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Retirement Plans and Other Post-Retirement Benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Retirement Plans and Other Post-Retirement Benefits RETIREMENT PLANS AND OTHER POST-RETIREMENT BENEFITS
Prior to May 2019, we provided non-contributory retirement benefits under both funded and unfunded plans to all U.S. employees and to certain non-U.S. employees in Germany. As discussed in more detail below, we terminated our U.S. qualified pension plan effective June 30, 2019 and replaced the benefits with an enhanced 401(k) defined contribution plan. Participation and benefits under the plans were based upon the employees’ date of hire. U.S. benefits accrued under the terminated pension plan was based on a final average pay formula or cash balance formula for salaried employees.
In December 2019, our Board of Directors approved the freezing of benefit accruals in the non-qualified pension plan for active participants effective December 31, 2019. As of January 1, 2020, each active participant’s frozen non-qualified pension benefit was transferred to a newly approved Deferred Compensation Plan non-qualified benefit plan and will earn interest credits going forward.
The Deferred Compensation Plan also provides for employer contributions and the Plan may provide for elective employee deferrals. Beginning in 2022, the plan allows active in-service withdrawals for elective employee deferrals. Under the Deferred Compensation Plan, participants are eligible to receive annual Company contributions that such participants would have received under our 401(k) Savings Plan, but for certain limitations imposed by the Internal Revenue Code on 401(k) plan contributions (“Company Contributions”). Unless otherwise determined by the Compensation Committee, Company Contributions under the Deferred Compensation Plan will not exceed 7% of a
participant’s annual eligible compensation that is in excess of the Internal Revenue Code compensation limit for 401(k) plans.
As of December 31, 2023 and 2022, the remaining non-contributory pension plans are unfunded non-qualified plans. Non-U.S. benefits were based on average salary and years of service. We use a December 31-measurement date for all of our defined benefit plans.
We also provide certain health care benefits to eligible U.S.-based retired employees. Participation in the plan is closed to any salaried employees hired after December 31, 2006. For retirees prior to age 65, these benefits consists of either a Company provided fixed contribution, as determined on an annual basis, to the participant’s health reimbursement account or providing group medical insurance coverage with a subsidy cap of $10,000 per year, as determined by date of retirement. In December 2023, the Plan was amended to transition all retiree medical benefits to the health reimbursement construct, eliminating the group medical insurance offering. For certain retirees over age 65, these benefits consists of a fixed payment to defray the costs of Medicare.
All information presented in the following tables represents amounts attributable to continuing operations.
Pension Benefits Other Benefits
In thousands2023202220232022
Change in Benefit Obligation
Balance at beginning of year$34,729 $44,885 $3,380 $5,130 
Service cost— — 11 15 
Interest cost1,417 1,054 178 131 
Benefits paid(2,527)(2,065)(458)(529)
One-time settlement(5,815)— — — 
Plan amendments— — 188 — 
Actuarial (gain)/loss223 (8,436)(2)(1,367)
Effect of currency rate changes273 (709)— — 
Balance at end of year$28,300 $34,729 $3,297 $3,380 
Change in Plan Assets
Fair value of plan assets at beginning of year$— $— $— $— 
Reversion of excess plan assets— — — — 
Total contributions2,527 2,065 511 529 
Benefits paid(2,527)(2,065)(511)(529)
Fair value of plan assets at end of year— — — — 
Funded status at end of year$(28,300)$(34,729)$(3,297)$(3,380)
As of December 31, 2023, the non-qualified plans have an unfunded projected benefit obligation of $28.3 million.
During 2023, we made a $5.8 million one-time settlement payment to our former CEO under the terms of his non-qualified pension plan in connection with his separation from the Company. In accordance with pension settlement accounting, we recorded a $0.6 million settlement charge reflecting the recognition of amounts previously included in accumulated other comprehensive income.
Amounts recognized in the consolidated balance sheets consist of the following as of December 31:
Pension Benefits Other Benefits
In thousands2023202220232022
Current liabilities$(2,337)$(8,415)$(552)$(513)
Other long-term liabilities(25,963)(26,314)(2,745)(2,886)
Net amount recognized$(28,300)$(34,729)$(3,297)$(3,399)
The components of amounts recognized as “Accumulated other comprehensive income” consist of the following on a pre-tax basis:
Pension BenefitsOther Benefits
In thousands2023202220232022
Prior service credit (cost)$(104)$(127)$(188)$(21)
Net actuarial gain (loss)(4,339)(4,762)1,095 984 
The weighted-average assumptions used in computing the benefit obligations above were as follows:
Pension Benefits Other Benefits
2023202220232022
Discount rate – benefit obligation4.94 %5.19 %5.42 %5.42 %
The discount rates set forth above were estimated based on the modeling of expected cash flows for each of our benefit plans and selecting a portfolio of high-quality debt instruments with maturities matching the respective cash flows of each plan. The resulting discount rates as of December 31, 2023 ranged from 3.71% to 5.41% for pension plans and was 5.42% for the other benefit plans.
Information for pension plans with an accumulated benefit obligation in excess of plan assets was as follows:
In thousands20232022
Projected benefit obligation$28,300 $34,729 
Accumulated benefit obligation28,300 34,729 
Fair value of plan assets— — 
Net periodic benefit (income) expense includes the following components:
Year ended December 31,
In thousands202320222021
Pension Benefits
Interest cost$1,417 $1,054 $974 
Amortization of prior service cost23 43 48 
Amortization of actuarial loss81 653 790 
One-time settlement charge633 — — 
Total net periodic benefit expense$2,154 $1,750 $1,812 
Other Benefits
Service cost$11 $15 $29 
Interest cost178 131 127 
Amortization of prior service credit21 104 (233)
Amortization of actuarial loss (gain)(51)— 47 
Total net periodic benefit income$159 $250 $(30)
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) were as follows:
Year ended December 31,
In thousands20232022
Pension Benefits
Actuarial (gains) loss
$223 $(8,436)
Recognized prior service costs(23)(43)
Recognized actuarial losses(715)(653)
Total recognized in other comprehensive (income) loss(515)(9,132)
Total recognized in net periodic benefit cost and other comprehensive loss$1,639 $(7,382)
Other Benefits
Actuarial (gain) loss$(2)$(1,367)
Amortization of actuarial loss51 — 
Total recognized in other comprehensive loss49 (1,367)
Total recognized in net periodic benefit cost and other comprehensive loss$208 $(1,117)
The weighted-average assumptions used in computing the net periodic benefit expense information above were as follows:
Year ended December 31,
202320222021
Pension Benefits
Discount rate – benefit expense5.19 %2.42 %2.17 %
Other Benefits
Discount rate – benefit expense5.42 %2.70 %2.30 %
Cash Flow Benefit payments expected to be made under our non-qualified pension plans and other benefit plans are summarized below:
In thousandsPension BenefitsOther Benefits
2024$2,385 $567 
20252,337 364 
20262,282 321 
20272,228 293 
20282,158 285 
2029 through 203310,489 1,199 
Defined Contribution Plans We maintain 401(k) plans for substantially all U.S.-based employees. Employees may contribute up to 50% of their earnings, subject to certain restrictions. We currently provide a minimum company contribution equal to 7% of eligible compensation. In addition, we have provided discretionary contributions resulting in total contributions equal to 7.0%, 7.5% and 10% of compensation in 2023, 2022 and 2021, respectively. The expense associated with our 401(k) plan was $4.3 million, $2.7 million and $2.4 million in 2023, 2022 and 2021, respectively.