Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 10: Defined Contribution Plan All U.S. employees have the option of contributing up to 75 401 first 4 ’s contributions. All U.S. employees are eligible for a separate annual retirement contribution to the 401 3 3 4 401 2017 $10,899 4 $5,141 3 $5,758. 401 $10,417 $9,375 2016 2015, The defined contribution plan liability recorded in the Consolidated Balance Sheets was $6,307 and $6,597 2017 2016, Defined Benefit Plan s Noncontributory defined benefit pension plans cover all U.S. employees employed prior to January 1, 2007. ’s years of service and average compensation. During 2011, May 31, 2011, no three three 401 2015, No 2017. $8,399 2016 Health care and life insurance benefits are provided for eligible retired employees and their eligible dependents. These benefits are provided through various insurance companies and health care providers. Costs are accrued during the years the employee renders the necessary service. Certain non-U.S. subsidiaries provide pension benefits for their employees consistent with local practices and regulations. These plans are primarily defined benefit plans covering substantially all employees upon completion of a specified period of service. Benefits for these plans are generally based on years of service and annual compensation. Royal Adhesives has defined benefit pension plans for its employees in the U.S. and Germany. The balances related to these plans have been adjusted in purchase accounting and are reflected in the tables below. See Note 2 quisition. Following is a reconciliation of the beginning and ending balances of the benefit obligation and fair value of plan assets as of December 2, 2017 December 3, 2016: Pension Benefits Other Postretirement U.S. Plans Non-U.S. Plans Benefits 2017 2016 2017 2016 2017 2016 Change in projected benefit obligation Benefit obligation at beginning of year $ 362,213 $ 376,098 $ 202,176 $ 201,172 $ 42,721 $ 49,923 Service cost 111 110 2,125 2,016 208 342 Interest cost 15,836 15,360 4,709 5,465 1,593 1,956 Participant contributions - - - - 200 282 Actuarial (gain)/loss 1 14,405 (2,253 ) (6,636 ) 15,254 2,078 (6,450 ) Other - - - 19 - - Acquisition 6,518 - 12,156 - - - Settlement payments - (8,399 ) (62 ) (511 ) - - Benefits paid (19,724 ) (18,703 ) (8,495 ) (7,382 ) (3,475 ) (3,332 ) Foreign currency translation effect - - 18,009 (13,857 ) - - Benefit obligation at end of year 379,359 362,213 223,982 202,176 43,325 42,721 Change in plan assets Fair value of plan assets at beginning of year 331,505 336,461 163,322 172,241 66,640 62,585 Acquisition 4,605 - - - - - Actual return on plan assets 60,176 20,610 16,889 10,516 14,631 4,388 Employer contributions 1,537 1,536 1,863 2,319 1,304 2,717 Participant contributions - - - - 200 282 Settlement payments - (8,399 ) - - - - Other - - (272 ) 98 - - Benefits paid 2 (19,724 ) (18,703 ) (8,223 ) (7,382 ) (3,475 ) (3,332 ) Foreign currency translation effect - - 14,129 (14,470 ) - - Fair value of plan assets at end of year 378,099 331,505 187,708 163,322 79,300 66,640 Plan assets (less than) in excess of benefit obligation as of year end $ (1,260 ) $ (30,708 ) $ (36,274 ) $ (38,853 ) $ 35,975 $ 23,919 1 2017 2016 $16,330 $1,076 2 For the U.S. Pension Plan, we adopted the Adjusted RP- 2014 2017 . Amounts in accumulated other comprehensive income (loss) that have not been recognized as components of net periodic benefit cost Pension Benefits Other Postretirement U.S. Plans Non-U.S. Plans Benefits 2017 2016 2017 2016 2017 2016 Unrecognized actuarial loss $ 131,643 $ 157,185 $ 67,344 $ 82,874 $ 5,877 $ 13,653 Unrecognized prior service cost (benefit) 32 61 (4 ) (7 ) - - Ending balance $ 131,675 $ 157,246 $ 67,340 $ 82,867 $ 5,877 $ 13,653 Pension Benefits Other Postretirement U.S. Plans Non-U.S. Plans Benefits 2017 2016 2017 2016 2017 2016 Statement of financial position as of fiscal year-end Non-current assets $ 19,520 $ - $ 10,912 $ - $ 39,163 $ 27,093 Accrued benefit cost Current liabilities (1,501 ) (1,489 ) (1,879 ) (1,162 ) (210 ) (206 ) Non-current liabilities (19,279 ) (29,219 ) (45,307 ) (37,691 ) (2,978 ) (2,968 ) Ending balance $ (1,260 ) $ (30,708 ) $ (36,274 ) $ (38,853 ) $ 35,975 $ 23,919 The accumulated benefit obligation of the U.S. pension and other postretirement plans was $409,376 December 2, 2017 $392,400 December 3, 2016. $214,512 December 2, 2017 $201,151 December 3, 2016. The following amounts relate to pension plans with accumulated benefit obligations in excess of plan assets as of December 2, 2017 December 3, 2016: Pension Benefits and Other Postretirement Benefits U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 Accumulated benefit obligation $ 25,349 $ 352,853 $ 120,459 $ 201,151 Fair value of plan assets 4,669 331,505 82,631 163,323 The following amounts relate to pension plans with projected benefit obligations in excess of plan assets as of December 2, 2017 December 3, 2016: Pension Benefits and Other Postretirement Benefits U.S. Plans Non-U.S. Plans 2017 2016 2017 2016 Projected benefit obligation $ 25,449 $ 362,213 $ 137,618 $ 202,176 Fair value of plan assets 4,669 331,505 90,434 163,323 Information about the expected cash flows follows: Pension Benefits Other U.S. Plans Non-U.S. Plans Postretirement Benefits Employer contributions 2018 $ 312 $ 527 $ 2,000 Expected benefit payments 2018 $ 20,111 $ 8,478 $ 3,207 2019 20,334 8,920 3,198 2020 20,745 8,654 3,173 2021 21,131 9,084 3,148 2022 21,481 9,269 3,109 2023-2027 110,397 47,947 14,494 Components of net periodic benefit cost and other supplemental information for the years ended December 2, 2017, December 3, 2016 November 28, 2015 Pension Benefits Other U.S. Plans Non-U.S. Plans Postretirement Benefits Net periodic cost (benefit) 2017 2016 2015 2017 2016 2015 2017 2016 2015 Service cost $ 111 $ 110 $ 107 $ 2,125 $ 2,016 $ 1,924 $ 208 $ 342 $ 449 Interest cost 15,836 15,360 16,322 4,709 5,465 5,986 1,593 1,956 2,042 Expected return on assets (25,458 ) (24,776 ) (25,682 ) (9,853 ) (9,919 ) (10,422 ) (5,788 ) (5,470 ) (5,510 ) Amortization: Prior service cost 29 29 29 (4 ) (3 ) (4 ) - (41 ) (2,505 ) Actuarial loss (gain) 5,905 5,271 5,628 3,492 3,106 3,173 1,010 2,169 2,431 Curtailment loss (gain) - - - - 19 - - - - Settlement charge (credit) - - - 16 135 - - - - Net periodic (benefit) cost $ (3,577 ) $ (4,006 ) $ (3,596 ) $ 485 $ 819 $ 657 $ (2,977 ) $ (1,044 ) $ (3,093 ) Pension Benefits U.S. Plans Non-U.S. Plans Postretirement benefits Amounts expected to be amortized from accumulated other comprehensive income into net periodic benefit costs over next fiscal year as of December 2, 2017 Amortization of prior service cost (benefit) $ 29 $ (3 ) $ - Amortization of net actuarial (gain) loss 5,903 2,735 60 $ 5,932 $ 2,732 $ 60 Pension Benefits Other U.S. Plans Non-U.S. Plans Postretirement Benefits Weighted-average assumptions used to determine benefit obligations 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 3.72 % 4.08 % 4.28 % 2.12 % 2.31 % 2.82 % 3.54 % 3.85 % 4.02 % Rate of compensation increase 1 4.50 % 4.50 % 4.50 % 1.71 % 1.47 % 1.58 % N/A N/A N/A Weighted-average assumptions used to determine net costs for years ended 2017 2016 2015 2017 2016 2015 2017 2016 2015 Discount rate 4.08 % 4.28 % 4.08 % 2.15 % 2.83 % 2.95 % 3.85 % 4.02 % 3.84 % Expected return on plan assets 7.75 % 7.75 % 7.75 % 6.21 % 6.20 % 6.22 % 8.75 % 8.75 % 8.75 % Rate of compensation increase 1 4.50 % 4.50 % 4.50 % 1.47 % 1.58 % 1.58 % N/A N/A N/A 1 Benefits under the U.S. Pension Plan were locked-in as of May 31, 2011 no 4.50 2017, 2016 2015 The discount rate assumption is determined using an actuarial yield curve approach, which results in a discount rate that reflects the characteristics of the plan. The approach identifies a broad population of corporate bonds that meet the quality and size criteria for the particular plan. We use this approach rather than a specific index that has a certain set of bonds that may may not 3.73 December 2, 2017, 4.10 December 3, 2016 4.30 November 28, 2015. 0.5 December 2, 2017 $33 2018. The expected long-term rate of return on plan assets assumption fo r the U.S. pension plan was 7.75 2017, 2016 2015. 60 40 2017 8.25 5.6 0.5 $2,287 Management, in conjunction with our external financial advisors, uses the actual historical rates of return of the asset categories to assess the reasonableness of the expected long-term rate of return on plan assets. T he expected long-term rate of return on plan assets assumption for non-U.S. pension plans was a weighted-average of 6.21 2017 6.20 2016 6.22 2015. 6.75 5.75 Assumed health care trend rates 2017 2016 2015 Health care cost trend rate assumed for next year 6.50 % 6.75 % 7.00 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % 5.00 % Fiscal year that the rate reaches the ultimate trend rate 2024 2023 2024 Sensitivity Information: A one December 2, 2017 December 2, 2017: One-Percentage Point Increase Decrease Effect on service and interest cost components – annual $ 82 $ (73 ) Effect on accumulated postretirement benefit obligation $ 1,969 $ (1,760 ) The asset allocation for the company ’s U.S. and non-U.S. pension plans at the end of 2017 2016 U.S. Pension Plans Non-U.S. Pension Plans Other Postretirement Plans Target Percentage of Plan Assets at Year-End Target Percentage of Plan Assets at Year-End Target Percentage of Plan Assets at Year-End Asset Category 2017 2017 2016 2017 2017 2016 2017 2017 2016 Equities 60.0 % 63.3 % 62.4 % 49.2 % 51.5 % 49.8 % 0.0 % 0.0 % 0.0 % Fixed income 40.0 % 37.6 % 38.4 % 50.8 % 47.9 % 49.6 % 0.0 % 0.0 % 0.0 % Insurance 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 100.0 % 99.5 % 99.1 % Cash 0.0 % -0.9 % -0.8 % 0.0 % 0.6 % 0.6 % 0.0 % 0.5 % 0.9 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % Plan Asset Management Plan assets are held in trust and invested in mutual funds, separately managed accounts and other commingled investment vehicles holding U.S. and non-U.S. equity securities, fixed income securities and other investment classes. We employ a total return approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Futures and options may The U.S. pension plans consist of two “SERP”). There were no 2017 2016. During 2017 60 40 5 2018. The non-U.S. pension plans consist of all the pension plans administered by us outside the U.S., principally consisting of plans in Germany, the United Kingdom , France and Canada. During 2017 2018. Other postretirement benefits plans consist of two no 2017 2016. 500. Fair Value of Plan Assets The following table presents plan assets categorized within a three 13. December 2, 2017 U.S. Pension Plans Level 1 Level 2 Level 3 Total Assets Equities $ 144,124 $ 95,542 $ - $ 239,666 Fixed income 42,310 99,252 291 141,853 Cash (3,893 ) 126 - (3,767 ) Total categorized in the fair value hierarchy 182,541 194,920 291 377,752 Other investments measured at NAV 1 347 Total $ 182,541 $ 194,920 $ 291 $ 378,099 Non-U.S. Pension Plans Level 1 Level 2 Level 3 Total Assets Equities $ 35,118 $ 1,185 $ - $ 36,303 Fixed income 46,725 6,618 660 54,003 Cash 549 - - 549 Total categorized in the fair value hierarchy 82,392 7,803 660 90,855 Other investments measured at NAV 1 96,855 Total $ 82,392 $ 7,803 $ 660 $ 187,710 Other Postretirement Benefits Level 1 Level 2 Level 3 Total Assets Insurance $ - $ - $ 78,894 $ 78,894 Cash 406 - - 406 Total $ 406 $ - $ 78,894 $ 79,300 December 3, 2016 U.S. Pension Plans Level 1 Level 2 Level 3 Total Assets Equities $ 127,275 $ 79,669 $ - $ 206,944 Fixed income 41,513 85,363 320 127,196 Cash (2,635 ) - - (2,635 ) Total $ 166,153 $ 165,032 $ 320 $ 331,505 Non-U.S. Pension Plans Level 1 Level 2 Level 3 Total Assets Equities $ 30,165 $ 1,165 $ - $ 31,330 Fixed income 41,490 6,013 569 48,072 Cash 996 - - 996 Total categorized in the fair value hierarchy 72,651 7,178 569 80,398 Other investments measured at NAV 1 82,925 Total $ 72,651 $ 7,178 $ 569 $ 163,323 Other Postretirement Benefits Level 1 Level 2 Level 3 Total Assets Insurance $ - $ - $ 66,064 $ 66,064 Cash 576 - - 576 Total $ 576 $ - $ 66,064 $ 66,640 1 In accordance with ASC Topic 820 10, not The definitions of fair values of our pension and other postretirement benefit plan assets at December 2, 2017 December 3, 2016 Equities —Primarily publicly traded common stock for purposes of total return and to maintain equity exposure consistent with policy allocations. Investments include: (i) U.S. and non-U.S. equity securities and mutual funds valued at closing prices from national exchanges; and (ii) commingled funds valued at unit values or net asset values provided by the investment managers, which are based on the fair value of the underlying investments. Funds valued at net asset value have various investment strategies including seeking maximum total returns consistent with prudent investment management, seeking current income consistent with preservation of capital and daily liquidity and seeking to approximate the risk and return characterized by a specific index fund. There are no no Fixed income —Primarily corporate and government debt securities for purposes of total return and managing fixed income exposure to policy allocations. Investments include (i) mutual funds valued at closing prices from national exchanges, (ii) corporate and government debt securities valued at closing prices from national exchanges, (iii) commingled funds valued at unit values or net asset value provided by the investment managers, which are based on the fair value of the underlying investments, and (iv) an annuity contract, the value of which is determined by the provider and represents the amount the plan would receive if the contract were cashed out at year-end. Insurance —Insurance contracts for purposes of funding postretirement medical benefits. Fair values are the cash surrender values as determined by the providers which are the amounts the plans would receive if the contracts were cashed out at year end. Cash – The following is a roll forward of the Level 3 December 2, 2017 December 3, 2016: Fixed Income U.S. Pension Plans 2017 2016 Level 3 balance at beginning of year $ 320 $ 352 Purchases, sales, issuances and settlements, net (29 ) (32 ) Level 3 balance at end of year $ 291 $ 320 Fixed Income Non-U.S. Pension Plans 2017 2016 Level 3 balance at beginning of year $ 569 $ 530 Net transfers into / (out of) level 3 21 21 Net gains 3 16 Currency change effect 67 2 Level 3 balance at end of year $ 660 $ 569 Insurance Other Postretirement Benefits 2017 2016 Level 3 balance at beginning of year $ 66,064 $ 62,299 Net transfers into / (out of) level 3 (1,073 ) (435 ) Purchases, sales, issuances and settlements, net (570 ) (482 ) Net gains 14,473 4,682 Level 3 balance at end of year $ 78,894 $ 66,064 |