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Network
00000033 - Disclosure - Pensions and Other Postretirement Benefit Plans (Tables)
(http://albint.com/role/ain-paopbpt1)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Reporting Entity [Axis]0000819793 (http://www.sec.gov/CIK)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Compensation and Retirement Disclosure [Abstract]
 
Schedule of Plan Benefit Obligations

The following table sets forth the plan benefit obligations:

   As of December 31, 2016  As of December 31, 2015
(in thousands)  Pension plans  Other postretirement benefits  Pension plans  Other postretirement benefits
        
Benefit obligation, beginning of year  $199,856   $59,970   $213,110   $64,987 
   Service cost  2,656   254   2,959   330 
   Interest cost  7,885   2,443   7,787   2,437 
   Plan participants' contributions  249   -   304   - 
   Actuarial (gain)/loss  17,676   (395)  (4,209)  (2,855)
   Benefits paid  (7,057)  (4,812)  (6,530)  (4,758)
   Settlements and curtailments  (2,436)  -   (321)  - 
   Plan amendments and other  36   -   (37)  - 
   Foreign currency changes  (8,009)  28   (13,207)  (171)
Benefit obligation, end of year  $210,856   $57,488   $199,856   $59,970 
                 
Accumulated benefit obligation  $200,790   $-   $188,909   $- 
                 
Weighted average assumptions used to                
determine benefit obligations, end of year:                
   Discount rate - U.S. plan  4.20%   4.00%   4.54%   4.24% 
   Discount rate - non-U.S. plans  2.98%   3.70%   3.67%   4.00% 
   Compensation increase - U.S. plan  -   -   -   - 
   Compensation increase - non-U.S. plans  3.29%   3.00%   3.24%   3.00% 

 

  
Schedule of Plan Assets

The following sets forth information about plan assets:

   As of December 31, 2016  As of December 31, 2015
(in thousands)  Pension plans  Other postretirement benefits  Pension plans  Other postretirement benefits
        
Fair value of plan assets, beginning of year  $171,387   $-   $183,199   $- 
   Actual return on plan assets, net of expenses  19,740   -   730   - 
   Employer contributions  6,605   4,812   5,287   4,758 
   Plan participants' contributions  249   72   304   1,068 
   Benefits paid  (7,057)  (4,884)  (6,530)  (5,826)
   Settlements  (2,308)  -   (688)  - 
   Foreign currency changes  (7,944)  -   (10,915)  - 
Fair value of plan assets, end of year  $180,672   $-   $171,387   $- 

 

  
Schedule of Funded Status of Plans

The funded status of the plans was as follows:

   As of December 31, 2016  As of December 31, 2015
(in thousands)  Pension plans  Other postretirement benefits  Pension plans  Other postretirement benefits
        
Fair value of plan assets  $180,672   $-   $171,387   $- 
Benefit obligation  210,856   57,488   199,856   59,970 
Funded status  ($30,184)  ($57,488)  ($28,469)  ($59,970)
                 
Accrued benefit cost, end of year  ($30,184)  ($57,488)  ($28,469)  ($59,970)
                 
Amounts recognized in the consolidated balance sheet consist of the following:        
Noncurrent asset  $7,794   $-   $10,423   $- 
Current liability  (2,057)  (4,195)  (2,110)  (4,660)
Noncurrent liability  (35,921)  (53,293)  (36,782)  (55,310)
Net amount recognized  ($30,184)  ($57,488)  ($28,469)  ($59,970)
                 
Amounts recognized in accumulated other comprehensive income consist of:            
Net actuarial loss  $72,400   $34,782   $69,896   $37,997 
Prior service cost/(credit)  597   (30,899)  608   (35,387)
Net amount recognized  $72,997   $3,883   $70,504   $2,610 

 

  
Schedule of composition of the net pension plan funded status

The composition of the net pension plan funded status as of December 31, 2016 was as follows:

 

     Non-U.S. 
(in thousands)  U.S. plan  plans  Total
      
Pension plans with pension assets  ($5,197)  $5,648   $451 
Pension plans without pension assets  (7,761)  (22,874)  (30,635)
Total  ($12,958)  ($17,226)  ($30,184)

 

  
Schedule of composition of the accrued pension cost
 
Schedule of Net Periodic Benefit Plan Cost

The composition of the net periodic benefit plan cost for the years ended December 31, 2016, 2015, and 2014, was as follows:

   Pension plans    Other postretirement benefits
(in thousands)  2016  2015  2014  2016  2015  2014
            
Components of net periodic benefit cost:                        
Service cost  $2,656   $2,959   $3,269   $254   $330   $314 
Interest cost  7,885   7,787   9,505   2,443   2,437   2,741 
Expected return on assets  (8,675)  (8,630)  (9,577)  -   -   - 
Amortization of prior service cost/(credit)  38   48   53   (4,488)  (4,488)  (4,488)
Amortization of transition obligation  -   -   -   -   -   - 
Amortization of net actuarial loss  2,283   2,594   2,421   2,819   3,338   2,908 
Settlement  162   103   8,331   -   -   - 
Curtailment (gain)/loss  (111)  -   (942)  -   -   - 
Special/contractual termination of benefits  -   44   -   -   -   - 
Net periodic benefit cost  $4,238   $4,905   $13,060   $1,028   $1,617   $1,475 
                         
Weighted average assumptions used to determine net cost:                    
Discount rate - U.S. plan  4.54%   4.18%   5.22%   4.24%   3.90%   4.68% 
Discount rate - non-U.S. plan  3.67%   3.58%   4.50%   4.00%   3.85%   4.75% 
Expected return on plan assets - U.S. plan  4.74%   4.43%   5.40%   -   -   - 
Expected return on plan assets - non-U.S. plans  5.39%   5.52%   5.65%   -   -   - 
Rate of compensation increase - U.S. plan  -   -   -   -   -   - 
Rate of compensation increase - non-U.S. plans  3.24%   3.23%   3.39%   3.00%   3.00%   3.00% 
Health care cost trend rate (U.S. and non-U.S. plans):                         
Initial rate  -   -   -   -   -   - 
Ultimate rate  -   -   -   -   -   - 
Years to ultimate  -   -   -   -   -   - 

 

  
Schedule of Pretax (gains)/Losses Recognized in Other Comprehensive Income

Pretax (gains)/losses in plan assets and benefit obligations recognized in other comprehensive income during 2016 were as follows:

     Other
   Pension   postretirement
(in thousands)  plan  benefits
Settlements/curtailments  ($51)  $  - 
Asset/liability loss/(gain)  6,519   (395)
Amortization of actuarial (loss)  (2,283)  (2,819)
Amortization of prior service (cost)/credit  (38)  4,488 
Amortization of transition (obligation)  -   - 
Currency impact  (1,655)  (1)
Cost in other comprehensive income  $2,492   $1,273 
Total cost recognized in net periodic benefit cost and other comprehensive income  $6,730   $2,301 

 

  
Schedule of Amounts That Will Be Amortized from Accumulated Other Comprehensive Income

The estimated amounts that will be amortized from accumulated other comprehensive income into net periodic benefit cost in 2017 are as follows:

     Total
   Total  postretirement
(in thousands)  pension  benefits
Actuarial loss  $2,578   $2,811 
Prior service cost/(benefit)  38   (4,488)
Total  $2,616   ($1,677)

 

  
Schedule of Fair Value of Plan Assets

The following tables present plan assets as of December 31, 2016, and 2015, using the fair-value hierarchy, which has three levels based on the reliability of inputs used, as described in Note 15. Certain investments that are measured at fair value using net asset value (NAV) as a practical expedient are not required to be categorized in the fair value hierarchy table. The total fair value of these investments is included in the table below to permit reconciliation of the fair value hierarchy to amounts presented in the funded status table above. As of December 31, 2016 and 2015, there were no investments expected to be sold at a value materially different than NAV.

 

   Assets at Fair Value as of December 31, 2016
   Quoted prices   Significant other  Significant  
   in active markets  observable inputs  unobservable inputs 
(in thousands)   Level 1  Level 2  Level 3  Total
        
Common Stocks and equity funds  $309   $-   $-   $309 
Debt securities  -   74,449   -   74,449 
Insurance contracts  -   -   2,238   2,238 
Cash and short-term investments  3,401   -   -   3,401 
Total investments in the fair value hierarchy  $3,710   $74,449   $2,238   80,397 
                 
Investments at net asset value:                
Common Stocks and equity funds              35,510 
Fixed income funds              59,662 
Limited partnerships              5,065 
Hedge funds              38 
Total plan assets              $180,672 

 

   Assets at Fair Value as of December 31, 2015
   Quoted prices   Significant other  Significant  
   in active markets  observable inputs  unobservable inputs 
(in thousands)   Level 1  Level 2  Level 3  Total
        
Common Stocks and equity funds  $404   $-   $-   $404 
Debt securities  -   71,886   -   71,886 
Insurance contracts  -   -   2,403   2,403 
Cash and short-term investments  2,501   -   -   2,501 
Total investments in the fair value hierarchy  $2,905   $71,886   $2,403   77,194 
                 
Investments at net asset value:                
Common Stocks and equity funds              34,709 
Fixed income funds              53,616 
Limited partnerships              5,676 
Hedge funds              192 
Total plan assets              $171,387 

 

  
Schedule of error correction and reclassification of plan assets
 
Reconciliation of Level 3 Assets

The following tables present a reconciliation of Level 3 assets held during the years ended December 31, 2016 and 2015:

(in thousands)  December 31, 2015     Net realized
gains/(losses)		    Net unrealized gains/(losses)  Net purchases, issuances and settlements     Net transfers
(out of)
Level 3		    December 31, 2016
Insurance contracts  $2,403   $-   $26   $(191)   $-   $2,238 
Total level 3 assets  $2,403   $-   $26   ($191)   $-   $2,238 

 

(in thousands)  December 31, 2014     Net realized
gains/(losses)		    Net unrealized gains/(losses)  Net purchases, issuances and settlements     Net transfers
(out of)
Level 3		    December 31, 2015
Insurance contracts  $2,133   $-   $35   $235   $-   $2,403 
Total level 3 assets  $2,133   $-   $35   $235   $-   $2,403 

 

  
Schedule of Asset Allocation

The asset allocation for the Company’s U.S. and non-U.S. pension plans for 2015 and 2016, and the target allocation for 2017, by asset category, are as follows:

 

        United States Plan       Non-U.S. Plans  
    Target   Percentage of plan assets Target   Percentage of plan assets
    Allocation   at plan measurement date Allocation   at plan measurement date
Asset category   2017   2016   2015   2017   2016   2015
                         
Equity securities                -      2%   3%   32%   33%   35%
Debt securities   100%   92%   92%   64%   61%   55%
Real estate                -      5%   5%                -                     -      4%
Other  (1)                -      1%                  -      4%   6%   6%
    100%   100%   100%   100%   100%   100%

 

(1) Other includes hedged equity and absolute return strategies, and private equity. The Company has procedures to closely monitor the performance of these investments and compares asset valuations to audited financial statements of the funds.

  
Schedule of Pension Plans with Projected Benefit Obligation in Excess of Plan Assets and for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets

At the end of 2016 and 2015, the projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with projected benefit obligation and an accumulated benefit obligation in excess of plan assets were as follows:

  Plans with projected benefit obligation
            in excess of plan assets
(in thousands) 2016 2015
Projected benefit obligation $121,600 $120,312
Accumulated benefit obligation 119,753 117,447
Fair value of plan assets 83,622 81,421
     
     
     
  Plans with accumulated benefit obligation
            in excess of plan assets
(in thousands) 2016 2015
Projected benefit obligation $121,511 $120,312
Accumulated benefit obligation 119,728 117,447
Fair value of plan assets 83,558 81,421

 

  
Schedule of Expected Cash Flows

Information about expected cash flows for the pension and other benefit obligations are as follows:

(in thousands) Pension plans Other postretirement benefits
Expected employer contributions and direct employer payments in the next fiscal year $3,727 $4,195
     
Expected benefit payments    
2017 $6,625 $4,195
2018 7,013 4,047
2019 7,380 3,913
2020 7,873 3,804
2021 8,473 3,748
2022-2026 50,990 17,983