Pension and Other Employee Benefits

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Pension and Other Employee Benefits

10. Pension and Other Employee Benefits

Defined Benefit (Pension)

The Company sponsors various defined benefit (pension) plans for certain active employees.

The following tables represent the reconciliation of the benefit obligation, fair value of plan assets and funded status of the respective defined benefit (pension) plans as of December 31, 2022, 2021 and 2020:

	Year Ended December 31,
	2022			2021			2020
Change in benefit obligation:
Obligation at beginning of year	$	43.2		$	48.3		$	42.2
Service cost		0.6			0.7			0.7
Interest cost		0.3			0.2			0.3
Contributions		0.2			0.2			0.2
Actuarial (gains) losses		(9.6	)		(0.6	)		2.4
Amendments		—			(0.7	)		0.9
Foreign exchange effect		(1.7	)		(2.7	)		4.0
Benefits paid		(2.0	)		(2.2	)		(2.4	)
Obligation at end of year	$	31.0		$	43.2		$	48.3
Change in plan assets:
Fair value of plan assets, beginning of year	$	13.3		$	12.9		$	11.4
Actual return on plan assets		0.8			1.2			0.6
Contributions		0.4			0.5			0.6
Foreign exchange effect		(0.1	)		(0.5	)		1.1
Benefits paid		(0.7	)		(0.8	)		(0.8	)
Fair value of plan assets, end of year	$	13.7		$	13.3		$	12.9
Unfunded status		17.3			29.9			35.4
Amounts recognized in the balance sheet consist of:
Total non-current liabilities	$	17.3		$	29.9		$	35.4

For the pension plan presented above, the accumulated and projected benefit obligations exceed the fair value of plan assets.

Certain, primarily unionized, employees are entitled to limited grandfathered postretirement benefits (medical, dental, and life insurance coverage). The accumulated benefit obligation for the post-retirement benefit plans, which are not funded, at December 31, 2022, 2021 and 2020 are $2.7 million, $4.2 million and $6.0 million respectively. The balances are included within other long-term liabilities on the consolidated balance sheet. The Company recorded an inconsequential amount of income for the years ended December 31, 2022, 2021 and 2020. The Company recorded a loss in Accumulated Other Comprehensive Income (Loss) during the year ended December 31, 2022 of $0.6 million ($0.4 million net of tax).

The key economic assumptions used in the computation of the respective benefit obligations at December 31, 2022, 2021 and 2020, presented below are as follows:

	Non-US Pension Benefits
	2022			2021			2020
Discount rate		3.24	%		0.67	%		0.61	%
Rate of compensation increase		1.28	%		2.02	%		2.10	%

The following table represents the components of the net periodic benefit cost associated with the respective plans:

	Pension Benefits
	Non-US Plans
	Years Ended December 31,
	2022			2021			2020
Service cost	$	0.6		$	0.7		$	0.7
Interest cost		0.3			0.2			0.3
Expected return on plan assets		(0.4	)		(0.4	)		(0.5	)
Amortization of actuarial losses and prior year service costs	0.0				0.6			0.4
Net periodic benefit cost	$	0.5		$	1.1		$	0.9

The key economic assumptions used in the computation of the respective net periodic benefit cost for the periods presented above are as follows:

	Pension Benefits
	Non-US Plan
	Years Ended December 31,
	2022			2021			2020
Discount rate		6.63	%		2.66	%		1.86	%
Rate of compensation increase		2.13	%		2.60	%		2.63	%
Expected return on plan assets		3.15	%		3.40	%		3.70	%

The expected long-term rate of return represents the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the benefit obligation. The assumption reflects expectations regarding future rates of return for the investment portfolio, with consideration given to the distribution of investments by asset class and historical rates of return for each individual asset class.

Amounts recognized in accumulated other comprehensive income (loss) as of December 31, 2022, 2021 and 2020 consist of the following:

	Years Ended December 31,
	2022		2021			2020
Unrecognized actuarial (loss) gain	$	6.0	$	(2.1	)	$	(4.2	)
Unrecognized prior service credit		0.8		1.0			0.5
Accumulated other comprehensive (loss) income (net of ($1.4 million), $0.8 million and $1.0 million of tax (loss)/benefit, respectively)	$	6.8	$	(1.1	)	$	(3.7	)

The unrecognized prior service cost included in accumulated other compressive income (loss) and expected to be recognized in net periodic pension cost during the year ending December 31, 2023 is $0.1 million (net of $0.0 million tax). The actuarial losses included in accumulated other comprehensive income (loss) and expected to be recognized in net periodic pension cost during the year ending December 31, 2023 is $0.1 million (net of $0.0 million of tax).

Other changes recognized in other comprehensive income (loss) in the years ended December 31, 2022, 2021 and 2020 were as follows:

	Years Ended December 31,
	2022			2021		2020
Incurred net actuarial (loss) gain	$	7.9		$	1.3	$	(2.6	)
Amortization of prior service credit		(0.1	)		—		(0.1	)
Amortization of net actuarial (loss) gain		0.1			0.6		0.5
Settlement recognition of net actuarial (loss)		—			0.7		—
Total recognized in accumulated other comprehensive (loss) income (net of $(2.2 million), ($0.6 million) and $0.5 million) of tax (loss)/benefit, respectively)	$	7.9		$	2.6	$	(2.2	)

Fair Value of Plan Assets

The fair value of the Company’s pension plan assets at December 31, 2022, 2021 and 2020 by asset category is as follows:

	Years Ended December 31,
	2022		2021		2020
Asset Category:
Cash and cash equivalents (Level 1)	$	0.7	$	1.0	$	0.8
Fixed income (Level 1)		3.2		3.8		3.8
Investment grade (Level 2)		4.5		4.3		4.4
Other private investments (Level 3)		5.3		4.2		3.9
Total assets at fair value	$	13.7	$	13.3	$	12.9

The investment strategy is to achieve a rate of return on the plan’s assets that meets the performance of liabilities as calculated using a bank’s liability index with appropriate adjustments for benefit payments, service cost and actuarial assumption changes. A determinant of the plan’s return is the asset allocation policy. The plan’s asset mix will be reviewed by the Company periodically, but

at least quarterly, to rebalance within the target guidelines. The Company will also periodically review investment managers to determine if the respective manager has performed satisfactorily when compared to the defined objectives, similar invested portfolios and specific market indices.

Expected cash flows

The following table provides the amounts of expected benefit payments, which are made from the plans’ assets and includes the participants’ share of the costs, which is funded by participant contributions. The amounts in the table are actuarially determined and reflect the Company’s best estimate given its current knowledge; actual amounts could be materially different.

	Pension Benefits
Expected benefit payments (from plan assets)
2023	$	1.9
2024		2.5
2025		1.8
2026		1.7
2027		1.8
Thereafter		7.9

The Company has no minimum cash funding requirements associated with its pension plans for years 2023 through 2027.

Defined Contribution Plans

Under the terms of the Company’s defined contribution plans, eligible employees may contribute up to 75% percent of their eligible compensation to the plan on a pre-tax basis, subject to annual IRS limitations. The Company makes matching contributions equal to half of the first six percent of eligible compensation contributed by each employee and made a unilateral contribution (including for non-contributing employees). The Company’s expense associated with the defined contribution plans was $12.5 million, $11.8 million and $11.4 million during the years ended December 31, 2022, 2021 and 2020, respectively.