Retirement Plans

12 Months Ended

Dec. 31, 2020

Retirement Plans [Abstract]

Retirement Plans

9. Retirement Plans

The Company provides benefits under defined contribution plans including a savings plan and an employee stock ownership plan (ESOP). The savings plan covers substantially all domestic salaried and certain non-union hourly employees and provides for matching contributions up to 4% of each employee’s salary. The ESOP covers substantially all domestic employees and provides for contributions based on a percentage of each employee’s compensation as determined by the Company’s Board of Directors. Total expense for the Company’s defined contribution plans was $6.1 million in 2020 and $6.0 million in 2019 and 2018.

Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31:

(In thousands)	2020			2019
Benefit obligation at beginning of year	$	39,421		$	34,152
Service cost		1,601			1,432
Interest cost		1,022			1,273
Foreign currency exchange rate changes		690			558
Benefits paid		(1,948	)		(1,899	)
Amendments		42			-
Actuarial loss		4,803			3,905
Benefit obligation at end of year		45,631			39,421
Plan assets at beginning of year		31,776			28,299
Company contributions		1,117			1,086
Foreign currency exchange rate changes		882			968
Benefits paid		(1,948	)		(1,899	)
Actual gain on plan assets		3,849			3,322
Plan assets at end of year		35,676			31,776
Funded status	$	(9,955	)	$	(7,645	)
Accumulated benefit obligation	$	44,559		$	38,596

Amounts recognized in the Consolidated Balance Sheets at December 31:

(In thousands)	2020			2019
Accrued employee and retiree benefits	$	(19,349	)	$	(17,143	)
Other accrued expenses		(722	)		(710	)
Other assets		10,116			10,208
Net liability	$	(9,955	)	$	(7,645	)

Components of annual benefit cost:

(In thousands)	2020			2019			2018
Service cost	$	1,601		$	1,432		$	1,465
Interest cost		1,022			1,273			1,137
Expected return on plan assets		(813	)		(896	)		(896	)
Recognized actuarial loss (gain)		41			(176	)		(141	)
Settlement income		-			-			(179	)
Defined benefit expense	$	1,851		$	1,633		$	1,386

Weighted average liability assumptions as of December 31:

	2020			2019
Discount rate		1.87	%		2.69	%
Expected return on plan assets		2.17	%		2.68	%
Rate of compensation increase		0.34	%		0.34	%

Weighted average cost assumptions for the year ended December 31:

	2020			2019			2018
Discount rate		2.69	%		3.80	%		3.16	%
Expected return on plan assets		2.68	%		3.21	%		3.03	%
Rate of compensation increase		0.34	%		0.31	%		0.33	%

The aggregate amounts of benefits expected to be paid from defined benefit plans in each of the next five years subsequent to December 31, 2020, which include employees’ expected future service, are as follows: 2021, $1.6 million; 2022, $3.9 million; 2023, $1.6 million; 2024, $4.0 million; 2025, $1.7 million; and $11.7 million in total for the years 2026 through 2030.

The Company expects to contribute $1.2 million to defined benefit plans in 2021.

Amounts in accumulated other comprehensive loss at December 31 were as follows:

(In thousands)	2020		2019
Unrecognized net actuarial loss	$	2,402	$	683
Prior service cost		187		146
Total before tax effects	$	2,589	$	829

The pension adjustments, net of tax, recognized in OCI, were as follows:

(In thousands)	2020			2019			2018
Net actuarial (loss) gain arising during the period	$	(1,293	)	$	(1,091	)	$	1,257
Prior service cost		(32	)		-			(127	)
Amortization of actuarial loss (gain), included in defined benefit expense		32			(130	)		(103	)
Pension adjustment, net of tax	$	(1,293	)	$	(1,221	)	$	1,027

The investment objectives and target allocations for the Company’s pension plans related to the assets of the plans are reviewed on a regular basis. The investment objectives for the pension assets are to maximize the return on assets while maintaining an overall level of risk appropriate for a retirement fund and ensuring the availability of funds for the payment of retirement benefits. The levels of risk assumed by the pension plans are determined by market conditions, the rate of return expectations, and the liquidity requirements of each pension plan. The actual asset allocations of each pension plan are reviewed on a regular basis to ensure that they are in line with the target allocations.

The following table presents the Company’s pension plan assets by asset category as of December 31, 2020 and 2019:

	Fair Value as of December 31,		Fair Value Measurements at December 31, 2020 Using Fair Value Hierarchy						Fair Value as of December 31,		Fair Value Measurements at December 31, 2019 Using Fair Value Hierarchy
(In thousands)	2020		Level 1		Level 2		Level 3		2019		Level 1		Level 2		Level 3
Equity Funds
Domestic	$	6,565	$	6,565	$	-	$	-	$	6,003	$	6,003	$	-	$	-
International		97		-		97		-		104		-		104		-
International Fixed Income Funds		28,911		1,190		27,721		-		25,556		1,269		24,287		-
Other investments		103		76		27		-		113		79		34		-
Total assets at fair value	$	35,676	$	7,831	$	27,845	$	-	$	31,776	$	7,351	$	24,425	$	-

The Company is required to categorize pension plan assets based on the following fair value hierarchy:

Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data.

Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.