Employee Benefit Plans

12 Months Ended

Dec. 31, 2022

Compensation And Retirement Disclosure [Abstract]

Employee Benefit Plans

16. EMPLOYEE BENEFIT PLANS

The Company provides retirement and other post-retirement benefits to certain of its employees through defined benefit pension plans (the “pension plans”). The Company also offers defined contribution plans to its employees. The pension plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense for the service cost component, and “operating expenses–other” for the other components of benefit costs on the consolidated statements of operations.

Employer Contributions to Pension Plans—The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ trustees. Management also evaluates from time to time whether to make voluntary contributions to the plans.

The Company expects to contribute approximately $1,000 to the U.S pension plan and approximately $3,000 to the non-U.S. pension plans during the year ending December 31, 2023. 

The following table summarizes the changes in the benefit obligations, the fair value of the assets, the funded status and amounts recognized in the consolidated statements of financial condition for the post-retirement plans. The Company uses December 31 as the measurement date for its post-retirement plans.

	Pension Plans
	2022			2021
Change in benefit obligation
Benefit obligation at beginning of year	$	731,978		$	811,662
Service cost		543			876
Interest cost		11,130			8,679
Actuarial (gain) loss		(203,009	)		(39,706	)
Benefits paid		(29,357	)		(29,327	)
Settlements		-			(4,643	)
Foreign currency translation and other adjustments		(71,235	)		(15,563	)
Benefit obligation at end of year		440,050			731,978
Change in plan assets
Fair value of plan assets at beginning of year		782,463			799,895
Actual return on plan assets		(215,237	)		26,046
Employer contributions		4,206			4,493
Benefits paid		(29,357	)		(29,327	)
Settlements		-			(4,643	)
Foreign currency translation and other adjustments		(73,203	)		(14,001	)
Fair value of plan assets at end of year		468,872			782,463
Funded (deficit) at end of year	$	28,822		$	50,485
Amounts recognized in the consolidated statements    of financial condition at December 31, 2022 and    2021 consist of:
Prepaid pension asset (included in “other assets”)	$	35,268		$	78,058
Accrued benefit liability (included in “other    liabilities”)		(6,446	)		(27,573	)
Net amount recognized	$	28,822		$	50,485
Amounts recognized in AOCI (excluding tax    benefits of $31,365 and $26,381 at December 31,    2022 and 2021, respectively) consist of:
Actuarial net loss	$	167,724		$	155,052
Prior service cost		2,572			2,999
Net amount recognized	$	170,296		$	158,051

For the years ended December 31, 2022 and 2021, the change in the benefit obligation related to the actuarial (gain) loss is principally attributable to changes in the discount rates.

The following table summarizes the fair value of plan assets, the accumulated benefit obligation and the projected benefit obligation at December 31, 2022 and 2021:

	U.S. Pension Plans				Non-U.S. Pension Plans				Total
	As Of December 31,				As Of December 31,				As Of December  31,
	2022		2021		2022		2021		2022		2021
Fair value of plan assets	$	14,983	$	24,227	$	453,889	$	758,236	$	468,872	$	782,463
Accumulated benefit obligation	$	20,518	$	31,543	$	419,532	$	700,435	$	440,050	$	731,978
Projected benefit obligation	$	20,518	$	31,543	$	419,532	$	700,435	$	440,050	$	731,978

The following table summarizes the components of net periodic benefit cost (credit), the return on the Company’s post-retirement plan assets, benefits paid, contributions and other amounts recognized in AOCI for the years ended December 31, 2022, 2021 and 2020:

	Pension Plans
	For The Year Ended
	December 31,
	2022			2021			2020
Components of Net Periodic Benefit Cost    (Credit):
Service cost	$	543		$	876		$	843
Interest cost		11,130			8,679			11,912
Expected return on plan assets		(24,482	)		(26,077	)		(26,711	)
Amortization of:
Prior service cost		106			118			111
Net actuarial loss		5,040			7,151			7,411
Settlement loss		-			1,056			1,329
Net periodic benefit cost (credit)	$	(7,663	)	$	(8,197	)	$	(5,105	)
Actual return on plan assets	$	(215,237	)	$	26,046		$	86,248
Employer contributions	$	4,206		$	4,493		$	6,708
Benefits paid	$	29,357		$	29,327		$	30,272
Other changes in plan assets and benefit    obligations recognized in AOCI (excluding    tax expense (benefit) of $(4,984), $14,872 and    and $45 during the years ended    December 31, 2022, 2021 and 2020,    respectively):
Net actuarial (gain) loss	$	31,174		$	(40,717	)	$	(4,085	)
Reclassification of prior service (cost)    credit to earnings		(106	)		(118	)		(111	)
Reclassification of actuarial gain (loss)    to earnings		(5,040	)		(7,151	)		(7,411	)
Currency translation and other    adjustments		(13,783	)		(5,860	)		9,142
Total recognized in AOCI	$	12,245		$	(53,846	)	$	(2,465	)
Net amount recognized in total periodic    benefit cost and AOCI	$	4,582		$	(62,043	)	$	(7,570	)

The assumptions used to develop actuarial present value of the projected benefit obligation and net periodic pension cost as of or for the years ended December 31, 2022, 2021 and 2020 are set forth below:

	Pension Plans
	December  31,
	2022			2021			2020
Weighted average assumptions used to    determine benefit obligations:
Discount rate		4.7	%		1.8	%		1.3	%
Weighted average assumptions used to    determine net periodic benefit cost:
Discount rate		2.1	%		1.1	%		1.6	%
Expected long-term rate of return on plan    assets		3.4	%		3.3	%		3.9	%

Generally, the Company determined the discount rates for its defined benefit plans by utilizing indices for long-term, high-quality bonds and ensuring that the discount rate does not exceed the yield reported for those indices after adjustment for the duration of the plans’ liabilities.

In selecting the expected long-term rate of return on plan assets, the Company considered the average rate of earnings expected on the funds invested or to be invested to provide for the benefits of the plan, giving consideration to expected returns on different asset classes held by the plans in light of prevailing economic conditions as well as historical returns. This basis is consistent for all years presented.

Expected Benefit Payments—The following table summarizes the expected benefit payments for the Company’s pension plans for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:

	Pension
	Plans
2023	$	25,144
2024		27,605
2025		27,037
2026		27,459
2027		27,777
2028-2032		140,985

Plan Assets—The following tables present the categorization of our pension plans’ assets as of December 31, 2022 and 2021, measured at fair value, into a fair value hierarchy and investments measured at NAV or its equivalent as a practical expedient in accordance with fair value measurement disclosure requirements:

	As of December 31, 2022
	Level 1		Level 2		Level 3		NAV (a)		Total
Assets:
Cash	$	18,084	$	-	$	-	$	-	$	18,084
Debt		79,505		-		-		-		79,505
Equities		15,480		-		-		-		15,480
Funds:
Alternative investments		-		-		-		9,113		9,113
Debt		6,350		-		-		220,141		226,491
Equity		49,041		49,297		-		7,138		105,476
Other		-		14,723		-		-		14,723
Total	$	168,460	$	64,020	$	-	$	236,392	$	468,872

	As of December 31, 2021
	Level 1		Level 2		Level 3		NAV (a)		Total
Assets:
Cash	$	11,036	$	-	$	-	$	-	$	11,036
Debt		84,005		-		-		-		84,005
Equities		43,174		-		-		-		43,174
Funds:
Alternative investments		-		-		-		17,758		17,758
Debt		10,990		81,417		-		318,316		410,723
Equity		141,390		60,118		-		11,090		212,598
Other		-		3,169		-		-		3,169
Total	$	290,595	$	144,704	$	-	$	347,164	$	782,463

(a) Represents certain investments measured at NAV or its equivalent as a practical expedient in determining fair value. In accordance with current accounting guidance, these investments have not been classified in the fair value hierarchy.

Included in equity funds are $54,810 and $68,529 as of December 31, 2022 and 2021, respectively, that are invested in funds managed by the Company.

Consistent with the plans’ investment strategies, at December 31, 2022 and 2021, the Company’s U.S. pension plan had 57% and 54%, respectively, of the plans’ assets invested in equity funds in Level 1 and measured at NAV or its equivalent as a practical expedient, 42% and 46%, respectively, invested in Level 1 debt funds, and at December 31, 2022, 1% was invested in cash, which is a Level 1 asset. The Company’s non-U.S. pension plans at December 31, 2022 and 2021 had 25% and 32%, respectively, of the plans’ assets invested in equities and equity funds that are primarily Level 1 and Level 2 assets; 66% and 64%, respectively, of the plans’ assets invested in debt and debt funds that are Level 1 and Level 2 assets or measured at NAV or its equivalent as a practical expedient, and 9% and 4%, respectively, of the plans’ assets invested in cash, which is a Level 1 asset, other investments, which is a Level 2 asset, or in alternative investment funds that are primarily measured at NAV.

Investment Policies and Strategies—The primary investment goal is to ensure that the pension plans remain well funded, taking account of the likely future risks to investment returns and contributions. As a result, a portfolio of assets is maintained with appropriate liquidity and diversification that can be expected to generate long-term future returns that minimize the long-term costs of the pension plans without exposing the plans to an unacceptable risk of under-funding. The Company’s likely future ability to pay such contributions as are required to maintain the

funded status of the plans over a reasonable time period is considered when determining the level of risk that is appropriate. The fair value of plan investments classified as Level 1 assets are based on market quotes. The fair value of plan investments classified as Level 2 assets are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data. The fair value of plan investments measured at NAV or its equivalent as a practical expedient is determined based on information provided by external fund administrators and such investments are redeemable in the near term.

Defined Contribution Plans—Pursuant to certain matching contributions, the Company contributes to employer sponsored defined contribution plans. Such contributions amounted to $19,692, $17,864 and $16,736 for the years ended December 31, 2022, 2021 and 2020, respectively, which are included in “compensation and benefits” expense on the consolidated statements of operations.