Employee Benefit Plans

12 Months Ended

Dec. 31, 2020

Retirement Benefits [Abstract]

Employee Benefit Plans

Defined Benefit Pension Plans

Certain employees participate in noncontributory defined benefit pension plans. In general, our policy is to fund these plans based on considerations relating to legal requirements, underlying asset returns, the plan’s funded status, the anticipated deductibility of the contribution, local practices, market conditions, interest rates and other factors.

The pension benefit obligations of our plans were $21.3 million and $18.2 million as of December 31, 2020 and 2019, respectively. The fair value of the plan assets of our plans was $8.6 million and $7.7 million as of December 31, 2020 and 2019, respectively, and include the use of Level 1 and Level 2 inputs in determining the fair value. As of December 31, 2020, and 2019, the underfunded status of the plans was $12.7 million and $10.5 million, respectively, and was included in the Consolidated and Combined Balance Sheets in accordance with the funded status of the plan. For plans where the plan assets were greater than the obligations, the net balance is included in Other assets. For plans where the obligations are greater than the plan assets, the net balance is recorded in Accrued expenses and other current liabilities and Other long-term liabilities. The assumptions used in calculating the benefit obligations for the plans are dependent on the local economic conditions and were measured as of December 31, 2020 and 2019. The net periodic benefit costs were approximately $0.6 million, $0.7 million and $0.9 million for the years ended December 31, 2020, 2019 and 2018, respectively.

Defined Contribution Plans

We administer and maintain 401(k) Programs. Contributions are determined based on a percentage of compensation. For the years ended December 31, 2020, 2019 and 2018, we recognized compensation expense for our participating U.S. employees in the 401(k) Programs totaling $39.5 million, $14.9 million and $14.3 million, respectively.