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Postretirement Benefits
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Postretirement Benefits Postretirement Benefits
Pension plans
Our pension plans consist of a noncontributory defined benefit pension plan covering substantially all employees and an unfunded supplemental employee retirement plan ("SERP") for certain members of executive and senior management. The pension plan provides benefits to covered individuals satisfying certain age and service requirements. The defined benefit pension plan and SERP each provide benefits through a final average earnings formula.

Although we are the sponsor of these postretirement plans and record the funded status of these plans, there are reimbursements between us and the Exchange and its subsidiaries for their allocated share of pension income or cost. These reimbursements represent pension benefits for employees performing administrative services and an allocated share of plan (income) cost for employees in departments that support the administrative functions. In 2023, we reimbursed the Exchange and its subsidiaries for approximately 60% of the annual defined benefit pension income, and the Exchange and its subsidiaries reimbursed us for approximately 36% of the annual SERP cost. For our funded pension plan, amounts are settled in cash for the portion of pension (income) cost allocated to the Exchange and its subsidiaries. For our unfunded SERP, we pay the obligations when due and amounts are settled in cash between entities when there is a payout.

Pension plan (income) cost
Pension plan (income) cost includes the following components for the years ended December 31:
(in thousands)
202320222021
Service cost for benefits earned$28,763 $50,242 $53,041 
Interest cost on benefit obligation50,193 39,764 36,824 
Expected return on plan assets(68,869)(54,557)(50,275)
Prior service cost amortization1,446 1,443 1,428 
Net actuarial (gain) loss amortization(15,331)7,320 16,106 
Pension plan (income) cost (1)
$(3,798)$44,212 $57,124 

(1)     Pension plan (income) cost represents total plan (income) cost before reimbursements between Indemnity and the Exchange and its subsidiaries. The components of pension plan (income) cost other than the service cost components are included in the line item "Other income (expense)" in the Statements of Operations, net of reimbursements between Indemnity and the Exchange and its subsidiaries.


Actuarial assumptions
The following table describes the weighted-average assumptions used to measure benefit obligations at December 31:
20232022
Employee pension plan:
Discount rate5.34 %5.67 %
Expected return on assets6.50 5.50 
Rate of compensation increase (1)
3.25 3.21 
SERP:
Discount rate5.11 %5.46 %
Rate of compensation increase5.00 5.00 

(1)    The rate of compensation increase for the employee plan is age-graded.  An equivalent single compensation increase rate of 3.25% in 2023 and 3.21% in 2022 would produce similar results.
The following table describes the weighted-average assumptions used to measure net periodic benefit costs for the years ended December 31:
202320222021
Employee pension plan:
Discount rate5.67 %3.16 %2.96 %
Expected return on assets6.50 5.50 5.50 
Rate of compensation increase (1)
3.30 3.21 3.21 
SERP:
Discount rate5.46 %3.11 %2.86 %
Rate of compensation increase5.00 5.00 5.00 
(1)    The rate of compensation increase for the employee plan is age-graded.  An equivalent single compensation increase rate of 3.30% in 2023 and 3.21% in 2022 and 2021 would produce similar results.


The economic assumptions that have the most impact on the postretirement benefits expense are the discount rate and the long-term rate of return on plan assets. The discount rate assumption used to determine the benefit obligation for all periods presented was based upon a yield curve developed from corporate bond yield information.

The pension plan's expected long-term rate of return represents the average rate of return to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. To determine the expected long-term rate of return assumption, we utilized models based upon historical analysis and forward-looking views of the financial markets based upon key factors such as historical returns for the asset class' applicable indices, the correlations of the asset classes under various market conditions and consensus views on future real economic growth and inflation. The expected future return for each asset class is then combined by considering correlations between asset classes and the volatilities of each asset class to produce a reasonable range of asset return results within which our expected long-term rate of return assumption falls.

Funding policy/funded status
Our defined benefit pension plan funding policy is generally to contribute an amount equal to the greater of the target normal cost for the plan year, or the amount necessary to fund the plan to 100%. Accordingly, we made a $25 million contribution during 2022 and a $95 million contribution during 2023. We also made a contribution of $33 million in January 2024. The 2023 contribution generated a net benefit asset of $34.3 million and is presented separately from the unfunded plan as a non-current asset on the Statement of Financial Position at December 31, 2023. The following table sets forth the funded status of the pension plans and the amounts recognized in the Statements of Financial Position at December 31:
(in thousands)
20232022
Funded status at end of year$3,325 $(53,948)
Pension asset$34,320 $0 
Pension liabilities – due within one year (1)
(4,735)(2,724)
Pension liabilities – due after one year(26,260)(51,224)
Net amount recognized$3,325 $(53,948)

(1)    The current portion of pension liabilities for the unfunded plan is included in accounts payable and accrued liabilities.
Benefit obligations
Benefit obligations are described in the following tables. Accumulated and projected benefit obligations represent the obligations of a pension plan for past service as of the measurement date. The accumulated benefit obligation is the present value of pension benefits earned as of the measurement date based on employee service and compensation prior to that date. It differs from the projected benefit obligation in that the accumulated benefit obligation includes no assumptions to reflect expected future compensation. The following table sets forth a reconciliation of beginning and ending balances of the projected benefit obligation, as well as the accumulated benefit obligation at December 31:
(in thousands)
20232022
Projected benefit obligation, beginning of year$883,814 $1,272,654 
Service cost for benefits earned28,763 50,242 
Interest cost on benefit obligation50,193 39,764 
Plan amendments583 1,620 
Actuarial loss (gain)65,041 (448,330)
Benefits paid(34,840)(32,136)
Projected benefit obligation, end of year$993,554 $883,814 
Accumulated benefit obligation, end of year$847,143 $762,180 
Projected benefit obligations increased $109.7 million at December 31, 2023 compared to December 31, 2022 primarily due to the lower discount rate used to measure the future benefit obligations. The discount rate for the employee pension plan decreased to 5.34% in 2023 from 5.67% in 2022.

The following table describes plans with projected benefit obligations in excess of plan assets at December 31:
(in thousands)
20232022
Projected benefit obligation$30,995 $883,814 
Plan assets— 829,866 
At December 31, 2023, the SERP had a projected benefit obligation in excess of plan assets. At December 31, 2022, both the defined benefit pension plan and the SERP had projected benefit obligations in excess of plan assets.

The SERP had accumulated benefit obligations in excess of plan assets at December 31:
(in thousands)
20232022
Accumulated benefit obligation$22,698 $21,577 
Plan assets— — 


Plan assets
The following table sets forth a reconciliation of beginning and ending balances of the fair value of plan assets at December 31:
(in thousands)
20232022
Fair value of plan assets, beginning of year$829,866 $1,140,243 
Actual return on plan assets105,631 (304,005)
Employer contributions96,222 25,764 
Benefits paid(34,840)(32,136)
Fair value of plan assets, end of year$996,879 $829,866 
Accumulated other comprehensive income
Net actuarial gain and prior service cost included in accumulated other comprehensive income that were not yet recognized as components of net benefit costs were as follows at December 31:
(in thousands)
20232022
Net actuarial gain$(25,954)$(69,564)
Prior service cost11,515 12,378 
Net amount not yet recognized$(14,439)$(57,186)


Other comprehensive loss (income)
Amounts recognized in other comprehensive loss (income) for pension plans were as follows for the years ended December 31:
(in thousands)
202320222021
Net actuarial loss (gain) arising during the year$28,279 $(89,768)$(75,091)
Amortization of net actuarial gain (loss)15,331 (7,320)(16,106)
Amortization of prior service cost(1,446)(1,443)(1,428)
Plan amendments (1)
583 1,620 4,059 
Total recognized in other comprehensive loss (income)$42,747 $(96,911)$(88,566)
(1)    Plan amendments relate to new SERP participants.


Asset allocation
The employee pension plan utilizes a return seeking and a liability asset matching allocation strategy.  It is based upon the understanding that 1) equity investments are expected to outperform debt investments over the long-term, 2) the potential volatility of short-term returns from equities is acceptable in exchange for the larger expected long-term returns, and 3) a portfolio structured across investment styles and markets (both domestic and foreign) reduces volatility.  As a result, the employee pension plan's investment portfolio utilizes a broadly diversified asset allocation across domestic and foreign equity and debt markets.  The investment portfolio is composed of commingled pools, an exchange traded fund, and a separate account that are dedicated exclusively to the management of employee benefit plan assets.

The target and actual asset allocations for the portfolio are as follows for the years ended December 31:
Target asset
allocation		Target asset
allocation		Actual asset
allocation		Actual asset
allocation
Asset allocation:2023202220232022
Equity securities:
U.S. equity securities27 %27 %26 %(1)27 %
Non-U.S. equity securities18 18 19 (2)19 
Total equity securities45 45 45 46 
Debt securities54 54 54 (3)53 
Other1 1 1 (4)1 
Total100 %100 %100 %100 %

(1)    U.S. equity securities – 100% seek to achieve excess returns relative to the Russell 3000 Index.
(2)    Non-U.S. equity securities – 11% are allocated to international small cap investments, while another 19% are allocated to international emerging market investments.  The remaining 70% of the Non-U.S. equity securities are allocated to investments seeking to achieve excess returns relative to an international market index.
(3)    Debt securities – 60% are allocated to long U.S. Treasury Strips, 40% are allocated to U.S. corporate bonds with an emphasis on long duration bonds rated A or better.
(4)    Institutional money market fund.
The following tables present fair value measurements for the pension plan assets by major category and level of input as of:
December 31, 2023
(in thousands)Total Level 1
Fair Value		Level 2
Fair Value		Level 3
Fair Value		Net Asset
Value (NAV)
Equity securities:
U.S. equity securities$261,400 $244,979 $0 $0 $16,421 
Non-U.S. equity securities183,007 127,143 0 0 55,864 
Total equity securities444,407 372,122 0 0 72,285 
Debt securities540,762 0 0 0 540,762 
Other11,710 11,710 0 0 0 
Total$996,879 $383,832 $0 $0 $613,047 


December 31, 2022
(in thousands)TotalLevel 1
Fair Value		Level 2
Fair Value		Level 3
Fair Value		Net Asset
Value (NAV)
Equity securities:
U.S. equity securities$219,410 $204,838 $0 $0 $14,572 
Non-U.S. equity securities160,009 110,799 0 0 49,210 
Total equity securities379,419 315,637 0 0 63,782 
Debt securities439,004 0 0 0 439,004 
Other11,443 11,443 0 0 0 
Total$829,866 $327,080 $0 $0 $502,786 


Estimates of fair values of the pension plan assets are obtained primarily from the trustee and custodian of our pension plan.  Our Level 1 category includes a money market mutual fund, an exchange traded fund, and a separate account for which the fair value is determined using an exchange traded price provided by the trustee and custodian.  Commingled pools are valued based on NAV per share or unit as a practical expedient as reported by the fund manager, multiplied by the number of shares or units held as of the measurement date. Accordingly, these NAV-based investments have been excluded from the fair value hierarchy. These investments have minimal redemption notice periods and are redeemable daily at the NAV, less transaction fees, without significant restrictions. There are no significant unfunded commitments related to these investments.

Estimated future benefit payments
The following table sets forth amounts of benefits expected to be paid over the next 10 years from our pension plans as of:

(in thousands)
Year ending
December 31,		Expected future
benefit payments
2024$39,778 
202539,645 
202642,098 
202745,087 
202848,800 
2029 - 2033294,614 
Employee savings plan
All full-time and regular part-time employees are eligible to participate in a qualified 401(k) savings plan.  We match 100% of the participant contributions up to 3% of compensation and 50% of participant contributions over 3% and up to 5% of compensation.  Matching contributions paid to the plan were $18.4 million in 2023, $16.7 million in 2022, and $16.1 million in 2021.  The Exchange and its subsidiaries reimbursed us for approximately 59% of the matching contributions. Employees are permitted to invest the employer-matching contributions in our Class A common stock.  Employees, other than executive and senior officers, may sell the shares at any time without restriction, provided they are in compliance with applicable insider trading laws; sales by executive and senior officers are subject to additional pre-clearance restrictions imposed by our insider trading policies.  The plan acquires shares in the open market necessary to meet the obligations of the plan.  Plan participants held 0.1 million shares of our Class A common stock at December 31, 2023 and 2022.