Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The accounting standards related to employers’ accounting for defined benefit pension and other postretirement plans requires the Company to recognize the funded status of its defined benefit postretirement plans as assets or liabilities in the accompanying consolidated balance sheets and to recognize changes in the funded status of the plans in comprehensive income. The Company has various defined contribution plans, the largest of which is its Retirement Savings Plan. Most U.S. salaried and non-union hourly employees are eligible to participate in this plan. See Note 17 for further discussion of the Retirement Savings Plan. The Company also maintains various other defined contribution plans which cover certain other employees. Company contributions under these plans are based primarily on the performance of the business units and employee compensation. Contribution expense under these other defined contribution plans was $5,347 , $5,213 and $4,780 in 2015 , 2014 and 2013 , respectively. Defined benefit pension plans in the U.S. cover a majority of the Company’s U.S. employees at the Associated Spring and Nitrogen Gas Products businesses of Industrial, the Company’s Corporate Office and certain former U.S. employees, including retirees. Plan benefits for salaried and non-union hourly employees are based on years of service and average salary. Plans covering union hourly employees provide benefits based on years of service. In 2012, the Company closed the U.S. salaried defined benefit pension plan (the "U.S. Salaried Plan") to employees hired on or after January 1, 2013, with no impact to the benefits of existing participants. Effective January 1, 2013, the Retirement Savings Plan was amended to provide certain salaried employees hired on or after January 1, 2013 with an additional annual retirement contribution of 4% of eligible earnings, in place of pensionable benefits under the closed U.S. Salaried Plan. The Company funds U.S. pension costs in accordance with the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Non-U.S. defined benefit pension plans cover certain employees of certain international locations in Europe and Canada. The Company provides other medical, dental and life insurance postretirement benefits for certain of its retired employees in the U.S. and Canada. It is the Company’s practice to fund these benefits as incurred. The accompanying balance sheets reflect the funded status of the Company’s defined benefit pension plans at December 31, 2015 and 2014 , respectively. Reconciliations of the obligations and funded status of the plans follow: 2015 2014 U.S. Non-U.S. Total U.S. Non-U.S. Total Benefit obligation, January 1 $ 433,079 $ 80,305 $ 513,384 $ 374,740 $ 78,982 $ 453,722 Service cost 4,160 1,348 5,508 3,549 997 4,546 Interest cost 17,967 2,052 20,019 19,129 2,897 22,026 Amendments — (463 ) (463 ) — — — Actuarial (gain) loss (16,622 ) (2,288 ) (18,910 ) 58,906 9,728 68,634 Benefits paid (52,490 ) (4,244 ) (56,734 ) (23,960 ) (3,405 ) (27,365 ) Transfers in — 3,951 3,951 — 1,929 1,929 Plan curtailments (465 ) — (465 ) — — — Plan settlements — (375 ) (375 ) — (4,949 ) (4,949 ) Special termination benefit — — — 715 — 715 Participant contributions — 368 368 — 906 906 Foreign exchange rate changes — (5,248 ) (5,248 ) — (6,780 ) (6,780 ) Benefit obligation, December 31 385,629 75,406 461,035 433,079 80,305 513,384 Fair value of plan assets, January 1 380,937 71,750 452,687 379,059 74,519 453,578 Actual return on plan assets (5,045 ) 1,264 (3,781 ) 20,436 6,349 26,785 Company contributions 3,427 1,100 4,527 5,402 2,219 7,621 Participant contributions — 368 368 — 906 906 Benefits paid (52,490 ) (4,244 ) (56,734 ) (23,960 ) (3,405 ) (27,365 ) Plan settlements — (376 ) (376 ) — (4,949 ) (4,949 ) Transfers in — 3,434 3,434 — 1,929 1,929 Foreign exchange rate changes — (4,743 ) (4,743 ) — (5,818 ) (5,818 ) Fair value of plan assets, December 31 326,829 68,553 395,382 380,937 71,750 452,687 Funded/(underfunded) status, December 31 $ (58,800 ) $ (6,853 ) $ (65,653 ) $ (52,142 ) $ (8,555 ) $ (60,697 ) In September 2015, the Company announced a limited-time program offering (the "Program") to certain eligible, vested, terminated participants ("eligible participants") for a voluntary lump-sum pension payout or reduced annuity option (the "payout") that, if accepted, would settle the Company's pension obligation to them. The Program provides the eligible participants with a limited time opportunity of electing to receive a lump-sum settlement of their remaining pension benefit, or reduced annuity. The eligible participants notified the Company by November 20, 2015, the required deadline, to confirm whether they would opt for a lump-sum payout or reduced annuity. The scheduled payments of $27,986 were made in December 2015, and are included within the "Benefits Paid" of $52,490 above. The payouts were funded by the assets of the Company's pension plan and therefore the Program did not require significant cash outflows by the Company. The resultant pre-tax settlement charge of $9,856 represents accelerated amortization of actuarial losses and was reflected within costs of sales and selling and administrative expenses within the Consolidated Statements of Income. Projected benefit obligations related to pension plans with benefit obligations in excess of plan assets follow: 2015 2014 U.S. Non-U.S. Total U.S. Non-U.S. Total Projected benefit obligation $ 271,459 $ 31,613 $ 303,072 $ 297,067 $ 29,971 $ 327,038 Fair value of plan assets 204,270 20,199 224,469 234,305 17,660 251,965 Information related to pension plans with accumulated benefit obligations in excess of plan assets follows: 2015 2014 U.S. Non-U.S. Total U.S. Non-U.S. Total Projected benefit obligation $ 271,459 $ 30,560 $ 302,019 $ 297,067 $ 23,496 $ 320,563 Accumulated benefit obligation 262,172 26,998 289,170 286,217 20,446 306,663 Fair value of plan assets 204,270 19,256 223,526 234,305 12,552 246,857 The accumulated benefit obligation for all defined benefit pension plans was $447,591 and $497,453 at December 31, 2015 and 2014 , respectively. Amounts related to pensions recognized in the accompanying balance sheets consist of: 2015 2014 U.S. Non-U.S. Total U.S. Non-U.S. Total Other assets $ 8,389 $ 4,561 $ 12,950 $ 10,620 $ 3,882 $ 14,502 Accrued liabilities 2,806 379 3,185 2,810 376 3,186 Accrued retirement benefits 64,383 11,035 75,418 59,952 12,061 72,013 Accumulated other non-owner changes to equity, net (83,014 ) (16,812 ) (99,826 ) (86,925 ) (20,689 ) (107,614 ) Amounts related to pensions recognized in accumulated other non-owner changes to equity, net of tax, at December 31, 2015 and 2014 , respectively, consist of: 2015 2014 U.S. Non-U.S. Total U.S. Non-U.S. Total Net actuarial loss $ (82,643 ) $ (16,999 ) $ (99,642 ) $ (86,399 ) $ (20,406 ) $ (106,805 ) Prior service costs (371 ) 187 (184 ) (526 ) (283 ) (809 ) $ (83,014 ) $ (16,812 ) $ (99,826 ) $ (86,925 ) $ (20,689 ) $ (107,614 ) The accompanying balance sheets reflect the underfunded status of the Company’s other postretirement benefit plans at December 31, 2015 and 2014 . Reconciliations of the obligations and underfunded status of the plans follow: 2015 2014 Benefit obligation, January 1 $ 46,814 $ 46,243 Service cost 145 139 Interest cost 1,836 2,179 Actuarial (gain) loss (2,521 ) 3,049 Benefits paid (6,970 ) (7,568 ) Curtailment gain — — Participant contributions 2,486 2,833 Foreign exchange rate changes (84 ) (61 ) Benefit obligation, December 31 41,706 46,814 Fair value of plan assets, January 1 — — Company contributions 4,484 4,735 Participant contributions 2,486 2,833 Benefits paid (6,970 ) (7,568 ) Fair value of plan assets, December 31 — — Underfunded status, December 31 $ 41,706 $ 46,814 Amounts related to other postretirement benefits recognized in the accompanying balance sheets consist of: 2015 2014 Accrued liabilities $ 5,259 $ 5,047 Accrued retirement benefits 36,447 41,767 Accumulated other non-owner changes to equity, net (5,877 ) (7,675 ) Amounts related to other postretirement benefits recognized in accumulated other non-owner changes to equity, net of tax, at December 31, 2015 and 2014 consist of: 2015 2014 Net actuarial loss $ (6,061 ) $ (8,212 ) Prior service credits 184 537 $ (5,877 ) $ (7,675 ) The sources of changes in accumulated other non-owner changes to equity, net, during 2015 were: Pension Other Postretirement Benefits Prior service cost $ 379 $ — Net (loss) gain (10,493 ) 1,557 Amortization of prior service costs (credits) 213 (354 ) Amortization of actuarial loss 16,007 627 Foreign exchange rate changes 1,682 (32 ) $ 7,788 $ 1,798 Weighted-average assumptions used to determine benefit obligations at December 31, are: 2015 2014 U.S. plans: Discount rate 4.65 % 4.25 % Increase in compensation 3.71 % 3.73 % Non-U.S. plans: Discount rate 2.80 % 2.74 % Increase in compensation 2.71 % 2.72 % The investment strategy of the plans is to generate a consistent total investment return sufficient to pay present and future plan benefits to retirees, while minimizing the long-term cost to the Company. Target allocations for asset categories are used to earn a reasonable rate of return, provide required liquidity and minimize the risk of large losses. Targets may be adjusted, as necessary, to reflect trends and developments within the overall investment environment. The weighted-average target investment allocations by asset category were as follows during 2014: 70% in equity securities, 20% in fixed income securities, 5% in real estate and 5% in other investments, including cash. During the fourth quarter of 2014, the Company approved a strategic shift that resulted in a change in the targeted mix of assets. The revised target mix reflects the following investment allocations by asset category: 65% in equity securities, 30% in fixed income securities and 5% in other investments, including cash. The fair values of the Company’s pension plan assets at December 31, 2015 and 2014 , by asset category are as follows: Fair Value Measurements Using Asset Category Total Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2015 Cash and short-term investments $ 18,795 $ 18,795 $ — $ — Equity securities: U.S. large-cap 67,274 28,190 39,084 — U.S. mid-cap 38,790 38,790 — — U.S. small-cap 38,248 38,248 — — International equities 91,563 — 91,563 — Global equity 17,928 17,928 — — Fixed income securities: U.S. bond funds 84,645 — 84,645 — International bonds 36,282 — 36,282 — Real estate securities — — — — Other 1,857 — — 1,857 $ 395,382 $ 141,951 $ 251,574 $ 1,857 December 31, 2014 Cash and short-term investments 10,805 10,805 — — Equity securities: U.S. large-cap 137,051 65,484 71,567 — U.S. mid-cap 48,614 48,614 — — U.S. small-cap 47,972 47,972 — — International equities 71,451 — 71,451 — Fixed income securities: U.S. bond funds 79,810 — 79,810 — International bonds 35,949 — 35,949 — Real estate securities 18,915 — 18,915 — Other 2,120 — — 2,120 $ 452,687 $ 172,875 $ 277,692 $ 2,120 The fair values of the Level 1 assets are based on quoted market prices from various financial exchanges. The fair values of the Level 2 assets are based primarily on quoted prices in active markets for similar assets or liabilities. The Level 2 assets are comprised primarily of commingled funds and fixed income securities. Commingled equity funds are valued at their net asset values based on quoted market prices of the underlying assets. Fixed income securities are valued using a market approach which considers observable market data for the underlying asset or securities. The Level 3 assets relate to the defined benefit pension plan at the Synventive business. These pension assets are fully insured and have been estimated based on accrued pension rights and actuarial rates. These pension assets are limited to fulfilling the Company's pension obligations. The Company expects to contribute approximately $19,398 to the pension plans in 2016 , including $15,000 of discretionary contributions to the U.S. Qualified pension plans. The following are the estimated future net benefit payments, which include future service, over the next 10 years: Pensions Other Postretirement Benefits 2015 $ 29,147 $ 4,467 2016 29,071 3,933 2017 28,980 3,540 2018 29,290 3,687 2019 29,051 3,468 Years 2020-2024 145,470 14,242 Total $ 291,009 $ 33,337 Pension and other postretirement benefit expenses consist of the following: Pensions Other Postretirement Benefits 2015 2014 2013 2015 2014 2013 Service cost $ 5,508 $ 4,546 $ 6,181 $ 145 $ 139 $ 233 Interest cost 20,019 22,026 20,112 1,836 2,179 2,061 Expected return on plan assets (32,404 ) (34,232 ) (33,144 ) — — — Amortization of prior service cost (credit) 305 648 752 (564 ) (871 ) (1,006 ) Recognized losses 15,004 8,617 16,365 1,011 1,017 1,004 Curtailment loss (gain) — 219 199 — 4 (3,081 ) Settlement loss 9,939 871 637 — — — Special termination benefits — 715 1,016 — — — Net periodic benefit cost $ 18,371 $ 3,410 $ 12,118 $ 2,428 $ 2,468 $ (789 ) The estimated net actuarial loss and prior service cost for the defined benefit pension plans that will be amortized from accumulated other non-owner changes to equity into net periodic benefit cost in 2016 are $10,218 and $207 , respectively. The estimated net actuarial loss and prior service credit for other defined benefit postretirement plans that will be amortized from accumulated other non-owner changes to equity into net periodic benefit cost in 2016 are $704 and $(373) , respectively. Weighted-average assumptions used to determine net benefit expense for years ended December 31, are: 2015 2014 2013 U.S. plans: Discount rate 4.25 % 5.20 % 4.25 % Long-term rate of return 8.25 % 9.00 % 9.00 % Increase in compensation 3.71 % 3.72 % 3.71 % Non-U.S. plans: Discount rate 2.74 % 3.93 % 3.73 % Long-term rate of return 5.00 % 5.07 % 5.33 % Increase in compensation 2.72 % 2.76 % 2.69 % The expected long-term rate of return is based on projected rates of return and the historical rates of return of published indices that are used to measure the plans’ target asset allocation. The historical rates are then discounted to consider fluctuations in the historical rates as well as potential changes in the investment environment. The Company’s accumulated postretirement benefit obligations, exclusive of pensions, take into account certain cost-sharing provisions. The annual rate of increase in the cost of covered benefits (i.e., health care cost trend rate) is assumed to be 6.65% and 6.88% at December 31, 2015 and 2014 , respectively, decreasing gradually to a rate of 4.50% by December 31, 2029 . A one percentage point change in the assumed health care cost trend rate would have the following effects: One Percentage Point Increase One Percentage Point Decrease Effect on postretirement benefit obligation $ 391 $ (360 ) Effect on postretirement benefit cost 17 (15 ) The Company previously contributed to a multi-employer defined benefit pension plan under the terms of a collective bargaining agreement. This multi-employer plan provides pension benefits to certain former union-represented employees of the Edison, New Jersey facility at BDNA. The Company determined that a withdrawal from this multi-employer plan, following its entry into a definitive agreement to sell BDNA in February 2013, was probable. The Company estimated its assessment of a withdrawal liability, on a pre-tax discounted basis, and recorded a liability of $2,788 during the first quarter of 2013. The expense was recorded within discontinued operations. The Company completed the sale of BDNA and ceased making contributions into the multi-employer plan during the second quarter of 2013. The Company settled the withdrawal liability in the fourth quarter of 2013, with the agreed-upon settlement payment being made in January 2014. The Company actively contributes to a Swedish pension plan that supplements the Swedish social insurance system. The pension plan guarantees employees a pension based on a percentage of their salary and represents a multi-employer pension plan, however the pension plan was not significant in any year presented. This pension plan is not underfunded. Contributions related to the individually insignificant multi-employer plans, as disclosure is required pursuant to the applicable accounting standards, are as follows: Contributions by the Company Pension Fund: 2015 2014 2013 Teamsters Local 641 Pension Fund (Edison, New Jersey) $ — $ — $ 23 Swedish Pension Plan (ITP2) 343 379 414 Total Contributions $ 343 $ 379 $ 437 The Company also contributed to a multi-employer other postretirement benefit plan under the terms of the collective bargaining agreement at the former Edison, New Jersey facility. This postretirement benefit plan was also settled in 2013 in conjunction with the defined benefit pension plan. This health and welfare postretirement plan provides medical, prescription, optical and other benefits to certain former union-represented active employees and retirees. Company contributions to the postretirement plan were $0 , $0 and $40 in 2015 , 2014 and 2013 , respectively, as contributions ceased in 2013. There have been no significant changes that affect the comparability of 2015 , 2014 or 2013 contributions, however contributions to the postretirement benefit plan ceased during the second quarter of 2013 following the sale of BDNA. |