Employee Benefit Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plan

A subsidiary of the Company, sponsors a defined benefit plan with benefits based on each employee’s years of service and compensation. The benefits under the defined benefit pension plan are frozen.

Net Periodic Pension Cost and Pension Benefit Obligation

Net periodic pension cost consists of the following components for the years ended December 31:

	Pension Benefits
	2021
Interest cost on benefit obligation	441
Expected return on plan assets	(697)
Net periodic benefit cost	$	(256)

The above costs are included within Other, net on the Audited Consolidated Statements of Operations.

The following weighted average assumptions were used to determine net periodic costs at December 31:

	Pension Benefits
	2021
Discount rate	2.62	%
Expected return on plan assets	6.50	%

The expected return on plan assets is a long-term assumption established by considering historical and anticipated returns of the asset classes invested in by the pension plan and the allocation strategy currently in place among those classes.

Other changes in plan assets and benefit obligation recognized in Other comprehensive income (loss) consist of the following components for the year ended December 31:

	Pension Benefits
	2021
Current year actuarial gain	$	(722)
Total recognized in other comprehensive (income)	(722)
Total recognized in net periodic benefit cost and other comprehensive loss	$	(978)

The following table summarizes the change in benefit obligation and fair values of plan assets for the year ended December 31:

	Pension Benefits
	2021
Change in benefit obligation:
Benefit obligation, Beginning balance (1)	$	41,206
Interest Cost	441
Actuarial gains	(1,091)
Benefits paid	(551)
Benefit obligation, Ending balance	40,005
Change in plan assets:
Fair value of plan assets, Beginning balance (1)	26,578
Actual return on plan assets	328
Benefits paid	(551)
Fair value of plan assets, Ending balance	26,355
Funded status	$	13,650

(1) Benefit obligation assumed in connection with the acquisition of MDC. Beginning balance is as of July 31, 2021.

Amounts recognized on the balance sheet at December 31 consist of the following:

	Pension Benefits
	2021
Non-current liability	$	13,650
Net amount recognized	$	13,650

Amounts recognized in Accumulated Other Comprehensive Loss before income taxes consists of the following components for the year ended December 31:

	Pension Benefits
	2021
Accumulated net actuarial gains	$	722
Amount recognized	$	722

In 2022, the Company estimates that it will not recognize any amortization of net actuarial losses from accumulated other comprehensive loss, net into net periodic cost related to the pension plan.

The following weighted average assumptions were used to determine benefit obligations as of December 31:

	Pension Benefits
	2021
Discount rate	2.82	%

The discount rate assumptions at December 31, 2021 was determined independently. The discount rate was derived from the effective interest rate of a hypothetical portfolio of high-quality bonds, whose cash flows match the expected future benefit payments from the plan as of the measurement date.

Fair Value of Plan Assets and Investment Strategy

The fair value of the plan assets as of December 31, is as follows:

	December 31, 2021		Level 1		Level 2		Level 3
Asset Category:
Money market fund – Short-term investments	$	937	$	937	$	—	$	—
Mutual funds	25,418		25,418		—		—
Total	$	26,355	$	26,355	$	—	$	—

The pension plans weighted-average asset allocation for the year ended December 31, 2021 is as follows:

	Target Allocation		Actual Allocation
	2021		2021
Asset Category:
Equity securities	65.0	%	69.1	%
Debt securities	30.0	%	27.3	%
Cash/cash equivalents and Short-term investments	5.0	%	3.6	%
	100.0	%	100.0	%

The goals of the pension plan investment program are to fully fund the obligation to pay retirement benefits in accordance with the plan documents and to provide returns that, along with appropriate funding from the Company, maintain an asset/liability ratio that is in compliance with all applicable laws and regulations and assures timely payment of retirement benefits.

Equity securities primarily include investments in large-cap and mid-cap companies located in the United States. Debt securities are diversified across different asset types with bonds issued in the United States as well as outside the United States. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the preceding tables.

Cash Flows

The pension plan contributions are deposited into a trust, and the pension plan benefit payments are made from trust assets. During 2021, the Company did not make any contributions to the pension plan. The Company does not expect that it will make any contributions to the pension plan in 2022. Fluctuations in actual market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefit costs and contributions in future periods.

The following estimated benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years ending December 31:

Period	Amount
2022	$	1,698
2023	1,933
2024	2,167
2025	2,111
2026	2,087
Thereafter	10,721