Benefit Plans (Tables)
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12 Months Ended |
Dec. 31, 2023 |
Retirement Benefits [Abstract] |
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Summary of Liability under Executive Benefit Plans |
The liability under these two deferral plans was as follows: | | | | | | | | | | | | | | | (in thousands) | | December 31, 2023 | | December 31, 2022 | Current liabilities | | $ | 7,805 | | | $ | 8,147 | | Noncurrent liabilities | | 82,458 | | | 74,976 | | Total liability - Supplemental Savings Incentive Plan and Director Deferral Plan | | $ | 90,263 | | | $ | 83,123 | |
The liability under this plan was as follows: | | | | | | | | | | | | | | | (in thousands) | | December 31, 2023 | | December 31, 2022 | Current liabilities | | $ | 219 | | | $ | 173 | | Noncurrent liabilities | | 10,633 | | | 7,249 | | Total liability - Long-Term Retention Plan | | $ | 10,852 | | | $ | 7,422 | |
The liability under this plan was as follows: | | | | | | | | | | | | | | | (in thousands) | | December 31, 2023 | | December 31, 2022 | Current liabilities | | $ | 3,591 | | | $ | 3,730 | | Noncurrent liabilities | | 35,663 | | | 35,959 | | Total liability - Officer Retention Plan | | $ | 39,254 | | | $ | 39,689 | |
The liability under this plan was as follows: | | | | | | | | | | | | | | | (in thousands) | | December 31, 2023 | | December 31, 2022 | Current liabilities | | $ | 9,104 | | | $ | 7,738 | | Noncurrent liabilities | | 14,029 | | | 9,673 | | Total liability - Long-Term Performance Plan | | $ | 23,133 | | | $ | 17,411 | |
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Summary of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost |
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2023 | | 2022 | | 2021 | Service cost | | $ | — | | | $ | — | | | $ | — | | Interest cost | | 5,982 | | | 8,978 | | | 8,479 | | Expected return on plan assets | | (4,608) | | | (6,320) | | | (11,799) | | Recognized net actuarial loss | | 1,946 | | | 3,588 | | | 4,090 | | Net periodic pension cost - Primary Plan | | 3,320 | | | 6,246 | | | 770 | | Settlement expense | | 112,796 | | | — | | | — | | Total pension expense - Primary Plan | | $ | 116,116 | | | $ | 6,246 | | | $ | 770 | |
Net Periodic Pension Cost
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2023 | | 2022 | | 2021 | Service cost | | $ | 3,996 | | | $ | 6,586 | | | $ | 7,529 | | Interest cost | | 2,079 | | | 1,664 | | | 1,367 | | Expected return on plan assets | | (2,438) | | | (1,823) | | | (1,201) | | Recognized net actuarial loss | | — | | | 402 | | | 864 | | Amortization of prior service costs | | 16 | | | — | | | 3 | | Net periodic pension cost - Bargaining Plan | | $ | 3,653 | | | $ | 6,829 | | | $ | 8,562 | |
Net Periodic Postretirement Benefit Cost
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2023 | | 2022 | | 2021 | Service cost | | $ | 1,085 | | | $ | 1,458 | | | $ | 1,516 | | Interest cost | | 2,761 | | | 1,923 | | | 1,772 | | Recognized net actuarial loss | | — | | | 444 | | | 682 | | Net periodic postretirement benefit cost | | $ | 3,846 | | | $ | 3,825 | | | $ | 3,970 | |
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Summary of Changes in Projected Benefit Obligation |
The following tables set forth pertinent information for the Bargaining Plan:
| | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2023 | | 2022 | Beginning balance - Bargaining Plan projected benefit obligation | | $ | 39,177 | | | $ | 50,427 | | Service cost | | 3,996 | | | 6,586 | | Interest cost | | 2,079 | | | 1,664 | | Plan amendments | | 5 | | | 154 | | Actuarial loss (gain) | | 1,652 | | | (19,012) | | Benefits paid | | (786) | | | (642) | | Ending balance - Bargaining Plan projected benefit obligation | | $ | 46,123 | | | $ | 39,177 | |
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Summary of Change in Plan Assets |
Change in Plan Assets
| | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2023 | | 2022 | Beginning balance - Bargaining Plan assets at fair value | | $ | 38,635 | | | $ | 36,944 | | Actual return on plan assets | | 5,495 | | | (9,314) | | Employer contributions | | 4,300 | | | 12,000 | | Benefits and expenses paid | | (1,109) | | | (995) | | Ending balance - Bargaining Plan assets at fair value | | $ | 47,321 | | | $ | 38,635 | |
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Summary of Funded Status |
Funded Status
| | | | | | | | | | | | | | | (in thousands) | | December 31, 2023 | | December 31, 2022 | Projected benefit obligation | | $ | (46,123) | | | $ | (39,177) | | Plan assets at fair value | | 47,321 | | | 38,635 | | Net funded status - Bargaining Plan | | $ | 1,198 | | | $ | (542) | |
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Summary of Amounts Recognized in the Consolidated Balance Sheet |
Amounts Recognized in the Consolidated Balance Sheets
| | | | | | | | | | | | | | | (in thousands) | | December 31, 2023 | | December 31, 2022 | Liabilities: | | | | | Current liabilities | | $ | — | | | $ | — | | Noncurrent liabilities | | — | | | (542) | | Total liability - Bargaining Plan | | $ | — | | | $ | (542) | | | | | | | Assets: | | | | | Noncurrent assets | | $ | 1,198 | | | $ | — | | Total asset - Bargaining Plan | | $ | 1,198 | | | $ | — | |
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Summary of Significant Assumptions |
Significant Assumptions
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | | | 2023 | | 2022 | | 2021 | Projected benefit obligation at the measurement date: | | | | | | | Discount rate - Bargaining Plan | | 5.16 | % | | 5.34 | % | | 3.31 | % | Weighted average rate of compensation increase | | N/A | | N/A | | N/A | Net periodic pension cost for the fiscal year: | | | | | | | Discount rate - Bargaining Plan | | 5.34 | % | | 3.31 | % | | 3.12 | % | Weighted average expected long-term rate of return of plan assets - Bargaining Plan(1) | | 7.00 | % | | 5.50 | % | | 5.75 | % | Weighted average rate of compensation increase | | N/A | | N/A | | N/A |
(1)The weighted average expected long-term rate of return assumption for the Bargaining Plan assets, which was used to compute net periodic pension cost, is based upon target asset allocation and is determined using forward-looking performance and duration assumptions set at the beginning of each fiscal year.
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Summary of Anticipated Future Pension and Postretirement Benefit Payments |
Cash Flows
The anticipated future pension benefit payments as of December 31, 2023 were as follows:
| | | | | | | | | (in thousands) | | Anticipated Future Payment | 2024 | | $ | 1,059 | | 2025 | | 1,248 | | 2026 | | 1,471 | | 2027 | | 1,710 | | 2028 | | 1,941 | | 2029 - 2033 | | 13,335 | |
Cash Flows
The anticipated future postretirement benefit payments reflecting expected future service as of December 31, 2023 were as follows:
| | | | | | | | | (in thousands) | | Anticipated Future Payment | 2024 | | $ | 3,214 | | 2025 | | 3,530 | | 2026 | | 3,954 | | 2027 | | 4,427 | | 2028 | | 4,738 | | 2029 - 2033 | | 24,857 | |
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Summary of Target Asset Allocation, Actual Asset Allocation, and Weighted Average Expected Long-Term Rate of Return and Summary of Pension Plan Assets |
The Company’s actual asset allocation at December 31, 2023 and December 31, 2022 and target asset allocation for 2024 by asset category for the Bargaining Plan were as follows:
| | | | | | | | | | | | | | | | | | | | | | | Percentage of Bargaining Plan Assets at Fiscal Year-End | | Target Asset Allocation | | | 2023 | | 2022 | | 2024 | U.S. debt securities | | 55 | % | | 56 | % | | 40 | % | U.S. equity securities | | 33 | % | | 32 | % | | 46 | % | International debt securities | | 1 | % | | 2 | % | | — | % | International equity securities | | 10 | % | | 10 | % | | 12 | % | Cash and cash equivalents | | 1 | % | | — | % | | 2 | % | Total | | 100 | % | | 100 | % | | 100 | % |
The following table summarizes the Company’s pension plan assets, which are classified as Level 1 and Level 2 for fair value measurement. As of December 31, 2023, the below values include Bargaining Plan assets only, as there were no remaining Primary Plan assets after the termination of the plan. As of December 31, 2022, the below values include both Bargaining Plan and Primary Plan assets. The Company does not have any Level 3 pension plan assets. See Note 15 for additional information.
| | | | | | | | | | | | | | | (in thousands) | | December 31, 2023 | | December 31, 2022 | Pension plan assets - fixed income | | $ | 26,543 | | | $ | 232,578 | | Pension plan assets - equity securities | | 20,550 | | | 16,194 | | Pension plan assets - cash and cash equivalents | | 228 | | | 13,170 | | Total pension plan assets | | $ | 47,321 | | | $ | 261,942 | |
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Summary of Reconciliation of Activity in Postretirement Benefit Plan |
The following tables set forth pertinent information for the Company’s postretirement benefit plan:
Reconciliation of Activity
| | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2023 | | 2022 | Benefit obligation at beginning of year | | $ | 55,299 | | | $ | 65,156 | | Service cost | | 1,085 | | | 1,458 | | Interest cost | | 2,761 | | | 1,923 | | Plan participants’ contributions | | 767 | | | 657 | | Actuarial loss (gain) | | 7,986 | | | (10,138) | | Benefits paid | | (4,070) | | | (3,757) | | Benefit obligation at end of year | | $ | 63,828 | | | $ | 55,299 | |
The decrease in the discount rate for the postretirement benefit plan, as compared to the previous year, was the primary driver of the actuarial loss in 2023. The increase in the discount rate for the postretirement benefit plan, as compared to the previous year, was the primary driver of the actuarial gain in 2022. The actuarial loss (gain), net of tax, was recorded in accumulated other comprehensive loss in the consolidated balance sheets.
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Summary of Reconciliation of Plan Assets Fair Value in Postretirement Benefit Plan |
Reconciliation of Plan Assets Fair Value
| | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2023 | | 2022 | Fair value of plan assets at beginning of year | | $ | — | | | $ | — | | Employer contributions | | 3,303 | | | 3,100 | | Plan participants’ contributions | | 767 | | | 657 | | Benefits paid | | (4,070) | | | (3,757) | | Fair value of plan assets at end of year | | $ | — | | | $ | — | |
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Summary of Funded Status in Postretirement Benefit Plan |
Funded Status
| | | | | | | | | | | | | | | (in thousands) | | December 31, 2023 | | December 31, 2022 | Current liabilities | | $ | (3,214) | | | $ | (3,177) | | Noncurrent liabilities | | (60,614) | | | (52,122) | | Total liability - postretirement benefits | | $ | (63,828) | | | $ | (55,299) | |
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Summary of Significant Assumptions |
Significant Assumptions
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | | | 2023 | | 2022 | | 2021 | Benefit obligation at the measurement date: | | | | | | | Weighted average healthcare cost trend rate - Pre-Medicare | | 7.88 | % | | 6.58 | % | | 6.04 | % | Weighted average healthcare cost trend rate - Post-Medicare | | 8.65 | % | | 6.89 | % | | 6.29 | % | Benefit obligation discount rate | | 5.02 | % | | 5.19 | % | | 2.98 | % | Net periodic postretirement benefit cost discount rate for fiscal year | | 5.19 | % | | 2.98 | % | | 2.70 | % | | | | | | | | Postretirement benefit expense - Pre-Medicare: | | | | | | | Weighted average healthcare cost trend rate | | 6.58 | % | | 6.04 | % | | 6.26 | % | Trend rate graded down to ultimate rate | | 4.50 | % | | 4.50 | % | | 4.50 | % | Ultimate rate year | | 2032 | | 2029 | | 2029 | | | | | | | | Postretirement benefit expense - Post-Medicare: | | | | | | | Weighted average healthcare cost trend rate | | 6.89 | % | | 6.29 | % | | 6.54 | % | Trend rate graded down to ultimate rate | | 4.50 | % | | 4.50 | % | | 4.50 | % | Ultimate rate year | | 2032 | | 2029 | | 2029 |
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Summary of Reconciliation of Amounts in Accumulated Other Comprehensive Loss That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost |
A reconciliation of the gross amounts in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost associated with the plans discussed above is as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | | December 31, 2022 | | Actuarial Gain (Loss) | | Reclassification Adjustments | | December 31, 2023 | Pension Plans: | | | | | | | | | Actuarial loss | | $ | (117,560) | | | $ | 3,036 | | | $ | 1,946 | | | $ | (112,578) | | Prior service costs | | (158) | | | (5) | | | 16 | | | (147) | | Pension plan settlement | | — | | | — | | | 112,796 | | | 112,796 | | Postretirement Medical: | | | | | | | | | Actuarial gain (loss) | | 770 | | | (7,986) | | | — | | | (7,216) | | Total within accumulated other comprehensive loss | | $ | (116,948) | | | $ | (4,955) | | | $ | 114,758 | | | $ | (7,145) | |
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Summary of Multiemployer Plans |
The Company’s participation in the Teamsters Plan is outlined in the table below. A red zone represents less than 80% funding and requires a financial improvement plan (“FIP”) or rehabilitation plan (“RP”).
| | | | | | | | | | | | | | | | | | | | | | | Fiscal Year | (in thousands) | | 2023 | | 2022 | | 2021 | Pension Protection Act Zone Status | | Red | | Red | | Red | FIP or RP pending or implemented | | Yes | | Yes | | Yes | Surcharge imposed | | Yes | | Yes | | Yes | Contribution | | $ | 999 | | | $ | 959 | | | $ | 933 | |
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