Pension Plan

12 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Pension Plan

11) PENSION PLAN

We maintain contributory and non-contributory retirement plans for eligible employees. Our contributions to the contributory plan amounted to $73.9 million, $72.0 million and $69.8 million in 2023, 2022 and 2021, respectively. The non-contributory plan is a defined benefit pension plan which covers employees of one of our subsidiaries. The benefits are based on years of service and the employee’s highest compensation for any five years of employment. Our funding policy is to contribute annually at least the minimum amount that should be funded in accordance with the provisions of ERISA.

For defined benefit pension plans, the benefit obligation is the “projected benefit obligation”, the actuarial present value, as of December 31 measurement date, of all benefits attributed by the pension benefit formula to employee service rendered to that date. The amount of benefit to be paid depends on a number of future events incorporated into the pension benefit formula, including estimates of the average life of employees/survivors and average years of service rendered. It is measured based on assumptions

concerning future interest rates and future compensation levels. The following table shows the reconciliation of the defined benefit pension plan as of December 31, 2023 and 2022:

	2023			2022
	(000s)
Change in plan assets:
Fair value of plan assets at beginning of year	$	96,627		$	127,360
Actual return (loss) on plan assets		8,779			(23,674	)
Benefits paid		(6,417	)		(6,448	)
Administrative expenses		(574	)		(611	)
Fair value of plan assets at end of year	$	98,415		$	96,627
Change in benefit obligation:
Benefit obligation at beginning of year	$	87,277		$	116,034
Service cost		803			607
Interest cost		4,118			2,836
Benefits paid		(6,417	)		(6,448	)
Actuarial (gain) loss		(156	)		(25,752	)
Benefit obligation at end of year	$	85,625		$	87,277
Amounts recognized in the Consolidated Balance Sheet:
Other noncurrent assets	$	12,790		$	9,350
Total amounts recognized at end of year	$	12,790		$	9,350

	2023			2022			2021
	(000s)
Components of net periodic cost (benefit)
Service cost	$	803		$	607		$	546
Interest cost		4,118			2,836			2,493
Expected return on plan assets		(4,195	)		(4,335	)		(4,490	)
Net periodic cost	$	726		$	(892	)	$	(1,451	)

	2023	2022
Measurement Dates
Benefit obligations	12/31/2023	12/31/2022
Fair value of plan assets	12/31/2023	12/31/2022

	2023			2022
Weighted average assumptions as of December 31
Discount rate		4.71	%		4.91	%
Rate of compensation increase		4.00	%		4.00	%

	2023			2022			2021
Weighted-average assumptions for net periodic benefit    cost calculations
Discount rate		4.91	%		2.52	%		2.08	%
Expected long-term rate of return on plan assets		4.50	%		3.50	%		3.50	%
Rate of compensation increase		4.00	%		4.00	%		4.00	%

The “accumulated benefit obligation” for our pension plan represents the actuarial present value of benefits based on employee service and compensation as of a certain date and does not include an assumption about future compensation levels. The accumulated benefit obligation for our plan was $85.6 million and $87.3 million as of December 31, 2023 and 2022, respectively. The fair value of plan assets exceeded the accumulated benefit obligation by $12.8 million and $9.4 million as of December 31, 2023 and 2022, respectively.

We estimate that there will be no net loss or prior service cost amortized from accumulated other comprehensive income during 2024.

The market values of our pension plan assets at December 31, 2023 and 2022, reported using net asset value as a practical expedient, by asset category are as follows (in thousands):

	2023		2022
Equities:
U.S. Large Cap	$	5,423	$	5,301
U.S. Mid Cap		1,480		1,451
U.S. Small Cap		1,491		1,452
International Developed		3,943		3,867
Emerging Markets		2,540		2,426
Fixed income:
Core Fixed Income		17,492		17,074
Long Duration Fixed Income		65,289		64,277
Cash/Currency:
Cash Equivalents		757		779
Total market value	$	98,415	$	96,627

To develop the expected long-term rate of return on plan assets assumption, we considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the pension portfolio.

The following table shows expected benefit payments for the years 2024 through 2033 for our defined pension plan. There will be benefit payments under this plan beyond 2033.

Estimated Future Benefit Payments (000s)
2024	$	6,752
2025		6,745
2026		6,714
2027		6,671
2028		6,601
2029-2033		31,330
Total	$	64,813

	2023			2022
Plan Assets
Asset Category
Equity securities		15	%		15	%
Fixed income securities		84	%		84	%
Other		1	%		1	%
Total		100	%		100	%

Investment Policy, Guidelines and Objectives have been established for the defined benefit pension plan. The investment policy is in keeping with the fiduciary requirements under existing federal laws and managed in accordance with the Prudent Investor Rule. Total portfolio risk is regularly evaluated and compared to that of the plan’s policy target allocation and judged on a relative basis over a market cycle. The following asset allocation policy and ranges have been established in accordance with the overall risk and return objectives of the portfolio:

	As of 12/31/2023			Permitted Range
Total Equity		15	%	10-30%
Total Fixed Income		84	%	70-90%
Other		1	%	0-10%

In accordance with the investment policy, the portfolio will invest in high quality, large and small capitalization companies traded on national exchanges, and investment grade securities. The investment managers will not write or buy options for speculative purposes; securities may not be margined or sold short. The manager may employ futures or options for the purpose of hedging exposure, and will not purchase unregistered sectors, private placements, partnerships or commodities.