Pension Liability

9 Months Ended

Sep. 30, 2019

Pension Liability

PENSION LIABILITY

NOTE 17.    PENSION LIABILITY

In connection with the acquisitions of HiTek Power Group, LumaSense and Artesyn we assumed the liabilities of various pension plans. In order to measure the expense and related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. We are committed to make annual fixed payments of $0.8 million into the HiTek Power Limited Pension Scheme through April 30, 2024, and then $1.7 million from May 1, 2024 through November 30, 2033. We are obligated to fund the other pension liabilities each year as incurred.

The net pension liability is included in Other long-term liabilities in our Consolidated Balance Sheets as follows:

	September 30,		December 31,
	2019		2018
Pension liability	$	66,450	$	19,266

The following table sets forth the components of net periodic pension cost for the three and nine months ended September 30, 2019 and 2018:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2019		2018		2019		2018
Service cost	$	124	$	—	$	124	$	—
Interest cost		274		205		668		637
Expected return on plan assets		(160)		(151)		(496)		(470)
Amortization of actuarial gains and losses		90		64		323		333
Net periodic pension cost	$	328	$	118	$	619	$	500