Retirement Savings Plans

12 Months Ended

Dec. 31, 2023


NOTE 11 — RETIREMENT SAVINGS PLANS

401(K) PROFIT-SHARING PLAN

The Company has a 401(k) profit-sharing plan, which covers substantially all United States employees. Participation begins the first day of the quarter following completion of 30 days of service. The Company, with approval of the Board of Directors, may elect to make discretionary matching or non-matching contributions. Costs recognized for Company contributions to the plan were $15.6 million, $13.3 million and $10.7 million for the years ended December 31, 2023, 2022 and 2021, respectively.

DEFERRED COMPENSATION PLAN

The Company sponsors a nonqualified retirement savings plan for certain senior management employees whose contributions to the tax qualified 401(k) plan would be limited by provisions of the Internal Revenue Code. This plan allows participants to defer receipt of a portion of their salary and incentive compensation and to receive matching contributions for a portion of the deferred amounts. Costs recognized for Company matching contributions to the plan were immaterial for the years ended December 31, 2023, 2022 and 2021. Participants earn a return on their deferred compensation based on investment earnings of participant-selected investments. Deferred compensation, including accumulated earnings on the participant-directed investment selections, is distributable in cash at participant-specified dates or upon retirement, death, disability, or termination of employment.

The Company has purchased specific money market and mutual funds in the same amounts as the participant-directed investment selections underlying the deferred compensation liabilities. These investment securities and earnings thereon, held in an irrevocable trust, are intended to provide a source of funds to meet the deferred compensation obligations, subject to claims of creditors in the event of the Company's insolvency. Changes in the market value of the participants' investment selections are recorded as an adjustment to the investments and as gains and losses in SG&A expenses. A corresponding adjustment of an equal amount is made to the deferred compensation liabilities and compensation expense, which is included in SG&A expenses.

As of December 31, 2023 and 2022, the long-term portion of the liability to participants under this plan was $26.6 million and $20.5 million, respectively, and was recorded in Other long-term liabilities. As of December 31, 2023 and 2022, the current portion of the participant liability was $1.2 million and $0.7 million, respectively, and was recorded in Accrued liabilities. As of December 31, 2023 and 2022, the fair value of the long-term portion of the investments related to this plan was $26.6 million and $20.5 million, respectively, and was recorded in Other non-current assets. As of December 31, 2023 and 2022, the current portion of the investments related to this plan was $1.2 million and $0.7 million, respectively, and was recorded in Short-term investments.