Rendering

Component: (Network and Table)
Network
2313301 - Disclosure - Employee Benefits (Tables)
(http://www.kraton.com/role/EmployeeBenefitsTables)
Table(Implied)
Slicers (applies to each fact value in each table cell)
Compensation and Retirement Disclosure [Abstract]Period [Axis]
2016-01-01 - 2016-12-31
Compensation and Retirement Disclosure [Abstract]
 
Plan Obligation, Plan Assets, Amounts Recognized in Financial Statements and Underlying Actuarial and Other Assumptions
Information concerning the plan obligation, the funded status and amounts recognized in our financial statements and underlying actuarial and other assumptions are as follows: 
 
December 31,
 
2016
 
2015
 
(In thousands)
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of period
$
30,867

 
$
32,444

Service cost
543

 
597

Interest cost
1,398

 
1,271

Benefits and expenses paid (premiums)
(929
)
 
(825
)
Actuarial (gain) loss
1,368

 
(2,620
)
Benefit obligation at end of period
33,247

 
30,867

Change in plan assets (1):
 
 
 
Fair value at beginning of period

 

Employer contributions
929

 
825

Benefits paid
(929
)
 
(825
)
Fair value at end of period

 

Funded status at end of year
$
33,247

 
$
30,867

___________________________________________
(1)
Shell Chemicals has committed to a future cash payment related to retiree medical expenses based on a specified dollar amount per employee, if certain contractual commitments are met. We have recorded an asset of approximately $9.1 million and $10.1 million as our estimate of the present value of this commitment as of December 31, 2016 and 2015, respectively.
 
December 31,
 
2016
 
2015
 
(In thousands)
Amounts recognized in the balance sheet:
 

 
 

Current liabilities
$
(1,587
)
 
$
(1,341
)
Noncurrent liabilities
(31,660
)
 
(29,526
)
 
$
(33,247
)
 
$
(30,867
)
Amounts recognized in accumulated other comprehensive loss:
 

 
 

Net actuarial loss
9,067

 
8,307

 
$
9,067

 
$
8,307

Information concerning the pension obligation, plan assets, amounts recognized in our financial statements and underlying actuarial and other assumptions are as follows:
 
U.S. Plans
 
Non-U.S. Plans
 
December 31,
 
December 31,
 
2016
 
2015
 
2016
 
2015
 
(In thousands)
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation at beginning of period
$
152,511

 
$
158,885

 
$
1,711

 
$

Service cost
3,288

 
3,528

 
2,239

 

Interest cost
7,416

 
6,483

 
3,121

 

Participant contributions

 

 
140

 

Benefits paid
(9,753
)
 
(4,724
)
 
(3,199
)
 

Expenses and taxes

 

 
(50
)
 

Plan amendments

 

 
322

 

Acquisition
14,118

 

 
98,651

 

Transfers

 

 
2,399

 

Actuarial (gain) / loss
4,363

 
(11,661
)
 
21,914

 

Exchange rate gain (loss)

 

 
(13,759
)
 

Benefit obligation at end of period
171,943

 
152,511

 
113,489

 

Change in plan assets:
 
 
 
 
 
 
 
Fair value at beginning of period
97,561

 
104,792

 

 

Return on plan assets
6,737

 
(4,267
)
 
10,763

 

Employer contributions
1,396

 
1,760

 
3,685

 

Participant contributions

 

 
140

 

Benefits paid
(9,753
)
 
(4,724
)
 
(3,199
)
 

Expenses and taxes

 

 
(50
)
 

Settlements

 

 
(51
)
 

Acquisition
9,166

 

 
68,130

 

Transfers

 

 
2,399

 

Exchange rate gain (loss)

 

 
(8,986
)
 

Fair value at end of period
105,107

 
97,561

 
72,831

 

Funded status at end of period
$
(66,836
)
 
$
(54,950
)
 
$
(40,658
)
 
$

Amounts recognized on balance sheet:
 
 
 
 
 
 
 
Current liabilities
$

 
$

 
$
(726
)
 
$

Noncurrent liabilities
(66,836
)
 
(54,950
)
 
(39,932
)
 

 
$
(66,836
)
 
$
(54,950
)
 
$
(40,658
)
 
$

Amounts recognized in accumulated other comprehensive loss:
 
 
 
 
 
 
 
Prior service costs
$

 
$

 
$
307

 
$

Net actuarial loss
53,604

 
49,491

 
12,972

 

Amounts recognized in accumulated other comprehensive loss
$
53,604

 
$
49,491

 
$
13,279

 
$

 
 
 
 
 
 
 
 
Accumulated benefit obligations
$
160,625

 
$
140,848

 
$
109,219

 
$

 
 
Estimated Future Benefit Payments
The following employer contributions and benefit payments, which reflect expected future service, as appropriate, are expected to be paid: 
 
U.S. Plans
 
Non-U.S. Plans
 
(In thousands)
Employer Contributions
 
 
 
2017 Employer contribution
$
7,715

 
$
4,956

Benefit Payments
 
 
 
2017
$
5,932

 
$
2,093

2018
6,325

 
2,027

2019
6,731

 
1,991

2020
7,094

 
2,282

2021
7,591

 
2,172

Years 2022-2026
45,865

 
12,877

 
$
79,538

 
$
23,442

 
 
Components of Net Periodic Pension Costs
Net periodic benefit costs consist of the following components: 
 
Years Ended December 31,
 
2016
 
2015
 
2014
 
(In thousands)
Service cost
$
543

 
$
597

 
$
498

Interest cost
1,398

 
1,271

 
1,275

Amortization of net actuarial loss
608

 
757

 
416

Net periodic benefit costs
$
2,549

 
$
2,625

 
$
2,189

Net periodic pension costs consist of the following components: 
 
U.S. Plans
 
Non-U.S. Plans
 
Years Ended December 31,
 
Years Ended December 31,
 
2016
 
2015
 
2014
 
2016
 
2015
 
2014
 
(In thousands)
Service cost benefits earned during the period
$
3,288

 
$
3,528

 
$
2,800

 
$
2,239

 
$

 
$

Interest on prior year’s projected benefit obligation
7,416

 
6,483

 
6,171

 
3,121

 

 

Expected return on plan assets
(9,355
)
 
(8,459
)
 
(7,677
)
 
(3,583
)
 

 

Amortization of prior service costs

 

 

 
9

 

 

Amortization of net actuarial loss
2,868

 
4,239

 
1,841

 
21

 

 

Net periodic pension costs
$
4,217

 
$
5,791

 
$
3,135

 
$
1,807

 
$

 
$

 
 
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss)
The estimated losses that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal 2017 are as follows:
 
U.S. Plans
 
Non-U.S. Plans
 
(In thousands)
Amortization of prior service costs
$

 
$
11

Amortization of net actuarial loss
3,600

 
195

 
$
3,600

 
$
206

 
 
Weighted Average Assumptions used to Determine Benefit Obligation and Net Periodic Benefit Cost
 
December 31,
 
2016
 
2015
Weighted average assumptions used to determine benefit obligations:
 
 
 
Measurement date
12/31/2016

 
12/31/2015

Discount rate
4.18
%
 
4.45
%
Rates of increase in salary compensation level
N/A

 
N/A

Weighted average assumptions used to determine net periodic benefit cost:
 
 
 
Discount rate
4.45
%
 
4.02
%
Rates of increase in salary compensation level
N/A

 
N/A

Expected long-term rate of return on plan assets
N/A

 
N/A

Discount rates are determined annually and are based on rates of return of high-quality long-term fixed income securities currently available and expected to be available during the maturity of the pension benefits.
 
U.S. Plans
 
Non-U.S. Plans
 
December 31,
 
December 31,
 
2016
 
2015
 
2016
 
2015
Weighted average assumptions used to determine benefit obligations:
 
 
 
 
 
 
 
Measure date
12/31/2016

 
12/31/2015

 
12/31/2016

 
12/31/2015

Discount rate
4.29
%
 
4.55
%
 
2.39
%
 
%
Rates of increase in salary compensation level
3.00
%
 
3.00
%
 
2.78
%
 
%
Weighted average assumptions used to determine net periodic benefit cost:
 
 
 
 
 
 
 
Discount rate
4.57
%
 
4.12
%
 
3.59
%
 
%
Rates of increase in salary compensation level
3.00
%
 
3.00
%
 
3.11
%
 
%
Expected long-term rate of return on plan assets
8.36
%
 
8.50
%
 
4.07
%
 
%
 
 
Pension Plan Asset Allocations by Asset Category
Our Pension Plan asset allocations at December 31, 2016 and 2015 by asset category are as follows: 
 
U.S. Plans
 
Non-U.S. Plans
 
Target Allocation
 
Percentage of Plan
Assets
at December 31,
 
Target Allocation
 
Percentage of Plan
Assets
at December 31,
 
2016
 
2016
 
2015
 
2016
 
2016
 
2015
Equity
50.0
%
 
53.8
%
 
57.1
%
 
50.0
%
 
28.9
%
 
%
Debt
30.0

 
36.8

 
33.5

 
40.0

 
30.4

 

Insurance

 

 

 

 
40.5

 

Other
20.0

 
9.4

 
9.4

 
10.0

 
0.2

 

Total
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
100.0
%
 
%
 
 
Fair Values of Pension Plan Assets by Asset Category
A summary of total investments for our pension plan assets measured at fair value is presented below. See Note 9 Fair Value Measurements, Financial Instruments, and Credit Risk to the consolidated financial statements for a detailed description of fair value measurements and the hierarchy established for Level 1, 2, and 3 valuation inputs.
 
Pension Plan Assets Fair Value Measurements at December 31, 2016
 
Total
 
Quoted Prices
In Active Markets
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(In thousands)
Cash and Cash Equivalents
$
9,912

 
$
9,912

 
$

 
$

Equity
77,644

 
24,270

 
53,374

 

Debt
60,857

 
16,897

 
43,960

 

Insurance
29,525

 

 

 
29,525

Total
$
177,938

 
$
51,079

 
$
97,334

 
$
29,525

 
Pension Plan Assets Fair Value Measurements at December 31, 2015
 
Total
 
Quoted Prices
In Active Markets
Identical Assets
(Level 1)
 
Significant
Observable
Inputs
(Level 2)
 
Significant
Unobservable
Inputs
(Level 3)
 
(In thousands)
Cash and Cash Equivalents
$
70

 
$
70

 
$

 
$

Equity
55,692

 
21,188

 
34,504

 

Debt
32,700

 
11,031

 
21,669

 

Other
9,099

 
9,099

 

 

Total
$
97,561

 
$
41,388

 
$
56,173

 
$

 
 
Schedule of Changes in Fair Value of Plan Assets
The following is a summary of changes in fair value of our pension plan Level 3 investments for the year ended December 31, 2016.
 
Level 3 Investments
 
(In thousands)
December 31, 2015
$

Return on plan assets
7,075

Employer contributions
1,389

Participant contributions
99

Actual benefits paid from plan
(155
)
Actual expenses and taxes
(51
)
Acquisition
19,359

Transfers
2,399

Exchange rate gain (loss)
(590
)
December 31, 2016
$
29,525

 
 
Assumed Health Care Cost Trend Rates
 
December 31,
 
2016
 
2015
Assumed health care cost trend rates:
 
 
 
Health care cost trend rate assumed for next year
7.00
%
 
7.50
%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)
5.00
%
 
5.00
%
Year that the rate reaches the ultimate trend rate
2021

 
2021

 
 
Effect of One Percentage Point Change in Assumed Health Care Cost Trend Rates
A 1.0% change in assumed health care cost trend rates would have the following effect (in thousands): 
 
1% Increase
 
1% Decrease
Effect on total of service and interest cost components
$
19

 
$
(24
)
Effect on postretirement benefit obligation
$
415

 
$
(481
)