XML 40 R21.htm IDEA: XBRL DOCUMENT v3.22.4
Pension
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Pensions Pension
The Company maintains defined benefit pension plans covering employees located in the United States as well as certain international locations. The majority of these plans are frozen, and all are closed to new employees. Benefits generally are based on compensation, length of service and age for salaried employees and on length of service for hourly employees. The Company’s policy is to fund pension plans such that sufficient assets will be available to meet future benefit requirements and contribute amounts deductible for United States federal income tax purposes or amounts required by local statute.
On October 11, 2022, the Company’s Board of Directors (the “Board”) approved a resolution to merge certain of the Company’s U.S. defined benefit pension plans and terminate the resulting merged plan (“U.S. Pension Plan”) effective December 31, 2022. The termination of the U.S. Pension Plan is expected to take twelve to eighteen months to complete. As part of the termination process, the Company expects to settle benefit obligations under the U.S. Pension Plan through a combination of lump sum payments to eligible plan participants and the purchase of a group annuity contract, under which future benefit obligations and administration will be transferred to a third-party insurance company. Such settlements will be funded primarily from plan assets. Ultimate settlement of benefit obligations is dependent upon the participants’ elections. The U.S. Pension Plan was underfunded by $5,759 as of December 31, 2022 and overfunded by $29,804 as of December 31, 2021 under U.S. generally accepted accounting principles. Additionally, the Company recognized a curtailment loss of $3,092 during the year ended December 31, 2022 associated with the planned termination of the U.S. Pension Plan, primarily due to prior service cost resulting from a 2022 plan amendment impacting the benefits of certain participants in the U.S. Pension Plan.
The Company also sponsors voluntary defined contribution plans for certain salaried and hourly U.S. employees of the Company. The Company matches contributions of participants, up to various limits in all plans. The Company also sponsors retirement plans that include Company non-elective contributions. Non-elective and matching contributions under these plans totaled $12,015, $12,809 and $13,537 for the years ended December 31, 2022, 2021 and 2020, respectively.
Information related to the Company’s defined benefit pension plans was as follows:
  Year Ended December 31,
 20222021
  U.S. Non-U.S. U.S. Non-U.S.
Change in projected benefit obligations:
Projected benefit obligations at beginning of period$257,108 $164,957 $271,397 $195,407 
Service cost771 2,755 891 3,345 
Interest cost7,062 2,782 6,516 2,558 
Net actuarial gain(41,026)(34,354)(8,589)(12,976)
Benefits paid(14,283)(5,535)(13,107)(5,324)
Foreign exchange translation— (10,012)— (9,610)
Settlements— (1,760)— (8,210)
Plan amendments3,056 — — — 
Other— (2,180)— (233)
Projected benefit obligations at end of period$212,688 $116,653 $257,108 $164,957 
Change in plan assets:
Fair value of plan assets at beginning of period$273,448 $48,047 $267,343 $54,548 
Actual return on plan assets(63,769)(9,774)18,175 1,280 
Employer contributions1,038 4,970 1,037 5,526 
Benefits paid(14,283)(5,535)(13,107)(5,324)
Foreign exchange translation— (3,138)— 225 
Settlements— (1,759)— (8,210)
Other— — — 2 
Fair value of plan assets at end of period$196,434 $32,811 $273,448 $48,047 
Funded status of the plans$(16,254)$(83,842)$16,340 $(116,910)
 December 31, 2022December 31, 2021
  U.S. Non-U.S. U.S. Non-U.S.
Amounts recognized in the consolidated balance sheet:
Other assets$— $3,239 $29,804 $4,245 
Accrued liabilities(1,005)(3,849)(1,018)(3,721)
Pension benefits (long term)(15,249)(83,232)(12,446)(117,434)
Pre-tax amounts included in accumulated other comprehensive loss that have not yet been recognized in net periodic benefit (income) cost as of December 31, 2022 and 2021 were as follows:
December 31, 2022December 31, 2021
 U.S. Non-U.S. U.S. Non-U.S.
Prior service costs$— $(31)$(56)$(185)
Actuarial losses(74,744)(6,910)(43,574)(33,742)
The Company uses the corridor approach when amortizing actuarial gains or losses. Under the corridor approach, net unrecognized actuarial losses in excess of 10% of the greater of i) the projected benefit obligation or ii) the fair value of plan assets for a particular plan are amortized over the average future service period of the employees in that plan.  
The accumulated benefit obligation for all domestic and international defined benefit pension plans was $212,688 and $112,963 as of December 31, 2022 and $257,108 and $158,074 as of December 31, 2021, respectively. As of December 31, 2022, the fair value of plan assets for one of the Company’s defined benefit plans exceeded the projected benefit obligations of $18,109 by $3,239.
The components of net periodic benefit (income) cost for the Company’s defined benefit plans were as follows:
  Year Ended December 31,
 202220212020
  U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S.
Service cost$771 $2,755 $891 $3,345 $853 $3,992 
Interest cost7,062 2,782 6,516 2,558 8,132 3,200 
Expected return on plan assets(9,293)(949)(14,257)(1,320)(13,683)(2,415)
Amortization of prior service cost and actuarial loss886 1,574 1,670 2,635 1,940 3,478 
Settlement (gain) loss— (410)— 1,279 — 184 
Curtailment loss3,092 — — — — — 
Other— — — 118 — (11)
Net periodic benefit (income) cost$2,518 $5,752 $(5,180)$8,615 $(2,758)$8,428 
Pension Settlements
In addition to the settlements shown in the table above, the Company recognized $744 of Non-U.S. pension net settlement and curtailment charges due to the divestiture of certain businesses in Europe and India during the year ended December 31, 2020 that are recorded as a reduction to gain on sale of business, net in the consolidated statements of operations. The Company also recognized $836 of Non-U.S. pension settlement charges during the year ended December 31, 2020 that are recorded as restructuring in the consolidated statements of operations.
Plan Assumptions
Weighted average assumptions used to determine benefit obligations as of December 31, 2022 and 2021 were as follows:
 
 20222021
  U.S. Non-U.S. U.S. Non-U.S.
Discount rate4.55 %4.45 %2.84 %1.83 %
Rate of compensation increaseN/A1.58 %N/A1.44 %
Cash balance interest credit rate2.41 %N/A4.50 %N/A
Weighted average assumptions used to determine net periodic benefit costs for the years ended December 31, 2022, 2021 and 2020 were as follows:
 202220212020
  U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S.
Discount rate2.84 %2.39 %2.48 %1.63 %3.28 %2.33 %
Expected return on plan assets3.50 %2.15 %5.50 %2.48 %5.75 %3.73 %
Rate of compensation increaseN/A2.39 %N/A1.99 %N/A3.99 %
To develop the expected return on plan assets assumption, the Company considered the historical returns and the future expected returns for each asset class, as well as the target asset allocation of the pension portfolio. As the U.S. plans are frozen, the rate of compensation increase was not applicable in determining net periodic benefit cost.
Plan Assets
The goals and investment objectives of the asset strategy are to ensure that there is an adequate level of assets to meet benefit obligations to participants and retirees over the life of the participants and maintain liquidity in the plan assets sufficient to cover monthly benefit obligations. Risk is managed by investing in a broad range of investment vehicles, e.g., equity mutual funds, bond mutual funds, real estate mutual funds, hedge funds, etc. There are no equity securities of the Company in the equity asset category.
Investments in equity securities and debt securities are valued at fair value using a market approach and observable inputs, such as quoted market prices in active markets (Level 1). Investments in balanced funds are valued at fair value using a market approach and inputs that are primarily directly or indirectly observable (Level 2). Investments in equity securities and balanced funds in which the Company holds participation units in a fund, the net asset value of which is based on the underlying assets and liabilities of the respective fund, are considered an unobservable input (Level 3). Investments in real estate funds are primarily valued at net asset value depending on the investment.
The fair value of the Company’s pension plan assets by category using the three-level hierarchy (see Note 11. “Fair Value Measurements and Financial Instruments”) as of December 31, 2022 and 2021 was as follows:
2022Level 1Level 2
Assets measured at NAV (1)
Total
Equity funds$5,661 $7,418 $— $13,079 
Equity funds measured at net asset value— — 5,638 5,638 
Bond funds— 25,098 — 25,098 
Bond funds measured at net asset value— — 173,092 173,092 
Real estate measured at net asset value— — 10,331 10,331 
Cash and cash equivalents2,007 — — 2,007 
Total$7,668 $32,516 $189,061 $229,245 
2021Level 1Level 2
Assets measured at NAV (1)
Total
Equity funds$1,231 $11,586 $— $12,817 
Equity funds measured at net asset value— — 41,032 41,032 
Bond funds— 36,133 — 36,133 
Bond funds measured at net asset value— — 210,492 210,492 
Real estate measured at net asset value— — 11,270 11,270 
Cash and cash equivalents9,751 — — 9,751 
Total$10,982 $47,719 $262,794 $321,495 
(1) Certain assets that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. These assets are included in this table to present total pension plan assets at fair value.
There were no transfers of Level 3 assets and no Level 3 assets in the ending balance for the years ended December 31, 2021 and December 31, 2020.
Expected Future Benefit Payments
The Company estimates its benefit payments for domestic and foreign pension plans during the next ten years to be as follows: 
Years Ending December 31, U.S. Non-U.S. Total
2023$81,213 $5,901 $87,114 
2024133,186 6,277 139,463 
20251,001 7,047 8,048 
2026982 7,800 8,782 
2027960 8,488 9,448 
2028 - 20324,404 45,844 50,248 
As previously noted, as part of the planned termination of the U.S. Pension Plan, the Company expects to settle benefit obligations under the U.S. Pension Plan through a combination of lump sum payments to eligible participants and the purchase of a group annuity contract. These expected payments and group annuity purchase are reflected in the table above during the years 2023 and 2024.
Contributions
The Company estimates it will make minimum funding cash contributions of approximately $1,000 to its U.S. pension plans and minimum funding cash contributions of approximately $4,400 to its non-U.S. pension plans in 2023.