XML 49 R16.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Retirement Plans
 12 Months Ended
Dec. 31, 2019
Retirement Plans [Abstract]  
Retirement Plans
7. Retirement Plans

The Company provides benefits under defined contribution plans including a savings plan and an employee stock ownership plan (ESOP). The savings plan covers substantially all domestic salaried and certain non-union hourly employees and provides for matching contributions up to 4% of each employee’s salary. The ESOP covers substantially all domestic employees and provides for contributions based on a percentage of each employee’s compensation as determined by the Company’s Board of Directors. Total expense for the Company’s defined contribution plans was $6.0 million in 2019, 2018, and 2017.

Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31:

(in thousands)
  
2019
    
2018
  
Benefit obligation at beginning of year
  
$
34,152
    
$
37,757
  
Service cost
    
1,432
      
1,465
  
Interest cost
    
1,273
      
1,137
  
Foreign currency exchange rate changes
    
558
      
(761
)
Benefits paid
    
(1,899
)
    
(2,480
)
Amendments
    
-
      
145
  
Actuarial loss (gain)
    
3,905
      
(3,111
)
Benefit obligation at end of year
    
39,421
      
34,152
  
Plan assets at beginning of year
    
28,299
      
31,768
  
Company contributions
    
1,086
      
886
  
Foreign currency exchange rate changes
    
968
      
(1,315
)
Benefits paid
    
(1,899
)
    
(2,480
)
Actual gain (loss) on plan assets
    
3,322
      
(560
)
Plan assets at end of year
    
31,776
      
28,299
  
Funded status
  
$
(7,645
)
  
$
(5,853
)
Accumulated benefit obligation
  
$
38,596
    
$
33,562
  
 
Amounts recognized in the Consolidated Balance Sheets at December 31:

(in thousands)
  
2019
    
2018
  
Accrued employee and retiree benefits
  
$
(17,143
)
  
$
(15,245
)
Other accrued expenses
    
(710
)
    
(779
)
Other assets
    
10,208
      
10,171
  
Net liability
  
$
(7,645
)
  
$
(5,853
)

Components of annual benefit cost:
(In thousands)
  
2019
    
2018
    
2017
  
Service cost
  
$
1,432
    
$
1,465
    
$
1,939
  
Interest cost
    
1,273
      
1,137
      
1,222
  
Expected return on plan assets
    
(896
)
    
(896
)
    
(892
)
Recognized actuarial gain
    
(176
)
    
(141
)
    
(187
)
Settlement (income) expense
    
-
      
(179
)
    
3,796
  
Defined benefit expense
  
$
1,633
    
$
1,386
    
$
5,878
  

Weighted average liability assumptions as of December 31:
 
  
2019
    
2018
  
Discount rate
    
2.69
%
    
3.80
%
Expected return on plan assets
    
2.68
%
    
3.21
%
Rate of compensation increase
    
0.34
%
    
0.31
%

Weighted average cost assumptions for the year ended December 31:

 
  
2019
    
2018
  
Discount rate
    
3.80
%
    
3.16
%
Expected return on plan assets
    
3.21
%
    
3.03
%
Rate of compensation increase
    
0.31
%
    
0.33
%

In 2017, one of the Company’s defined benefit plans was terminated. The plan was associated with two facilities which were closed under the Company’s 2014 Restructuring Plan. As a result, the pension benefit obligation was settled by making lump-sum cash payments to certain participants and also purchasing nonparticipating annuity contracts to cover the remaining vested benefits. As a result of the plan’s termination, the Company recognized $3.8 million of settlement expense in 2017, which has been recorded in the Company’s restructuring and other costs.

The aggregate amounts of benefits expected to be paid from defined benefit plans in each of the next five years subsequent to December 31, 2019, which include employees’ expected future service, are as follows: 2020, $1.7 million; 2021, $ 1.7 million; 2022, $4.2 million; 2023, $1.8 million; 2024, $4.1 million; and $12.5 million in total for the years 2025 through 2029.

The Company expects to contribute $1.1 million to defined benefit plans in 2020.

Amounts in accumulated other comprehensive loss at December 31 were as follows:

(In thousands)
  
2019
    
2018
  
Unrecognized net actuarial loss (gain)
  
$
683
    
$
(901
)
Prior service cost
    
146
      
145
  
Total before tax effects
  
$
829
    
$
(756
)

The pension adjustments, net of tax, recognized in OCI, were as follows:

(In thousands)
  
2019
    
2018
    
2017
  
Net actuarial (loss) gain arising during the period
  
$
(1,091
)
  
$
1,257
    
$
921
  
Prior service cost
    
-
      
(127
)
    
-
  
Amortization of actuarial (gain) loss, included in defined benefit expense
    
(130
)
    
(103
)
    
1,307
  
Pension adjustment, net of tax
  
$
(1,221
)
  
$
1,027
    
$
2,228
  

The estimated actuarial loss for the defined benefit plans that will be amortized from accumulated other comprehensive loss into periodic benefit cost during 2020 is $0.1 million.

The investment objectives and target allocations for the Company’s pension plans related to the assets of the plans are reviewed on a regular basis. The investment objectives for the pension assets are to maximize the return on assets while maintaining an overall level of risk appropriate for a retirement fund and ensuring the availability of funds for the payment of retirement benefits. The levels of risk assumed by the pension plans are determined by market conditions, the rate of return expectations, and the liquidity requirements of each pension plan. The actual asset allocations of each pension plan are reviewed on a regular basis to ensure that they are in line with the target allocations.

The following table presents the Company’s pension plan assets by asset category as of December 31, 2019 and 2018:

 
  
Fair Value
as of
December 31,
    
Fair Value Measurements at
December 31, 2019
Using Fair Value Hierarchy
    
Fair Value
as of
December 31,
    
Fair Value Measurements at
December 31, 2018
Using Fair Value Hierarchy
  
(in thousands)
  
2019
    
Level 1
    
Level 2
    
Level 3
    
2018
    
Level 1
    
Level 2
    
Level 3
  
Equity Funds
                                                
Domestic
  
$
6,003
    
$
6,003
    
$
-
    
$
-
    
$
5,385
    
$
5,385
    
$
-
    
$
-
  
International
    
104
      
-
      
104
      
-
      
83
      
-
      
83
      
-
  
International Fixed Income Funds
    
25,556
      
1,269
      
24,287
      
-
      
22,703
      
1,111
      
21,592
      
-
  
Other investments
    
113
      
79
      
34
      
-
      
128
      
47
      
81
      
-
  
Total assets at fair value
  
$
31,776
    
$
7,351
    
$
24,425
    
$
-
    
$
28,299
    
$
6,543
    
$
21,756
    
$
-
  

The Company is required to categorize pension plan assets based on the following fair value hierarchy:

Level 1:
Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2:
Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data.

Level 3:
Unobservable inputs that reflect the reporting entity’s own assumptions.