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Pensions and Other Post-Employment Benefits
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
Pensions and Other Post-Employment Benefits Pensions and Other Post-Employment Benefits
The obligation and funded status of the Company’s pension and other post-employment benefit plans are shown below. The Pension Benefits column aggregates defined benefit pension plans in the U.S., Germany, Liechtenstein, England, and the U.S. supplemental retirement plans. The Other Benefits column includes the domestic retiree medical and life insurance plan.
  Pension BenefitsOther Benefits
(Thousands)2021202020212020
Change in benefit obligation
Benefit obligation at beginning of year$246,107 $186,760 $8,190 $8,681 
Service cost1,722 1,403 80 59 
Interest cost4,186 5,234 116 213 
Net pension curtailments and settlements— (609)— — 
Acquisition— 30,360 — — 
Plan amendments— (799)— — 
Actuarial (gain) loss(8,448)24,259 (112)224 
Benefit payments(4,927)(4,612)(742)(989)
Foreign currency exchange rate changes and other(2,861)4,111 (18)2 
Benefit obligation at end of year235,779 246,107 7,514 8,190 
Change in plan assets
Fair value of plan assets at beginning of year226,176 174,046 — — 
Plan settlements— — — — 
Acquisition— 23,774 — — 
Actual return on plan assets6,082 30,330 — — 
Employer contributions955 614 — — 
Employee contributions878 498 — — 
Benefit payments from fund(5,399)(4,720)— — 
Expenses paid from assets(313)(234)— — 
Foreign currency exchange rate changes and other(1,039)1,868 — — 
Fair value of plan assets at end of year227,340 226,176 — — 
Funded status at end of year$(8,439)$(19,931)$(7,514)$(8,190)
Amounts recognized in the Consolidated
Balance Sheets consist of:
Other assets$18,566 $13,074 $— $— 
Other liabilities and accrued items(1,662)(470)(754)(866)
Retirement and post-employment benefits(25,343)(32,535)(6,760)(7,324)
Net amount recognized$(8,439)$(19,931)$(7,514)$(8,190)

The benefit obligation decreased in 2021 due to actuarial gains that were driven by increases in the discount rate as well as participant census data updates.
In 2019, the Company's Board of Directors approved changes to the U.S. defined benefit pension plan. The Company froze the pay and service amounts used to calculate the pension benefits for active participants as of January 1, 2020. The Company recognized a non-cash pretax pension curtailment charge of $3.3 million associated with the plan amendment in 2019.
The following amounts are included within accumulated other comprehensive loss at December 31, 2021:
  Pension BenefitsOther Benefits
(Thousands)2021202020212020
Amounts recognized in other comprehensive income (before tax) consist of:
Net actuarial loss (gain)$42,440 $49,472 $(4,044)$(3,973)
Net prior service cost (credit)(695)(799)(2,054)(3,552)
Net transition obligation/(asset)637 — — — 
Net amount recognized$42,382 $48,673 $(6,098)$(7,525)
The following table provides information regarding the accumulated benefit obligation:
  Pension BenefitsOther Benefits
(Thousands)2021202020212020
Additional information
Accumulated benefit obligation for all defined benefit pension plans$233,717 $243,953 $— $— 
For defined benefit pension plans with benefit obligations in excess of plan assets:
Aggregate benefit obligation58,052 62,012 — — 
Aggregate fair value of plan assets33,148 29,938 — — 
For defined benefit pension plans with accumulated benefit obligations in excess of plan assets:
Aggregate accumulated benefit obligation56,043 59,858 — — 
Aggregate fair value of plan assets33,148 29,938 — — 

The following table summarizes components of net benefit cost:
  
Pension BenefitsOther Benefits
(Thousands)202120202019202120202019
Net benefit cost
Service cost$1,722 $1,403 $5,918 $80 $59 $67 
Interest cost4,186 5,234 6,292 116 213 399 
Expected return on plan assets(9,881)(9,333)(8,777)— — — 
Amortization of prior service credit(82)— 483 (1,497)(1,497)(1,497)
Recognized net actuarial loss (gain)2,344 1,678 3,304 (275)(332)(93)
Net periodic benefit (credit) cost(1,711)(1,018)7,220 (1,576)(1,557)(1,124)
Net pension curtailments and settlements— 94 3,328 — — — 
Total net benefit (credit) cost$(1,711)$(924)$10,548 $(1,576)$(1,557)$(1,124)
 
In 2019, net benefit cost includes a $3.3 million curtailment charge related to the freeze of our U.S. defined benefit plan effective January 1, 2020.
Components of net periodic benefit cost, other than service cost, are included in Other non-operating (income) expense in the Consolidated Statements of Income. Additionally, Pension Benefit Guaranty Corporation premiums are reported within expected return on plan assets.
The following table summarizes amounts recognized in other comprehensive income (OCI):
  
Pension BenefitsOther Benefits
(Thousands)202120202019202120202019
Change in other comprehensive income
OCI at beginning of year$48,673 $48,073 $65,409 $(7,525)$(9,578)$(8,976)
Increase (decrease) in OCI:
Recognized during year — prior service cost (credit)82 — (3,811)1,497 1,497 1,497 
Recognized during year — net actuarial (losses) gains(2,344)(1,678)(3,304)275 332 93 
Occurring during year — prior service cost— (799)— — — — 
Occurring during year — net actuarial losses (gains)(4,553)3,146 2,062 (345)224 (2,192)
Other adjustments— (94)(12,212)— — — 
Foreign currency exchange rate changes524 25 (71)— — — 
OCI at end of year$42,382 $48,673 $48,073 $(6,098)$(7,525)$(9,578)

In determining the projected benefit obligation and the net benefit cost, as of a December 31 measurement date, the Company used the following weighted-average assumptions:
 Pension BenefitsOther Benefits
 202120202019202120202019
Weighted-average assumptions used to determine benefit obligations at fiscal year end
Discount rate2.42 %2.14 %3.12 %2.90 %2.45 %3.20 %
Rate of compensation increase2.19 %2.22 %3.00 %3.00 %3.00 %3.00 %
Weighted-average assumptions used to determine net cost for the fiscal year
Discount rate4.69 %8.37 %4.16 %2.45 %3.20 %4.11 %
Expected long-term return on plan assets5.44 %5.70 %6.06 %N/AN/AN/A
Rate of compensation increase2.87 %2.87 %2.99 %3.00 %3.00 %4.00 %
Discount Rate. The discount rate used to determine the present value of the projected and accumulated benefit obligation at the end of each year is established based upon the available market rates for high quality, fixed income investments whose maturities match the plan’s projected cash flows.
The Company uses a spot-rate approach to estimate the service and interest cost components of net periodic benefit cost for its defined benefit pension plans. The spot-rate approach applies separate discount rates for each projected benefit payment in the calculation.
Expected Long-Term Return on Plan Assets. Management establishes the domestic expected long-term rate of return assumption by reviewing historical trends and analyzing the current and projected market conditions in relation to the plan’s asset allocation and risk management objectives. Consideration is given to both recent plan asset performance as well as plan asset performance over various long-term periods of time, with an emphasis on the assumption being a prospective, long-term rate of return. Management consults with and considers the opinions of its outside investment advisers and actuaries when establishing the rate and reviews assumptions with the Audit Committee of the Board of Directors.
Rate of Compensation Increase. The rate of compensation increase assumption is no longer applicable for the domestic defined benefit due to the Company freezing the plan effective January 1, 2020. The rate of compensation assumption for the domestic retiree medical plan was 3.0% in both 2021 and 2020.
Assumptions for the defined benefit pension plans in Germany, Liechtenstein, and England are determined separately from the U.S. plan assumptions, based on historical trends and current and projected market conditions in each respective country. One plan in Germany is unfunded.
Assumed health care trend rates at fiscal year end20212020
Health care trend rate assumed for next year6.00%6.00%
Rate that the trend rate gradually declines to (ultimate trend rate)5.00%5.00%
Year that the rate reaches the ultimate trend rate20282025

Plan Assets
The following tables present the fair values of the Company’s defined benefit pension plan assets as of December 31, 2021 and 2020 by asset category. The Company has some investments that are valued using net asset value (NAV) as the practical expedient and have not been classified in the fair value hierarchy. Refer to Note S for definitions of the fair value hierarchy.
 December 31, 2021
(Thousands)TotalLevel 1Level 2Level 3
Cash$4,777 $4,777 $— $— 
Equity securities (a)49,618 49,618 — — 
Fixed-income securities (b)14,344 14,344 — — 
Other types of investments:
Real estate fund (c)3,258 3,258 — — 
Total71,997 71,997 — — 
Investments measured at NAV: (d)
Pooled investment fund (e)147,832 
Multi-strategy hedge funds (f)7,438 
Private equity funds73 
Total assets at fair value$227,340 
 December 31, 2020
(Thousands)TotalLevel 1Level 2Level 3
Cash$2,204 $2,204 $— $— 
Equity securities (a)49,293 49,293 — — 
Fixed-income securities (b)20,375 20,375 — — 
Other types of investments:
Real estate fund (c)6,105 6,105 — — 
Total77,977 77,977 — — 
Investments measured at NAV: (d)
Pooled investment fund (e)143,503 
Multi-strategy hedge funds (f)4,624 
Private equity funds72 
Total assets at fair value$226,176 
(a)Equity securities are primarily comprised of corporate stock and mutual funds directly held by the plans. Equity securities are valued using the closing price reported on the active market on which the individual securities are traded.
(b)Fixed income securities are primarily comprised of governmental and corporate bonds directly held by the plans. Governmental and corporate bonds are valued using both market observable inputs for similar assets that are traded on an active market and the closing price on the active market on which the individual securities are traded.
(c)Includes a mutual fund that typically invests at least 80% of its assets in equity and debt securities of companies in the real estate industry or related industries or in companies which own significant real estate assets at the time of investment.
(d)Certain assets that are measured at fair value using the NAV practical expedient have not been classified in the fair value hierarchy.
(e)Pooled investment fund consists of various investment types including equity investments covering a range of geographies and including investment managers that hold long and short positions, property investments, and other
multi-strategy funds which combine a range of different credit, equity, and macro-orientated ideas and dynamically allocate funds across asset classes.
(f)Includes a fund that invests in a broad portfolio of hedge funds.
The Company’s domestic defined benefit pension plan investment strategy, as approved by the Governance and Organization Committee of the Board of Directors, is to employ an allocation of investments that will generate returns equal to or better than the projected long-term growth of pension liabilities so that the plan will be self-funding. The return objective is to maximize investment return to achieve and maintain a 100% funded status over time, taking into consideration required cash contributions. The allocation of investments is designed to maximize the advantages of diversification while mitigating the risk and overall portfolio volatility to achieve the return objective. Risk is defined as the annual variability in value and is measured in terms of the standard deviation of investment return. Under the Company’s investment policies, allowable investments include domestic equities, international equities, fixed income securities, cash equivalents, and alternative securities (which include real estate, private venture capital investments, hedge funds, and tactical asset allocation). Ranges, in terms of a percentage of the total assets, are established for each allowable class of security. Derivatives may be used to hedge an existing security or as a risk reduction strategy. Current asset allocation guidelines are to invest 10% to 40% in equity securities, 60% to 90% in fixed income securities and cash, and up to 20% in alternative securities. Management reviews the asset allocation on a quarterly or more frequent basis and makes revisions as deemed necessary.
None of the plan assets noted above are invested in the Company’s common stock.

Cash Flows

Employer Contributions. The Company does not expect to contribute to its domestic defined benefit pension plan in 2022.

All plan participants with an accrued benefit may elect an immediate payout in lieu of their future monthly annuity if the lump sum amount does not exceed $100,000.
Estimated Future Benefit Payments. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
 Other Benefits
(Thousands)Pension BenefitsGross Benefit
Payment		Net of
Medicare
Part D
Subsidy
20226,286 756 756 
20237,713 708 708 
20248,778 634 634 
20258,932 567 567 
20269,768 504 504 
2027 through 203154,751 1,925 1,925 
Other Benefit Plans
In addition to the plans shown above, the Company also has certain foreign subsidiaries with accrued unfunded pension and other post-employment arrangements. The liability for these arrangements was $1.1 million at December 31, 2021 and $1.7 million at December 31, 2020, and was included in retirement and post-employment benefits on the Consolidated Balance Sheets.
The Company also sponsors defined contribution plans available to substantially all U.S. employees. The Company’s annual defined contribution expense, including the expense for the enhanced defined contribution plan, was $9.9 million in 2021, $9.8 million in 2020, and $7.0 million in 2019.