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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Defined Benefit Pension Plan
The Company has a defined benefit pension plan that covers certain of its executive, professional, administrative and clerical employees, subject to certain specified service requirements. The pension plan is noncontributory and benefits are based on an employee’s years of service and “final average earnings,” as defined by the pension plan. The pension plan provides reduced benefits for early retirement and takes into account offsets for social security benefits. The Company also has an unfunded supplemental retirement plan (“Benefit Equalization Plan”) for certain employees whose benefits under the defined benefit pension plan were reduced because of compensation limitations under federal tax laws. Effective June 1, 2004, all benefit accruals under the Company’s pension plan and Benefit Equalization Plan were frozen; however, the current vested benefit was preserved. Pension disclosure as presented below includes aggregated amounts for both of the Company’s plans, except where otherwise indicated.
The Company historically has used the date of its year-end as its measurement date to determine the funded status of the pension plan.
The long-term investment goals of the Company’s pension plan are to manage the assets in accordance with the legal requirements of all applicable laws; produce investment returns which maximize return within reasonable and prudent levels of risks; and achieve a fully funded status with regard to current pension liabilities. Some risk must be assumed in order to achieve the investment goals. Investments with the ability to withstand short and intermediate term variability are considered and some interim fluctuations in market value and rates of return are tolerated in order to achieve the pension plan’s longer-term objectives.
The pension plan’s assets are managed by a third-party investment manager. The Company monitors investment performance and risk on an ongoing basis.
The following table sets forth a summary of net periodic benefit cost for the years ended December 31, 2023, 2022 and 2021:
Year Ended December 31,
(in thousands)
202320222021
Interest cost$3,839 $2,594 $2,349 
Service cost1,000 945 935 
Expected return on plan assets(3,875)(3,890)(3,976)
Recognized net actuarial losses1,699 2,571 2,860 
Net periodic benefit cost$2,663 $2,220 $2,168 
Actuarial assumptions used to determine net cost:
Discount rate5.16 %2.65 %2.24 %
Expected return on assets6.25 %5.75 %5.75 %
Rate of increase in compensationN/AN/AN/A
The target asset allocation for the Company’s pension plan by asset category for 2024 and the actual asset allocation as of December 31, 2023 and 2022 by asset category are as follows:
Percentage of Plan Assets as of December 31,
Target
Allocation
2024
Actual Allocation
Asset Category20232022
Cash5 %6 %5 %
Equity funds:
Domestic42 43 46 
International18 18 20 
Fixed income funds35 33 29 
Total100 %100 %100 %
The Company expects to contribute approximately $2.4 million to its defined benefit pension plan in 2024.
Future benefit payments under the plans for the next ten years are estimated as follows:
(in thousands)
Year ended December 31,
2024$6,806 
20256,726 
20266,652 
20276,531 
20286,382 
2029-203328,923 
Total$62,020 
The following tables provide a reconciliation of the changes in the fair value of plan assets and plan benefit obligations during 2023 and 2022, and a summary of the funded status as of December 31, 2023 and 2022:
Year Ended December 31,
(in thousands)20232022
Change in Fair Value of Plan Assets
Balance at beginning of year$56,157 $73,375 
Actual return on plan assets7,917 (10,865)
Company contribution1,526 242 
Benefit payments(7,718)(6,595)
Balance at end of year$57,882 $56,157 
Year Ended December 31,
(in thousands)20232022
Change in Benefit Obligations
Balance at beginning of year$79,058 $101,526 
Interest cost3,839 2,594 
Service cost1,000 945 
Assumption change (gain) loss
1,281 (19,712)
Actuarial (gain) loss
(17)300 
Benefit payments(7,718)(6,595)
Balance at end of year$77,443 $79,058 
As of December 31,
(in thousands)20232022
Funded status$(19,561)$(22,901)
Net unfunded amounts recognized in Consolidated Balance Sheets consist of:
Current liabilities$(309)$(275)
Long-term liabilities(19,252)(22,626)
Total net unfunded amount recognized in Consolidated Balance Sheets$(19,561)$(22,901)
Amounts not yet recognized in net periodic benefit cost and included in accumulated other comprehensive loss consist of net actuarial losses before income taxes of $44.8 million and $49.3 million as of December 31, 2023 and 2022, respectively.
The discount rate used in determining the accumulated post-retirement benefit obligation was 5.0% and 5.2% as of December 31, 2023 and 2022, respectively. The discount rate used for the accumulated post-retirement obligation was derived using a blend of U.S. Treasury and high-quality corporate bond discount rates.
The expected long-term rate of return on assets assumption was 6.3% for both 2023 and 2022. The expected long-term rate of return on assets assumption was developed considering forward looking capital market assumptions and historical return expectations for each asset class assuming the plans’ target asset allocation and full availability of invested assets.
Closely held fund strategies seek to capitalize on inefficiencies identified across different asset classes or markets and include investments in both long and short equity securities.
Plan assets were measured at fair value. Mutual funds are public investment vehicles valued using the Net Asset Value (“NAV”) of shares held by the pension plan at year-end. Fixed income funds are valued based on quoted market prices in active markets. Closely held funds, which are only available through private offerings, do not have readily determinable fair values. Estimates of fair value of these funds were determined using the information provided by the fund managers and are generally based on the NAV per share or its equivalent.
The following table sets forth the pension plan assets at fair value in accordance with the fair value hierarchy described in Note 12:
As of December 31, 2023As of December 31, 2022
Fair Value HierarchyFair Value Hierarchy
(in thousands)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash and cash equivalents$3,464 $— $— $3,464 $2,757 $— $— $2,757 
Fixed income funds1,520 3,063 — 4,583 1,564 2,872 — 4,436 
Mutual funds41,687 — — 41,687 37,364 — — 37,364 
$46,671 $3,063 $— $49,734 $41,685 $2,872 $— $44,557 
Closely held funds(a)
Equity partnerships3,826 4,078 
Hedge fund investments4,322 7,522 
Total closely held funds(a)
8,148 11,600 
Total$46,671 $3,063 $— $57,882 $41,685 $2,872 $— $56,157 
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(a)The pension plan’s investments in closely held funds are not categorized in the fair value hierarchy because they are measured at NAV using the practical expedient under ASC 820, Fair Value Measurement (“ASC 820”). The underlying holdings of closely held funds were composed of a combination of Level 1, 2 and 3 investments, and in some cases, may also include investments not categorized in the fair value hierarchy because they are measured at NAV using the practical expedient, as described above.
As of December 31, 2023 and 2022, pension plan assets included approximately $8.1 million and $11.6 million, respectively, of investments in hedge funds and equity partnerships which do not have readily determinable fair values. The underlying holdings of the funds were composed of a combination of assets for which the estimate of fair value is determined using information provided by fund managers.
The plans have benefit obligations in excess of the fair value of each plan’s assets as follows:
As of December 31, 2023As of December 31, 2022
(in thousands)Pension
Plan		Benefit
Equalization
Plan		TotalPension
Plan		Benefit
Equalization
Plan		Total
Projected benefit obligation$74,831 $2,612 $77,443 $76,729 $2,329 $79,058 
Accumulated benefit obligation$74,831 $2,612 $77,443 $76,729 $2,329 $79,058 
Fair value of plans' assets57,882 — 57,882 56,157 — 56,157 
Projected benefit obligation greater than fair value of plans' assets$16,949 $2,612 $19,561 $20,572 $2,329 $22,901 
Accumulated benefit obligation greater than fair value of plans' assets$16,949 $2,612 $19,561 $20,572 $2,329 $22,901 
Section 401(k) Plan
The Company has a contributory Section 401(k) plan which covers its executive, professional, administrative and clerical employees, subject to certain specified service requirements. The cost recognized by the Company for its 401(k) plan was $4.1 million in both 2023 and 2022 and $4.4 million in 2021. The Company’s contribution is based on a non-discretionary match of employees’ contributions, as defined by the plan.
Multiemployer Plans
In addition to the Company’s defined benefit pension and contribution plans discussed above, the Company participates in multiemployer pension plans for its union construction employees. Contributions are based on the hours worked by employees covered under various collective bargaining agreements. Under the Employee Retirement Income Security Act, a contributor to a multiemployer plan is only liable for its proportionate share of a plan’s unfunded vested liability upon termination, or withdrawal from a plan. The Company currently has no intention of withdrawing from any of the multiemployer pension plans
in which it participates and, therefore, has not recognized a liability for its proportionate share of any unfunded vested liabilities associated with these plans.
The following table summarizes key information for the plans that the Company made significant contributions to during the three years ended December 31, 2023:
Pension Protections Act
Zone Status
FIP/RP
Status
Pending or
Implemented(a)
Company Contributions
(amounts in millions) 		Expiration
Date of
Collective
Bargaining
Agreement
Pension FundEIN/Pension
Plan Number
2023
2022
2023(b)
2022
2021
Surcharge
Imposed
The Pension, Hospitalization and Benefit Plan of the Electrical Industry - Pension Trust Fund13-6123601/001GreenGreenN/A$4.2 $6.7 $9.5 
(c)
No4/15/2025
Carpenters Pension Trust Fund for Northern California94-6050970RedRedImplemented2.5 2.4 2.9 No6/30/2027
Excavators Union Local 731 Pension Fund13-1809825/002GreenGreenN/A2.4 4.0 4.0 No4/30/2026
Operating Engineers Pension Trust95-6032478GreenYellowN/A2.4 3.4 2.4 No6/30/2025
Construction Laborers Pension Trust for Southern California95-6031812GreenGreenN/A2.1 3.4 2.8 No6/30/2026
Joint Pension Fund, Local Union 164 IBEW22-6031199GreenGreenN/A1.4 6.4 
(c)
6.8 
(c)
No4/30/2026
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(a)The “FIP/RP Status Pending or Implemented” column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or implemented.
(b)The Company's contributions as a percentage of total plan contributions were not available for the 2023 plan year for any of the above pension funds.
(c)These amounts exceeded 5% of the respective total plan contributions.
In addition to the individually significant plans described above, the Company also contributed approximately $33.8 million in 2023, $32.3 million in 2022 and $41.2 million in 2021 to other multiemployer pension plans. Funding for these payments is principally provided for in the contracts with our customers.