XML 33 R19.htm IDEA: XBRL DOCUMENT v3.22.4
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
Defined Benefit Plan
The Company has a noncontributory defined-benefit pension plan (the “Plan”), which covers eligible employees. Effective December 31, 2016, the Plan was closed to all new participants. Additionally, the Company froze the benefits of the Plan as of February 28, 2021. As such, subsequent to February 28, 2021, there is no service cost associated with the Plan.
A summary of the activity in the Plan’s projected benefit obligation, assets, funded status and amounts recognized in the Company’s consolidated balance sheets is as follows:
(In thousands)20222021
Projected benefit obligation:
Balance, January 1 $117,323 $122,035 
Service cost — 1,002 
Interest cost 3,293 3,076 
Actuarial gain(31,982)(5,822)
Benefits paid (3,201)(2,968)
Balance, December 31
$85,433 $117,323 
Plan assets:
Fair value, January 1 $114,136 $106,667 
Actual investment return (26,820)10,107 
Employer contribution — 330 
Expenses paid from plan assets(721)— 
Benefits paid (3,201)(2,968)
Fair value, December 31
$83,394 $114,136 
Funded status:
Accrued pension liability $(2,039)(3,187)
The following represent the major assumptions used to determine the projected benefit obligation of the Plan. For 2022, 2021 and 2020, the Plan’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve. For 2022, the Pri-2012 Mortality Table and MP-2022 Mortality Improvement Scale were used. For 2021, the Pri-2012 Mortality Table and MP-2021 Mortality Improvement Scale were used. For 2020, the Pri-2012 Mortality Table and MP-2020 Mortality Improvement Scale were used.
202220212020
Weighted average discount rate 5.25 %2.85 %2.55 %
Rate of increase in compensation levels N/A(a)(a)
(a)6.0% graded down to 3.25% over the first seven years of service.
The accumulated benefit obligation was $85.4 million and $117.3 million as of December 31, 2022 and 2021, respectively. The Company made no contribution of during 2022, while in 2021 there was a contribution of $330,000 made to the Plan.
The Company has not determined if it will make a contribution to the Plan in 2023. The following pension benefit payments, as appropriate, are expected to be paid by the Plan:
Amount
2023$4,193,000 
20244,436,000 
20254,636,000 
20264,844,000 
20275,048,000 
2026-2030 27,845,000 
The Plan’s (benefit) pension cost included the following components:
For the Year Ended
December 31,
(In thousands)202220212020
Service cost – benefits earned during the year $— $1,002 $4,329 
Interest cost on projected benefit obligations 3,293 3,076 3,908 
Expected return on plan assets (5,857)(6,310)(6,049)
Net amortization and deferral — 393 1,946 
Net periodic (benefit) pension cost $(2,564)$(1,839)$4,134 
The following represent the major assumptions used to determine the net (benefit) pension cost of the Plan:
202220212020
Weighted average discount rate 2.85 %2.55 %3.30 %
Rate of increase in compensation levels N/A(a )(a )
Expected long-term rate of return on assets 6.00 %6.00 %6.50 %
(a)6.0% graded down to 3.25% over the first seven years of service.
For 2022, the Pri-2012 Mortality Table and the MP-2021 Mortality Improvement Table were used. For 2021, the Pri-2012 Mortality Table and the MP-2020 Mortality Improvement Table were used. For 2020, the Pri-2012 Mortality Table and the MP-2019 Mortality Improvement Table were used.
The investment objective for the Plan is to maximize total return with a tolerance for average risk. Asset allocation is a balance between fixed income and equity investments, with a target allocation of approximately 68.5% fixed income, 14.0% U.S. equity, 14.0% non-U.S. equity, and real estate 3.5%. Due to volatility in the market, this target allocation is not always desirable and asset allocations can fluctuate between acceptable ranges. The fixed income component is invested in pooled investment grade securities. The equity components are invested in pooled large cap, small/mid cap and non-U.S. stocks. The expected one-year nominal returns and annual standard deviations are shown by asset class below:
Asset Class% of Total PortfolioOne-Year Nominal
Return		Annual Standard
Deviation
Core Fixed Income 68.5 %5.46 %10.49 %
Large Cap U.S. Equities 14.0 %7.98 %17.66 %
International (Developed) 10.0 %9.07 %18.52 %
International (Emerging) 4.0 %11.91 %26.71 %
Real Estate3.5 %7.19 %15.13 %
Applying appropriate correlation factors between each of the asset classes the long-term rate of return on assets is estimated to be 6.00%.
A summary of the fair value measurements by type of asset is as follows:
Fair Value Measurements as of December 31,
20222021
(In thousands)TotalQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Observable
Inputs
(Level 2)		TotalQuoted Prices
in Active
Markets for
Identical
Assets
(Level 1)		Observable
Inputs
(Level 2)
Cash $566 $566 $— $535 $535 $— 
Real estate investment trusts7,120 — 7,120 6,250 — 6,250 
Equity securities
U.S. Small/Mid Cap Growth 2,055 — 2,055 4,734 — 4,734 
Non-U. S. Core 7,822 — 7,822 19,164 — 19,164 
U.S. Large Cap Passive 8,319 — 8,319 18,279 — 18,279 
Emerging Markets 3,000 — 3,000 7,701 — 7,701 
Fixed Income
U.S. Core 51,756 — 51,756 51,386 — 51,386 
U.S. Passive — — — — — — 
Opportunistic 2,756 — 2,756 6,087 — 6,087 
Total $83,394 $566 $82,828 $114,136 $535 $113,601 
Supplemental Executive Retirement Plan
The Company also has an unfunded supplemental executive retirement plan (“SERP”) which covers key executives of the Company whose benefits are limited by the Internal Revenue Service under the Company’s qualified retirement plan. The SERP is a noncontributory plan in which the Company’s subsidiaries make accruals designed to fund normal service costs on a current basis using the same method and criteria as the Plan.
A summary of the activity in the SERP’s projected benefit obligation and amounts recognized in the Company’s consolidated balance sheets is as follows:
December 31,
(In thousands)20222021
Benefit obligation:
Balance, January 1 $12,420 $13,412 
Service cost — 147 
Interest cost 318 291 
Benefits paid (348)(282)
Actuarial gain(2,811)(1,148)
Balance, December 31
$9,579 $12,420 
The following represent the major assumptions used to determine the projected benefit obligation of the SERP. For 2022, 2021 and 2020, the SERP’s expected benefit cash flows were discounted using the FTSE Above Median Double-A Curve.
202220212020
Weighted average discount rate 5.15 %2.65 %2.20 %
Rate of increase in compensation levels N/A(a)(a)
(a)6.00% graded down to 3.25% over the first seven years of service.
The accumulated benefit obligation was $9.6 million and $12.4 million as of December 31, 2022 and 2021, respectively. Since this is an unfunded plan, there are no plan assets. Benefits paid were $348,000 in 2022, $282,000 in 2021, and $291,000 in 2020. Expected future benefits payable by the Company over the next ten years are as follows:
Amount
2023$810,000 
2024791,000 
2025788,000 
2026785,000 
2027780,000 
2026-2030 $3,787,000 
Net periodic pension cost related to the SERP included the following components:
For the Year Ended December 31,
(In thousands)202220212020
Service cost – benefits earned during the year $— $147 $121 
Interest cost on projected benefit obligations 318 291 347 
Net amortization and deferral 108 203 112 
Net periodic pension cost $426 $641 $580 
The pretax amounts in accumulated other comprehensive loss as of December 31 were as follows:
The PlanSERP
(In thousands)2022202120222021
Prior service cost $— $— $— $— 
Net actuarial loss (gain) 6,833 5,417 (136)2,783 
Total $6,833 $5,417 $(136)$2,783 
The estimated pretax prior service cost and net actuarial loss (gain) in accumulated other comprehensive loss at December 31, 2022 expected to be recognized as components of net periodic benefit cost in 2023 for the Plan are each $0. The estimated pretax prior service cost and net actuarial loss in accumulated other comprehensive loss at December 31, 2022 expected to be recognized as components of net periodic benefit cost in 2023 for the SERP are each $0.
The Company also maintains a noncontributory profit sharing program, which covers most of its employees. Employer contributions are calculated based upon formulas which relate to current operating results and other factors. Profit sharing expense recognized in personnel expense in the consolidated statements of income in 2022, 2021, and 2020 was $7.9 million, $6.4 million, and $5.7 million, respectively.
The Company also sponsors a defined contribution 401(k) plan to provide additional retirement benefits to substantially all employees. Contributions under the 401(k) plan for 2022, 2021 and 2020 were $4.6 million, $3.5 million, and $1.5 million, respectively. In conjunction with the freezing of the Plan, contribution rates to employees increased on March 1, 2021.