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PENSION LIABILITY

6 Months Ended

Jun. 30, 2020

NOTE 17. PENSION LIABILITY

In connection with the acquisitions of HiTek Power Group, LumaSense and Artesyn’s Embedded Power business, we assumed the liabilities of their pension plans. To measure the expense and related benefit obligation, various assumptions are made including discount rates used to value the obligation, expected return on plan assets used to fund these expenses and estimated future inflation rates. These assumptions are based on historical experience as well as facts and circumstances. An actuarial analysis is used to measure the expense and liability associated with pension benefits. We are committed to make annual fixed payments of $0.8 million into the HiTek Power Limited Pension Scheme through April 30, 2024, and then $1.7 million from May 1, 2024 through November 30, 2033. We are obligated to fund the other pension liabilities each year as incurred.

The net pension liability is included in Other long-term liabilities in our Consolidated Balance Sheets as follows:


	June 30,		December 31,
	2020		2019
Pension liability	$	67,451	$	68,359

The following table sets forth the components of net periodic pension cost:


	Three Months Ended June 30,				Six Months Ended June 30,
	2020		2019		2020		2019
Service cost	$	264	$	—	$	522	$	—
Interest cost		499		195		979		394
Expected return on plan assets		(142)		(166)		(290)		(336)
Amortization of actuarial gains and losses		112		115		228		233
Net periodic pension cost	$	733	$	144	$	1,439	$	291