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RETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
RETIREMENT BENEFIT PLANS RETIREMENT BENEFIT PLANS
DEFINED BENEFIT PLANS
The Company has various defined benefit plans which covers certain employees in France, Japan, Germany and Switzerland.
Net periodic benefit costs for the Company’s defined benefit pension plans for the years ended December 31, 2022 and 2021 included the following (amounts in thousands):
Year ended December 31,
20222021
Service cost$2,419 $2,741 
Interest cost194 100 
Expected return on plan assets(1,381)(893)
Amortization of prior service cost (credit)(326)(281)
Recognized actuarial losses9 186 
Settlements— 51 
Net period benefit cost$915 $1,904 
The following weighted average assumptions were used to develop net periodic pension benefit costs and the actuarial present values of projected pension benefit obligations for the years ended December 31, 2022 and 2021, respectively:
As of December 31,
20222021
Discount rate2.44 %0.37 %
Expected return on plan assets3.61 %3.59 %
Rate of compensation increase1.97 %2.10 %
Interest crediting rate for cash balance plans1.00 %1.00 %
The Company’s discount rates are determined by considering current yield curves representing high quality, long-term fixed income instruments. The resulting discount rates are consistent with the duration of plan liabilities. In 2022 and 2021, the discount rates were prescribed as the current yield on corporate bonds with an average rating of AA or AAA of equivalent currency and term to the liabilities. The expected returns on plan assets represent the average rate of return expected to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. In developing the expected rates of return, the Company considers returns of historical market data as well as actual returns on the plan assets. Using this reference information, the long-term return expectations for each asset category are developed according to the allocation among those investment categories.
The assessment is determined using projections from external financial sources, long-term historical averages, actual returns by asset class and the various asset class allocations by market.
The following sets forth the change in projected benefit obligations and the change in plan assets for the years ended December 31, 2022 and 2021 and a reconciliation of the funded status at December 31, 2022 and 2021, respectively (amounts in thousands):
Year ended December 31,
20222021
Change In Projected Benefit Obligations
Projected benefit obligations, beginning of year$65,184 $72,869 
Interest cost194 100 
Service cost2,419 2,741 
Actuarial (gain) loss(14,822)(5,044)
Plan amendments(390)(586)
Plan settlements(20)(655)
Employee contribution999 917 
Premiums paid(391)(373)
Benefit payment(999)(2,128)
Effect of foreign currency exchange rates(1,810)(2,657)
Projected benefit obligations, end of year$50,364 $65,184 
Year ended December 31,
20222021
Change In Plan Assets
Plan assets at fair value, beginning of year$39,914 $37,825 
Actual return on plan assets(2,863)3,371 
Employer contributions2,356 2,254 
Employee contributions999 917 
Plan settlements— (633)
Benefits paid(998)(2,128)
Premiums paid(391)(373)
Effect of foreign currency exchange rates(964)(1,319)
Plan assets at fair value, end of year$38,053 $39,914 
Year ended December 31,
20222021
Reconciliation Of Funded Status
Fair value of plan assets$38,053 $39,914 
Benefit obligations50,364 65,184 
Unfunded benefit obligations$12,311 $25,270 
The unfunded benefit obligations are included in other liabilities in the consolidated balance sheets at December 31, 2022 and 2021, respectively.
During the periods ended December 31, 2022 and 2021, the Company had a net gain of $7.4 million and $7.0 million, respectively, recognized within accumulated other comprehensive loss that has not been recognized as a component of net periodic benefit cost. The gain recognized during the period ended December 31, 2021, is primarily attributed to a change in the discount rate used to estimate the projected benefit obligation for defined benefit plans which cover certain employees in Switzerland. The combined accumulated benefit obligations for the defined benefit plans was $46.4 million and $60.3 million as of December 31, 2022 and 2021, respectively.
Unrecognized gains and losses are amortized over the average remaining future service for each plan. For plans with no active employees, they are amortized over the average life expectancy. The amortization of gains and losses is determined by using a 10% corridor of the greater of the market value of assets or the accumulated benefit obligation. Total unamortized gains and losses in excess of the corridor are amortized over the average remaining future service.
Prior service costs/benefits for the pension plans are amortized over the average remaining future service of plan participants at the time of the plan amendment.
The net plan assets of the pension plans are invested in common trusts. Common trusts are classified as Level 2 in fair value hierarchy. The fair value of common trusts is valued at net asset value based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. The investment strategy of the Company's defined benefit plans is both to meet the liabilities of the plans as they fall due and to maximize the return on invested assets within appropriate risk profile.
The benefit plans in France and Germany had no assets at December 31, 2022.
As of December 31, 2022, no plan assets are expected to be returned to the Company in the next twelve months.
The following table is the summary of expected future benefit payments (in thousands):
2023$2,211 
2024$2,045 
2025$2,050 
2026$1,929 
2027$1,868 
Next five years$11,068 
As of December 31, 2022, contributions expected to be paid to the plan in 2022 is $2.6 million.
DEFINED CONTRIBUTION PLANS
The Company also has various defined contribution savings plans that cover substantially all employees in the United States, Belgium, Canada, France, Japan, Netherlands, the U.K. and Puerto Rico. The Company matches a certain percentage of each employee’s contributions as per the provisions of the plans. Total contributions by the Company to the plans were $9.8 million, $8.8 million and $6.7 million for the years ended December 31, 2022, 2021 and 2020, respectively.
DEFERRED COMPENSATION PLAN
The Company maintains a Deferred Compensation Plan in which certain employees of the Company may defer the payment and taxation of up to 75% of their base salary and up to 100% of bonus amounts and other eligible cash compensation.
This deferred compensation is invested in funds offered under this plan and is valued based on Level 1 measurements in the fair value hierarchy. Assets of the Company's deferred compensation plan are included in Other current assets and recorded at fair value based on their quoted market prices. The fair value of these assets at December 31, 2022 and 2021 was $4.7 million and $3.8 million. Offsetting liabilities relating to the deferred compensation plan are included in Other liabilities.