EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANSDefined Benefit Plans - As of December 31, 2022, the Company maintained two domestic pension plans and three German pension plans. The Company used a December 31, 2022 measurement date for these plans. One of the Company’s domestic pension plans covers one active management employee, while the other domestic plan covers all eligible employees. Both

domestic plans were frozen as of December 31, 2011. The two domestic and three German plans collectively comprise the ‘Pension Benefits’ disclosure caption.

Other Benefits - The Company’s other post-retirement benefit plan provides health and life insurance to domestic employees hired prior to 1992. The Company effectively capped its cost for those benefits through plan amendments made in 1992, freezing Company contributions for insurance benefits at 1991 levels for current and future beneficiaries with actuarially reduced benefits for employees who retire before age 65. The disclosures surrounding this plan are reflected in the “Other Benefits” caption.

The following table sets forth aggregated information related to the Company’s pension benefits and other postretirement benefits, including changes in the benefit obligations, changes in plan assets, funded status, amounts recognized in the balance sheet, amounts recognized in accumulated other comprehensive income, and actuarial assumptions that the Company considered in its determination of benefit obligations and plan costs.

(In millions)	Pension Benefits				Other Benefits
	2022		2021		2022		2021
Accumulated benefit obligation, end of year	$	133.2	$	171.6	$	6.0	$	7.7
Change in projected benefit obligation:
Benefit obligation, beginning of year	$	175.2	$	188.9	$	7.7	$	8.5
Service cost	0.7		0.7		—		—
Interest cost	3.3		2.7		0.1		0.1
Actuarial (gain)/loss	(32.5)		(4.3)		(1.1)		(0.1)
Settlements paid	(0.3)		—		—		—
Benefits paid	(9.7)		(10.9)		(0.7)		(0.8)
Foreign currency exchange	(1.5)		(1.9)		—		—
Benefit obligation, end of year	$	135.2	$	175.2	$	6.0	$	7.7
Change in plan assets:
Fair value of assets, beginning of year	$	143.9	$	153.3	$	—	$	—
Actual return on plan assets	(20.9)		1.3		—		—
Company contributions	0.5		0.5		0.7		0.8
Settlements paid	(0.3)		—		—		—
Benefits paid	(9.7)		(10.9)		(0.7)		(0.8)
Foreign currency exchange	(0.1)		(0.3)		—		—
Plan assets, end of year	$	113.4	$	143.9	$	—	$	—
Funded status	$	(21.8)	$	(31.3)	$	(6.0)	$	(7.7)
Amounts recognized in balance sheet:
Non current assets	$	3.6	$	1.6	$	—	$	—
Current liabilities	(0.5)		(0.5)		(0.7)		(0.7)
Non current liabilities	(24.9)		(32.4)		(5.3)		(7.0)
Net liability, end of year	$	(21.8)	$	(31.3)	$	(6.0)	$	(7.7)
Amount recognized in accumulated other comprehensive income/(loss):
Prior service cost	$	—	$	—	$	—	$	—
Net actuarial loss	40.4		47.8		(0.3)		0.6
Settlement	—		0.6		—		—
Total recognized in accumulated other comprehensive income/(loss)	$	40.4	$	48.4	$	(0.3)	$	0.6

As of December 31, 2022, the pension benefits' aggregate accumulated benefit obligation and benefit obligation in excess of plan assets was $27.9 million and $29.8 million, respectively and as of December 31, 2021, was $33.9 million and $37.5 million, respectively. As of December 31, 2022 and December 31, 2021, the aggregate fair value of plan assets related to the accumulated benefit obligation and benefit obligation was $4.4 million and $4.6 million, respectively.

The following table sets forth other changes in plan assets and benefit obligation recognized in other comprehensive income for 2022 and 2021:

(In millions)	Pension Benefits				Other Benefits
	2022		2021		2022		2021
Net actuarial (gain)/loss	$	(5.5)	$	(0.1)	$	(1.1)	$	(0.2)
Amortization of:
Net actuarial loss	(5.6)		(3.7)		(0.1)		(0.2)
Prior service credit	—		—		—		—
Settlement recognition	—		(0.6)		—		—
Deferred tax asset	3.3		1.4		0.3		0.1
Foreign currency exchange	(0.1)		(0.3)		—		—
Total recognized in other comprehensive income	$	(7.9)	$	(3.3)	$	(0.9)	$	(0.3)

The increased discount rate is the largest contributor to the net actuarial gains affecting the benefit obligation for the defined benefit pension plans.

Weighted-average assumptions used to determine domestic benefit obligations:

	Pension Benefits						Other Benefits
	2022			2021			2022		2021
Discount rate	5.15	%		2.68	%		5.08	%	2.57	%
Rate of increase in future compensation	—	%	*	—	%	*	2.00 - 9.00% (Graded)		2.00 - 9.00% (Graded)

*No rate of increases in future compensation were used in the assumptions for 2022 and 2021, as the cash balance component of the domestic Pension Plan was frozen and the other domestic Pension Plan components do not base benefits on compensation. The weighted-average interest crediting rate of the cash balance component of the domestic Pension Plan was 4.5 percent for 2022, 2021, and 2020 and is based on the approximate 30-year Treasury rate as of November of the prior year with a minimum of 4.5 percent.

Assumptions used to determine domestic periodic benefit cost:

	Pension Benefits									Other Benefits
	2022			2021			2020			2022		2021		2020
Discount rate	2.79	%		2.41	%		3.17	%		2.57	%	2.12	%	2.99	%
Rate of increase in future compensation	—	%	*	—	%	*	—	%	*	2.00 - 9.00% (Graded)		2.00 - 9.00% (Graded)		2.00 - 9.00% (Graded)
Expected long-term rate of return on plan assets	4.50	%		4.00	%		4.90	%		—	%	—	%	—	%

*No rate of increases in future compensation were used in the assumptions for 2022, 2021, and 2020, as the cash balance component of the domestic Pension Plan was frozen and the other domestic Pension Plan components do not base benefits on compensation.

For the year ended December 31, 2022, the Company used the PRI-2012 aggregate mortality table, and then projected forward from 2012 using Scale MP-2021 released by the Society of Actuaries during 2021 to estimate future mortality rates based upon current data. For the year ended December 31, 2021, the Company used the PRI-2012 aggregate mortality table, and then projected forward from 2012 using Scale MP-2020 released by the Society of Actuaries during 2020 to estimate future mortality rates based upon current data.

The following table sets forth the aggregated net periodic benefit cost for all defined benefit plans for 2022, 2021, and 2020:

(In millions)	Pension Benefits						Other Benefits
	2022		2021		2020		2022		2021		2020
Service cost	$	0.7	$	0.7	$	0.7	$	—	$	—	$	—
Interest cost	3.3		2.7		4.3		0.1		0.1		0.2
Expected return on assets	(6.1)		(5.5)		(6.8)		—		—		—
Amortization of:
Transition obligation	—		—		—		—		—		—
Settlement cost	—		—		—		—		—		—
Prior service cost	—		—		—		—		—		—
Actuarial loss	5.6		4.3		3.7		0.1		0.2		0.1
Settlement cost	—		—		—		—		—		—
Net periodic benefit cost	$	3.5	$	2.2	$	1.9	$	0.2	$	0.3	$	0.3

The Company consults with a third party investment manager for the assets of the funded domestic defined benefit plan. The plan assets are currently invested primarily in pooled funds, where each fund in turn is composed of mutual funds that have at least daily net asset valuations. Thus, the Company’s funded domestic defined benefit plan assets are invested in a “fund of funds” approach.

The Company’s Board has delegated oversight and guidance to an appointed Employee Benefits Committee. The Committee has the tasks of reviewing plan performance and asset allocation, ensuring plan compliance with applicable laws, establishing plan policies, procedures, and controls, monitoring expenses, and other related activities.

The plan’s investment policies and strategies focus on the ability to fund benefit obligations as they come due. Considerations include the plan’s current funded level, plan design, benefit payment assumptions, funding regulations, impact of potentially volatile business results on the Company’s ability to make certain levels of contributions, and interest rate and asset return volatility among other considerations. The Company currently attempts to maintain plan funded status at approximately 80 percent or greater pursuant to the Pension Protection Act of 2007. Given the plan’s current funded status, the Company’s cash on hand, cash historically generated from business operations, and cash available under committed credit facilities, the Company sees ample liquidity to achieve this goal.

Risk management and continuous monitoring requirements are met through monthly investment portfolio reports, quarterly Employee Benefits Committee meetings, annual valuations, asset/liability studies, and the annual assumption process focusing primarily on the return on asset assumption and the discount rate assumption. As of December 31, 2022 and December 31, 2021, funds were invested in equity, fixed income, and other investments as follows:

	Target Percentage		Plan Asset Allocation at Year-End
Asset Category	at Year-End 2022		2022		2021
Equity securities	18	%	18	%	18	%
Fixed income securities	78	%	78	%	78	%
Other	4	%	4	%	4	%
Total	100	%	100	%	100	%

The Company does not see any particular concentration of risk within the plans, nor any plan assets that pose difficulties for fair value assessment. The Company currently has no allocation to potentially illiquid or potentially difficult to value assets such as hedge funds, venture capital, private equity, and real estate.

The Company works with actuaries and consultants in making its determination of the asset rate of return assumption and also the discount rate assumption. 

Asset class assumptions are set using a combination of empirical and forward-looking analysis for long-term rate of return on plan assets. A variety of models are applied for filtering historical data and isolating the fundamental characteristics of asset

classes. These models provide empirical return estimates for each asset class, which are then reviewed and combined with a qualitative assessment of long-term relationships between asset classes before a return estimate is finalized. This provides an additional means for correcting for the effect of unrealistic or unsustainable short-term valuations or trends, opting instead for return levels and behavior that are more likely to prevail over long periods. With that, the Company has assumed an expected long-term rate of return on plan assets of 5.70 percent for the 2023 net periodic benefit cost, up from 4.50 percent in the prior year.

The Company uses the Aon Hewitt AA Above Median curve to determine the discount rate. All cash flow obligations under the plan are matched to bonds in the Aon Hewitt universe of liquid, high-quality, non-callable / non-puttable corporate bonds with outliers removed. From that matching exercise, a discount rate is determined.

The Company’s German pension plans are funded by insurance contract policies whereby the insurance company guarantees a fixed minimum return. Due to tax legislation, individual pension benefits can only be financed using direct insurance policies up to certain maximums. These maximum amounts in respect of each member are paid into such an arrangement on a yearly basis.

The Company designated all equity and most domestic fixed income plan assets as Level 1, as they are mutual funds with prices that are readily available. The U.S. Treasury securities and German plan assets are designated as Level 2 inputs. The fair value of the German plan assets are measured by the reserve that is supervised by the German Federal Financial Supervisory Authority. The U.S. Treasury securities are administered by the United States government.

The fair values of the Company’s pension plan assets for 2022 and 2021 by asset category are as follows:

(In millions)	2022		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Equity
International equity mutual funds	$	20.1	$	20.1	$	—	$	—
Fixed income
U.S. treasury and government agency securities	19.2		—		19.2		—
Fixed income mutual funds	69.0		69.0		—		—
Other
Insurance contracts	4.4		—		4.4		—
Cash and equivalents	0.7		0.7		—		—
Total	$	113.4	$	89.8	$	23.6	$	—

(In millions)	2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable  Inputs (Level 3)
Equity
International equity mutual funds	$	26.7	$	26.7	$	—	$	—
Fixed income
U.S. treasury and government agency securities	18.4		—		18.4		—
Fixed income mutual funds	93.4		93.4		—		—
Other
Insurance contracts	4.7		—		4.7		—
Cash and equivalents	0.7		0.7		—		—
Total	$	143.9	$	120.8	$	23.1	$	—

The Company estimates total contributions to the plans of about $0.8 million in 2023.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in accordance with the following schedule:

(In millions)	Pension Benefits		Other Benefits
2023	$	10.3	$	0.7
2024	$	18.9	$	0.7
2025	$	14.1	$	0.6
2026	$	9.8	$	0.6
2027	$	9.7	$	0.6
Years 2028 through 2032	$	44.6	$	2.3

Defined Contribution Plans - The Company maintained two defined contribution plans during 2022, 2021, and 2020. The Company’s cash contributions are allocated to participant’s accounts based on investment elections.

The following table sets forth Company contributions to the defined contribution plans:

(In millions)	2022		2021		2020
Company contributions to the plans	$	11.4	$	8.9	$	7.3