Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2023

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, 2023 and 2022:

	Pension Benefits												Other Post- Retirement Benefits
	2023						2022						2023		2022
	Foreign		U.S.		Total		Foreign		U.S.		Total		U.S.		U.S.
Change in benefit obligation
Gross benefit obligation at beginning of year	$	130,554	$	79,086	$	209,640	$	228,752	$	103,420	$	332,172	$	1,606	$	2,010
Service cost	399		28		427		465		47		512		—		—
Interest cost	6,083		3,849		9,932		3,079		2,145		5,224		69		37
Employee contributions	—		—		—		20		—		20		—		—
Effect of plan amendments	—		(15)		(15)		303		—		303		—		(2)
Curtailment (gain) loss	(213)		—		(213)		207		—		207		—		—
Plan settlements	—		—		—		(1,726)		—		(1,726)		—		—
Benefits paid	(6,086)		(6,031)		(12,117)		(5,343)		(5,838)		(11,181)		(182)		(176)
Plan expenses and premiums paid	—		—		—		(66)		—		(66)		—		—
Actuarial loss (gain)	7,809		2,146		9,955		(77,244)		(20,688)		(97,932)		(150)		(263)
Translation differences and other	6,233		—		6,233		(17,893)		—		(17,893)		—		—
Gross benefit obligation at end of year	$	144,779	$	79,063	$	223,842	$	130,554	$	79,086	$	209,640	$	1,343	$	1,606

	Pension Benefits												Other Post- Retirement Benefits
	2023						2022						2023		2022
	Foreign		U.S.		Total		Foreign		U.S.		Total		U.S.		U.S.
Change in plan assets
Fair value of plan assets at beginning of year	$	129,944	$	59,591	$	189,535	$	216,886	$	77,680	$	294,566	$	—	$	—
Actual return on plan assets	4,474		4,640		9,114		(65,396)		(14,871)		(80,267)		—		—
Employer contributions	1,566		2,767		4,333		3,241		2,620		5,861		182		176
Employee contributions	—		—		—		20		—		20		—		—
Plan settlements	—		—		—		(1,726)		—		(1,726)		—		—
Benefits paid	(6,086)		(6,031)		(12,117)		(5,343)		(5,838)		(11,181)		(182)		(176)
Plan expenses and premiums paid	—		—		—		(66)		—		(66)		—		—
Translation differences	5,489		—		5,489		(17,672)		—		(17,672)		—		—
Fair value of plan assets at end of year	$	135,387	$	60,967	$	196,354	$	129,944	$	59,591	$	189,535	$	—	$	—
Net benefit obligation recognized	$	(9,392)	$	(18,096)	$	(27,488)	$	(610)	$	(19,495)	$	(20,105)	$	(1,343)	$	(1,606)
Amounts recognized in the balance sheet consist of:
Non-current assets	$	2,834	$	—	$	2,834	$	8,639	$	—	$	8,639	$	—	$	—
Current liabilities	(273)		(1,757)		(2,030)		(210)		(1,128)		(1,338)		(178)		(222)
Non-current liabilities	(11,953)		(16,339)		(28,292)		(9,039)		(18,367)		(27,406)		(1,165)		(1,384)
Net benefit obligation recognized	$	(9,392)	$	(18,096)	$	(27,488)	$	(610)	$	(19,495)	$	(20,105)	$	(1,343)	$	(1,606)
Amounts not yet reflected in net periodic benefit costs and included in accumulated other comprehensive loss:
Prior service (cost) credit	(353)		—		(353)		(333)		(36)		(369)		—		16
Accumulated (loss) gain	(19,117)		2,248		(16,869)		(10,387)		2,532		(7,855)		1,241		1,218
AOCI	(19,470)		2,248		(17,222)		(10,720)		2,496		(8,224)		1,241		1,234
Cumulative employer contributions in excess of or (below) net periodic benefit cost	10,078		(20,344)		(10,266)		10,110		(21,991)		(11,881)		(2,584)		(2,840)
Net benefit obligation recognized	$	(9,392)	$	(18,096)	$	(27,488)	$	(610)	$	(19,495)	$	(20,105)	$	(1,343)	$	(1,606)

The accumulated benefit obligation for all defined benefit pension plans was $217.5 million ($79.1 million U.S. and $138.4 million Foreign) and $204.5 million ($79.1 million U.S. and approximately $125.4 million Foreign) as of December 31, 2023 and 2022, respectively.

Information for pension plans with an accumulated benefit obligation in excess of plan assets:

	2023			2022
	Foreign	U.S.	Total	Foreign	U.S.	Total
Accumulated benefit obligation	75,402	79,063	154,465	5,983	79,086	85,069
Fair value of plan assets	69,419	60,967	130,386	1,842	59,591	61,433

Information for pension plans with a projected benefit obligation in excess of plan assets:

	2023						2022
	Foreign		U.S.		Total		Foreign		U.S.		Total
Projected benefit obligation	$	93,733	$	79,063	$	172,796	$	71,318	$	79,086	$	150,404
Fair value of plan assets	81,507		60,967		142,474		61,805		59,591		121,396

Components of net periodic benefit costs – pension plans:

	2023						2022
	Foreign		U.S.		Total		Foreign		U.S.		Total
Service cost	$	399	$	28	$	427	$	465	$	47	$	512
Interest cost	6,083		3,849		9,932		3,079		2,145		5,224
Expected return on plan assets	(5,271)		(2,799)		(8,070)		(4,472)		(3,509)		(7,981)
Settlement gain	—		—		—		(71)		—		(71)
Curtailment (gain) loss	(213)		15		(198)		207		—		207
Actuarial loss amortization	388		22		410		658		323		981
Prior service cost amortization	28		6		34		3		7		10
Net periodic benefit cost (income)	$	1,414	$	1,121	$	2,535	$	(131)	$	(987)	$	(1,118)

	2021
	Foreign		U.S.		Total
Service cost	$	698	$	547	$	1,245
Interest cost	2,594		1,737		4,331
Expected return on plan assets	(4,686)		(3,611)		(8,297)
Settlement loss	35		—		35
Actuarial loss amortization	996		2,252		3,248
Prior service credit amortization	3		7		10
Net periodic benefit (income) cost	$	(360)	$	932	$	572

Other changes recognized in other comprehensive income – pension plans:

	2023						2022
	Foreign		U.S.		Total		Foreign		U.S.		Total
Net (gain) loss arising during the period	$	8,605	$	398	$	9,003	$	(7,008)	$	(3,555)	$	(10,563)
Settlement loss	—		(23)		(23)		—		(323)		(323)
Prior service (cost) credit	—		(15)		(15)		303		(7)		296
Actuarial (loss) gain	(388)		(92)		(480)		(587)		1,247		660
Curtailment recognition	(28)		—		(28)		(3)		—		(3)
Effect of exchange rates on amounts included in AOCI	560		—		560		(1,169)		—		(1,169)
Total recognized in other comprehensive loss (income)	8,749		268		9,017		(8,464)		(2,638)		(11,102)
Total recognized in net periodic benefit cost and other comprehensive loss (income)	$	10,163	$	1,389	$	11,552	$	(8,595)	$	(3,625)	$	(12,220)

	2021
	Foreign		U.S.		Total
Net (gain) loss arising during period	$	(388)	$	(448)	$	(836)
Settlement loss	(83)		(2,252)		(2,335)
Prior service credit	—		(7)		(7)
Actuarial (loss) gain	(954)		(6,925)		(7,879)
Curtailment recognition	(3)		—		(3)
Effect of exchange rates on amounts included in AOCI	(1,390)		—		(1,390)
Total recognized in other comprehensive loss	(2,818)		(9,632)		(12,450)
Total recognized in net periodic benefit cost and other comprehensive loss	$	(3,178)	$	(8,700)	$	(11,878)

Components of net periodic benefit costs – other postretirement plan:

	2023		2022		2021
Service cost	$	—	$	—	$	1
Interest cost	69		37		27
Actuarial gain amortization	(128)		(79)		(82)
Prior service credit amortization	(16)		(32)		(31)
Net periodic benefit costs	$	(75)	$	(74)	$	(85)

Other changes recognized in other comprehensive income – other postretirement benefit plans:

	2023		2022		2021
Net (gain) loss arising during period	$	(150)	$	(263)	$	(992)
Recognition of amortizations in net periodic benefit cost	—		(2)		(78)
Prior service credit	16		32		31
Actuarial gain amortization	127		79		82
Total recognized in other comprehensive (income) loss	(7)		(154)		(957)
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	(82)	$	(228)	$	(1,042)

Weighted-average assumptions used to determine benefit obligations as of December 31, 2023 and 2022:

	Pension Benefits		Other Postretirement Benefits
	2023	2022	2023	2022
U.S. Plans
Discount rate	4.94%	5.21%	4.87%	5.14%
Rate of compensation increase	N/A	N/A	N/A	N/A
Foreign Plans
Discount rate	4.35%	6.29%	N/A	N/A
Rate of compensation increase	3.27%	3.93%	N/A	N/A

Weighted-average assumptions used to determine net periodic benefit costs for the years ended December 31, 2023, 2022 and 2021:

	Pension Benefits						Other Postretirement Benefits
	2023		2022		2021		2023		2022		2021
U.S. Plans
Discount rate	5.21	%	2.67	%	2.67	%	5.15	%	2.45	%	1.90	%
Expected long-term return on plan assets	5.50	%	5.75	%	5.75	%	N/A		N/A		N/A
Rate of compensation increase	N/A		N/A		6.00	%	N/A		N/A		N/A
Foreign Plans
Discount rate	4.77	%	3.97	%	1.38	%	N/A		N/A		N/A
Expected long-term return on plan assets	4.03	%	2.26	%	2.06	%	N/A		N/A		N/A
Rate of compensation increase	3.38	%	3.21	%	2.52	%	N/A		N/A		N/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 for additional information.

Assumed health care cost trend rates as of December 31, 2023, 2022 and 2021:

	2023		2022		2021
Health care cost trend rate for next year	6.87	%	5.60	%	5.65	%
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)	4.00	%	4.00	%	4.00	%
Year that the rate reaches the ultimate trend rate	2048		2047		2046

Plan Assets and Fair Value

The Company’s pension plan target asset allocation and the weighted-average asset allocations as of December 31, 2023 and 2022 by asset category were as follows:

Asset Category	Target		2023		2022
U.S. Plans
Equity securities	30	%	23	%	32	%
Debt securities	70	%	70	%	60	%
Other	—	%	7	%	8	%
Total	100	%	100	%	100	%
Foreign Plans
Equity securities	15	%	15	%	8	%
Debt securities	60	%	63	%	79	%
Other	25	%	22	%	13	%
Total	100	%	100	%	100	%

As of December 31, 2023 and 2022, “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 fair value hierarchy, where applicable (refer to Note 1, Basis of Presentation and Significant Accounting Policies, for a definition of the levels of the fair value hierarchy):

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, 2023, the foreign pension plan commingled funds included approximately 35 percent of investments in equity securities, 50 percent of investments in fixed income securities, and 14 percent of other non-related investments, primarily real estate. 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.

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, 2023, the U.S. pension plan pooled separate accounts included approximately 25 percent of investments in equity securities and 75 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

The Company’s foreign pension plans invest in two separate insurance contracts. Investments in the first 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.

During 2023, one of the Company’s foreign pension plans invested in an insurance contract that is valued at the value available for the Company at year end (i.e. the vested benefit obligation). The vested benefit obligation is determined based on unobservable inputs, which are actuarially determined, regarding returns, the present value of the future cash flows of the contract and benefit obligations. Both this contract and the contract described above are classified as Level 3 investments.

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. There were no such investments as of December 31, 2023 and 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 Level 3 investments.

As of December 31, 2023 and 2022, the U.S. and foreign plans’ investments measured at fair value on a recurring basis were as follows:

			Fair Value Measurements at December 31, 2023
	Total Fair Value		Using Fair Value Hierarchy
U.S. Pension Assets			Level 1		Level 2		Level 3
Pooled separate accounts	$	56,820	$	—	$	56,820	$	—
Real estate	4,147		—		—		4,147
Subtotal U.S. pension plan assets in fair value hierarchy	$	60,967	$	—	$	56,820	$	4,147
Total U.S. pension plan assets	$	60,967
Foreign Pension Assets
Cash and cash equivalents	$	1,582	$	1,582	$	—	$	—
Insurance contract	118,393		—		—		118,393
Diversified equity securities - registered investment companies	1,892		—		1,892		—
Fixed income – foreign registered investment companies	9,676		—		9,676		—
Real estate	1,771		—		—		1,771
Subtotal foreign pension assets in fair value hierarchy	$	133,314	$	1,582	$	11,568	$	120,164
Commingled funds measured at NAV	2,073
Total foreign pension assets	$	135,387
Total pension assets in fair value hierarchy	$	194,281	$	1,582	$	68,388	$	124,311
Total pension assets measured at NAV	2,073
Total pension assets	$	196,354

			Fair Value Measurements at December 31, 2022
	Total Fair Value		Using Fair Value Hierarchy
U.S. Pension Assets			Level 1		Level 2		Level 3
Pooled separate accounts	$	54,596	$	—	$	54,596	$	—
Real estate	4,995		—		—		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 contract	59,963		—		—		59,963
Diversified equity securities - registered investment companies	5,211		—		5,211		—
Fixed income – foreign registered investment companies	54,098		—		54,098		—
Real estate	3,907		—		—		3,907
Subtotal foreign pension assets in fair value hierarchy	$	128,102	$	4,923	$	59,309	$	63,870
Commingled funds measured at NAV	1,842
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 NAV	1,842
Total pension assets	$	189,535

During the third quarter of 2023, one of the Company’s pension plans in the U.K. liquidated approximately $50 million of its invested assets and subsequently funded and entered into an insurance annuity contract, which will provide for the pension plan’s defined benefit obligations to participants.

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, 2023 and 2022 were as follows:

	Insurance Contract		Real Estate		Alternative Investments		Total
Balance as of December 31, 2021	$	99,527	$	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
Purchases	47,640		(303)		—		47,337
Unrealized gains (losses)	7,621		(2,867)		—		4,754
Currency translation adjustment	3,169		186		—		3,355
Balance as of December 31, 2023	$	118,393	$	5,918	$	—	$	124,311

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, 2022, the last valuation date available for the multiemployer plan, total plan liabilities were approximately $576 million. As of December 31, 2022, the multiemployer pension plan had total plan assets of approximately $340 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, 2023. 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, 2023.

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 cash contributions of approximately $5.7 million to its pension plans (approximately $3.3 million U.S. and $2.4 million Foreign) and approximately $0.2 million to its other postretirement benefit plan in 2024.

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 Benefits						Other Post- Retirement Benefits
	Foreign		U.S.		Total
2024	$	6,235	$	7,657	$	13,892	$	178
2025	6,640		6,805		13,445		168
2026	7,403		6,793		14,196		160
2027	7,127		6,154		13,281		139
2028	7,328		6,085		13,413		130
2029 to 2033	45,090		28,648		73,738		517

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 $0.6 million, $0.7 million and $3.0 million for the years ended December 31, 2023, 2022 and 2021, 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 for additional information. Total Company contributions under this U.S. 401(k) plan were $6.1 million, $7.2 million and $4.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.