Employee Benefit Plans

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans

Note 15.     Employee Benefit Plans

Defined Benefit Plan:

The following tables summarize changes in the benefit obligation, the plan assets and the funded status of our pension plan as well as the components of net periodic benefit costs, including key assumptions (in thousands). The measurement dates for plan assets and obligations were December 31, 2020 and 2019.

	December 31,
	2020		2019
Change in Projected Benefit Obligation:
Benefit obligation at beginning of year	$	64,253	$	55,759
Service cost		1,317		1,090
Interest cost		1,945		2,257
Actuarial loss		7,253		7,889
Benefit payments		(2,600)		(2,742)
Benefit obligation at end of year	$	72,168	$	64,253
Change in Plan Assets:
Fair value of plan assets at beginning of year	$	59,416	$	50,802
Actual return on plan assets		10,469		10,356
Employer contributions		1,000		1,000
Benefit payments		(2,600)		(2,742)
Fair value of plan assets at end of year	$	68,285	$	59,416
Unfunded status at end of year (included in accounts payable and accrued expenses in 2020 and 2019)	$	(3,883)	$	(4,837)
Accumulated benefit obligation	$	72,053	$	64,159
Net loss recognized in accumulated other comprehensive loss	$	14,774	$	14,897

The following is the required information for other changes in plan assets and benefit obligation recognized in other comprehensive income (in thousands):

	Year Ended December 31,
	2020		2019		2018
Net loss	$	898	$	1,044	$	1,143
Amortization of net loss		(1,021)		(1,197)		(1,228)
Total recognized in other comprehensive income	$	(123)	$	(153)	$	(85)
Total recognized in net periodic benefit cost and other comprehensive income	$	46	$	880	$	767

The following is the required information with an accumulated benefit obligation in excess of plan assets (in thousands):

	December 31,
	2020		2019
Projected benefit obligation	$	72,168	$	64,253
Accumulated benefit obligation		72,053		64,159
Fair value of plan assets		68,285		59,416

The components of net periodic benefit cost are as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
Service cost	$	1,317	$	1,090	$	1,295
Interest cost		1,945		2,257		2,056
Expected return on plan assets		(4,114)		(3,511)		(3,727)
Amortization of net loss		1,021		1,197		1,228
Total	$	169	$	1,033	$	852

The components of net periodic benefit cost other than the service cost component are included in Interest and Other Income, net in the Consolidated Statements of Operations.

The weighted-average assumptions used to determine net periodic benefit cost are shown below:

	Year Ended December 31,
	2020		2019		2018
Discount rate	3.09	%	4.12	%	3.50	%
Salary scale increases	3.50	%	3.50	%	3.50	%
Long-term rate of return on assets	7.00	%	7.00	%	7.00	%
Interest credit rate for cash balance plan	4.50	%	4.50	%	4.50	%

The selection of the discount rate is made annually after comparison to yields based on high quality fixed-income investments. The salary scale is the composite rate which reflects anticipated inflation, merit increases, and promotions for the group of covered participants. The long-term rate of return is a composite rate for the trust. It is derived as the sum of the percentages invested in each principal asset class included in the portfolio multiplied by their respective expected rates of return. We considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio. This analysis resulted in the selection of 7.00% as the long-term rate of return assumption for 2020.

The weighted-average assumptions used to determine the benefit obligation are shown below:

	Year Ended December 31,
	2020		2019		2018
Discount rate	2.32	%	3.09	%	4.12	%
Salary scale increases	3.50	%	3.50	%	3.50	%
Interest credit rate for cash balance plan	4.50	%	4.50	%	4.50	%

The expected contribution to be paid for the Retirement Plan by us during 2021 is approximately $1.0 million. The expected benefit payments for the next 10 years for the Retirement Plan is as follows (in thousands):

2021	$	2,601
2022		2,769
2023		2,939
2024		3,061
2025		3,132
2026-2030		16,366

The participant data used in determining the liabilities and costs for the Retirement Plan was collected as of January 1, 2020, and no significant changes have occurred through December 31, 2020.

At December 31, 2020, our investment asset allocation compared to our benchmarking allocation model for our plan assets was as follows:

	Portfolio		Benchmark
Cash and Short-Term Investments	5	%	6	%
U.S. Stocks	52	%	57	%
International Stocks	15	%	10	%
U.S. Bonds	23	%	23	%
International Bonds	4	%	3	%
Other	1	%	1	%
Total	100	%	100	%

The fair value of plan assets was determined based on publicly quoted market prices for identical assets, which are all classified as Level 1 observable inputs and were as follows (in thousands):

		December 31,
		2020		2019
Cash and Short-Term Investments	$	12,334	$	10,624
Large Company Funds		24,790		20,410
Mid Company Funds		3,595		4,107
Small Company Funds		3,538		4,071
International Funds		7,502		6,313
Fixed Income Funds		10,138		9,106
Growth Funds		6,388		4,785
Total	$	68,285	$	59,416

The allocation of the fair value of plan assets was as follows:

	December 31,
	2020		2019
Cash and Short-Term Investments	18	%	18	%
Large Company Funds	36	%	34	%
Mid Company Funds	5	%	7	%
Small Company Funds	5	%	7	%
International Funds	11	%	11	%
Fixed Income Funds	15	%	15	%
Growth Funds	10	%	8	%
Total	100	%	100	%

Concentrations of risk within our equity portfolio are investments classified within the following sectors: technology, consumer cyclical goods, financial services, healthcare and communication services, which represents approximately 23%, 16%, 15%, 14% and 11% of total equity investments, respectively.

Defined Contribution Plans:

Compensation expense related to our defined contribution plans was $3.6 million in 2020, $3.9 million in 2019 and $3.8 million in 2018.