PENSION LIABILITY

9 Months Ended

Sep. 30, 2020

PENSION LIABILITY

PENSION LIABILITY

NOTE 17.    PENSION LIABILITY

In connection with the acquisitions of HiTek Power Group, LumaSense and Artesyn’s Embedded Power business, we assumed the liabilities of their pension plans. To measure the expense and related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. We are committed to make annual fixed payments of $0.8 million into the HiTek Power Limited Pension Scheme through April 30, 2024, and then $1.7 million from May 1, 2024 through November 30, 2033. We are obligated to fund the other pension liabilities each year as incurred.

The net pension liability in our Consolidated Balance Sheets is as follows:

	September 30,		December 31,
	2020		2019
Pension liability	$	70,156	$	68,359

The following table sets forth the components of net periodic pension cost:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Service cost	$	269	$	124	$	791	$	124
Interest cost		470		274		1,449		668
Expected return on plan assets		(151)		(160)		(441)		(496)
Amortization of actuarial gains and losses		116		90		344		323
Net periodic pension cost	$	704	$	328	$	2,143	$	619