Substantially all employees in the U.S. are covered by a defined contribution 401(k) retirement plan. The tax qualified defined contribution plan is maintained, and contributions are made, in accordance with the Employee Retirement Income Security Act of 1974, as amended ("ERISA"). The Company also provides certain eligible executives benefits pursuant to its Benefit Restoration Plan ("BRP") equal to amounts that would have been available under the tax qualified ERISA plan, but were subject to the limitations of ERISA, tax laws and regulations. Company expenses for these plans, a portion of which are discretionary, are recorded in both cost of goods sold and selling, general and administrative expenses, and totaled $47.0 million, $37.3 million and $32.9 million for 2021, 2020 and 2019, respectively.

The deferred compensation liability under the BRP was $51.2 million and $47.0 million at August 31, 2021 and 2020, respectively, with $45.4 million and $40.6 million, respectively, included in other long-term liabilities on the Company's consolidated balance sheets. At August 31, 2021 and 2020, $5.8 million and $6.4 million, respectively, of the deferred

compensation liability related to the BRP was included in accrued expenses and other payables on the Company's consolidated balance sheets. Though under no obligation to fund the BRP, the Company has segregated assets in a trust with a value of $69.4 million and $60.8 million at August 31, 2021 and 2020, respectively, and such assets were included in other noncurrent assets on the Company's consolidated balance sheets. The net holding gain on these segregated assets was $10.1 million, $6.0 million and $3.3 million for 2021, 2020 and 2019, respectively, and was included in net sales in the Company's consolidated statements of earnings.

In 2019, the Company acquired a partially funded defined benefit pension plan, from Gerdau S.A., (the "Plan") as part of the Acquisition. Upon closing of the Acquisition, the excess of projected Plan benefit obligations over the Plan assets was recognized as a liability and previously existing deferred actuarial gains and losses and unrecognized service costs or benefits were eliminated. Pension benefits associated with the Plan are generally based on each participant’s years of service, compensation and age at retirement or termination. The Plan was closed to new participants prior to the Acquisition.

As a result of the closure of the Rancho Cucamonga facility, the Company recorded pension curtailment loss and special termination benefits of $3.2 million in 2020 and no such expense in 2021. For further details, refer to Note 2, Changes in Business.

The following tables include a reconciliation of the beginning and ending balances of pension benefit obligation and the fair value of Plan assets and the related amounts recognized in the Company’s consolidated balance sheets as of August 31, 2021 and 2020:


(in thousands)	2021		2020
Benefit obligation at beginning of year	$	36,130	$	31,661

Service cost	—		335
Interest cost	724		892
Curtailment loss	—		1,314
Special termination benefits	—		1,918
Actuarial (gain) loss	(1,557)		1,280
Benefits paid	(1,610)		(1,270)
Benefit obligation at end of year	$	33,687	$	36,130

Fair value of Plan assets at beginning of year	$	29,201	$	23,435

Actual return on Plan assets	4,042		2,248
Administrative expenses	(52)		(496)
Employer contributions	2,545		5,284
Benefits paid	(1,610)		(1,270)
Fair value of Plan assets at end of year	34,126		29,201
Funded status at end of year (net asset (liability) recognized in the consolidated balance sheets as of August 31,)	$	439	$	(6,929)

Amounts recognized in accumulated other comprehensive income as of August 31,
Net actuarial (gain) loss	$	(1,110)	$	3,234

Weighted average assumptions used to determine benefit obligations as of August 31, 2021 and 2020 are detailed below:


	2021		2020
Effective discount rate for benefit obligations	2.9	%	2.8	%
Expected long-term rate of return on Plan assets	4.8	%	5.0	%

The pension accumulated benefit obligation represents the actuarial present value of benefits based on employee service and compensation as of the measurement date and does not include an assumption about future compensation levels.

earnings and other components of net periodic benefit costs are recorded in selling, general and administrative expenses within the consolidated statements of earnings. Components of net periodic benefit cost and other supplemental information are detailed below:


	Year Ended August 31,
(in thousands)	2021		2020		2019
Service cost	$	—	$	335	$	354
Expected administrative expenses	290		450		250
Interest cost	724		892		926
Expected return on Plan assets	(1,493)		(1,334)		(1,008)
Special termination benefits	—		1,918		—
Settlements, curtailments and other	—		1,314		—
Total net periodic benefit (gain) cost	$	(479)	$	3,575	$	522

Other changes in Plan assets and benefit obligations recognized in other comprehensive income
Net actuarial (gain) loss arising during measurement period	$	(4,344)	$	3,642	$	2,823
Amortization of net actuarial gain	—		(3,232)		—
Total recognized in other comprehensive income	$	(4,344)	$	410	$	2,823


	2021		2020(1)		2019
Effective rate for interest on benefit obligations	2.1	%	2.8	%	4.3	%
Effective rate for service cost	N/A		3.3	%	4.7	%
Expected long-term rate of return	5.0	%	6.0	%	6.0	%

(1)Certain weighted average assumptions used to determine net periodic benefit cost for 2020 were remeasured at an interim date. This remeasurement resulted in an effective rate for interest on benefit obligations of 2.9% and an effective rate for service cost of 3.5%.

The Company determines the discount rate used to measure liabilities as of the August 31 measurement date for the Plan, which is also the date used for the related annual measurement assumptions. The discount rate reflects the current rate at which the associated liabilities could be effectively settled at the end of the year. The Company sets its rate to reflect the yield of a portfolio of high quality corporate bonds that would produce cash flows sufficient in timing and amount to settle projected future benefits.

The Company measures service cost and interest cost separately using the full yield curve approach applied to each corresponding obligation. Service costs are determined based on duration-specific spot rates applied to the service cost cash flows. The interest cost calculation is determined by applying duration-specific spot rates to the year-by-year projected benefit payments. The full yield curve approach does not affect the measurement of the total benefit obligations.

Plan assets consist primarily of public equity, corporate and government bonds. The principal investment objectives are to maximize total return without assuming undue risk exposure. Each asset class has broadly diversified characteristics. Asset and benefit obligation forecasting studies are conducted periodically, generally every two to three years, or when significant changes have occurred in market conditions, benefits, participant demographics or funded status.

The Plan's weighted average asset targets and actual allocations as a percentage of Plan assets, including the notional exposure of future contracts by asset categories, are detailed below:


	Pension Assets
	Target Percent			2021	2020
Fixed income securities	60%	—	65%	64.1%	48.1%
Equity securities:
Domestic	15.0	—	20.0	18.5	26.9
International	5.0	—	10.0	9.1	13.1
Mutual funds	5.0	—	10.0	6.5	10.1
Cash and other	—	—	5.0	1.8	1.8
Total				100.0%	100.0%

Purchases and sales of securities are recorded as of the trade date. Realized gains and losses on sales of securities are determined based on average cost. Interest income is recognized on the accrual basis. Dividend income is recognized on the ex-dividend date.

The following table sets forth the Plan assets by asset class as of August 31, 2021 and 2020. All securities are traded on a national securities exchange and therefore are Level 1 assets in the fair value hierarchy.


	Fair Value at Measurement Date
(in thousands)	August 31, 2021		August 31, 2020
Fixed income securities	$	21,890	$	14,084
Equity securities:
Domestic	6,317		7,849
International	3,094		3,816
Mutual funds	2,230		2,937
Total equity securities	11,641		14,602
Cash and other	595		515
Fair value of Plan assets	$	34,126	$	29,201

The following table provides the estimated pension benefit payments that are payable from the Plan to participants in future years:


Year Ended August 31,	(in thousands)
2022	$	1,723
2023	1,736
2024	1,746
2025	1,733
2026	1,717
2027 through 2031	8,581