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Pension and Severance Plans (Tables)
12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Schedule of accrued severance obligation
The changes to the balance of our accrued severance plan obligations are as follows:
For the Year Ended December 31,
20232022
(In thousands)
Balance at January 1$56,289 $73,345 
Provision of severance benefits1,653 2,119 
Severance payments(8,770)(15,295)
Foreign currency (gain) loss(1,266)(3,880)
Balance at December 3147,906 56,289 
Payments remaining with the National Pension Fund(119)(124)
Total accrued severance plan obligations at December 3147,787 56,165 
Less current portion of accrued severance plan obligations (Note 10)7,906 7,422 
Non-current portion of accrued severance plan obligations$39,881 $48,743 
Schedule of changes in projected benefit obligations and fair value of plan assets The following table summarizes the changes to the Plans’ benefit obligations, fair value of the Plans’ assets and the funded status of the Plans at December 31, 2023 and 2022:
For the Year Ended December 31,
20232022
(In thousands)
Change in projected benefit obligation:
Projected benefit obligation at January 1$159,760 $200,187 
Service cost15,032 20,072 
Interest cost6,202 4,731 
Benefits paid(14,056)(8,573)
Actuarial (gain) loss4,150 (24,571)
Effects of curtailment(617)508 
Settlement(1,073)(16,914)
Foreign exchange (gain) loss(5,117)(15,680)
Projected benefit obligation at December 31164,281 159,760 
Change in plan assets:
Fair value of plan assets at January 1127,338 157,012 
Actual gain (loss) on plan assets12,325 (6,528)
Employer contributions7,368 12,946 
Settlement(1,073)(16,914)
Benefits paid(14,056)(8,573)
Foreign exchange gain (loss)(2,706)(10,605)
Fair value of plan assets at December 31129,196 127,338 
Funded status of the Plans at December 31$(35,085)$(32,422)
Schedule of amounts recognized in balance sheet
December 31,
20232022
(In thousands)
Amounts recognized in the Consolidated Balance Sheets consist of:
Prepaid benefit cost (included in non-current assets)$12,039 $12,308 
Accrued benefit liability (included in pension and severance obligations)(47,124)(44,730)
Net amount recognized at year end$(35,085)$(32,422)
Schedule of amounts recognized in other comprehensive income (loss)
The following table summarizes, by component, the change in accumulated other comprehensive income (loss), net of tax related to our Plans:
Prior Service
Cost
Actuarial Net Gain (Loss)Total
(In thousands)
Balance at December 31, 2021$602 $5,014 $5,616 
Amortization and settlement gain included in net periodic pension cost— (1,021)(1,021)
Net gain (loss) arising during period— 9,625 9,625 
Adjustments to unrealized components of defined benefit pension plan included in other comprehensive income (loss)— 8,604 8,604 
Balance at December 31, 2022$602 $13,618 $14,220 
Amortization and settlement gain included in net periodic pension cost— (46)(46)
Net gain (loss) arising during period— 1,731 1,731 
Adjustments to unrealized components of defined benefit pension plan included in other comprehensive income (loss)— 1,685 1,685 
Balance at December 31, 2023$602 $15,303 $15,905 
Schedule of benefit obligations in excess of fair value of plan assets
Information for pension plans with benefit obligations in excess of plan assets is as follows:
December 31,
20232022
(In thousands)
Plans with underfunded or non-funded projected benefit obligation:
Aggregate projected benefit obligation$100,662 $96,310 
Aggregate fair value of plan assets53,539 51,581 
Plans with underfunded or non-funded accumulated benefit obligation:
Aggregate accumulated benefit obligation60,638 61,764 
Aggregate fair value of plan assets21,304 20,740 
Schedule of components of net periodic pension cost
The following table summarizes total pension expense:
For the Year Ended December 31,
202320222021
(In thousands)
Components of net periodic pension cost and total pension expense:
Service cost$15,032 $20,072 $25,908 
Interest cost6,202 4,731 4,900 
Expected return on plan assets(5,144)(5,605)(5,600)
Recognized actuarial (gain) loss(156)53 128 
Net periodic pension cost15,934 19,251 25,336 
Curtailment (gain) loss(617)— (954)
Settlement (gain) loss132 (1,374)(743)
Total pension expense$15,449 $17,877 $23,639 
Schedule of assumptions used
The following table summarizes the weighted-average assumptions used in computing the net periodic pension cost and projected benefit obligations:
For the Year Ended December 31,
202320222021
Discount rate for determining net periodic pension cost4.2 %2.6 %2.3 %
Discount rate for determining benefit obligations at December 313.8 %4.2 %2.6 %
Rate of compensation increase for determining net periodic pension cost3.6 %3.7 %3.7 %
Rate of compensation increase for determining benefit obligations at December 313.7 %3.6 %3.7 %
Expected rate of return on plan assets for determining net periodic
pension cost
4.1 %3.8 %3.7 %
Schedule of allocation of plan assets The current rate of return assumption targets are based on asset allocation strategies as follows:
Allocation
DebtEquityOther
Japan defined benefit plan64 %34 %%
Korea defined benefit plan30 %20 %50 %
Philippine defined benefit plan56 %42 %%
The fair value of our pension plan assets, by asset category utilizing the fair value hierarchy as discussed in Note 16, is as follows:
December 31, 2023December 31, 2022
Level 1Level 2TotalLevel 1Level 2Total
(In thousands)(In thousands)
Cash and cash equivalents$217 $— $217 $1,117 $— $1,117 
Equity securities13,680 — 13,680 13,339 — 13,339 
Debt securities
Government bonds3,674 — 3,674 2,982 — 2,982 
Corporate bonds 1,130 — 1,130 540 — 540 
Treasury notes11,993 — 11,993 11,561 — 11,561 
Mutual and commingled funds
Equity funds29,016 7,807 36,823 23,931 7,157 31,088 
Debt funds12,031 13,163 25,194 11,651 13,409 25,060 
Guaranteed investment contracts — 23,189 23,189 — 28,340 28,340 
Taiwan retirement fund 12,478 — 12,478 12,845 — 12,845 
Other, net — 818 818 (383)849 466 
Total fair value of pension plan assets$84,219 $44,977 $129,196 $77,583 $49,755 $127,338 
Schedule of expected benefit payments
The estimated future benefit payments related to our foreign defined benefit plans are as follows:
Payments
(In thousands)
2024$9,369 
202511,715 
202612,383 
202715,185 
202816,062 
2029 to 203398,940