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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Compensation and 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 benefit consists of the following components for the years ended December 31:
Pension Benefits
20222021
Interest cost on benefit obligation$1,104 $441 
Expected return on plan assets(1,659)(697)
Net periodic benefit income$(555)$(256)
Settlement gain(198)— 
Total periodic benefit income$(753)$(256)
The above components are included within Other, net on the Consolidated Statements of Operations.
The following weighted average assumptions were used to determine net periodic costs at December 31:
Pension Benefits
20222021
Discount rate2.82 %2.62 %
Expected return on plan assets6.50 %6.50 %
Rate of compensation increaseN/AN/A
The expected return on plan assets is a long-term assumption established by considering historical and anticipated returns of the asset classes invested in by the pension plan and the allocation strategy currently in place among those classes.
Other changes in plan assets and benefit obligation recognized in Other comprehensive income (loss) consist of the following components for the years ended December 31:
Pension Benefits
20222021
Current year actuarial gain$(4,088)$(722)
Total recognized in other comprehensive (income)(4,088)(722)
Total recognized in net periodic benefit income and other comprehensive loss$(4,841)$(978)
The following table summarizes the change in benefit obligation and fair values of plan assets for the years ended December 31:
Pension Benefits
20222021
Change in benefit obligation:
Benefit obligation, beginning balance (1)
$40,005 $41,206 
Interest cost1,104 441 
Actuarial gains(10,930)(1,091)
Benefits paid(2,135)(551)
Benefit obligation, ending balance28,044 40,005 
Change in plan assets:
Fair value of plan assets, beginning balance (1)
26,355 26,578 
Actual loss on plan assets(4,985)328 
Benefits paid(2,135)(551)
Fair value of plan assets, ending balance19,235 26,355 
Funded status$8,809 $13,650 
(1) Benefit obligation assumed in connection with the acquisition of MDC. Beginning balance is as of July 31, 2021.
Amounts recognized in the Consolidated Balance Sheets at December 31 consist of the following:
Pension Benefits
20222021
Non-current liability$8,809 $13,650 
Net amount recognized$8,809 $13,650 
Amounts recognized in Accumulated other comprehensive loss before income taxes consists of the following components for the years ended December 31:
Pension Benefits
20222021
Accumulated net actuarial gains$4,810 $722 
Amount recognized$4,810 $722 

In 2023, the Company estimates that it will recognize $66 in amortization of net actuarial gains 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
20222021
Discount rate5.47 %2.82 %
Rate of compensation increaseN/AN/A
The discount rate assumptions at December 31, 2022 and 2021 were 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:
2022Level 1Level 2Level 3
Asset Category:
Receivables$15 $15 $— $— 
Money market fund – Short-term investments804 804 — — 
Mutual funds18,416 18,416 — — 
Total$19,235 $19,235 $— $— 

2021Level 1Level 2Level 3
Asset Category:
Money market fund – Short-term investments$937 $937 $— $— 
Mutual funds25,418 25,418 — — 
Total$26,355 $26,355 $— $— 

See Note 18 of the Notes included herein for additional information regarding the fair value hierarchy.
The pension plan’s weighted average asset allocation for the years ended December 31, 2022 and 2021 were as follows:
Target AllocationActual Allocation
202220222021
Asset Category:
Equity securities65.0 %67.4 %69.1 %
Debt securities30.0 %28.4 %27.3 %
Cash/cash equivalents and Short-term investments5.0 %4.2 %3.6 %
Total100.0 %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 2022 and 2021, the Company did not make any contributions to the pension plan. The Company estimates that it will make approximately $787 in contributions to the pension plan in 2023. 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:
PeriodAmount
2023$1,794 
20242,014 
20251,932 
20261,958 
20271,903 
Thereafter10,022