contributions were also made in cash, and were not material to our consolidated financial statements in 2016. Also, our salaried Canadian employees are provided with a defined contribution plan. As of and in the periods following January 1, 2012, we made cash, service-based contributions under this arrangement. The amount charged to expense for employer contributions was approximately $0.4 million , $0.1 million and $0.6 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Multi-employer plans One of our subsidiaries in the Power segment contributes to various multi-employer plans. The plans generally provide defined benefits to substantially all unionized workers in this subsidiary. The following table summarizes our contributions to multi-employer plans for the years covered by this report: Pension Fund EIN/PIN Pension Protection Act Zone Status FIP/RP Status Pending/ Implemented Contributions Surcharge Imposed Expiration Date Of Collective Bargaining Agreement 2016 2015 2014 2016 2015 (in millions) Boilermaker-Blacksmith National Pension Trust 48-6168020/ 001 Yellow Yellow Yes $ 17.8 $ 20.3 $ 16.0 No Described All Other 3.2 4.6 4.6 $ 21.0 $ 24.9 $ 20.6 Our collective bargaining agreements with the Boilermaker-Blacksmith National Pension Trust (the "Boilermaker Plan") is under a National Maintenance Agreement platform which is evergreen in terms of expiration. However, the agreement allows for termination by either party with a 90 -day written notice. Our contributions to the Boilermaker Plan constitute less than 5% of total contributions to the Boilermaker Plan. All other contributions expense for all periods included in this report represents multiple amounts to various plans that, individually, are deemed to be insignificant. Investment goals The overall investment strategy of the pension trusts is to achieve long-term growth of principal, while avoiding excessive risk and to minimize the probability of loss of principal over the long term. The specific investment goals that have been set for the pension trusts in the aggregate are (1) to ensure that plan liabilities are met when due and (2) to achieve an investment return on trust assets consistent with a reasonable level of risk. Allocations to each asset class for both domestic and foreign plans are reviewed periodically and rebalanced, if appropriate, to assure the continued relevance of the goals, objectives and strategies. The pension trusts for both our domestic and foreign plans employ a professional investment advisor and a number of professional investment managers whose individual benchmarks are, in the aggregate, consistent with the plans' overall investment objectives. The goals of each investment manager are (1) to meet (in the case of passive accounts) or exceed (for actively managed accounts) the benchmark selected and agreed upon by the manager and the trust and (2) to display an overall level of risk in its portfolio that is consistent with the risk associated with the agreed upon benchmark. The investment performance of total portfolios, as well as asset class components, is periodically measured against commonly accepted benchmarks, including the individual investment manager benchmarks. In evaluating investment manager performance, consideration is also given to personnel, strategy, research capabilities, organizational and business matters, adherence to discipline and other qualitative factors that may impact the ability to achieve desired investment results. Domestic plans: We sponsor the Retirement Plan for Employees of Babcock & Wilcox Commercial Operations domestic defined benefit plan. The assets of this plan are commingled for investment purposes with the Company's other sponsored domestic defined benefit plans and held by the Trustee in The Babcock & Wilcox Company Master Trust (the "Master Trust"). For the years ended December 31, 2016 and 2015 , the investment return on domestic plan assets of the Master Trust (net of deductions for management fees) was approximately 9.0% and (1.9)% , respectively. The following is a summary of the asset allocations for the Master Trust at December 31, 2016 and 2015 by asset category: 2016 2015 Asset Category: Fixed Income (excluding United States Government Securities) 32 % 33 % Commingled and Mutual Funds 38 % 37 % United States Government Securities 20 % 18 % Equity Securities 7 % 7 % Partnerships with Security Holdings — % — % Derivatives 1 % 4 % Other 2 % 1 % The target asset allocation for the domestic defined benefit plan is 55% fixed income and 45% equities. Foreign plans: We sponsor various plans through certain of our foreign subsidiaries. These plans are the Canadian Plans and the Diamond Power Specialty Limited Retirement Benefits Plan (the "Diamond United Kingdom Plan"). The combined weighted average asset allocations of these plans at December 31, 2016 and 2015 by asset category were as follows: 2016 2015 Asset Category: Equity Securities and Commingled Mutual Funds 44 % 48 % Fixed Income 55 % 51 % Other 1 % 1 % The target allocation for 2016 for the foreign plans, by asset class, is as follows: Canadian Plans Diamond UK Plan Asset Class: U. S. Equity 27 % 10 % Global Equity 23 % 12 % Fixed Income 50 % 78 % During 2016, we recorded adjustments to our benefit plan liabilities resulting from pension curtailment and settlement events. Lump sum payments from our Canadian pension plan during 2016 resulted in interim pension plan settlement charges totaling $1.2 million in 2016. Also, in May 2016, the closure of our West Point, Mississippi manufacturing facility resulted in a $1.8 million curtailment charge in our United States pension plan. These events also resulted in $27.5 million in interim MTM losses for these pension plans, the effects of which are reflected in "Recognized net actuarial loss" in the table above along with a $1.4 million loss for the annual MTM adjustment of our pension plans at December 31, 2016. We terminated the Babcock & Wilcox Retiree Medical Plan (the "Retiree OPEB plan") effective December 31, 2016. The Retiree OPEB plan was originally established to provide secondary medical insurance coverage for retirees that had reached the age of 65, up to a lifetime maximum cost. The Retiree OPEB plan had no plan assets, no accumulated other comprehensive income balance and no active participants as of the termination date. In exchange for terminating the Retiree OPEB plan, the participants had the option to enroll in a third-party health care exchange, which B&W agreed to contribute up to $750 a year for each of the next three years (beginning in 2017), provided the plan participant had not yet reached their lifetime maximum under the terminated Retiree OPEB plan. Based on the number of participants who did not enroll in the new benefit plan, we recognized a settlement gain of $7.2 million on December 31, 2016. Based on the number of participants who did enroll in the new benefit plan, we recognized a curtailment gain of $10.8 million on December 31, 2016 for the actuarially determined difference in the liability for these participants in the Retiree OPEB plan and the new plan. The settlement gain is reported in the "Recognized net actuarial loss" in the table above, and the curtailment gain was deferred in accumulated other comprehensive income and will be recognized in 2017, 2018 and 2019. Recognized net actuarial loss (gain) consists primarily of our reported actuarial loss (gain), curtailments and the difference between the actual return on plan assets and the expected return on plan assets. Total net mark to market adjustments for our pension and other postretirement benefit plans were losses of $24.1 million , $40.2 million and $101.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. In 2016 , the mark to market adjustment reflects $25.0 million of charges related to the Company Plan, including a $24.1 million remeasurement of our West Point plan made in the second quarter. Other significant pension items include a $2.1 million increase of our Diamond Power United Kingdom plan liability in the fourth quarter, a $3.9 million year to date increase in our Canadian plans, primarily resulting from a $1.2 million plan settlement and $2.9 million remeasurement made in the second quarter. This was partially offset by a $6.6 million actuarial gain on our domestic Medical and Life Insurance plan. As discussed in Note 5 , we have excluded the recognized net actuarial loss from our reportable segments and such amount has been reflected in Note 5 as the mark to market adjustment in the reconciliation of reportable segment income (loss) to consolidated operating income (loss). The recognized net actuarial loss and the affected consolidated and combined statements of operations line items are as follows: (in thousands) 2016 2015 2014 Cost of operations $ 21,208 $ 44,307 $ 94,204 Selling, general and administrative expenses 2,902 (4,097 ) 7,233 Other-net — — (102 ) Total $ 24,110 $ 40,210 $ 101,335 Additional information In 2016 , we have recognized expense (income) in other comprehensive income (loss) as a component of net periodic benefit cost of approximately $0.3 million for our pension benefits. No expense (income) was recognized for other postretirement benefits in 2016. In 2017, we do not expect to recognize any significant income or expense in other comprehensive income (loss) as a component of net periodic benefit cost or our pension benefits and other postretirement benefits. However, we expect to recognize a gain of approximately $3.6 million in our 2017 statement of operations related to the the reclassification from accumulated other comprehensive income of a portion of the Retiree OPEB curtailment gain discussed above. Assumptions Pension Benefits Other Benefits 2016 2015 2016 2015 Weighted average assumptions used to determine net periodic benefit obligations at December 31: Discount rate 4.13 % 3.98 % 3.66 % 3.41 % Rate of compensation increase 2.40 % 2.51 % — — Weighted average assumptions used to determine net periodic benefit cost for the years ended December 31: Discount rate 4.25 % 3.99 % 3.66 % 3.40 % Expected return on plan assets 6.70 % 6.98 % — % — % Rate of compensation increase 2.40 % 2.56 % — % — % The expected rate of return on plan assets is based on the long-term expected returns for the investment mix of assets currently in the portfolio. In setting this rate, we use a building-block approach. Historic real return trends for the various asset classes in the plan's portfolio are combined with anticipated future market conditions to estimate the real rate of return for each asset class. These rates are then adjusted for anticipated future inflation to determine estimated nominal rates of return for each asset class. The expected rate of return on plan assets is determined to be the weighted average of the nominal returns based on the weightings of the asset classes within the total asset portfolio. We use an expected return on plan assets assumption of 6.89% for the majority of our pension plan assets (approximately 93% of our total pension assets at December 31, 2016 ). 2016 2015 Assumed health care cost trend rates at December 31 Health care cost trend rate assumed for next year 8.50 % 8.50 % Rates to which the cost trend rate is assumed to decline (ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches ultimate trend rate 2024 2024 Investment goals The overall investment strategy of the pension trusts is to achieve long-term growth of principal, while avoiding excessive risk and to minimize the probability of loss of principal over the long term. The specific investment goals that have been set for the pension trusts in the aggregate are (1) to ensure that plan liabilities are met when due and (2) to achieve an investment return on trust assets consistent with a reasonable level of risk. Allocations to each asset class for both domestic and foreign plans are reviewed periodically and rebalanced, if appropriate, to assure the continued relevance of the goals, objectives and strategies. The pension trusts for both our domestic and foreign plans employ a professional investment advisor and a number of professional investment managers whose individual benchmarks are, in the aggregate, consistent with the plans' overall investment objectives. The goals of each investment manager are (1) to meet (in the case of passive accounts) or exceed (for actively managed accounts) the benchmark selected and agreed upon by the manager and the trust and (2) to display an overall level of risk in its portfolio that is consistent with the risk associated with the agreed upon benchmark. The investment performance of total portfolios, as well as asset class components, is periodically measured against commonly accepted benchmarks, including the individual investment manager benchmarks. In evaluating investment manager performance, consideration is also given to personnel, strategy, research capabilities, organizational and business matters, adherence to discipline and other qualitative factors that may impact the ability to achieve desired investment results. Domestic plans: We sponsor the Retirement Plan for Employees of Babcock & Wilcox Commercial Operations domestic defined benefit plan. The assets of this plan are commingled for investment purposes with the Company's other sponsored domestic defined benefit pla |
| Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan [Table Text Block] | Obligations and funded status Pension Benefits Year Ended December 31, Other Postretirement Benefits Year Ended December 31, (in thousands) 2016 2015 2016 2015 Change in benefit obligation: Benefit obligation at beginning of period $ 1,205,163 $ 1,253,278 $ 31,889 $ 34,909 Service cost 1,680 13,677 23 24 Interest cost 40,875 49,501 897 1,143 Plan participants’ contributions — 156 574 276 Curtailments 266 — — — Settlements — — — — Transfers /Acquisition — 15,992 — 234 Amendments 231 244 (10,801 ) — Actuarial loss (gain) 43,410 (47,098 ) (7,162 ) (296 ) Loss (gain) due to transfer 3,641 (523 ) — — Foreign currency exchange rate changes (5,099 ) (11,450 ) 50 (367 ) Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Benefit obligation at end of period $ 1,211,720 $ 1,205,163 $ 11,907 $ 31,889 Change in plan assets: Fair value of plan assets at beginning of period $ 923,030 $ 999,515 $ — $ — Actual return on plan assets 76,570 (19,623 ) — — Employer contribution 3,986 8,711 2,989 3,758 Plan participants' contributions — 156 574 276 Settlements — — — — Transfers 2,744 13,974 — — Foreign currency exchange rate changes (5,015 ) (11,089 ) — — Benefits paid (78,447 ) (68,614 ) (3,563 ) (4,034 ) Fair value of plan assets at the end of period 922,868 923,030 — — Funded status $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amounts recognized in the balance sheet consist of: Accrued employee benefits $ (1,099 ) $ (1,927 ) $ (1,722 ) $ (4,620 ) Accumulated postretirement benefit obligation — — (10,185 ) (27,269 ) Pension liability (287,753 ) (281,711 ) — — Prepaid pension — 1,505 — — Accrued benefit liability, net $ (288,852 ) $ (282,133 ) $ (11,907 ) $ (31,889 ) Amount recognized in accumulated comprehensive income (before taxes): Prior service cost (credit) $ 432 $ 1,976 $ (10,801 ) $ — Supplemental information: Plans with accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 1,183,345 $ 1,175,511 $ — $ — Accumulated benefit obligation $ 1,206,056 $ 1,172,591 $ 11,907 $ 31,889 Fair value of plan assets $ 894,105 $ 891,873 $ — $ — Plans with plan assets in excess of accumulated benefit obligation Projected benefit obligation $ 28,375 $ 29,652 $ — $ — Accumulated benefit obligation $ 28,375 $ 29,652 $ — $ — Fair value of plan assets $ 28,763 $ 31,157 $ — $ — |
