| Components of Pension Cost |
The components of pension cost for ±«ÓãÖ±²¥â€™s defined benefit plans were as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Ìý |
Year Ended March |
Ìý |
Ìý |
Three Months
Ended March
(Transition Period)
|
Ìý |
Year Ended December |
(In thousands) |
Ìý |
2019 |
Ìý |
Ìý |
2018 |
Ìý |
2017 |
Ìý |
2016 |
Service cost — benefits earned during the period |
Ìý |
$ |
22,352 |
|
Ìý |
Ìý |
$ |
5,912 |
|
Ìý |
$ |
24,890 |
|
Ìý |
$ |
25,839 |
|
Interest cost on projected benefit obligations |
Ìý |
63,434 |
|
Ìý |
Ìý |
14,825 |
|
Ìý |
58,989 |
|
Ìý |
68,020 |
|
Expected return on plan assets |
Ìý |
(93,409 |
) |
Ìý |
Ìý |
(25,314 |
) |
Ìý |
(94,807 |
) |
Ìý |
(99,540 |
) |
Settlement charges |
Ìý |
8,856 |
|
Ìý |
Ìý |
— |
|
Ìý |
— |
|
Ìý |
50,922 |
|
Curtailments |
Ìý |
9,530 |
|
Ìý |
Ìý |
— |
|
Ìý |
1,671 |
|
Ìý |
— |
|
Amortization of deferred amounts: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Net deferred actuarial losses |
Ìý |
28,474 |
|
Ìý |
Ìý |
8,548 |
|
Ìý |
41,440 |
|
Ìý |
65,212 |
|
Deferred prior service costs |
Ìý |
494 |
|
Ìý |
Ìý |
647 |
|
Ìý |
2,646 |
|
Ìý |
2,584 |
|
Total pension expense |
Ìý |
$ |
39,731 |
|
Ìý |
Ìý |
$ |
4,618 |
|
Ìý |
$ |
34,829 |
|
Ìý |
$ |
113,037 |
|
Weighted average actuarial assumptions used to determine pension expense: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Discount rate in effect for determining service cost |
Ìý |
3.85 |
% |
Ìý |
Ìý |
3.58 |
% |
Ìý |
4.08 |
% |
Ìý |
4.54 |
% |
Discount rate in effect for determining interest cost |
Ìý |
3.51 |
% |
Ìý |
Ìý |
3.13 |
% |
Ìý |
3.26 |
% |
Ìý |
3.56 |
% |
Expected long-term return on plan assets |
Ìý |
5.58 |
% |
Ìý |
Ìý |
5.72 |
% |
Ìý |
5.72 |
% |
Ìý |
5.81 |
% |
Rate of compensation increase |
Ìý |
3.73 |
% |
Ìý |
Ìý |
3.73 |
% |
Ìý |
3.78 |
% |
Ìý |
3.90 |
% |
|
| Reconciliation of Changes in Fair Value of Defined Benefit Plan Assets and Projected Benefit Obligations |
The following provides a reconciliation of the changes in fair value of ±«ÓãÖ±²¥â€™s defined benefit plan assets and projected benefit obligations for each period, and the funded status at the end of each period:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Ìý |
March 2019 |
Ìý |
Ìý |
March 2018 |
Ìý |
December 2017 |
Fair value of plan assets, beginning of period |
Ìý |
$ |
1,751,760 |
|
Ìý |
Ìý |
$ |
1,809,649 |
|
Ìý |
$ |
1,673,297 |
|
Actual return on plan assets |
Ìý |
82,947 |
|
Ìý |
Ìý |
(39,495 |
) |
Ìý |
204,017 |
|
±«ÓãÖ±²¥ contributions |
Ìý |
41,581 |
|
Ìý |
Ìý |
3,205 |
|
Ìý |
9,807 |
|
Participant contributions |
Ìý |
4,136 |
|
Ìý |
Ìý |
1,018 |
|
Ìý |
4,011 |
|
Benefits paid |
Ìý |
(118,513 |
) |
Ìý |
Ìý |
(27,441 |
) |
Ìý |
(93,900 |
) |
Currency translation |
Ìý |
(10,817 |
) |
Ìý |
Ìý |
4,824 |
|
Ìý |
12,417 |
|
Fair value of plan assets, end of period |
Ìý |
1,751,094 |
|
Ìý |
Ìý |
1,751,760 |
|
Ìý |
1,809,649 |
|
Projected benefit obligations, beginning of period |
Ìý |
1,884,485 |
|
Ìý |
Ìý |
1,943,821 |
|
Ìý |
1,808,327 |
|
Service cost |
Ìý |
22,352 |
|
Ìý |
Ìý |
5,912 |
|
Ìý |
24,890 |
|
Interest cost |
Ìý |
63,434 |
|
Ìý |
Ìý |
14,825 |
|
Ìý |
58,989 |
|
Participant contributions |
Ìý |
4,136 |
|
Ìý |
Ìý |
1,018 |
|
Ìý |
4,011 |
|
Actuarial loss (gain) |
Ìý |
10,653 |
|
Ìý |
Ìý |
(59,511 |
) |
Ìý |
131,040 |
|
Benefits paid |
Ìý |
(118,513 |
) |
Ìý |
Ìý |
(27,441 |
) |
Ìý |
(93,900 |
) |
Plan amendments |
Ìý |
715 |
|
Ìý |
Ìý |
— |
|
Ìý |
— |
|
Curtailments |
Ìý |
(33,826 |
) |
Ìý |
Ìý |
— |
|
Ìý |
(5,664 |
) |
Currency translation |
Ìý |
(14,505 |
) |
Ìý |
Ìý |
5,861 |
|
Ìý |
16,128 |
|
Projected benefit obligations, end of period |
Ìý |
1,818,931 |
|
Ìý |
Ìý |
1,884,485 |
|
Ìý |
1,943,821 |
|
Funded status, end of period |
Ìý |
$ |
(67,837 |
) |
Ìý |
Ìý |
$ |
(132,725 |
) |
Ìý |
$ |
(134,172 |
) |
Pension benefits are reported in the Consolidated Balance Sheets as a net asset or liability based on the overfunded or underfunded status of the defined benefit plans, assessed on a plan-by-plan basis.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands) |
Ìý |
March 2019 |
Ìý |
Ìý |
March 2018 |
Ìý |
December 2017 |
Amounts included in Consolidated Balance Sheets: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Other assets (Note 10) |
Ìý |
$ |
117,405 |
|
Ìý |
Ìý |
$ |
76,671 |
|
Ìý |
$ |
82,296 |
|
Accrued liabilities (Note 12) |
Ìý |
(10,260 |
) |
Ìý |
Ìý |
(32,814 |
) |
Ìý |
(27,277 |
) |
Other liabilities (Note 14) |
Ìý |
(174,982 |
) |
Ìý |
Ìý |
(176,582 |
) |
Ìý |
(189,191 |
) |
Funded status |
Ìý |
$ |
(67,837 |
) |
Ìý |
Ìý |
$ |
(132,725 |
) |
Ìý |
$ |
(134,172 |
) |
Accumulated other comprehensive loss, pretax: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Net deferred actuarial losses |
Ìý |
$ |
399,093 |
|
Ìý |
Ìý |
$ |
452,329 |
|
Ìý |
$ |
454,463 |
|
Deferred prior service costs |
Ìý |
563 |
|
Ìý |
Ìý |
9,878 |
|
Ìý |
10,533 |
|
Total accumulated other comprehensive loss, pretax |
Ìý |
$ |
399,656 |
|
Ìý |
Ìý |
$ |
462,207 |
|
Ìý |
$ |
464,996 |
|
Accumulated benefit obligations |
Ìý |
$ |
1,778,910 |
|
Ìý |
Ìý |
$ |
1,783,600 |
|
Ìý |
$ |
1,837,776 |
|
Weighted average actuarial assumptions used to determine pension obligations: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Discount rate |
Ìý |
3.68 |
% |
Ìý |
Ìý |
3.76 |
% |
Ìý |
3.46 |
% |
Rate of compensation increase (a)
|
Ìý |
2.74 |
% |
Ìý |
Ìý |
3.73 |
% |
Ìý |
3.73 |
% |
|
|
(a)Ìý |
Rate of compensation increase is calculated as the weighted average rate of compensation increase for active plans. Frozen plans are excluded from the calculation. |
|
| Fair Value of Investments Held by Pension Plan |
The fair value of investments held by ±«ÓãÖ±²¥â€™s defined benefit plans at March 2019, March 2018 and December 2017, by asset class, is summarized below. Refer to Note 22 for a description of the three levels of the fair value measurement hierarchy.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Total Plan
Assets
|
Ìý |
Fair Value Measurements |
Ìý |
(In thousands) |
Level 1 |
Ìý |
Level 2 |
Ìý |
LevelÌý3 |
Ìý |
March 2019 |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Plan assets |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Cash equivalents |
$ |
3,023 |
|
Ìý |
$ |
3,023 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Ìý |
Fixed income securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Treasury and government agencies |
7 |
|
Ìý |
— |
|
Ìý |
7 |
|
Ìý |
— |
|
Ìý |
Insurance contracts |
71,521 |
|
Ìý |
— |
|
Ìý |
71,521 |
|
Ìý |
— |
|
Ìý |
Commodities |
(347 |
) |
Ìý |
(347 |
) |
Ìý |
— |
|
Ìý |
— |
|
Ìý |
Total plan assets in the fair value hierarchy |
$ |
74,204 |
|
Ìý |
$ |
2,676 |
|
Ìý |
$ |
71,528 |
|
Ìý |
$ |
— |
|
Ìý |
Plan assets measured at net asset value |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Cash equivalents |
36,349 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Equity securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Domestic |
82,659 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
International |
97,766 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Fixed income securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Corporate and international bonds |
1,309,123 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Alternative investments |
150,993 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Total plan assets measured at net asset value |
1,676,890 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Total plan assets |
$ |
1,751,094 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Total Plan
Assets
|
Ìý |
Fair Value Measurements |
(In thousands) |
Level 1 |
Ìý |
Level 2 |
Ìý |
LevelÌý3 |
March 2018 |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Plan assets |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Cash equivalents |
$ |
14,694 |
|
Ìý |
$ |
14,694 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Fixed income securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Treasury and government agencies |
8 |
|
Ìý |
— |
|
Ìý |
8 |
|
Ìý |
— |
|
Insurance contracts |
67,444 |
|
Ìý |
— |
|
Ìý |
67,444 |
|
Ìý |
— |
|
Commodities |
(7,091 |
) |
Ìý |
(7,091 |
) |
Ìý |
— |
|
Ìý |
— |
|
Total plan assets in the fair value hierarchy |
$ |
75,055 |
|
Ìý |
$ |
7,603 |
|
Ìý |
$ |
67,452 |
|
Ìý |
$ |
— |
|
Plan assets measured at net asset value |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Cash equivalents |
38,833 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Equity securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Domestic |
114,958 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
International |
155,330 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Fixed income securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Corporate and international bonds |
1,211,103 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Alternative investments |
156,481 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Total plan assets measured at net asset value |
1,676,705 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Total plan assets |
$ |
1,751,760 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ìý |
Total Plan
Assets
|
Ìý |
Fair Value Measurements |
(In thousands) |
Level 1 |
Ìý |
Level 2 |
Ìý |
LevelÌý3 |
December 2017 |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Plan assets |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Cash equivalents |
$ |
8,191 |
|
Ìý |
$ |
8,191 |
|
Ìý |
$ |
— |
|
Ìý |
$ |
— |
|
Fixed income securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
U.S. Treasury and government agencies |
8 |
|
Ìý |
— |
|
Ìý |
8 |
|
Ìý |
— |
|
Insurance contracts |
69,448 |
|
Ìý |
— |
|
Ìý |
69,448 |
|
Ìý |
— |
|
Commodities |
(372 |
) |
Ìý |
(372 |
) |
Ìý |
— |
|
Ìý |
— |
|
Total plan assets in the fair value hierarchy |
$ |
77,275 |
|
Ìý |
$ |
7,819 |
|
Ìý |
$ |
69,456 |
|
Ìý |
$ |
— |
|
Plan assets measured at net asset value |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Cash equivalents |
36,313 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Equity securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Domestic |
152,154 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
International |
173,608 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Fixed income securities: |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Corporate and international bonds |
1,215,558 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Alternative investments |
154,741 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Total plan assets measured at net asset value |
1,732,374 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Total plan assets |
$ |
1,809,649 |
|
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
Ìý |
|