Pension Plans

9 Months Ended

Sep. 30, 2020

Retirement Benefits [Abstract]

Pension Plans

Pension Plans

Foreign Defined Benefit Pension Plans

Our subsidiaries in Japan, Korea, Malaysia, the Philippines and Taiwan sponsor defined benefit pension plans. Charges to expense are based upon actuarial analyses. The components of net periodic pension cost for these defined benefit pension plans are as follows:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Service cost	$	7,722	$	7,747	$	22,803	$	23,513
Interest cost	1,281		1,297		3,774		3,926
Expected return on plan assets	(1,420)		(1,585)		(4,175)		(4,798)
Recognized actuarial gain	14		(94)		42		(282)
Net periodic pension cost	$	7,597	$	7,365	$	22,444	$	22,359

The components of net periodic pension cost other than the service cost component are included in other (income) expense, net in our Consolidated Statements of Income.

Defined Contribution Pension Plans

We sponsor defined contribution pension plans in Korea, Malaysia, Taiwan and the U.S. The following table summarizes our defined contribution expense:

	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2020		2019		2020		2019
	(In thousands)
Defined contribution expense	$	3,618	$	2,952	$	12,159	$	10,708

Korean Severance Plan

In October 2020, some employees accepted our offer to convert their Korean severance and defined benefit pension plan participation to a defined contribution plan. This will result in the conversion of approximately $30 million of obligations from our Korean severance plan to a defined contribution plan, which is expected to be funded during the fourth quarter of 2020.