Employee Benefit Plans

6 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Defined Contribution Plans

The Company maintains a 401(k) plan for its employees in the US whereby eligible employees may contribute up to a specified percentage of their earnings, on a pretax basis, subject to the maximum amount permitted by the Internal Revenue Code. Under the 401(k) plan, the Company made discretionary contributions to the plan in 2022. For the three and six months ended June 30, 2023, the Company recorded an expense of $0.3 million and $0.5 million, respectively. For the three and six months ended June 30, 2022, the Company recorded an expense of $0.2 million and $0.4 million, respectively.

The Company maintains a defined contribution plan for its employees in Korea. Under the defined contribution plan, the Company contributes the equivalent of 8.3% of an employee's gross salary into the plan. For the three and six months ended June 30, 2023, the Company recorded an expense of $0.5 million and $0.8 million, respectively. For the three and six months ended June 30, 2022, the Company recorded an expense of $0.3 million and $0.6 million,

Defined Benefit Plans

The Company sponsors defined benefit plans for its employees in Germany and Japan. Defined benefit plans provide pension benefits based on compensation and years of service. The Germany plans were frozen as of September 30, 2003 and have not been offered to new employees after that date. The Company has recorded the underfunded status as of June 30, 2023 and December 31, 2022 as a long-term liability on the unaudited condensed consolidated balance sheets. The accumulated benefit obligation for the plans in Germany and Japan was $11.1 million and $11.0 million as of June 30, 2023 and December 31, 2022, respectively. Periodic benefit costs for the three and six months ended June 30, 2023 were $0.1 million and $0.2 million, respectively. Periodic benefit costs for the three and six months ended June 30, 2022 were $0.1 million and $0.2 million, respectively.

The Company holds pension insurance contracts, with the Company as beneficiary, in the amount of $2.1 million as of June 30, 2023 and $2.5 million as of December 31, 2022 related to individuals under the pension plans. The Company records these insurance contracts based on their cash surrender value at the balance sheet dates. These insurance contracts are classified as other assets on the Company’s unaudited condensed consolidated balance sheet. The Company intends to use any proceeds from these policies to fund the pension plans. However, since the Company is the beneficiary on these policies, these assets have not been designated pension plan assets.