EMPLOYEE RETIREMENT PLANS AND POSTRETIREMENT BENEFITS

12 Months Ended

Dec. 31, 2024

EMPLOYEE RETIREMENT PLANS AND POSTRETIREMENT BENEFITS

EMPLOYEE RETIREMENT PLANS AND POSTRETIREMENT BENEFITS

NOTE 15.           EMPLOYEE RETIREMENT PLANS AND POSTRETIREMENT BENEFITS

Defined Contribution Plans

We have a 401(k) profit-sharing and retirement savings plan covering substantially all full-time U.S. employees. Participants may defer up to the maximum amount permitted by law. Participants are immediately vested in both their own contributions and profit-sharing contributions. Profit-sharing contributions, which are discretionary, are approved by the Board. For all periods presented, we based our profit-sharing contribution on matching 100% of employee contributions up to 3% of compensation plus an additional match of 50% on the next 2% of compensation.

During the years ended December 31, 2024, 2023, and 2022 we recognized total defined contribution plan costs of $5.0 million, $5.1 million, and $4.5 million, respectively.

Defined Benefit Plans

We maintain defined benefit pension plans for certain of our non-U.S. employees in the United Kingdom, Germany, and Philippines. Each plan is managed locally and in accordance with respective local laws and regulations.

To measure the expense and related benefit obligation, we make various assumptions, including discount rates used to value the obligation, expected return on plan assets used to fund these expenses, and estimated future inflation rates. We base these assumptions on historical experience as well as current facts and circumstances. We use an actuarial analysis to measure the expense and liability associated with pension benefits.

The information provided below includes one pension plan which is part of discontinued operations. As such, for all periods presented, all related expenses are reported in discontinued operations in the Consolidated Statements of Operations.

Our projected benefit obligation and plan assets for defined benefit pension plans and the related assumptions used to determine the related liabilities are as follows:

	December 31,		December 31,
	2024		2023
	(in thousands)
Projected benefit obligation, beginning of year	$	65,653	$	56,520
Service cost		1,022		1,016
Interest cost		2,799		2,909
Actuarial loss (gain)		(409)		4,808
Benefits paid		(1,934)		(1,452)
Translation adjustment		(2,790)		1,852
Projected benefit obligation, end of year		64,341		65,653
Fair value of plan assets, beginning of year	$	14,115	$	12,489
Expected return		714		654
Contributions		1,556		1,443
Benefits paid		(1,363)		(1,140)
Actuarial gain (loss)		(564)		17
Translation adjustment		(404)		652
Fair value of plan assets, end of year		14,054		14,115
Funded status of plan	$	(50,287)	$	(51,538)

	December 31,		December 31,
	2024		2023
	(in thousands)
Accumulated benefit obligation	$	55,918	$	58,968

The following table summarizes classification of our net pension benefit obligation on our Consolidated Balance Sheets. The current portion of the liability is included in accrued payroll and employee benefits.

	December 31,
	2024		2023
	(in thousands)
Current	$	732	$	2,403
Long-term		49,555		49,135
Total pension benefit obligation	$	50,287	$	51,538

The components of net periodic pension benefit cost recognized in our Consolidated Statements of Operations for the periods presented are as follows:

	Years Ended December 31,
	2024		2023		2022
	(in thousands)
Service cost	$	1,022	$	1,016	$	1,133
Interest cost		2,799		2,909		1,819
Expected return on plan assets		(714)		(654)		(535)
Amortization of actuarial gains and losses		(210)		(404)		322
Net periodic pension cost	$	2,897	$	2,867	$	2,739

Assumptions used in the determination of the net periodic pension cost are:

	Years Ended December 31,
	2024		2023		2022
Discount rate used for net periodic pension costs	4.4	%	5.1	%	2.6	%
Discount rate used for pension benefit obligations	5.0	%	4.4	%	5.1	%
Expected long-term return on plan assets	5.9	%	5.2	%	3.2	%

The fair value of our qualified pension plan assets by category was as follows:

	December 31, 2024
	Level 1		Level 2		Level 3		Total
	(in thousands)
Diversified Growth Fund	$	—	$	11,510	$	—	$	11,510
Corporate Bonds		—		1,334		—		1,334
Insurance Contracts		—		—		697		697
Cash		513		—		—		513
Total	$	513	$	12,844	$	697	$	14,054

	December 31, 2023
	Level 1		Level 2		Level 3		Total
	(in thousands)
Diversified Growth Fund	$	—	$	11,606	$	—	$	11,606
Corporate Bonds		—		1,212		—		1,212
Insurance Contracts		—		—		799		799
Cash		498		—		—		498
Total	$	498	$	12,818	$	799	$	14,115

Expected future payments during the next ten years for our defined benefit pension plans are as follows:

Year Ending December 31,		(in thousands)
2025	$	2,420
2026		3,943
2027		3,389
2028		3,578
2029		5,125
2029 to 2034		23,509

As of December 31, 2024 and 2023, accumulated other comprehensive income (loss) on the Consolidated Balance Sheets includes net actuarial gains and other deferred items, net of related taxes of $10.6 million and $11.4 million, respectively, that have not yet been recognized in net periodic pension cost.