Pensions and Other Postretirement Benefit Plans

9 Months Ended

Sep. 30, 2023

Retirement Benefits [Abstract]

Pensions and Other Postretirement Benefit Plans

Pensions and Other Postretirement Benefit Plans

The Company has defined benefit pension plans covering certain U.S. and non-U.S. employees. The Company also provides certain postretirement benefits to retired employees in the U.S. and Canada. The Company accrues the cost of providing these benefits during the active service period of the employees.

The composition of the net periodic benefit cost/ (income) for the nine months ended September 30, 2023 and 2022, was as follows:

	Pension plans				Other postretirement benefits
(in thousands)	2023		2022		2023		2022
Components of net periodic benefit cost/(income):
Service cost	$	986	$	1,061	$	45	$	86
Interest cost	3,447		4,235		1,405		916
Expected return on assets	(3,063)		(5,099)		—		—
Amortization of prior service cost/(income)	(24)		(2)		(3,068)		(3,366)
Amortization of net actuarial loss	421		1,493		621		1,412
Net periodic benefit cost/(credit)	$	1,767	$	1,688	$	(997)	$	(952)
Settlement charge	—		49,128		—		—
Net benefit cost/(credit)	$	1,767	$	50,816	$	(997)	$	(952)

The amount of net benefit cost/(credit) is determined at the beginning of each year and generally only varies from quarter to quarter when a significant event occurs, such as a curtailment or a settlement. In the third quarter of 2022, we took actions to settle certain pension plan liabilities for a plan in the U.S., leading to charges totaling $49.1 million. No similar charges were incurred during the current year. The above reflects the acquisition of Heimbach, as further described in Note 17. Business Combination.

Service cost for defined benefit pension and postretirement plans are reported in the same line item as other compensation costs arising from services rendered by the pertinent employees during the period. Other components of net periodic benefit cost are included in the line item Other (income)/expense, net in the Consolidated Statements of Income.