Employee Benefit Plans

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Employee Benefit Plans

NOTE 21 – EMPLOYEE BENEFIT PLANS

U.S. Retiree Medical Plan

The Company implemented its retiree medical plan effective October 1, 2021, which provides certain medical benefits to eligible retirees in the United States.

The following table summarizes the changes in benefit obligation for the years ended December 31, 2022 and 2021 for this plan (in thousands):

	For the Years Ended December 31,
	2022			2021
Benefit obligation at beginning of year	$	16,906		$	—
Prior service cost at initiation of plan		—			15,625
Service cost		5,291			1,166
Interest cost		514			113
Actuarial (gain) loss		(4,695	)		16
Benefits paid net of participant contributions		(11	)		(14	)
Benefit obligation at end of year	$	18,005		$	16,906

As of December 31, 2022 and 2021, the unfunded status for the retiree medical plan was $18.0 million and $16.9 million, respectively.

The following table summarizes the amounts recognized in the consolidated balance sheets as of December 31, 2022 and 2021 for this plan (in thousands):

	As of December 31,
	2022			2021
Accrued expenses and other current liabilities	$	(236	)	$	(83	)
Other long-term liabilities		(17,769	)		(16,823	)
Amounts recognized on the consolidated balance sheet	$	(18,005	)	$	(16,906	)

The following table summarizes the amounts recognized in accumulated other comprehensive loss for the years ended December 31, 2022 and 2021 for this plan (in thousands):

	As of December 31,
	2022			2021
Prior service cost	$	13,999		$	15,300
Actuarial (gain) loss		(4,679	)		16
Accumulated other comprehensive loss before income taxes	$	9,320		$	15,316

Expected Benefit Payments

The following table summarizes total benefit payments, which reflect expected future service, expected to be paid to plan participants (in thousands):

2023	$	236
2024		423
2025		638
2026		1,015
2027		1,479
2028 to 2031		13,827

Components of Net Periodic Benefit Cost and Amounts Recognized in Other Comprehensive (Income) Loss

The following table summarizes net period benefit cost recognized and the amounts recognized in other comprehensive (income) loss for the years ended December 31, 2022 and 2021 (in thousands):

	For the Years Ended December 31,
	2022			2021
Service cost	$	5,291		$	1,166
Interest cost		514			113
Amortization of prior service cost		1,301			325
Net periodic benefit cost		7,106			1,604
Prior service cost		—			15,625
Amortization of prior service cost		(1,301	)		(325	)
Actuarial (gain) loss		(4,695	)		16
Total recognized in other comprehensive (income) loss		(5,996	)		15,316
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	1,110		$	16,920

The components of net periodic benefit cost other than service cost are included in other (expense) income, net in the consolidated statements of comprehensive income.

Weighted-Average Actuarial Assumptions and Health Care Cost Trend Rates

The following table summarizes weighted-average assumptions and health care cost trend rates used to determine the benefit obligation as of December 31, 2022 and 2021:

	As of December 31,
	2022			2021
Discount rate		5.16	%		2.89	%
Health care cost trend rate assumed for next year		6.06	%		6.29	%
Rate to which the cost trend rate is assumed to decline (the “Ultimate trend rate”)		4.44	%		4.44	%
Year that the rate reaches the ultimate trend rate	2030			2030

The assumptions used in calculating the December 31, 2022 measurement date benefit obligation will be used in the calculation of net periodic benefit cost in 2023.

The following table summarizes weighted-average assumptions and health care cost trend rates used to determine the net periodic benefit costs for the years ended December 31, 2022 and 2021:

	For the Years Ended December 31,
	2022			2021
Discount rate		2.89	%		2.89	%
Health care cost trend rate assumed for next year		6.29	%		6.29	%
Ultimate trend rate		4.44	%		4.44	%
Year that the rate reaches the ultimate trend rate	2030			2030

Other Employee Benefit Plans

The Company sponsors a defined contribution 401(k) retirement savings plan covering all of its U.S. employees, whereby an eligible employee may elect to contribute a portion of his or her salary on a pre-tax basis, subject to applicable federal limitations. The Company is not required to make any discretionary matching of employee contributions. The Company makes a matching contribution equal to 100% of each employee’s elective contribution to the plan of up to 3% of the employee’s eligible pay, and 50% for the next 2% of the employee’s eligible pay. The full amount of this employer contribution is immediately vested in the plan. For the years ended December 31, 2022, 2021 and 2020, the Company recorded defined contribution expense of $21.6 million, $16.8 million and $12.0 million, respectively.

The Company’s wholly owned Irish subsidiary sponsors a defined contribution plan covering all of its employees in Ireland. For the years ended December 31, 2022, 2021 and 2020, the Company recognized expenses of $1.5 million, $1.1 million and $0.8 million, respectively, under this plan.

The Company has a non-qualified deferred compensation plan for executives. The deferred compensation plan obligations are payable in cash upon retirement, termination of employment and/or certain other times in a lump-sum distribution or in installments, as elected by the participant in accordance with the plan. As of December 31, 2022 and 2021, the deferred compensation plan liabilities totaled $28.2 million and $26.5 million, respectively, and are included in “other long-term liabilities” in the consolidated balance sheet. The Company held funds of approximately $28.2 million and $26.5 million in an irrevocable grantor's rabbi trust as of December 31, 2022 and 2021, respectively, related to this plan. Rabbi trust assets are classified as trading marketable securities and are included in “other current assets” in the consolidated balance sheets. Unrealized gains and losses on these marketable securities are included in “other (expense) income, net” in the consolidated statements of comprehensive income. For the years ended December 31, 2022, 2021 and 2020, the Company recognized expenses of $3.0 million, $2.3 million and $1.1 million, respectively, under this plan.