Retirement Plans

6 Months Ended

Jun. 30, 2020

Retirement Benefits [Abstract]

Retirement Plans

NOTE 6 – Retirement Plans

Pension Plans

Net pension expense for our domestic and foreign plans included in other income (expense) in the Condensed Consolidated Statement of Earnings is as follows:

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
	2020		2019		2020		2019
Net pension expense	$	666	$	249	$	1,330	$	499

The components of net pension expense for our domestic and foreign plans include the following: 

	Domestic Pension Plans						Foreign Pension Plans
	Three Months Ended						Three Months Ended
	June 30,			June 30,			June 30,			June 30,
	2020			2019			2020			2019
Service cost	$	—		$	—		$	8		$	9
Interest cost	1,443			1,931			6			7
Expected return on plan assets(1)	(2,454		)	(3,047		)	(3		)	(4		)
Amortization of loss	1,622			1,311			44			42
Total expense, net	$	611		$	195		$	55		$	54

 

(1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses.

	Domestic Pension Plans						Foreign Pension Plans
	Six Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2020			2019			2020			2019
Service cost	$	—		$	—		$	15		$	18
Interest cost	2,886			3,862			13			15
Expected return on plan assets(1)	(4,908		)	(6,094		)	(7		)	(9		)
Amortization of loss	3,244			2,623			87			84
Total expense, net	$	1,222		$	391		$	108		$	108

(1) Expected return on plan assets is net of expected investment expenses and certain administrative expenses.

In February 2020, the CTS Board of Directors authorized management to explore termination of our U.S. based pension plan ("Plan") at management's discretion, subject to certain conditions. On June 1, 2020, we entered into the Fifth Amendment to the Plan whereby we set an effective termination date of July 31, 2020. The Plan termination process is expected to take twelve to eighteen months and requires certain approvals from both the Internal Revenue Service and Pension Benefit Guaranty Corporation. Once we receive such approvals, an insurance company will be selected to purchase annuities and fulfill the obligations of the Plan including administering payments to participants. Upon settlement of the pension liabilities, we will reclassify the related pension losses currently recorded in accumulated other comprehensive loss into earnings.  We do not expect any cash contributions from the Company to the Plan as a result of this termination because plan assets exceed estimated liabilities.

Other Post-retirement Benefit Plan

Net post-retirement expense for our other post-retirement plan includes the following components:

	Three Months Ended						Six Months Ended
	June 30,			June 30,			June 30,			June 30,
	2020			2019			2020			2019
Service cost	$	—		$	1		$	—		$	1
Interest cost	30			43			60			85
Amortization of gain	(21		)	(42		)	(42		)	(83		)
Total expense, net	$	9		$	2		$	18		$	3