Retirement Plans

12 Months Ended

Dec. 31, 2019

Savings and Retirement Plans. We maintain a voluntary 401(k) savings and retirement plan covering substantially all full-time and certain part-time employees in the United States who have completed one month of service and have attained age 18. We match a certain percentage of each employee’s contribution. The plan also provides for a discretionary contribution by us to the plan for all eligible employees of 1% of their salary, subject to certain limits, and discretionary profit-sharing contributions. We may increase or decrease our contributions at our discretion, on a prospective basis. We incurred $10.5 million and $10.7 million of expense related to this plan in 2019 and 2018. We also maintain defined contribution plans in some of the European countries in which we operate. Expenses related to these plans were not material in 2019 and 2018.

U.S. Retirement Plans. We have a noncontributory, unfunded retirement plan for certain retirees in the United States (U.S. Retirement Plan). In February 2012, our Board of Directors amended the U.S. Retirement Plan to freeze benefit levels and modify vesting provisions under the plan effective as of March 31, 2012.

The following table sets forth the U.S. Retirement Plan’s financial status and the amounts recognized in our consolidated balance sheets:



December 31,	2019			2018
Change in benefit obligation
Benefit obligation, beginning of year	$	48,163		$	53,274
Interest cost	1,858			1,674
Actuarial (gain) loss	7,075			(3,207		)
Benefits paid	(3,494		)	(3,578		)
Benefit obligation, end of year	$	53,602		$	48,163
Change in plan assets
Fair value of plan assets, beginning of year	$	—		$	—
Employer contribution	3,494			3,578
Benefits paid	(3,494		)	(3,578		)
Fair value of plan assets, end of year	$	—		$	—
Funded status, end of year	$	(53,602	)	$	(48,163	)
Amounts recognized in the consolidated balance sheets
Other current liabilities	$	(3,929	)	$	(3,410	)
Other liabilities	(49,672		)	(44,752		)
Accumulated other comprehensive loss	19,732			13,722
Net amount recognized	$	(33,869	)	$	(34,440	)
Accumulated benefit obligation	$	53,602		$	48,163
Weighted average assumptions used to determine benefit obligation
Discount rate	2.75		%	4.00		%
Rate of increase in compensation levels	N/A			N/A

Plan benefit obligations of the U.S. Retirement Plan were measured as of December 31, 2019 and 2018. Plan benefit obligations are determined using assumptions developed at the measurement date. The weighted average discount rate, which is used to calculate the present value of plan liabilities, is an estimate of the interest rate at which the plan liabilities could be effectively settled at the measurement date. When estimating the discount rate, we review yields available on high-quality, fixed-income debt instruments and use a yield curve model from which the discount rate is derived by applying the projected benefit payments under the plan to points on a published yield curve.

The components of net periodic benefit cost for the U.S. Retirement Plan were as follows:



Year ended December 31,	2019			2018
Interest cost	$	1,858		$	1,674
Recognized net actuarial loss	1,065			2,091
Net periodic benefit cost	$	2,923		$	3,765
Weighted average assumptions used to determine net periodic benefit cost
Discount rate	4.00		%	3.25		%
Rate of increase in future compensation levels	N/A			N/A

Amounts recognized for the U.S. Retirement Plan as a component of accumulated other comprehensive loss as of the end of the year that have not been recognized as a component of the net periodic benefit cost are presented in the following table. We expect to recognize approximately $0.9 million of the net actuarial loss reported in the following table as of December 31, 2019, as a component of net periodic benefit cost during 2020.



Year ended December 31,	2019			2018
Net actuarial loss	$	(19,732	)	$	(13,722	)
Deferred tax benefit	7,866			5,562
Amounts included in accumulated other comprehensive loss, net of tax	$	(11,866	)	$	(8,160	)

As of December 31, 2019, the expected benefit payments required for each of the next five years and the five-year period thereafter for the U.S. Retirement Plan were as follows:



Year
2020	$	3,901
2021	3,734
2022	3,584
2023	3,436
2024	3,279
2025-2029	14,045

International Retirement Plans. Certain of our foreign subsidiaries have defined benefit pension plans covering substantially all of their respective employees. As of December 31, 2019 and 2018, the accumulated benefit obligation under these plans was $7.3 million and $7.2 million. We recorded $1.0 million in net periodic benefit cost in Other expense, net for the year ended December 31, 2019 and $1.0 million for the year ended December 31, 2018.