XML 26 R16.htm IDEA: XBRL DOCUMENT v3.19.2
Postretirement Benefit Plans
6 Months Ended
Jun. 30, 2019
Compensation And Retirement Disclosure [Abstract]  
Postretirement Benefit Plans

10.

POSTRETIREMENT BENEFIT PLANS

Defined Benefit Pension Plans

The Company sponsors various funded qualified and unfunded non-qualified defined benefit pension plans, the most significant of which cover employees in the U.S. and U.K. locations. The U.S. and U.K. defined benefit pension plans are frozen and service benefits are no longer being accrued.

Components of Net Periodic Benefit Cost

 

 

UNITED STATES

 

(In thousands)

 

Three Months Ended

June 30

 

 

Six Months Ended

June 30

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest cost

 

$

1,661

 

 

$

1,540

 

 

$

3,322

 

 

$

3,079

 

Expected return on plan assets

 

 

(2,361

)

 

 

(2,321

)

 

 

(4,722

)

 

 

(4,642

)

Amortization of net actuarial loss

 

 

652

 

 

 

936

 

 

 

1,304

 

 

 

1,873

 

Net periodic benefit cost

 

$

(48

)

 

$

155

 

 

$

(96

)

 

$

310

 

 

 

 

UNITED KINGDOM

 

(In thousands)

 

Three Months Ended

June 30

 

 

Six Months Ended

June 30

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Interest cost

 

$

140

 

 

$

144

 

 

$

282

 

 

$

292

 

Expected return on plan assets

 

 

(198

)

 

 

(226

)

 

 

(399

)

 

 

(457

)

Amortization of net actuarial loss

 

 

62

 

 

 

56

 

 

 

125

 

 

 

113

 

Net periodic benefit cost

 

$

4

 

 

$

(26

)

 

$

8

 

 

$

(52

)

 

Employer Contributions

U.S. Plans

As a result of pension funding relief provisions included in the Highway and Transportation Funding Act of 2014, the Company is not required to make contributions to the funded U.S. qualified defined benefit plans. Approximately $312,000 is expected to be paid related to the unfunded non-qualified plans in 2019. Of such amount, $200,000 had been paid related to the non-qualified plans as of June 30, 2019.

U.K. Plan

The Company’s U.K. subsidiary expects to contribute approximately $476,000 to its defined benefit pension plan in 2019. Of such amount, $293,000 had been contributed to the plan as of June 30, 2019.

Defined Contribution Plans

The Company sponsors retirement savings defined contribution plans that cover eligible U.S. and U.K. employees. The Company’s U.S. retirement plans include two qualified plans, one of which is a 401(k) plan and one of which is an employee stock ownership plan, and one non-qualified supplemental executive plan. In the six months ended June 30, 2019 and 2018, the Company made profit sharing contributions into the qualified retirement plans for U.S. employees and for certain non-U.S. employees. Profit sharing contributions were determined using a formula applied to Company earnings.  For U.S. employees, who received the majority of profit sharing contributions in 2018, profit sharing contributions were made partly to the 401(k) plan and partly to the employee stock ownership plan and in 2019, profit sharing contributions were made to the employee stock ownership plan.  Profit sharing contributions are allocated to participant accounts on the basis of participant base earnings.

Defined contribution plan expenses for the Company’s qualified contribution plans were as follows:

(In thousands)

 

Three Months Ended

June 30

 

 

Six Months Ended

June 30

 

 

 

2019

 

 

2018

 

 

2019

 

 

2018

 

Retirement savings contributions

 

$

1,215

 

 

$

1,706

 

 

$

3,624

 

 

$

3,463

 

Profit sharing contributions

 

 

964

 

 

 

1,068

 

 

 

1,846

 

 

 

2,010

 

Total

 

$

2,179

 

 

$

2,774

 

 

$

5,470

 

 

$

5,473

 

 

The Company has a rabbi trust to fund the obligations of its non-qualified supplemental executive defined contribution plans (supplemental plans). The trust comprises various mutual fund investments selected by the participants of the supplemental plans. In accordance with the accounting guidance for rabbi trust arrangements, the assets of the trust and the obligations of the supplemental plans are reported on the Company’s consolidated balance sheets. The Company elected the fair value option for the mutual fund investment assets so that offsetting changes in the mutual fund values and defined contribution plan obligations would be recorded in earnings in the same period. Therefore, the mutual funds are reported at fair value with any subsequent changes in fair value recorded in the consolidated statements of income. The liabilities related to the supplemental plans increase (i.e., supplemental plan expense is recognized) when the value of the trust assets appreciates and decrease when the value of the trust assets declines (i.e., supplemental plan income is recognized). At June 30, 2019, the balance of the trust assets was $1,693,000, which equaled the balance of the supplemental plan liabilities (see the long-term investments section in Note 4 for further information regarding the Company’s mutual fund assets).