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Pension and Other Postretirement Benefits
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
The following table shows the funded status of the Company’s plans’ reconciled with amounts reported in the Consolidated Balance Sheets as of December 31, 2022 and 2021:
Pension BenefitsOther Post-
Retirement Benefits
2022202120222021
ForeignU.S.TotalForeignU.S.TotalU.S.U.S.
Change in benefit obligation
Gross benefit obligation at beginning of year$228,752 $103,420 $332,172 $247,675 $109,969 $357,644 $2,010 $3,234 
Service cost465 47 512 698 547 1,245 — 1 
Interest cost3,079 2,145 5,224 2,594 1,737 4,331 37 27 
Employee contributions20 — 20 71 — 71 — — 
Effect of plan amendments303 — 303 — — — (2)(78)
Curtailment gain207 — 207 — — — — — 
Plan settlements(1,726)— (1,726)(541)— (541)— — 
Benefits paid(5,343)(5,838)(11,181)(6,869)(5,064)(11,933)(176)(182)
Plan expenses and premiums paid(66)— (66)(74)— (74)— — 
Transfer in of business acquisition— — — 231 — 231 — — 
Actuarial (gain) loss(77,244)(20,688)(97,932)(4,160)(3,769)(7,929)(263)(992)
Translation differences and other(17,893)— (17,893)(10,873)— (10,873)— — 
Gross benefit obligation at end of year $130,554 $79,086 $209,640 $228,752 $103,420 $332,172 $1,606 $2,010 
Pension BenefitsOther Post-
Retirement Benefits
2022202120222021
ForeignU.S.TotalForeignU.S.TotalU.S.U.S.
Change in plan assets
Fair value of plan assets at beginning of year$216,886 $77,680 $294,566 $228,789 $73,481 $302,270 $— $— 
Actual return on plan assets(65,396)(14,871)(80,267)915 7,201 8,116 — — 
Employer contributions3,241 2,620 5,861 4,289 2,063 6,352 176 182 
Employee contributions20 — 20 71 — 71 — — 
Plan settlements(1,726)— (1,726)(541)— (541)— — 
Benefits paid(5,343)(5,838)(11,181)(6,869)(5,065)(11,934)(176)(182)
Plan expenses and premiums paid(66)— (66)(74)— (74)— — 
Translation differences(17,672)— (17,672)(9,694)— (9,694)— — 
Fair value of plan assets at end of year$129,944 $59,591 $189,535 $216,886 $77,680 $294,566 $— $— 
Net benefit obligation recognized$(610)$(19,495)$(20,105)$(11,866)$(25,740)$(37,606)$(1,606)$(2,010)
Amounts recognized in the balance sheet consist of:
Non-current assets$8,639 $— $8,639 $7,916 $— $7,916 $— $— 
Current liabilities(210)(1,128)(1,338)(191)(1,137)(1,328)(222)(220)
Non-current liabilities(9,039)(18,367)(27,406)(19,591)(24,603)(44,194)(1,384)(1,790)
Net benefit obligation recognized$(610)$(19,495)$(20,105)$(11,866)$(25,740)$(37,606)$(1,606)$(2,010)
Amounts not yet reflected in net periodic benefit costs and included in accumulated other comprehensive loss:
Prior service (cost) credit(333)(36)(369)(22)43 21 16 46 
Accumulated (loss) gain(10,387)2,532 (7,855)(19,163)(9,763)(28,926)1,218 1,034 
AOCI(10,720)2,496 (8,224)(19,185)(9,720)(28,905)1,234 1,080 
Cumulative employer contributions in excess of or (below) net periodic benefit cost10,110 (21,991)(11,881)7,319 (16,020)(8,701)(2,840)(3,090)
Net benefit obligation recognized$(610)$(19,495)$(20,105)$(11,866)$(25,740)$(37,606)$(1,606)$(2,010)
The accumulated benefit obligation for all defined benefit pension plans was $204.5 million ($79.1 million U.S. and $125.4 million Foreign) and $321.5 million ($103.4 million U.S. and approximately $218.1 million Foreign) as of December 31, 2022 and 2021, respectively.
Information for pension plans with an accumulated benefit obligation in excess of plan assets:
20222021
ForeignU.S.TotalForeignU.S.Total
Accumulated benefit obligation5,983 79,086 85,069 128,268 103,420 231,688 
Fair value of plan assets1,842 59,591 61,433 119,181 77,680 196,861 
Information for pension plans with a projected benefit obligation in excess of plan assets:
20222021
ForeignU.S.TotalForeignU.S.Total
Projected benefit obligation$71,318 $79,086 $150,404 $138,963 $103,420 $242,383 
Fair value of plan assets61,805 59,591 121,396 119,181 77,680 196,861 
Components of net periodic benefit costs – pension plans:
20222021
ForeignU.S.TotalForeignU.S.Total
Service cost$465 $47 $512 $698 $547 $1,245 
Interest cost3,079 2,145 5,224 2,594 1,737 4,331 
Expected return on plan assets(4,472)(3,509)(7,981)(4,686)(3,611)(8,297)
Settlement loss (gain)(71)— (71)35 — 35 
Curtailment charge207 — 207 — — — 
Actuarial loss amortization658 323 981 996 2,252 3,248 
Prior service cost (credit) amortization3 7 10 3 7 10 
Net periodic benefit (income) cost$(131)$(987)$(1,118)$(360)$932 $572 
2020
ForeignU.S.Total
Service cost$4,340 $491 $4,831 
Interest cost3,416 2,923 6,339 
Expected return on plan assets(4,262)(4,810)(9,072)
Settlement (gain) loss(88)22,667 22,579 
Curtailment charge(1,155)— (1,155)
Actuarial loss amortization886 2,110 2,996 
Prior service credit amortization(167)— (167)
Net periodic benefit cost$2,970 $23,381 $26,351 
Other changes recognized in other comprehensive income – pension plans:
20222021
ForeignU.S.TotalForeignU.S.Total
Net (gain) loss arising during the period$(7,008)$(3,555)$(10,563)$(388)$(448)$(836)
Settlement loss— (323)(323)(83)(2,252)(2,335)
Prior service (cost) credit303 (7)296 — (7)(7)
Actuarial (loss) gain(587)1,247 660 (954)(6,925)(7,879)
Curtailment Recognition(3)— (3)(3)— (3)
Effect of exchange rates on amounts included in AOCI(1,169)— (1,169)(1,390)— (1,390)
Total recognized in other comprehensive (income) loss(8,464)(2,638)(11,102)(2,818)(9,632)(12,450)
Total recognized in net periodic benefit cost and other comprehensive (income) loss$(8,595)$(3,625)$(12,220)$(3,178)$(8,700)$(11,878)
2020
ForeignU.S.Total
Net (gain) loss arising during period$(1,594)$1,536 $(58)
Recognition of amortization in net periodic benefit cost
Settlement loss(39)(22,667)(22,706)
Prior service credit1,325 50 1,375 
Actuarial (loss) gain(758)3,967 3,209 
Curtailment Recognition(3)— (3)
Effect of exchange rates on amounts included in AOCI1,535 — 1,535 
Total recognized in other comprehensive loss466 (17,114)(16,648)
Total recognized in net periodic benefit cost and other comprehensive loss$3,436 $6,267 $9,703 
Components of net periodic benefit costs – other postretirement plan:
202220212020
Service cost$— $1 $5 
Interest cost37 27 77 
Actuarial loss amortization(79)(82)(5)
Prior service credit amortization(32)(31)— 
Net periodic benefit costs$(74)$(85)$77 
Other changes recognized in other comprehensive income – other postretirement benefit plans:
202220212020
Net (gain) loss arising during period$(263)$(992)$(864)
Recognition of amortizations in net periodic benefit cost(2)(78)— 
Prior service credit32 31 — 
Actuarial gain amortization79 82 5 
Total recognized in other comprehensive (income) loss(154)(957)(859)
Total recognized in net periodic benefit cost and other comprehensive (income) loss$(228)$(1,042)$(782)
Weighted-average assumptions used to determine benefit obligations as of December 31, 2022 and 2021:
Pension BenefitsOther Postretirement
Benefits
2022202120222021
U.S. Plans:
Discount rate5.21%2.58%5.14%2.45%
Rate of compensation increaseN/AN/AN/AN/A
Foreign Plans:
Discount rate6.29%1.71%N/AN/A
Rate of compensation increase3.93%2.21%N/AN/A
Weighted-average assumptions used to determine net periodic benefit costs for the years ended December 31, 2022, 2021 and 2020:
Pension BenefitsOther Postretirement
Benefits
202220212020202220212020
U.S. Plans:
Discount rate2.67 %2.67 %3.11 %2.45 %1.90 %2.99 %
Expected long-term return on plan assets5.75 %5.75 %6.50 %N/AN/AN/A
Rate of compensation increaseN/A6.00 %6.00 %N/AN/AN/A
Foreign Plans:
Discount rate3.97 %1.38 %2.30 %N/AN/AN/A
Expected long-term return on plan assets2.26 %2.06 %2.20 %N/AN/AN/A
Rate of compensation increase3.21 %2.52 %2.79 %N/AN/AN/A
The long-term rates of return on assets were selected from within the reasonable range of rates determined by (a) historical real returns for the asset classes covered by the investment policy and (b) projections of inflation over the long-term period during which benefits are payable to plan participants. See Note 1 of Notes to Consolidated Financial Statements for further information.
Assumed health care cost trend rates as of December 31, 2022, 2021 and 2020:
202220212020
Health care cost trend rate for next year5.60 %5.65 %5.70 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)4.00 %4.00 %4.50 %
Year that the rate reaches the ultimate trend rate204720462037
Plan Assets and Fair Value
The Company’s pension plan target asset allocation and the weighted-average asset allocations as of December 31, 2022 and 2021 by asset category were as follows:
Asset CategoryTarget20222021
U.S. Plans
Equity securities32 %32 %46 %
Debt securities60 %60 %48 %
Other8 %8 %6 %
Total100 %100 %100 %
Foreign Plans
Equity securities15 %8 %36 %
Debt securities79 %79 %43 %
Other6 %13 %21 %
Total100 %100 %100 %
As of December 31, 2022 and 2021, “Other” consisted principally of cash and cash equivalents, and investments in real estate funds.
The following is a description of the valuation methodologies used for the investments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy, where applicable:
Cash and Cash Equivalents
Cash and cash equivalents consist of cash and money market funds and are classified as Level 1 investments.
Commingled Funds
Investments in the U.S. pooled separate accounts consist primarily of mutual funds, each of which follows a separate investment strategy, and are valued based on the reported unit value at year end. Foreign pension plan commingled funds represent pooled institutional investments, including primarily collective investment trusts. These commingled funds are not available on an exchange or in an active market and these investments are valued using their net asset value (“NAV”), which is generally based on the underlying asset values of the investments held in the trusts. As of December 31, 2022, the foreign pension plan commingled funds included approximately 34 percent of investments in equity securities, 50 percent of investments in fixed income securities, and 16 percent of other non-related investments, primarily real estate. As of December 31, 2021, the foreign pension plan commingled funds included approximately 35 percent of investments in equity securities, 51 percent of investments in fixed income securities, and 14 percent of other non-related investments, primarily real estate.
Pooled Separate Accounts
Investments in the U.S. pension plan pooled separate accounts consist of annuity contracts and are valued based on the reported unit value at year end. Units of the pooled separate account are not traded on an exchange or in an active market; however, valuation is based on the underlying investments of each pooled separate account and are classified as Level 2 investments. As of December 31, 2022, the U.S. pension plan pooled separate accounts included approximately 35 percent of investments in equity securities and 65 percent of investments in fixed income securities.
Fixed Income Government Securities
Investments in foreign pension plans fixed income government securities were valued using third party pricing services which are based on a combination of quoted market prices on an exchange in an active market as well as proprietary pricing models and inputs using observable market data and are classified as Level 2 investments.
Insurance Contract
Investments in the foreign pension plan insurance contract are valued at the highest value available for the Company at year end, either the reported cash surrender value of the contract or the vested benefit obligation. Both the cash surrender value and the vested benefit obligation are determined based on unobservable inputs, which are contractually or actuarially determined, regarding returns, fees, the present value of the future cash flows of the contract and benefit obligations. The contract is classified as a Level 3 investment.
Diversified Equity Securities - Registered Investment Companies
Investments in the foreign pension plans diversified equity securities of registered investment companies are based upon the quoted redemption value of shares in the fund owned by the plan at year end. The shares of the fund are not available on an exchange or in an active market; however, the fair value is determined based on the underlying investments in the fund as traded on an exchange in an active market and are classified as Level 2 investments.
Fixed Income – Foreign Registered Investment Companies
Investments in the foreign pension plans fixed income securities of foreign registered investment companies are based upon the quoted redemption value of shares in the fund owned by the plan at year end. The shares of the fund are not available on an exchange or in an active market; however, the fair value is determined based on the underlying investments in the fund as traded on an exchange in an active market and are classified as Level 2 investments.
Diversified Investment Fund - Registered Investment Companies
Investments in the foreign pension plan diversified investment fund of registered investment companies are based upon the quoted redemption value of shares in the fund owned by the plan at year end. This fund is not available on an exchange or in an active market and this investment is valued using its NAV, which is generally based on the underlying asset values of the investments held. As of December 31, 2021, the diversified investment funds included approximately 62 percent of investments in equity securities, 20 percent of investments in fixed income securities, and 18 percent of other alternative investments. There were no such investments as of December 31, 2022.
Other – Alternative Investments
Investments in the foreign pension plans include certain other alternative investments such as inflation and interest rate swaps. These investments are valued based on unobservable inputs, which are contractually or actuarially determined, regarding returns, fees, the present value of future cash flows of the contract and benefit obligations. These alternative investments are classified as Level 3 investments.
Real Estate
The U.S. and foreign pension plans’ investment in real estate consists of investments in property funds. The funds’ underlying investments consist of real property which are valued using unobservable inputs. These property funds are classified as a Level 3 investment.
As of December 31, 2022 and 2021, the U.S. and foreign plans’ investments measured at fair value on a recurring basis were as follows:
Fair Value Measurements at December 31, 2022
Total
Fair Value		Using Fair Value Hierarchy
U.S. Pension AssetsLevel 1Level 2Level 3
Pooled separate accounts$54,596 $— $54,596 $— 
Real estate4,995 — — 4,995 
Subtotal U.S. pension plan assets in fair value hierarchy$59,591 $— $54,596 $4,995 
Total U.S. pension plan assets$59,591 
Foreign Pension Assets
Cash and cash equivalents$4,923 $4,923 $— $— 
Insurance contract59,963 — — 59,963 
Diversified equity securities - registered investment companies5,211 — 5,211 — 
Fixed income – foreign registered investment companies54,098 — 54,098 — 
Real estate3,907 — — 3,907 
Sub-total of foreign pension assets in fair value hierarchy$128,102 $4,923 $59,309 $63,870 
Commingled funds measured at NAV1,842 
Total foreign pension assets$129,944 
Total pension assets in fair value hierarchy$187,693 $4,923 $113,905 $68,865 
Total pension assets measured at NAV1,842 
Total pension assets$189,535 
Fair Value Measurements at December 31, 2021
Total
Fair Value		Using Fair Value Hierarchy
U.S. Pension AssetsLevel 1Level 2Level 3
Pooled separate accounts$72,721 $— $72,721 $— 
Real estate4,959 — — 4,959 
Subtotal U.S. pension plan assets in fair value hierarchy$77,680 $— $72,721 $4,959 
Total U.S. pension plan assets$77,680 
Foreign Pension Assets
Cash and cash equivalents$1,989 $1,989 $— $— 
Insurance contract99,527 — — 99,527 
Diversified equity securities - registered investment companies10,999 — 10,999 — 
Fixed income – foreign registered investment companies3,593 — 3,593 — 
Fixed income government securities35,339 — 35,339 — 
Real estate6,588 — — 6,588 
Other - alternative investments6,979 — — 6,979 
Sub-total of foreign pension assets in fair value hierarchy$165,014 $1,989 $49,931 $113,094 
Commingled funds measured at NAV2,300 
Diversified investment fund - registered investment companies measured at NAV49,572 
Total foreign pension assets$216,886 
Total pension assets in fair value hierarchy$242,694 $1,989 $122,652 $118,053 
Total pension assets measured at NAV51,872 
Total pension assets$294,566 
Certain investments that are measured at fair value using the NAV per share (or its equivalent) have not been classified in the fair value hierarchy. The fair value amounts presented for these investments in the preceding tables are intended to permit reconciliation of the fair value hierarchies to the line items presented in the statements of net assets available for benefits.
Changes in the fair value of the plans’ Level 3 investments during the years ended December 31, 2022 and 2021 were as follows:
Insurance
Contract		Real EstateAlternative
Investments		Total
Balance as of December 31, 2020$112,920 $9,775 $10,638 $133,333 
Purchases1,722 (78)(334)1,310 
Settlements(1,812)— — (1,812)
Unrealized (losses) gains(5,031)1,926 (3,282)(6,387)
Currency translation adjustment(8,272)(76)(43)(8,391)
Balance as of December 31, 202199,527 11,547 6,979 118,053 
Purchases(1,136)(122)(6,979)(8,237)
Unrealized losses(32,305)(1,842)— (34,147)
Currency translation adjustment(6,123)(681)— (6,804)
Balance as of December 31, 2022$59,963 $8,902 $— $68,865 
In 2018, the Company began the process of terminating a noncontributory U.S. pension plan. During 2019, the Company received a favorable termination determination letter from the I.R.S. and completed the termination during 2020. In order to terminate the plan in accordance with I.R.S. and Pension Benefit Guaranty Corporation requirements, the Company was required to fully fund the plan on a termination basis and the amount necessary to do so was approximately $1.8 million, subject to final true up adjustments. In 2020, the Company finalized the amount of the liability and related annuity payments and received a refund in premium of approximately $1.6 million. In addition, the Company recorded a non-cash pension settlement charge at plan termination of approximately $22.7 million. This settlement charge included the immediate recognition into expense of the related unrecognized losses within AOCI on the balance sheet as of the plan termination date.
The Company contributes to a multiemployer defined benefit pension plan under terms of a collective bargaining union contract (the Cleveland Bakers and Teamsters Pension Fund, Employer Identification Number: 34-0904419-001). The expiration date of the collective bargaining contract is May 1, 2025. As of January 1, 2021, the last valuation date available for the multiemployer plan, total plan liabilities were approximately $583 million. As of December 31, 2021, the multiemployer pension plan had total plan assets of approximately $427 million. The Company’s contribution rate to the multiemployer pension plan is specified in the collective bargaining union contract and contributions are made to the plan based on its union employee payroll. The Company contributed $0.1 million during the year ended December 31, 2022. The Employee Retirement Income Security Act of 1974, as amended by the Multi-Employer Pension Plan Amendments Act of 1980, imposes certain contingent liabilities upon an employer who is a contributor to a multiemployer pension plan if the employer withdraws from the plan or the plan is terminated or experiences a mass withdrawal. While the Company may also have additional liabilities imposed by law as a result of its participation in the multiemployer defined benefit pension plan, there is no liability as of December 31, 2022.
The Pension Protection Act of 2006 (the “PPA”) also added special funding and operational rules generally applicable to plan years beginning after 2007 for multiemployer plans with certain classifications based on a multitude of factors (including, for example, the plan’s funded percentage, cash flow position and whether the plan is projected to experience a minimum funding deficiency). The plan to which the Company contributes is in “critical” status. Plans in the “critical” status classification must adopt measures to improve their funded status through a funding improvement or rehabilitation plan which may require additional contributions from employers (which may take the form of a surcharge on benefit contributions) and/or modifications to retiree benefits. The amount of additional funds that the Company may be obligated to contribute to the plan in the future cannot be estimated as such amounts will be likely based on future levels of work that require the specific use of those union employees covered by the plan, and the amount of that future work and the number of affected employees that may be needed is not reasonably estimable.
Cash Flows
Contributions
The Company expects to make minimum cash contributions of approximately $5.2 million to its pension plans (approximately $2.6 million U.S. and $2.6 million Foreign) and approximately $0.2 million to its other postretirement benefit plan in 2023.
Estimated Future Benefit Payments
Excluding any impact related to the PPA noted above, the following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Pension BenefitsOther Post-
Retirement
Benefits
ForeignU.S.Total
2023$6,097 $6,868 $12,965 $222 
20245,935 6,290 12,225 203 
20256,423 6,271 12,694 190 
20267,117 6,272 13,389 174 
20276,844 6,254 13,098 151 
2028 to 203241,304 29,868 71,172 597 
The Company maintains a plan under which supplemental retirement benefits are provided to certain officers. Benefits payable under the plan are based on a combination of years of service and existing postretirement benefits. Included in total pension costs are charges of $0.7 million, $3.0 million and $2.5 million for the years ended December 31, 2022, 2021 and 2020, respectively, representing the annual accrued benefits under this plan.
Defined Contribution Plan
The Company sponsors various defined contribution plans in both its U.S. and non-U.S. subsidiaries, under which eligible participants may defer a portion of their compensation up to the allowable amount as determined by the plan. All contributions and Company matches are invested at the direction of the participant. The most significant plan is the Company's primary U.S. 401(k) plan with an employer match covering a majority of its U.S. employees. Beginning in April 2020 and continuing through March 2021, the Company matched both non-elective and elective 401(k) contributions in fully vested shared of the Company’s common stock rather than cash. See Note 8 of Notes to Consolidated Financial Statements. Total Company contributions under this U.S. 401(k) plan were $7.2 million, $4.8 million and $5.7 million for the years ended December 31, 2022, 2021 and 2020, respectively. Annual cash contributions to all other of the Company’s defined contribution plans is approximately $1 million.