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Pension Benefits
 12 Months Ended
Dec. 31, 2022
Pension Benefits  
Pension Benefits

8.           Pension Benefits

U.S. Defined Contribution Pension Plan - The Company has a defined contribution plan qualified under Section 401(k) of the Internal Revenue Code, pursuant to which substantially all of its U.S. employees are eligible to participate after completing six months of service. Participants may elect to contribute a portion of their compensation to the plan. Under the plan, the Company has the discretion to match a portion of participants’ contributions. For the years ended December 31, 2022 and 2021, the Company did not make any matching contributions.

Most of the non-U.S. subsidiaries provide for government-mandated defined pension benefits. For certain of these subsidiaries, vested eligible employees are provided a lump sum payment upon retiring from the Company at a defined age. The lump sum amount is based on the salary and tenure as of retirement date. Other non-U.S. subsidiaries provide for a lump sum payment to vested employees on retirement, death, incapacitation or termination of employment, based upon the salary and tenure as of the date employment ceases. The liability for such defined benefit obligations is determined and provided on the basis of actuarial valuations. As of December 31, 2022, these plans were unfunded. Pension expense for foreign subsidiaries totaled approximately $1.1 million and $0.9 million for the years ended December 31, 2022 and 2021, respectively.

The following tables set out the status of the non-U.S. pension benefits and the amounts recognized in the Company’s consolidated financial statements and the components of pension costs as of and for each of the two years in the period ended December 31 (in thousands):

Benefit Obligations:

​

​

​

​

​

​

​

​

​

    

2022

    

2021

​

​

​

​

​

​

​

Projected benefit obligation at beginning of the year

​

$

6,839

​

$

5,940

Service cost

​

 

592

​

 

572

Interest cost

​

 

352

​

 

247

Actuarial loss (gain)

​

 

(713)

​

 

559

Foreign currency exchange rates changes

​

 

(862)

​

 

(359)

Curtailment

​

 

(48)

​

 

-

Benefits paid

​

 

(254)

​

 

(120)

Projected benefit obligation at end of the year

​

$

5,906

​

$

6,839

​

The Company incurred an actuarial gain of $0.7 million for the year ended December 31, 2022, and an actuarial loss of $0.6 million for the year ended December 31, 2021. This was mainly due to changes in the discount rates used. Actuarial (gains) losses are recorded as part of other comprehensive income and is not reflected as part of net periodic pension cost.

​

Components of Net Periodic Pension Cost:

​

​

​

​

​

​

​

​

​

    

2022

    

2021

​

​

​

​

​

​

​

Service cost

​

$

592

​

$

572

Interest cost

​

 

352

​

 

247

Curtailment

​

 

(16)

​

 

-

Actuarial loss recognized

​

 

210

​

 

47

Net periodic pension cost

​

$

1,138

​

$

866

​

The accumulated benefit obligation, which represents benefits earned to date, was approximately $3.2 and $3.7 million for each of the years ended December 31, 2022 and 2021.

Amounts recognized in the consolidated balance sheets for the years ended December 31, 2022 and 2021 consisted of the following (in thousands):

​

​

​

​

​

​

​

​

​

    

2022

    

2021

​

​

​

​

​

​

​

Current accrued benefit cost

​

$

828

 

$

677

Non-current accrued benefit cost

​

 

5,078

 

 

6,162

Total amount recognized

​

$

5,906

 

$

6,839

​

Current accrued benefit cost for pension benefits was included in the current portion of long-term obligations in the consolidated balance sheets. Non-current accrued benefit cost for pension benefits was included in long-term obligations, net of current portion, in the consolidated balance sheets.

Actuarial assumptions for all non-U.S. plans are described below. The discount rates are used to measure the year end benefit obligations and the earnings effects for the subsequent year. The assumptions for each of the two years in the period ended December 31 were as follows:

​

​

​

​

​

​

​

    

2022

    

2021

​

​

​

​

​

Discount rate

 

5.13%-20%

 

2.1%-12.03%

Rate of increase in compensation level

 

7.5%-20%

 

7%-10%

​

Estimated Future Benefit Payments:

As of December 31, 2022, the following benefit payments, which reflect expected future service, as appropriate, were expected to be paid (in thousands):

​

​

​

​

​

Year

    

​

Amount

​

​

​

​

2023

​

​

837

2024

​

 

114

2025

​

 

401

2026

​

​

239

2027

​

​

704

2028 to 2031

​

 

4,860

​

​

$

7,155

​