Employee Benefits (Tables)

12 Months Ended

Dec. 31, 2019

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Schedule of Components of Defined Benefit Pension Expense

The table below presents the components of the Company's defined benefit pension plan expense for the years ended December 31 (in thousands).

	2019			2018			2017
Service cost	$	3,659		$	3,145		$	2,820
Interest cost	851			840			765
Expected return on plan assets	(517		)	(475		)	(360		)
Recognition of actuarial loss	237			340			350
Total defined benefit pension plan expense	$	4,230		$	3,850		$	3,575

Schedule of Assumptions Used in the Computation of Pension Expense

The table below presents the key assumptions used in the computation of pension expense for the years ended December 31.

	2019		2018		2017
Weighted average discount rate (1)	1.28	%	1.81	%	1.78	%
Expected return on plan assets	2.54	%	2.45	%	2.22	%
Average compensation increase	2.58	%	2.58	%	2.66	%

(1)

Discount rates are typically determined by using the yields on long-term corporate or government bonds in the relevant country with a duration consistent with the expected term of the underlying pension obligations.

Schedule of Changes in the Projected Benefit Obligation

The table below provides information regarding changes in the projected benefit obligation of the Company's defined benefit pension plans for the years ended December 31 (in thousands).

	2019			2018			2017
Projected benefit obligation at beginning of year	$	44,890		$	45,450		$	38,400
Service cost	3,659			3,145			2,820
Interest cost	851			840			765
Actuarial loss (gain) due to assumption changes and plan experience (1)	4,524			(430		)	690
Contractual termination benefits	—			(950		)	—
Benefits payments (2)	(830		)	(1,400		)	(1,780		)
Foreign currency impact	(591		)	(1,765		)	4,555
Projected benefit obligation at end of year (3)	$	52,503		$	44,890		$	45,450

(1) The actuarial loss in 2019 was primarily due to a reduction in our weighted average discount rate assumption.

(2) The Company projects benefit payments will be made in future years directly to plan participants as follows: $1.6 million in 2020; $1.7 million in 2021; $1.7 million in 2022; $2.2 million in 2023; $2.2 million in 2024; and $13.6 million in total in the five years thereafter.

(3)

Measured as of December 31.

Schedule of Funded Status of the Plans and Related Amounts Recorded in Consolidated Balance Sheet

The tables below provide information regarding the funded status of the Company's defined benefit pension plans and the related amounts recorded in the Consolidated Balance Sheets as of December 31(in thousands).

Funded status of the plans	2019			2018			2017
Projected benefit obligation	$	52,503		$	44,890		$	45,450
Pension plan assets at fair value (1)	(23,444		)	(19,460		)	(18,475		)
Funded status – shortfall (2)	$	29,059		$	25,430		$	26,975

Amounts recorded in the Consolidated Balance Sheets for the plans
Other liabilities – accrued pension obligation (2)	$	29,059		$	25,430		$	26,975
Stockholders’ equity – deferred actuarial loss (3)	$	(8,584	)	$	(5,738	)	$	(5,861	)

(1) The pension plan assets are held by third-party trustees and are invested in a diversified portfolio of equities, high-quality government and corporate bonds, and other investments. The assets are primarily valued based on Level 1 and Level 2 inputs under the fair value hierarchy in FASB ASC Topic 820, with the majority of the invested assets considered to be of low-to-medium investment risk. The Company projects a future long-term rate of return on these plan assets of 2.04%, which it believes is reasonable based on the composition of the assets and both current and projected market conditions. Additional information regarding pension plan asset activity is provided below.

(2) Funded status – shortfall represents the amount of the projected benefit obligation that the Company has not funded with a third-party trustee. These liabilities of the Company are recorded in Other liabilities on the Consolidated Balance Sheets.

(3)

The deferred actuarial loss as of December 31, 2019 is recorded in AOCI/L and will be reclassified out of AOCI/L and recognized as pension expense over approximately 14 years, subject to certain limitations set forth in FASB ASC Topic 715. The impact thereof on pension expense is projected to be approximately $0.5 million of additional expense in 2020. The amortization of deferred actuarial losses from AOCI/L to pension expense in each of the years ended December 31, 2019, 2018 and 2017 was immaterial

Schedule of Defined Benefit Pension Plans Assets

The table below provides a rollforward of the Company's defined benefit pension plans assets for the years ended December 31 (in thousands).

	2019			2018			2017
Pension plan assets at the beginning of the year	$	19,460		$	18,475		$	14,465
Company contributions	4,405			4,478			3,438
Benefit payments	(830		)	(1,400		)	(1,780		)
Actual return on plan assets	714			(164		)	547
Contractual termination benefits	—			(950		)	—
Foreign currency impact	(305		)	(979		)	1,805
Pension plan assets at the end of the year	$	23,444		$	19,460		$	18,475