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Note 19 - Pension Plan | 12 Months Ended
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Dec. 31, 2019
Notes to Financial Statements |
Pension and Other Postretirement Benefits Disclosure [Text Block] |
19. |  | Pension plan
The Company has a defined benefit pension plan (the “Plan”), which was assumed in connection with a business acquired during 2016. The Plan covers eligible employees in the Netherlands and provides old age, survivor, orphan and disability benefits. Effective December 31, 2016, enrollment in the Plan was frozen and no additional employees are entitled to join the Plan. The Plan is covered by an insurance contract which limits the Company’s exposure to returns below a fixed discount rate. Effective August 31, 2019, the Company amended its insurance contract reducing its exposure to gains and losses as related to the fair value of the Plan assets and the projected benefit obligations under the Plan. The amendment constitutes a settlement under ASC 715 and the fair value of the Plan assets, and the projected benefit obligation should no longer include the value of the insurance contracts. The Company recognized a settlement gain to net earnings associated with proportionate part of the unrecognized actuarial earnings previously included in accumulated other comprehensive income. The settlement values reducing Plan assets and projected benefit obligations along with the calculation of the settlement gains use values based upon assumptions on July 31, 2019. The following table details the net periodic pension cost of the Plan:
|  | 2019 |  |  | 2018 |
Gross employer service cost |  | $ | 766 |  |  | $ | 1,237 |
Plan participant contributions |  |  | (185 | ) |  |  | (246 | )
Interest cost on service cost |  |  | 15 |  |  |  | 22 |
Employer's service cost |  |  | 596 |  |  |  | 1,013 |
Interest cost |  |  | 424 |  |  |  | 744 |
Expected net return on plan assets |  |  | (395 | ) |  |  | (689 | )
Other costs |  |  | 113 |  |  |  | 171 |
Settlement gain |  |  | (1,302 | ) |  |  | - |
Total employer's pension expense |  | $ | (564 | ) |  | $ | 1,239 |
The following tables provide reconciliations of projected benefit obligations and plan assets (the net of which represent the Company’s funded status), as well as the funded status, of the Plan.
Change in benefit obligation: |  | 2019 |  |  | 2018 |
Projected benefit obligation - January 1 |  | $ | 38,974 |  |  | $ | 42,368 |
Current service cost |  |  | 596 |  |  |  | 1,013 |
Plan participant / third party contributions |  |  | 185 |  |  |  | 246 |
Interest cost |  |  | 424 |  |  |  | 744 |
Benefits paid |  |  | (371 | ) |  |  | (601 | )
Individual settlements |  |  | (35 | ) |  |  | 84 |
Settlement due to amendment of contract |  |  | (45,388 | ) |  |  | - |
Settled benefits due to the purchase of annuity contracts |  |  | (319 | ) |  |  | - |
Foreign exchange |  |  | (1,177 | ) |  |  | (2,038 | )
Expected projected benefit obligation, December 31 |  |  | (7,111 | ) |  |  | 41,816 |
Actuarial loss / (gain), net of foreign exchange |  |  | 8,924 |  |  |  | (2,842 | )
Projected benefit obligation - December 31 |  | $ | 1,813 |  |  | $ | 38,974 |
Change in plan assets: |  | 2019 |  |  | 2018 |
Fair value of plan assets - January 1 |  | $ | 37,177 |  |  | $ | 38,813 |
Expected net return on plan assets |  |  | 395 |  |  |  | 689 |
Contributions |  |  |  |  |  |  |  |
Employer |  |  | 321 |  |  |  | 634 |
Plan participants |  |  | 185 |  |  |  | 246 |
Benefits paid |  |  | (371 | ) |  |  | (601 | )
Individual settlements |  |  | (35 | ) |  |  | 84 |
Settlement due to amendment of contract |  |  | (45,388 | ) |  |  | - |
Settled benefits due to the purchase of annuity contracts |  |  | (319 | ) |  |  | - |
Other costs |  |  | (113 | ) |  |  | (171 | )
Foreign exchange |  |  | (1,142 | ) |  |  | (1,853 | )
Expected fair value of plan assets - December 31 |  |  | (9,290 | ) |  |  | 37,841 |
Actuarial (gain)/loss, net of foreign exchange |  |  | 9,300 |  |  |  | (664 | )
Fair value of plan assets - December 31 |  | $ | 10 |  |  | $ | 37,177 |
Defined benefit pension plan amounts recorded in the consolidated balance sheet are shown in the table below:
|  | December 31, |  |  | December 31, |
|  | 2019 |  |  | 2018 |
Present value of accumulated benefit obligation |  | $ | (701 | ) |  | $ | (37,925 | )
Effect of future compensation increases |  |  | (1,113 | ) |  |  | (1,049 | )
Present value of projected benefit obligation |  |  | (1,813 | ) |  |  | (38,974 | )
Fair value of plan assets |  |  | 10 |  |  |  | 37,177 |
Net liability for pension benefits |  | $ | (1,803 | ) |  | $ | (1,797 | )
The following table details the amount recognized in other comprehensive income:
|  | 2019 |  |  | 2018 |
Actuarial gain on remeasurement of projected benefit obligation |  | $ | 8,902 |  |  | $ | (2,931 | )
Actuarial (gain)/loss on remeasurement of fair value of assets |  |  | (9,277 | ) |  |  | 685 |
Settlement due to amendment of insurance contract |  |  | 1,302 |  |  |  | - |
Total gain recognized in other comprehensive income |  | $ | 927 |  |  | $ | (2,246 | )
The assumptions used in developing the projected benefit obligation are as follows:
|  | December 31, 2019 |  |  | July 31, 2019 |  |  | December 31, 2018 |
Discount rate used in determining present values |  |  | 1.0 | % |  |  | 0.9 | % |  |  | 1.9 | %
Annual increase in future compensation levels |  |  | 1.7 | % |  |  | 1.7 | % |  |  | 1.8 | %
The assumptions used in determining net periodic cost are as follows:
|  | December 31, 2019 |  |  | July 31, 2019 |  |  | December 31, 2018 |
Discount rate used in determining present values |  |  | 1.0 | % |  |  | 0.9 | % |  |  | 1.9 | %
Annual increase in future compensation levels |  |  | 1.7 | % |  |  | 1.7 | % |  |  | 1.8 | %
Expected long-term rate of return on assets |  |  | 1.0 | % |  |  | N/A |  |  |  | 1.9 | %
The discount rate assumption used for the Plan was derived from the expected yield of Euro-denominated “AA” rated corporate bonds with durations consistent with the liabilities of the Plan. The expected long-term rate of return on assets is based on the current level of return expected on the funds invested or to be invested to provide for the benefits included in the projected benefit obligation. The expected return for each asset class is weighted based on the target asset allocation to develop the expected long-term rate of return on assets assumption for the portfolio. For the year ended December 31, 2019 the actual return on assets was $9,673 ( 2018 - $4 ) composed of an expected return on assets of $395 ( 2018 - $689 ) and an actuarial gain of $9,277 ( 2018 loss – $685 ). For the purpose of the return on assets, the settlement value was determined using the assumptions at the start of the year. As a result of the settlement, the insurance benefits have been removed from the plan assets and the fair value of Plan assets total $10 as at December 31, 2019. The Plan assets are reported at fair value and are all classified as Level 2 assets under the fair value hierarchy. Following the settlement expected pension benefit payments over the next 10 years are nil.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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