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RETIREMENT AND DEFERRED COMPENSATION PLANS
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
RETIREMENT AND DEFERRED COMPENSATION PLANS RETIREMENT AND DEFERRED COMPENSATION PLANS
We have various noncontributory retirement plans covering certain of our domestic and foreign employees. Benefits under our retirement plans are based on participants’ years of service and annual compensation as defined by each plan. Annual cash contributions to fund pension costs accrued under our domestic plans are generally at least equal to the minimum funding amounts required by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Certain pension commitments under our foreign plans are also funded according to local requirements or at our discretion.
Effective January 1, 2021, our domestic noncontributory retirement plans were closed to new employees and employees who were rehired after December 31, 2020. These employees are instead eligible for additional contribution to their defined contribution 401(k) employee savings plan. All domestic employees with hire/rehire dates prior to January 1, 2021 are still eligible for the domestic pension plans and continue to accrue plan benefits after this date.
The following table presents the changes in the benefit obligations and plan assets for the most recent two years for our domestic and foreign plans.
Domestic PlansForeign Plans
2023202220232022
Change in benefit obligation:
Benefit obligation at beginning of year$163,872 $255,457 $93,999 $123,386 
Service cost9,638 15,784 5,915 7,547 
Interest cost8,631 6,970 3,642 1,388 
Curtailment/Settlement— — (606)68 
Prior service cost— — (1,134)813 
Actuarial loss (gain)
13,989 (92,724)6,906 (26,826)
Benefits paid(10,117)(21,615)(6,788)(4,615)
Foreign currency translation adjustment (loss) gain
— — 2,823 (7,762)
Benefit obligation at end of year$186,013 $163,872 $104,757 $93,999 
Domestic PlansForeign Plans
2023202220232022
Change in plan assets:
Fair value of plan assets at beginning of year$162,151 $193,770 $72,523 $85,421 
Actual return on plan assets21,207 (25,517)3,978 (4,897)
Employer contribution495 15,513 477 1,871 
Benefits paid(10,117)(21,615)(6,788)(4,615)
Foreign currency translation adjustment— — 2,244 (5,257)
Fair value of plan assets at end of year$173,735 $162,151 $72,434 $72,523 
Funded status at end of year$(12,278)$(1,721)$(32,323)$(21,476)
The following table presents the funded status amounts recognized in our Consolidated Balance Sheets as of December 31, 2023 and 2022.
Domestic PlansForeign Plans
2023202220232022
Non-current assets$2,528 $9,304 $1,664 $— 
Current liabilities(530)(515)(32)(31)
Non-current liabilities(14,276)(10,510)(33,955)(21,445)
$(12,278)$(1,721)$(32,323)$(21,476)
The following table presents the amounts not recognized as components of periodic benefit cost that are recognized in accumulated other comprehensive (gain) loss as of December 31, 2023 and 2022.
Domestic PlansForeign Plans
2023202220232022
Net actuarial loss (gain)
$1,823 $(3,338)$15,661 $11,383 
Net prior service cost— — (162)1,150 
Tax effects1,029 2,271 (6,463)(5,518)
$2,852 $(1,067)$9,036 $7,015 
Changes in benefit obligations and plan assets recognized in other comprehensive income in 2023, 2022 and 2021 are as follows:
Domestic Plans
202320222021
Current year actuarial (loss) gain
$(5,161)$54,295 $28,714 
Amortization of net loss— 6,670 10,099 
$(5,161)$60,965 $38,813 
Foreign Plans
202320222021
Current year actuarial (loss) gain
$(5,315)$19,181 $6,257 
Current year prior service cost1,135 (818)— 
Transfer actuarial loss124 17 — 
Amortization of net loss914 1,688 2,325 
Amortization of prior service cost177 177 166 
$(2,966)$20,245 $8,748 
Components of net periodic benefit cost:
Domestic Plans
202320222021
Service cost$9,638 $15,784 $16,356 
Interest cost8,631 6,970 6,366 
Expected return on plan assets(12,378)(12,912)(12,293)
Amortization of net loss— 6,670 10,099 
Net periodic benefit cost$5,891 $16,512 $20,528 
Foreign Plans
202320222021
Service cost$5,915 $7,547 $8,159 
Interest cost3,642 1,388 843 
Expected return on plan assets(2,340)(2,728)(2,838)
Amortization of net loss914 1,688 2,325 
Amortization of prior service cost177 177 166 
Net periodic benefit cost$8,308 $8,072 $8,655 
Curtailment(1)(24)5 
Total Net periodic benefit cost$8,307 $8,048 $8,660 
The accumulated benefit obligation (“ABO”) for our domestic defined benefit pension plans was $171.6 million and $152.4 million at 2023 and 2022, respectively. The ABO for our foreign defined benefit pension plans was $80.1 million and $73.8 million at December 31, 2023 and 2022, respectively.
The following table provides the projected benefit obligation (“PBO”), ABO, and fair value of plan assets for all pension plans with an ABO in excess of plan assets as of December 31, 2023 and 2022.
Domestic PlansForeign Plans
2023202220232022
Projected benefit obligation$14,806 $11,025 $56,881 $54,455 
Accumulated benefit obligation12,156 10,087 40,312 40,481 
Fair value of plan assets— — 29,372 34,446 
The following table provides the PBO, ABO and fair value of plan assets for all pension plans with a PBO in excess of plan assets as of December 31, 2023 and 2022.
Domestic PlansForeign Plans
2023202220232022
Projected benefit obligation$14,806 $11,025 $81,534 $71,730 
Accumulated benefit obligation12,156 10,087 56,969 52,173 
Fair value of plan assets— — 47,544 47,236 
Assumptions:
Domestic PlansForeign Plans
202320222021202320222021
Weighted-average assumptions used to determine benefit obligations at December 31:
Discount rate4.95 %5.15 %2.75 %3.20 %3.69 %1.09 %
Rate of compensation increase3.24 %3.20 %3.17 %3.20 %3.21 %3.05 %
Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31:
Discount rate5.15 %2.75 %2.40 %3.69 %1.20 %0.66 %
Expected long-term return on plan assets7.00 %7.00 %7.00 %3.23 %3.53 %3.56 %
Rate of compensation increase3.20 %3.17 %3.17 %3.20 %3.20 %3.05 %
We develop the expected long-term rate of return assumptions based on historical experience and by evaluating input from the plans’ asset managers, including the managers’ review of asset class return expectations and benchmarks, economic indicators and long-term inflation assumptions.
In order to determine the 2024 net periodic benefit cost, we expect to use the December 31, 2023 discount rates, December 31, 2023 rates of compensation increase assumptions and the same assumed long-term returns on domestic and foreign plan assets used for the 2023 net periodic benefit cost.
Our domestic and foreign pension plan weighted-average asset allocations at December 31, 2023 and 2022 by asset category are as follows:
Plan Assets:
Domestic Plans Assets at December 31,Foreign Plans Assets at December 31,
2023202220232022
Equity securities48 %47 %3 %5 %
Fixed income securities26 %27 %1 %1 %
Corporate debt securities— — 1 %1 %
Infrastructure8 %8 %— — 
Hedge funds11 %10 %— — 
Money market1 %1 %1 %1 %
Investment Funds— — 94 %92 %
Real estate5 %7 %— — 
Total100 %100 %100 %100 %
Our investment strategy for our domestic and foreign pension plans is to maximize the long-term rate of return on plan assets within an acceptable level of risk. The investment policy strives to have assets sufficiently diversified so that adverse or unexpected results from one security type will not have an unduly detrimental impact on the entire portfolio and accordingly, establishes a target allocation for each asset category within the portfolio. The domestic plan asset allocation is reviewed on a quarterly basis and the foreign plan asset allocation is reviewed annually. Rebalancing occurs as needed to comply with the investment strategy. The domestic plan target allocation for 2024 is 61% equity securities and 39% fixed income securities and infrastructure. The foreign plan target allocation for 2024 is 100% investment funds.
Authoritative guidelines require the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:
•Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.
•Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
•Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
Domestic Fair Value Measurement at December 31, 2023Foreign Fair Value Measurement at December 31, 2023
(In Thousands $)Total(Level 1)(Level 2)(Level 3)Total(Level 1)(Level 2)(Level 3)
Cash and Short-term Securities (a)$1,949 $1,949 $— $— $514 $514 $— $— 
USD— 1,949 — — — — — — 
EUR— — — — — 506 — — 
Others— — — — — 8 — — 
Equity Securities (a)$73,483 $73,483 $— $— $2,106 $2,106 $— $— 
U.S. Large Cap Equities— 43,156 — — — — — — 
U.S. Small Cap Equities— 8,864 — — — — — — 
International Equities— 21,463 — — — 2,106 — — 
Fixed Income (a)(b)$29,171 $29,171 $— $— $831 $831 $— $— 
Corporate debts securities$— $— $— $— $1,231 $1,231 $— $— 
Euro Corporate Bonds (a)— — — — — 1,231 — — 
Investment Funds$— $— $— $— $67,752 $23,513 $44,239 $— 
Mutual Funds in Equities (a)— — — — — 5,411 — — 
Mutual Funds in Bonds (a)— — — — — 17,256 — — 
Mutual Funds Diversified (a)(b)— — — — — 846 44,239 — 
Total Investments in Fair Value Hierarchy$104,603 $104,603 $— $— $72,434 $28,195 $44,239 $— 
Investments at Net Asset Value per Share69,132 — — — — — — — 
Total Investments$173,735 $104,603 $— $— $72,434 $28,195 $44,239 $— 
Domestic Fair Value Measurement at December 31, 2022Foreign Fair Value Measurement at December 31, 2022
(In Thousands $)Total(Level 1)(Level 2)(Level 3)Total(Level 1)(Level 2)(Level 3)
Cash and Short-term Securities (a)$1,260 $1,260 $— $— $516 $516 $— $— 
USD— 1,260 — — — — — — 
EUR— — — — — 505 — — 
Others— — — — — 11 — — 
Equity Securities (a)$66,338 $66,338 $— $— $3,769 $3,769 $— $— 
U.S. Large Cap Equities— 37,537 — — — — — — 
U.S. Small Cap Equities— 7,918 — — — — — — 
International Equities— 20,883 — — — 3,769 — — 
Fixed Income (a)(b)$28,443 $28,443 $— $— $723 $723 $— $— 
Corporate debts securities$— $— $— $— $1,135 $1,135 $— $— 
Euro Corporate Bonds (a)— — — — — 1,135 — — 
Investment Funds$— $— $— $— $66,380 $21,952 $44,428 $— 
Mutual Funds in Equities (a)— — — — — 5,221 — — 
Mutual Funds in Bonds (a)— — — — — 15,901 — — 
Mutual Funds Diversified (a)(b)— — — — — 830 44,428 — 
Total Investments in Fair Value Hierarchy$96,041 $96,041 $— $— $72,523 $28,095 $44,428 $— 
Investments at Net Asset Value per Share66,110 — — — — — — — 
Total Investments$162,151 $96,041 $— $— $72,523 $28,095 $44,428 $— 
(a)Based on third party quotation from financial institution.
(b)Based on observable market transactions.
Contributions
Annual cash contributions to fund pension costs accrued under our domestic plans are generally at least equal to the minimum funding amounts required by ERISA. We contributed $0.5 million to our domestic defined benefit plans in 2023 and although we have no minimum funding requirement, we plan to contribute approximately $0.5 million to pay our ongoing SERP annuity contracts in 2024. Contributions to fund pension costs accrued under our foreign plans are made in accordance with local laws or at our discretion. We contributed approximately $0.5 million to our foreign defined benefit plan in 2023 and expect to contribute approximately $0.6 million in 2024.
Estimated Future Benefit Payments
As of December 31, 2023, we expect the plans to make the following estimated benefit payments relating to our defined benefit plans over the next 10 years:
Domestic PlansForeign Plans
2024$10,189 $3,738 
202510,891 3,516 
202611,191 4,184 
202711,212 6,726 
202812,178 5,295 
2029 - 203372,294 38,398 
Other Plans
We have a non-qualified supplemental pension plan for domestic employees which provides for pension amounts that would have been payable from our principal domestic pension plan if it were not for limitations imposed by income tax regulations. The liability for this plan, which is not funded, was $14.8 million and $11.0 million at December 31, 2023 and 2022, respectively. This amount is included in the liability for domestic plans shown above.
We have a defined contribution 401(k) employee savings plan ("401(k) plan") available to substantially all domestic employees. Company matching contributions are made in cash up to a maximum of 3% of the participating employee’s salary subject to income tax regulations. For each of the years ended December 31, 2023, 2022 and 2021, total contributions made to these plans were approximately $5.0 million, $5.0 million and $4.5 million, respectively. As discussed above, domestic employees hired after December 31, 2020 will no longer be eligible for the pension plans and will instead receive an annual Aptar Retirement Savings Account contribution of 5% of their eligible earnings in the 401(k) plan. For the years ended December 31, 2023, 2022 and 2021, total contributions for these eligible employees was approximately $2.7 million, $2.0 million and $0.7 million, respectively.
We have several foreign defined contribution plans, which require us to contribute a percentage of the participating employee’s salary according to local regulations. For each of the years ended December 31, 2023, 2022 and 2021, total contributions made to these plans were approximately $3.1 million, $2.9 million and $2.9 million, respectively.
We have no additional postretirement or postemployment benefit plans.