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EMPLOYEE BENEFIT PLANS
12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
Multi-employer Defined Benefit Plans

The Company participates in and contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of its union-represented employees. The risks of participating in these multi-employer plans are different from single-employer plans in the following aspects:
a.Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.
b.If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
c.If the Company chooses to stop participating in some of its multi-employer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
The following table outlines the Company’s participation in multi-employer pension plans for the years ended December 31, 2021, 2020 and 2019 and sets forth the calendar year contributions and accruals for each plan. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The most recent Pension Protection Act zone status available in 2021 and 2020 relates to the plans’ two most recent fiscal year-ends. The zone status is based on information that the Company received from the plans’ administrators and is certified by each plan’s actuary. Plans certified in the red zone are generally less than 65% funded, plans certified in the orange zone are both less than 80% funded and have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans certified in the yellow zone are less than 80% funded and plans certified in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a financial improvement plan (“FIP”) for yellow/orange zone plans, or a rehabilitation plan (“RP”) for red zone plans, is either pending or has been implemented. As of December 31, 2021 and 2020, all plans that have either a FIP or RP requirement have had the respective plan implemented.
 EIN/ Pension
Plan Number
Pension Protection Act
Zone Status
FIP/RP Status
Pending/
Implemented
Contributions and Accruals (in $000’s)
Company
Contributions > 5%
Union
Contract
Expires
Pension Fund20212020202120202019
SEIU National Industry Pension Fund52-6148540RedRedYes/Implemented$460 $366 $910 No4/30/2022
New England Carpenters Pension Fund(1)
51-6040899GreenGreenNo75 91 121 No5/31/2024
Plumbers and Pipefitters Pension Fund52-6152779YellowYellowYes/Implemented175 171 299 No8/31/2022
Rhode Island Laborers Pension Fund51-6095806GreenGreenNo671 483 785 No10/31/2022
New England Teamsters Pension Fund04-6372430RedRedYes/Implemented254 230 361 No6/30/2023
The Legacy Plan of the UNITE HERE Retirement Fund(3)
82-0994119/001RedRedYes/Implemented1,319 578 936 No6/30/2022
The Adjustable Plan of the UNITE HERE Retirement Fund(3)
82-0994119/002
N/A(2)
N/A(2)
No5/31/2022
Local 68 Engineers Union Pension Fund51-0176618RedRedYes/Implemented269 22 — No6/30/2022
Northeast Carpenters Pension Fund11-1991772GreenGreenNo122 10 — No4/30/2022
International Painters and Allied Trades Industry Pension Fund52-6073909RedRedYes/Implemented80 — No4/30/2022
Total Contributions$3,425 $1,956 $3,412   
__________________________________
(1)Effective January 1, 2018, the Rhode Island Carpenters Pension Fund (05-6016572) merged into the New England Carpenters Pension Fund.
(2)The Plan is not subject to the Pension Protection Act of 2016 zone status certification rule.
(3)Formerly listed as Hotel & Restaurant Employees International Pension Fund - Allocations of contributions between the two plans are determined by the plan administrator. Unions at Bally’s Twin River and Bally’s Atlantic City participate in the UNITE HERE Retirement funds.

Contributions, based on wages paid to covered employees totaled approximately $3.4 million, $2.0 million and $3.4 million for the years ended December 31, 2021, 2020 and 2019, respectively. These aggregate contributions were not individually significant to any of the respective plans. The Company’s share of the unfunded vested liability related to its multi-employer plans, if any, other than the New England Teamsters and Trucking Industry Pension Fund discussed below, is not determinable.

Under the terms of certain collective bargaining agreements, the Company contributes to a number of multi-employer annuity funds. Contributions are made at a fixed rate per hour worked, in accordance with the collective bargaining agreements. These plans are not subject to the withdrawal liability provisions applicable to multi-employer defined benefit pension plans. Contributions made to these plans by the Company were $2.5 million, $1.2 million and $2.6 million for the years ended December 31, 2021, 2020 and 2019, respectively.

Dover Downs Defined Benefit Pension Plans

The Company acquired two defined pension plans with the acquisition of Dover Downs on March 28, 2019, the Dover Downs Gaming & Entertainment, Inc. Pension Plan (“Dover Downs Pension Plan”) and the Dover Downs Gaming & Entertainment, Inc Excess Pension Plan, which was settled as of March 31, 2019. The acquisition resulted in a revaluation of the benefit pension plan obligation as of the acquisition date.

Dover Downs Pension Plan

Dover Downs maintained the Dover Downs Pension Plan, a non-contributory, tax qualified defined benefit pension plan that has been frozen since July 2011. All full-time employees and part-time employees who worked over 1,000 hours per year were eligible to participate in the Dover Downs Pension Plan. Benefits provided by the qualified pension plan were based on years of service and employees’ remuneration over their term of employment. Compensation earned by employees up to July 31, 2011 is used for purposes of calculating benefits under the Dover Downs Pension Plan with no future benefit accruals after this date. 
For the defined benefit pension plan, the accumulated benefit obligation is equal to the projected benefit obligation. The following tables present the benefit obligation, fair value of plan assets and funded status of the plan:
Year Ended December 31,
(in thousands)202120202019
Changes in Benefit Obligation
Beginning benefit obligation$30,935 $27,849 $24,067 
Interest cost760 897 666 
Actuarial (gain) loss(1,967)3,069 3,588 
Benefits paid(921)(880)(472)
Benefit obligation at end of year$28,807 $30,935 $27,849 
Changes in Plan Assets
Beginning fair value of plan assets$21,721 $19,162 $17,454 
Actual return on plan assets2,690 2,653 1,815 
Employer contributions670 786 365 
Benefits paid(921)(880)(472)
Fair value of plan assets at end of year$24,160 $21,721 $19,162 
Unfunded status at end of year$(4,647)$(9,214)$(8,687)

Net periodic benefit (income) cost and other changes in plan assets and benefit obligations recognized consist of the following:
Year Ended December 31,
(in thousands)202120202019
Net Periodic Benefit (Income) Cost
Interest cost$760 $897 $666 
Expected return on plan assets(1,618)(1,428)(967)
Amortization of net loss104 — — 
Net periodic benefit income$(754)$(531)$(301)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income
Net actuarial (gain) loss$(3,144)$1,844 $2,740 
Total (income) expense recognized in other comprehensive loss$(3,144)$1,844 $2,740 
Total (income) expense recognized in net periodic benefit cost (income) and other comprehensive loss$(3,898)$1,313 $2,439 

No estimated net actuarial gain is expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost for the Dover Downs Pension Plan for the year ending December 31, 2022.

Amounts recognized in the consolidated balance sheets as of December 31, 2021 and 2020 consist of non-current liabilities of $4.6 million and $9.2 million, respectively.
The principal assumptions used to determine net periodic pension benefit cost and benefit obligation under the Dover Downs Pension Plan consist of the following:
Year Ended December 31,
202120202019
Benefit obligation assumptions:
Discount rate2.86 %2.55 %3.28 %
Net periodic benefit cost assumptions:
Discount rate2.55 %3.28 %4.05 %
Expected return on plan assets7.5 %7.5 %7.5 %
Average future years of service8.98.9n/a

The Company utilizes a spot rate approach to determine the benefit obligation and the subsequent years’ interest cost component of the net periodic pension benefit. This method uses individual spot rates along the yield curve that correspond with the timing of each benefit payment and will provide a more precise measurement of the interest cost by improving the correlation between projected benefit cash flows and the corresponding spot yield curve rates. The Society of Actuaries’ RP 2014 Total Employee and Healthy Annuitant Mortality Tables rolled back to 2006 and projected with Mortality Improvement Scale MP-2018 are also utilized.

For 2021, the assumed long-term rate of return on plan assets is 7.5%. In developing the expected long-term rate of return assumption, the Company reviewed asset class return expectations and long-term inflation assumptions and considered its historical compounded return, which was consistent with its long-term rate of return assumption.

The Company’s investment goals for the Dover Downs Pension Plan assets are to achieve a combination of moderate growth of capital and income with moderate risk. Acceptable investment vehicles will include mutual funds, exchange-traded funds (“ETFs”), limited partnerships and individual securities. Target allocations for plan assets are 60% equities and 40% fixed income. Of the equity portion, approximately 50% will be targeted to be invested in passively managed securities using ETFs and the other approximately 50% will be targeted to be invested in actively managed investment vehicles. Diversification is addressed by investing in mutual funds and ETFs which hold large-, middle- and small-capitalization US stocks, international (non-US) equities and emerging markets. A percentage of the investments are readily marketable in order to be available to fund benefit payment obligations as they become payable.

The asset allocation targets and the actual allocation of pension assets in the Dover Downs Pension Plan as of December 31, 2021 are as follows:
Asset CategoryTargetDecember 31, 2021
Equity Securities60 %67 %
Debt Securities40 %29 %
Other— %%
   Total100 %100 %

The fair values of pension assets in the Dover Downs Pension Plan as of December 31, 2021 by asset category are as follows:
(in thousands)
Asset CategoryTotalLevel 1Level 2Level 3
Mutual funds/ETFs:
Equity-large cap$10,001 $10,001 $— $— 
Equity-mid cap1,453 1,453 — — 
Equity-small cap1,333 1,333 — — 
Equity-international3,558 3,558 — — 
Fixed income6,856 6,856 — — 
Money market959 959 — — 
Total mutual funds/ETFs$24,160 $24,160 $— $— 
There is no minimum pension contribution required to be made to the Dover Downs Pension Plan under the Employee Retirement Income Security Act of 1974, as amended in 2021. We are not expecting to contribute to the Dover Downs Pension Plan in 2022.

The estimated future benefit payments under the Dover Downs Pension Plan are as follows:
(in thousands)
Year Ending December 31,
2022$986 
20231,045 
20241,088 
20251,123 
20261,169 
2027-20316,349 

Defined Contribution Plans

The Company has a retirement savings plan under Section 401(k) of the Internal Revenue Code covering its US non-union employees and certain union employees. The plan allows employees to defer up to the lesser of the Internal Revenue Code prescribed maximum amount or 100% of their income on a pre-tax basis through contributions to the plan. Gamesys also operates defined contribution retirement benefit plans for their U.K., US, Toronto, Isle of Man and Gibraltar offices. Eligible employees are allowed to contribute between 3-5% of their base salary to the various plans and the Company matches all employee contributions. Total employer contribution expense attributable to defined contribution plans was $4.8 million, $0.7 million and $1.6 million for the years ended December 31, 2021, 2020 and 2019, respectively.