Employee Benefit Plans

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Employee Benefit Plans

Note 7 Employee Benefit Plans

The Company maintains supplemental non-qualified plans for certain officers and other key employees. The expense for these plans was not material for 2023, 2022 or 2021. The discount rate used to measure the net periodic pension cost was 5.09% for 2023, 2.61% for 2022 and 2.08% for 2021. The amount accrued was $0.8 million and $0.7 million as of December 31, 2023 and 2022, respectively.

The Company also maintains an Employee Savings and Stock Ownership Plan (“ESSOP”) for the majority of the U.S. employees. The ESSOP includes a voluntary 401(k) savings plan that allows certain employees to defer up to 50% of their income on a pretax basis subject to limits on maximum amounts. The Company matches 25% of each employee’s contribution, with the match percentage applying to a maximum of 7% of each employee's salary. Compensation expense was $1.2 million in 2023, $1.1 million in 2022 and $0.9 million in 2021.

The Company also contributes to a defined contribution feature within the ESSOP plan. Contributions are discretionary and are calculated as a percentage of eligible wages of the employee. Compensation expense under the defined contribution feature was $4.0 million in 2023, $3.7 million in 2022 and $3.1 million in 2021.

Other Postretirement Benefits

The Company also has a postretirement healthcare benefit plan that provides medical benefits for certain U.S. retirees and eligible dependents hired prior to November 1, 2004. Employees are eligible to receive postretirement healthcare benefits upon meeting certain age and service requirements. No employees hired after October 31, 2004 are eligible to receive these benefits. This plan requires employee contributions to offset benefit costs.

The following table sets forth the components of net periodic postretirement benefit cost for the years ended December 31, 2023, 2022 and 2021:

	2023			2022			2021
	(In thousands)
Service cost, benefits attributed for service of active employees for the period	$	72		$	91		$	104
Interest cost on the accumulated postretirement benefit obligation		206			119			99
Amortization of actuarial gain		(193	)		(48	)		-
Net periodic postretirement benefit cost	$	85		$	162		$	203

The discount rate used to measure the net periodic postretirement benefit cost was 5.16% for 2023, 2.82% for 2022 and 2.45% for 2021. It is the Company's policy to fund healthcare benefits on a cash basis. Because the plan is unfunded, there are no plan assets. The following table provides a reconciliation of the projected benefit obligation at the Company's December 31 measurement date:

	2023			2022
	(In thousands)
Benefit obligation at beginning of year	$	4,244		$	5,544
Service cost		72			91
Interest cost		206			119
Actuarial gain		(22	)		(833	)
Plan participants' contributions		543			600
Benefits paid		(1,121	)		(1,277	)
Benefit obligation, end of year	$	3,922		$	4,244

The amounts recognized in the Consolidated Balance Sheets at December 31 are:

	2023		2022
	(In thousands)
Accrued compensation and employee benefits	$	309	$	328
Accrued non-pension postretirement benefits		3,613		3,916
Amounts recognized at December 31	$	3,922	$	4,244

The discount rate used to measure the accumulated postretirement benefit obligation was 4.96% for 2023 and 5.16% for 2022. The Company's discount rate assumptions for its postretirement benefit plan are based on the average yield of a hypothetical high quality bond portfolio with maturities that approximately match the estimated cash flow needs of the plan. Because the plan requires the Company to establish fixed Company contribution amounts for retiree healthcare benefits, future healthcare cost trends do not generally impact the Company's accruals or provisions.

Estimated future benefit payments of postretirement benefits, assuming increased cost sharing, expected to be paid in each of the next five years beginning with 2024 are $0.3 million through 2028, with an aggregate of $1.6 million for the five years thereafter. These amounts can vary significantly from year to year because the cost sharing estimates can vary from actual expenses as the Company is self-insured.

Amounts included in accumulated other comprehensive income, net of tax, at December 31, 2023 that have not yet been recognized in net periodic benefit cost are as follows:

	Pension plans		Other postretirement benefits
	(In thousands)
Net actuarial loss (gain)	$	48	$	(968	)

Amounts included in accumulated other comprehensive income, net of tax, at December 31, 2023 expected to be recognized in net periodic benefit cost during the fiscal year ending December 31, 2024 are not expected to be material.