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Note 16 - Benefit Plans | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Pension and Other Postretirement Benefits Disclosure [Text Block] |
16. | Benefit Plans
Medical and Dental Plan The Company maintains medical and dental benefit plans covering its full-time domestic employees and their dependents. Certain plans are partially or fully self-funded under which participant claims are obligations of the plan. These plans are funded through employer and employee contributions at a level sufficient to pay for the benefits provided by the plan. The Company’s contributions to the plans were $18,290, $14,660, and $14,992 for the years ended December 31, 2019, 2018, and 2017, respectively. The Company’s foreign subsidiaries participate in government sponsored medical benefit plans. In certain cases, the Company purchases supplemental medical coverage for certain employees at these foreign locations. The expenses related to these plans are not material to the Company’s consolidated financial statements. Savings Plan The Company maintains a defined-contribution 401(k) savings plan for eligible domestic employees. Under the plan, employees may defer receipt of a portion of their eligible compensation. The Company may contribute a matching contribution of 50% of the first 6% of eligible compensation of employees. The Company may also contribute a non-elective contribution for eligible employees employed on December 31, 2008 that were impacted by the freezing of the Company’s pension plans. The Company’s matching contributions are subject to vesting. Forfeitures may be applied against plan expenses and company contributions. The Company recognized $4,791, $4,193 and $3,600 of expense related to these plans in 2019, 2018 and 2017, respectively. Pension Plans Historically, the Company maintained frozen noncontributory salaried and hourly pension plans (Pension Plans) covering certain domestic employees. The Pension Plans were frozen effective December 31, 2008. Effective December 31, 2018, the Pension Plans were merged into the same plan (Pension Plan), resulting in no change to benefits for participants. The benefits under the salaried plan were based upon years of service and the participants’ defined final average monthly compensation. The benefits under the hourly plan were based on a unit amount at the date of termination multiplied by the participant’s years of credited service. In 2019, the Company completed the termination of its Pension Plan. In connection with the Company’s activities to terminate the plan, lump sum distributions were made in the fourth quarter of 2019 to individuals who elected lump sum distributions, including rolling over their accounts to the Company’s 401(k) savings plan. Also in the fourth quarter of 2019, annuity contracts were purchased to settle obligations for the remaining participants. Upon settlement of the pension liability, the Company reclassified related unrecognized pension losses recorded in AOCL to the consolidated statements of comprehensive income. As a result, the Company recorded pre-tax settlement charges of $10,920 in the fourth quarter of 2019. The Company’s historical funding policy for the Pension Plans was to contribute amounts at least equal to the minimum annual amount required by applicable regulations. In the year ended December 31, 2018, the Company made a voluntary pension prepayment of $9,400. In the year ended December 31, 2019, the Company made required contributions of $1,017 in connection with the plan termination. No additional contributions will be required in future years as the pension plan termination was finalized in 2019. The following table provides a reconciliation of benefit obligations, plan assets and funded status of the Pension Plan based on a December 31 measurement date:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |
Accumulated benefit obligation at end of period |  | $ | - |  |  | $ | 65,978 |
Change in projected benefit obligation |  |  |  |  |  |  |  |
Projected benefit obligation at beginning of period |  | $ | 65,978 |  |  | $ | 72,631 |
Interest cost |  |  | 2,401 |  |  |  | 2,575 |
Net actuarial (gain) loss |  |  | 3,452 |  |  |  | (6,820 | )
Benefits paid |  |  | (31,321 | ) |  |  | (2,408 | )
Annuities purchased |  |  | (40,510 | ) |  |  | - |
Projected benefit obligation at end of period |  | $ | - |  |  | $ | 65,978 |
Change in plan assets |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of period |  | $ | 61,870 |  |  | $ | 58,014 |
Actual return on plan assets |  |  | 8,944 |  |  |  | (3,507 | )
Company contributions |  |  | 1,017 |  |  |  | 9,771 |
Benefits paid |  |  | (31,321 | ) |  |  | (2,408 | )
Annuities purchased |  |  | (40,510 | ) |  |  | - |
Fair value of plan assets at end of period |  | $ | - |  |  | $ | 61,870 |
Funded status: accrued pension liability included in other long-term liabilities |  | $ | - |  |  | $ | (4,108 | )
Amounts recognized in accumulated other comprehensive loss |  |  |  |  |  |  |  |
Net actuarial loss, net of tax |  | $ | - |  |  | $ | (10,541 | )
The actuarial loss for the Pension Plan that was amortized from AOCL into net periodic pension cost during 2019 prior to the pension plan termination was $843. The actuarial assumption used in the determination of the benefit obligation of the above data is:
|  | 2019 |  |  | 2018 |
Weighted average discount rate |  |  | N/A |  |  |  | 4.24% |
The following table sets forth the components of net periodic pension cost (benefit) for the years ended December 31, 2019, 2018 and 2017:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Interest cost |  | $ | 2,401 |  |  | $ | 2,575 |  |  | $ | 2,688 |
Expected return on plan assets |  |  | (3,500 | ) |  |  | (3,525 | ) |  |  | (3,011 | )
Amortization of net loss |  |  | 843 |  |  |  | 802 |  |  |  | 883 |
Loss on pension settlement |  |  | 10,920 |  |  |  | - |  |  |  | - |
Net periodic pension cost (benefit) |  | $ | 10,664 |  |  | $ | (148 | ) |  | $ | 560 |
Weighted-average assumptions used to determine net periodic pension cost (benefit) are as follows:
|  | Year Ended December 31, |
|  | 2019 |  |  | 2018 |  |  | 2017 |
Discount Rate |  |  | 4.24% |  |  |  | 3.60% |  |  |  | 4.14% |
Expected long-term rate of return on plan assets |  |  | 6.60% |  |  |  | 6.19% |  |  |  | 6.58% |
Rate of compensation increase (1) |  |  | N/A |  |  |  | N/A |  |  |  | N/A |
(1) No compensation increase was assumed as the Pension Plan was frozen effective December 31, 2008.
To determine the long-term rate of return assumption for the plans’ assets, the Company studied historical markets and preserved the long-term historical relationship between equities and fixed-income securities consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. The Company evaluated current market factors such as inflation and interest rates before it determined long-term capital market assumptions and reviewed peer data and historical returns to check for reasonableness and appropriateness. The fair value of the qualified pension plan assets was $0 at December 31, 2019 and $61,870 at December 31, 2018. The Pension Plan’s weighted-average asset allocation at December 31, 2018, by asset category, is as follows:
|  | Target Allocation |  |  | December 31, 2018 |
Asset Category |  | Minimum |  |  | Maximum |  |  | Dollars |  |  | % |
Fixed income |  |  | 15.0 | % |  |  | 25.0 | % |  | $ | 12,257 |  |  |  | 20 | %
Domestic equity |  |  | 36.5 | % |  |  | 61.5 | % |  |  | 30,731 |  |  |  | 50 | %
International equity |  |  | 17.0 | % |  |  | 25.0 | % |  |  | 12,380 |  |  |  | 20 | %
Real estate |  |  | 7.0 | % |  |  | 15.0 | % |  |  | 6,502 |  |  |  | 10 | %
Total |  |  |  |  |  |  |  |  |  |  | 61,870 |  |  |  | 100 | %
The fair values of the Pension Plans’ assets at December 31, 2018 were as follows:
|  | Total |  |  | Quoted Prices in Active Markets for Identical Asset (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Mutual funds |  | $ | 51,736 |  |  | $ | 51,736 |  |  | $ | – |  |  | $ | – |
Other investments |  |  | 10,134 |  |  |  | – |  |  |  | – |  |  |  | 10,134 |
Total |  | $ | 61,870 |  |  | $ | 51,736 |  |  | $ | – |  |  | $ | 10,134 |
A reconciliation of beginning and ending balances for Level 3 assets for the year ended December 31, 2018 is as follows:
|  | Year Ended December 31, |
|  | 201 8 |
Balance at beginning of period |  | $ | 9,700 |
Purchases |  |  | 3,805 |
Redemptions |  |  | (3,795 | )
Realized gains |  |  | 424 |
Balance at end of period |  | $ | 10,134 |
Mutual Funds – This category includes investments in mutual funds that encompass both equity and fixed income securities that are designed to provide a diverse portfolio. The plans’ mutual funds are designed to track exchange indices, and invest in diverse industries. Some mutual funds are classified as regulated investment companies. Investment managers have the ability to shift investments from value to growth strategies, from small to large capitalization funds, and from U.S. to international investments. These investments are valued at the closing price reported on the active market on which the individual securities are traded. These investments are classified within Level 1 of the fair value hierarchy. Other Investments – This category includes investments in limited partnerships and are valued at estimated fair value, as determined with the assistance of each respective limited partnership, based on the net asset value of the investment as of the balance sheet date, which is subject to judgment, and therefore is classified within Level 3 of the fair value hierarchy. The Company’s historical target allocation for equity securities and real estate was generally between 75% to 85%, with the remainder allocated primarily to fixed income (bonds). The Company regularly reviewed its actual asset allocation and periodically rebalanced its investments to the targeted allocation when considered appropriate. Certain of the Company’s foreign subsidiaries participate in local statutory defined benefit or other post-employment benefit plans. These plans provide benefits that are generally based on years of credited service and a percentage of the employee’s eligible compensation earned throughout the applicable service period. Liabilities recorded under these plans are included in other long-term liabilities in the Company’s consolidated balance sheets and are not material.

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