Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2022

The components of net periodic pension cost for the Pension Plan and LaBarge Retirement Plan in aggregate are as follows:


	(In thousands) Years Ended December 31,
	2022		2021		2020
Service cost	$	625	$	676	$	622
Interest cost	1,089		1,010		1,209
Expected return on plan assets	(2,081)		(1,895)		(1,761)
Amortization of actuarial losses	585		1,285		993
Net periodic pension cost	$	218	$	1,076	$	1,063

Schedule of Reclassification out of Accumulated Other Comprehensive Income

The components of the reclassifications of net actuarial losses from accumulated other comprehensive loss to net income for 2022 were as follows:


	(In thousands) Year Ended December 31,
	2022
Amortization of actuarial loss - total before tax (1)	$	585
Tax benefit	(143)
Net of tax	$	442

(1)The amortization expense is included in the computation of periodic pension cost and is a decrease to net income upon reclassification from accumulated other comprehensive loss.

Schedule of Obligation and Funded Status of Defined Benefit Pension Plan and Retirement Plan

The obligations, fair value of plan assets, and funded status of both plans are as follows:


	(In thousands) December 31,
	2022		2021
Change in benefit obligation(1)
Beginning benefit obligation (January 1)	$	39,805	$	42,804
Service cost	625		676
Interest cost	1,089		1,010
Actuarial gain	(9,714)		(2,537)
Benefits paid	(1,468)		(2,148)
Ending benefit obligation (December 31)	$	30,337	$	39,805
Change in plan assets
Beginning fair value of plan assets (January 1)	$	33,698	$	30,632
Return on assets	(4,652)		3,122
Employer contribution	1,702		2,095
Benefits paid	(1,468)		(2,151)
Ending fair value of plan assets (December 31)	$	29,280	$	33,698
Funded status underfunded	$	(1,057)	$	(6,107)
Amounts recognized in the consolidated balance sheet
Current liabilities	$	416	$	427
Non-current liabilities	$	641	$	5,680
Unrecognized loss included in accumulated other comprehensive loss
Beginning unrecognized loss, before tax (January 1)	$	7,573	$	12,620
Amortization	(582)		(1,282)
Liability gain	(9,714)		(2,537)
Asset loss (gain)	6,734		(1,228)
Ending unrecognized loss, before tax (December 31)	4,011		7,573
Tax impact	(970)		(1,827)
Unrecognized loss included in accumulated other comprehensive loss, net of tax	$	3,041	$	5,746

(1)Projected benefit obligation equals the accumulated benefit obligation for the plans.

Schedule of Company's Pension Plan Asset Allocation, by Asset Category

Our Pension Plan asset allocations at December 31, 2022 and 2021, by asset category, were as follows:


	December 31,
	2022	2021
Equity securities	61%	69%
Cash and equivalents	4%	1%
Debt securities	35%	30%
Total(1)	100%	100%

(1)Our overall investment strategy is to achieve an asset allocation within the following ranges to achieve an appropriate rate of return relative to risk.


Cash			0-10%
Fixed income securities			15-75%
Equities			30-80%


	(In thousands) Year Ended December 31, 2022
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	1,078	$	—	$	—	$	1,078
Fixed income securities	4,622		—		—		4,622
Equities(1)	12,591		—		—		12,591
Other investments	1,033		—		—		1,033
Total plan assets at fair value	$	19,324	$	—	$	—	19,324
Pooled funds							9,956
Total fair value of plan assets							$	29,280


	(In thousands) Year Ended December 31, 2021
	Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	414	$	—	$	—	$	414
Fixed income securities	3,648		—		—		3,648
Equities(1)	7,446		—		—		7,446
Other investments	1,199		—		—		1,199
Total plan assets at fair value	$	12,707	$	—	$	—	12,707
Pooled funds							20,991
Total fair value of plan assets							$	33,698

(1)Represents mutual funds and commingled accounts which invest primarily in equities, but may also hold fixed income securities, cash and other investments. Commingled funds with publicly quoted prices and actively traded are classified as Level 1 investments.

Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost

The assumptions used to compute the fair value of stock option grants under the 2020 Stock Incentive Plan for years ended December 31, 2022, 2021, and 2020 were as follows:


	Years Ended December 31,
	2022	2021	2020
Risk-free interest rate	N/A	N/A	1.59	%
Expected volatility	N/A	N/A	37.75	%
Expected dividends	N/A	N/A	—
Expected term (in months)	N/A	N/A	66

The weighted-average assumptions used to determine the net periodic benefit costs under the two plans were as follows:


	Years Ended December 31,
	2022	2021	2020
Discount rate used to determine pension expense
Pension Plan	2.85%	2.50%	3.22%
LaBarge Retirement Plan	2.35%	1.85%	2.85%

The weighted-average assumptions used to determine the benefit obligations under the two plans were as follows:


	December 31,
	2022	2021	2020
Discount rate used to determine value of obligations
Pension Plan	5.11%	2.85%	2.50%
LaBarge Retirement Plan	5.00%	2.35%	1.85%
Long-term rate of return - Pension Plan only	6.25%	6.25%	6.25%

Expected Future Benefit Payments Under Pension Plans

The following benefit payments under both plans, which reflect expected future service, as appropriate, are expected to be paid:


	(In thousands)
	Pension Plan		LaBarge Retirement Plan
2023	$	1,379	$	416
2024	$	1,481	$	397
2025	$	1,555	$	378
2026	$	1,639	$	359
2027	$	1,712	$	341
2028 - 2032	$	9,156	$	1,435