Retirement Benefits

12 Months Ended

Dec. 31, 2022

Retirement Benefits [Abstract]

Retirement Benefits

14. Retirement benefits

The Company sponsors a 401(k)-profit sharing plan (the “Plan”) for all eligible U.S. employees. This Plan allows eligible employees to contribute up to 80% of their compensation to the Plan. The Company makes discretionary matching contributions to the Plan provided the employee is employed on the last day of the year. Such discretionary contributions vest ratably over five years of service. The Company’s contributions to the Plan were $1.6 million for each of the years ended December 31, 2022, 2021 and 2020.

The Company also participates in government-mandated retirement and/or termination indemnity plans, benefiting certain non-U.S. employees. Termination benefits are generally lump sum payments based upon an individual’s years of credited service and annual salary at retirement. These plans are generally unfunded, and employees receive payments at the time of retirement or termination under applicable labor laws or agreements. The amount of net benefit cost recorded in the consolidated statements of operations for these plans was $2.5 million, $3.0 million and $2.7 million in 2022, 2021 and 2020, respectively. The amount of benefits paid under these plans was $0.7 million, $0.4 million and $0.5 million in 2022, 2021 and 2020, respectively. The accumulated benefit obligation, unlike the projected benefit obligation, does not reflect expected benefit increases from future salary levels, and was $10.1 million and $10.0 million as of December 31, 2022 and 2021, respectively, under these plans. The projected benefit obligation, net of plan assets, was $13.1 million and $15.7 million as of December 31, 2022 and 2021, respectively.

A summary of the components of the pension benefits obligation recorded in the consolidated balance sheets are as follows (in thousands):

	December 31,
	2022		2021
Other long-term assets	$	127	$	—
Accrued compensation and benefits		957		650
Other long-term liabilities		12,273		15,086
	$	13,103	$	15,736

The estimated future benefit payments, which reflect expected future service that are expected to be paid for each of the next five years are as follows (in thousands):

Year ending
December 31, 2023	$	1,018
December 31, 2024	$	731
December 31, 2025	$	792
December 31, 2026	$	1,274
December 31, 2027	$	1,219
Next five years	$	5,627