XBRL Cloud: Business Report

Rendering

Component: (Network and Table)
Network	31203 - Disclosure - Retirement Benefits (Tables) (http://www.ferro.com/role/DisclosureRetirementBenefitsTables)
Table	(Implied)

Slicers (applies to each fact value in each table cell)

Reporting Entity [Axis]

0000035214 (http://www.sec.gov/CIK)

Retirement Benefits [Abstract]

Period [Axis]

2016-01-01 - 2016-12-31

Retirement Benefits [Abstract]

Net Periodic Benefit (Credit) Cost



	U.S. Pension Plans									Non-U.S. Plans
	2016			2015			2014			2016			2015			2014
	(Dollars in thousands)
Service cost	$	16		$	17		$	16		$	1,372		$	1,478		$	1,767
Interest cost		15,552			18,718			19,746			3,319			3,560			5,105
Expected return on plan assets		(19,735)			(29,168)			(28,139)			(1,712)			(2,623)			(3,151)
Amortization of prior service cost		11			12			12			37			259			61
Mark-to-market actuarial net losses		9,127			18,807			71,583			11,180			5,085			17,494
Curtailment and settlement effects (gains) losses		—			(12,640)			—			688			35			(123)
Special termination benefits		—			—			—			330			35			40
Net periodic benefit cost (credit)	$	4,971		$	(4,254)		$	63,218		$	15,214		$	7,829		$	21,193
Weighted-average assumptions:
Discount rate		4.70	%		4.25	%		5.25	%		3.12	%		2.72	%		4.12	%
Rate of compensation increase		N/A			N/A			N/A			3.16	%		3.28	%		2.88	%
Expected return on plan assets		8.20	%		8.20	%		8.20	%		3.41	%		3.50	%		4.44	%

Defined Benefit Pension Plans



	U.S. Pension Plans				Non-U.S. Pension Plans
	2016		2015		2016		2015
	(Dollars in thousands)
Change in benefit obligation
Benefit obligation at beginning of year	$	346,951	$	454,030	$	123,764	$	146,706
Service cost		16		17		1,372		1,478
Interest cost		15,552		18,718		3,319		3,560
Curtailments		—		—		—		—
Amendments		—		—		—		189
Settlements		(144)		(71,290)		(34,528)		(579)
Special termination benefits		—		—		330		35
Plan participants' contributions		—		—		54		20
Benefits paid		(22,918)		(23,144)		(3,195)		(3,179)
Actuarial loss (gain)		5,745		(31,380)		20,490		(11,142)
Exchange rate effect		—		—		(8,116)		(13,324)
Benefit obligation at end of year	$	345,202	$	346,951	$	103,490	$	123,764
Accumulated benefit obligation at end of year	$	345,202	$	346,951	$	93,401	$	118,680
Change in plan assets:
Fair value of plan assets at beginning of year	$	278,735	$	381,147	$	63,649	$	82,345
Actual return on plan assets		16,354		(8,379)		10,977		(13,638)
Employer contributions		522		401		3,060		4,979
Plan participants' contributions		—		—		54		20
Benefits paid		(22,918)		(23,144)		(3,195)		(3,179)
Effect of settlements		(144)		(71,290)		(34,746)		(579)
Exchange rate effect		—		—		(6,116)		(6,299)
Fair value of plan assets at end of year	$	272,549	$	278,735	$	33,683	$	63,649
Amounts recognized in the balance sheet:
Other non-current assets	$	—	$	—	$	484	$	841
Accrued expenses and other current liabilities		(579)		(729)		(2,070)		(1,834)
Postretirement and pension liabilities		(72,074)		(67,487)		(68,221)		(59,122)
Funded status	$	(72,653)	$	(68,216)	$	(69,807)	$	(60,115)

During 2016, the Company settled a pension obligation in Great Britain for an amount of $32.2 million, which is included in settlements for the Non-U.S. pension.



	U.S. Pension Plans						Non-U.S. Pension Plans
	2016			2015			2016			2015
	(Dollars in thousands)
Weighted-average assumptions as of December 31:
Discount rate		4.40	%		4.70	%		2.24	%		3.12	%
Rate of compensation increase		N/A			N/A			3.14	%		3.16	%
Pension plans with benefit obligations in excess of plan assets:
Benefit obligations	$	345,202		$	346,951		$	73,903		$	66,291
Plan assets		272,549			278,735			3,612			5,336
Pension plans with accumulated benefit obligations in excess of plan assets:
Projected benefit obligations	$	345,202		$	346,951		$	73,393		$	65,777
Accumulated benefit obligations		345,202			346,951			63,538			60,888
Plan assets		272,549			278,735			3,179			4,881

Activity and balances in Accumulated other comprehensive loss related to defined benefit pension plans are summarized below:


	U.S. Pension Plans				Non-U.S. Pension Plans
	2016		2015		2016		2015
	(Dollars in thousands)
Prior service (cost):
Balance at beginning of year	$	(18)	$	(30)	$	(425)	$	(636)
Amounts recognized as net periodic benefit costs		11		12		37		259
Exchange rate effects		—		—		123		(48)
Balance at end of year	$	(7)	$	(18)	$	(265)	$	(425)
Estimated amounts to be amortized in 2017	$	(7)			$	(37)

Fair Value of Pension Plan Assets



	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
U.S. plans:
Fixed income:
Cash and cash equivalents	$	3	$	—	$	—	$	3
Guaranteed deposits		—		1,817		—		1,817
Mutual funds		85,580		—		—		85,580
Commingled funds		—		777		371		1,148
Equities:
U.S. common stocks		4,057		—		—		4,057
Mutual funds		156,675		—		—		156,675
Commingled funds		—		1,096		—		1,096
Real estate		—		—		22,173		22,173
Total	$	246,315	$	3,690	$	22,544	$	272,549
Non-U.S. plans
Fixed income:
Guaranteed deposits	$	97	$	726	$	26,332	$	27,155
Mutual funds		365		—		—		365
Other		3,679		2,153		—		5,832
Equities:
Mutual funds		200		—		—		200
Real estate		—		—		84		84
Other assets		47		—		—		47
Total	$	4,388	$	2,879	$	26,416	$	33,683

The fair values of our pension plan assets at December 31, 2015, by asset category are as follows:



	Level 1		Level 2		Level 3		Total
	(Dollars in thousands)
U.S. plans:
Fixed income:
Cash and cash equivalents	$	44	$	—	$	—	$	44
Guaranteed deposits		—		1,956		—		1,956
Mutual funds		88,672		—		—		88,672
Commingled funds		—		879		366		1,245
Equities:
U.S. common stocks		3,148		—		—		3,148
Mutual funds		162,332		—		—		162,332
Commingled funds		—		1,264		—		1,264
Real estate		—		—		20,074		20,074
Total	$	254,196	$	4,099	$	20,440	$	278,735
Non-U.S. plans
Fixed income:
Cash and cash equivalents	$	299	$	—	$	—	$	299
Guaranteed deposits		142		2,148		54,006		56,296
Mutual funds		171		—		—		171
Other		4,188		2,267		—		6,455
Equities:
Mutual funds		319		—		—		319
Real estate		—		—		59		59
Other assets		50		—		—		50
Total	$	5,169	$	4,415	$	54,065	$	63,649

Schedule of Rollforward of Level 3 Assets


	Guaranteed				Commingled
	deposits		Real estate		funds		Other assets		Total
	(Dollars in thousands)
Balance at December 31, 2014	$	28,929	$	17,648	$	489	$	2	$	47,068
Purchases		31,157		—		—		—		31,157
Sales		(282)		—		—		—		(282)
(Losses) gains included in earnings		(2,342)		2,485		(123)		(2)		18
Exchange rate effect		(3,456)		—		—		—		(3,456)
Balance at December 31, 2015	$	54,006	$	20,133	$	366	$	—	$	74,505
Sales		(33,084)		—		—		—		(33,084)
Gains included in earnings		10,867		2,124		5		—		12,996
Exchange rate effect		(5,457)		—		—		—		(5,457)
Balance at December 31, 2016	$	26,332	$	22,257	$	371	$	—	$	48,960

Future Pension Benefit Payments



	U.S. Plans		Non-U.S. Plans
	(Dollars in thousands)
2017	$	23,590	$	4,256
2018		23,442		3,534
2019		23,469		4,164
2020		23,470		3,767
2021		23,529		3,734
2022-2026		116,026		21,698

Postretirement Health Care and Life Insurance Benefit Plans



	2016			2015			2014
	(Dollars in thousands)
Net periodic benefit cost:
Interest expense	$	944		$	970		$	1,205
Amortization of prior service credit		—			—			(105)
Mark-to-market actuarial net (gain) loss		(164)			(3,051)			499
Curtailment (gain) recognized		—			—			(930)
Total net periodic benefit cost (credit)	$	780		$	(2,081)		$	669
Weighted-average assumptions:
Discount rate		4.50	%		3.95	%		4.90	%
Current trend rate for health care costs		6.60	%		7.10	%		7.30	%
Ultimate trend rate for health care costs		4.50	%		4.50	%		4.50	%
Year that ultimate trend rate is reached		2036			2028			2028

A one-percentage-point change in the assumed health care cost trend rates would have the following effect:



	1-Percentage-			1-Percentage-
	Point			Point
	Increase			Decrease
	(Dollars in thousands)
Effect on total of service and interest costs components	$	60	$	(52)
Effect on postretirement benefit obligation		1,262		(1,106)



	2016			2015
	(Dollars in thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	22,030		$	25,717
Interest cost		944			970
Curtailments		—			—
Benefits paid		(1,754)			(1,606)
Actuarial (loss)		(164)			(3,051)
Benefit obligation at end of year	$	21,056		$	22,030
Change in plan assets:
Fair value of plan assets at beginning of year	$	—		$	—
Employer contributions		1,754			1,606
Benefits paid		(1,754)			(1,606)
Fair value of plan assets at end of year	$	—		$	—
Amounts recognized in the balance sheet:
Accrued expenses and other current liabilities	$	(2,208)		$	(2,345)
Postretirement and pension liabilities		(18,848)			(19,685)
Funded status	$	(21,056)		$	(22,030)
Weighted-average assumptions as of December 31:
Discount rate		4.20	%		4.50	%
Current trend rate for health care costs		6.50	%		6.60	%
Ultimate trend rate for health care costs		4.50	%		4.50	%
Year that ultimate rend rate is reached		2036			2036

Future Postretirement Health Care and Life Insurance Benefit Payments



	Before Medicare		After Medicare
	Subsidy			Subsidy
	(Dollars in thousands)
2017	$	2,208	$	1,970
2018		2,139		1,911
2019		2,069		1,851
2020		1,987		1,779
2021		1,907		1,710
2022-2026		8,147		7,330