EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2022

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

17.EMPLOYEE BENEFIT PLANS

Defined Contribution Plans—All regular full-time employees are eligible to participate in a defined contribution profit sharing and savings plan ("PSSP") that we sponsor.  PSSP participants may elect to make voluntary contributions to this plan up to a specified amount of their compensation. We make matching contributions based on a percent of an employee's eligible compensation and also make an additional non-matching contribution.  Our contribution expense for the PSSP was approximately $19.4 million, $17.7 million and $16.1 million for the years ended December 31, 2022, 2021 and 2020, respectively.

Defined Benefit Plan—Eligible employees and former employees of certain of our mining operations participate in a defined benefit plan (the "Pension Plan") that we sponsor.  The Pension Plan is closed to new applicants.  Participants in the Pension Plan are no longer receiving benefit accruals for service.  The benefit formula for the Pension Plan is a fixed-dollar unit based on years of service.

The following sets forth changes in benefit obligations and plan assets for the years ended December 31, 2022 and 2021 and the funded status of the Pension Plan reconciled with the amounts reported in our consolidated financial statements:

	December 31,
	2022		2021
	(dollars in thousands)
Change in benefit obligations:
Benefit obligations at beginning of year	$	139,566	$	147,934
Interest cost		3,749		3,438
Actuarial gain		(32,996)		(6,406)
Benefits paid		(5,637)		(5,400)
Benefit obligations at end of year		104,682		139,566
Change in plan assets:
Fair value of plan assets at beginning of year		113,976		100,969
Employer contribution		—		3,312
Actual return on plan assets		(16,210)		15,095
Benefits paid		(5,637)		(5,400)
Fair value of plan assets at end of year		92,129		113,976
Funded status at the end of year	$	(12,553)	$	(25,590)
Amounts recognized in balance sheet:
Non-current liability	$	(12,553)	$	(25,590)
Amounts recognized in accumulated other comprehensive income consists of:
Prior service cost	$	(382)	$	(568)
Net actuarial loss		(15,160)		(27,271)
	$	(15,542)	$	(27,839)
Weighted-average assumption to determine benefit obligations as of December 31,
Discount rate		5.10%		2.73%
Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31,
Discount rate		2.73%		2.37%
Expected return on plan assets		6.00%		6.50%

The actuarial gain components of the change in benefit obligations in 2022 and 2021 were primarily attributable to an increase in the discount rate compared to the prior year end.    

The expected long-term rate of return used to determine our pension liability is based on a 1.5% active management premium in addition to an asset allocation assumption of:

	Asset allocation
As of December 31, 2022	assumption
Equity securities	60%
Fixed income securities	35%
Real estate	5%
	100%

The actual return on plan assets was (14.6)% and 15.1% for the years ended December 31, 2022 and 2021, respectively.

	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Components of net periodic benefit cost:
Interest cost	$	3,749	$	3,438	$	4,185
Expected return on plan assets		(6,638)		(6,580)		(5,861)
Amortization of prior service cost		186		186		186
Amortization of net loss		1,963		4,327		4,128
Net periodic benefit cost (1)	$	(740)	$	1,371	$	2,638

(1) Nonservice components of net periodic benefit cost are included in the Other income (expense) line item within our consolidated statements of operations.

	Year Ended December 31,
	2022		2021
	(in thousands)
Other changes in plan assets and benefit obligation recognized in accumulated other comprehensive loss:
Net actuarial gain	$	10,148	$	14,921
Reversal of amortization item:
Prior service cost		186		186
Net actuarial loss		1,963		4,327
Total recognized in accumulated other comprehensive loss		12,297		19,434
Net periodic benefit cost (credit)		740		(1,371)
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	13,037	$	18,063

Estimated future benefit payments as of December 31, 2022 are as follows:

Year Ended
December 31,	(in thousands)
2023	$	6,239
2024		6,416
2025		6,605
2026		6,816
2027		6,907
2028-2032		35,293
	$	68,276

As a result of certain pension plan contribution relief provided by the American Rescue Plan Act enacted in March 2021, we do not expect to make contributions to the Pension Plan during 2023.  

The Compensation Committee has appointed an investment manager with full investment authority with respect to Pension Plan investments subject to investment guidelines and compliance with Employee Retirement Income Security Act of 1974 or other applicable laws.  The investment manager employs a series of asset allocation strategy phases to glide the portfolio risk commensurate with both plan characteristics and market conditions.  The objective of the allocation policy is to reach and maintain fully funded status.  The total portfolio allocation will be adjusted as the funded ratio of the Pension Plan changes and market conditions warrant.  Total account performance is reviewed at least annually, using a dynamic benchmark approach to track investment performance.  General asset allocation guidelines at December 31, 2022 are as follows:

	Percentage of Total Portfolio
	Minimum	Maximum
Equity securities	35%	80%
Fixed income securities	15%	65%
Convertible securities	0%	10%
Alternatives	0%	20%

Equity securities include domestic equity securities, developed international equity securities, emerging markets equity securities and real estate investment trust.  Fixed income securities include domestic and international investment grade fixed income securities, high yield securities and emerging markets fixed income securities.  Futures may also be utilized within the equity securities and fixed income securities asset allocation.  Alternatives may include individual securities, exchange traded notes, exchange traded commodities and underlying funds providing exposure to market neutral strategies, long/short strategies, direct real estate and commodities.

The following information discloses the fair values of our Pension Plan assets by asset category:

	December 31,
	2022		2021
	(in thousands)
Cash and cash equivalents (a)	$	5,422	$	4,426
Commingled investment funds measured at net asset value (b):
Equities - Global		—		24,868
Equities - United States		36,259		41,140
Equities - United States futures		(697)		(2,055)
Equities - International developed markets		14,214		16,382
Equities - International developed markets futures		(1,693)		(16,260)
Equities - International emerging markets		782		(3,363)
Equities - International emerging markets futures		3,289		7,024
Fixed income - Investment grade		13,856		27,095
Fixed income - High yield		156		177
Fixed income - Futures		8,590		(689)
Alternatives		11,951		15,231
Total	$	92,129	$	113,976

(a) Cash and cash equivalents represents a Level 1 fair value measurement.  See Note 2 – Summary of Significant Accounting Policies – Fair Value Measurements for more information regarding the definitions of fair value hierarchy levels.

(b) Investments measured at fair value using the net asset value per share (or its equivalent) have not been classified within the fair value hierarchy.  The fair values of all commingled investment funds are determined based on the net asset values per unit of each of the funds. The net asset values per unit represent the aggregate value of the fund's assets at fair value less liabilities, divided by the number of units outstanding.

See Note 2 – Summary of Significant Accounting Policies for more information on our accounting policy for pension benefits.