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EMPLOYEE RETIREMENT PLANS AND POSTRETIREMENT BENEFITS
 12 Months Ended
Dec. 31, 2022
EMPLOYEE RETIREMENT PLANS AND POSTRETIREMENT BENEFITS  
EMPLOYEE RETIREMENT PLANS AND POSTRETIREMENT BENEFITS

NOTE 17.           EMPLOYEE RETIREMENT PLANS AND POSTRETIREMENT BENEFITS

Defined Contribution Plans

We have a 401(k) profit-sharing and retirement savings plan covering substantially all full-time U.S. employees. Participants may defer up to the maximum amount allowed permitted by law. Participants are immediately vested in both their own contributions and profit-sharing contributions. Profit-sharing contributions, which are discretionary, are approved by the Board of Directors. For the year ended December 31, 2022 we based our profit-sharing contribution on matching 100% of employee contributions up to 3% of compensation plus an additional match of 50% on the next 2% of compensation. For the years ended December 31, 2021 and 2020 we based our profit-sharing contribution on matching 50% of employee contributions up to 6% of the employee’s compensation.

During the years ended December 31, 2022, 2021, and 2020 we recognized total defined contribution plan costs of $4.5 million, $3.1 million, and $2.6 million, respectively.

Defined Benefit Plans

We maintain defined benefit pension plans for certain of our non-U.S. employees in the United Kingdom, Germany, and Philippines. Each plan is managed locally and in accordance with respective local laws and regulations.

To measure the expense and related benefit obligation, we make various assumptions, including discount rates used to value the obligation, expected return on plan assets used to fund these expenses, and estimated future inflation rates. We base these assumptions on historical experience as well as current facts and circumstances. We use an actuarial analysis to measure the expense and liability associated with pension benefits.

The information provided below includes one pension plan which is part of discontinued operations. As such, for all periods presented, all related expenses are reported in discontinued operations in the Consolidated Statements of Operations.

Our projected benefit obligation and plan assets for defined benefit pension plans and the related assumptions used to determine the related liabilities are as follows:

​

​

​

​

​

​

​

​

​

​

Years Ended December 31, 

​

    

2022

    

2021

Projected benefit obligation, beginning of year

​

$

85,776

​

$

97,740

Service cost

​

 

1,133

​

 

1,282

Interest cost

​

 

1,819

​

 

1,452

Actuarial gain

​

 

(23,677)

​

 

(8,682)

Benefits paid

​

 

(1,502)

​

 

(2,010)

Translation adjustment

​

 

(7,029)

​

 

(4,006)

Projected benefit obligation, end of year

​

​

56,520

​

​

85,776

​

​

​

​

​

​

​

Fair value of plan assets, beginning of year

​

$

18,521

​

$

17,293

Expected return

​

 

535

​

 

641

Contributions

​

 

1,430

​

 

1,775

Benefits paid

​

 

(1,124)

​

 

(1,112)

Actuarial gain (loss)

​

 

(5,060)

​

 

71

Translation adjustment

​

 

(1,813)

​

 

(147)

Fair value of plan assets, end of year

​

​

12,489

​

​

18,521

Funded status of plan

​

$

(44,031)

​

$

(67,255)

​

The components of net periodic pension benefit cost recognized in our Consolidated Statements of Operations for the periods presented are as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

Years Ended December 31, 

​

    

2022

    

2021

    

2020

Service cost

​

$

1,133

​

$

1,282

​

$

1,068

Interest cost

​

​

1,819

​

​

1,452

​

​

1,716

Expected return on plan assets

​

 

(535)

​

 

(642)

​

 

(683)

Amortization of actuarial gains and losses

​

 

322

​

 

820

​

 

459

Net periodic pension cost

​

$

2,739

​

$

2,912

​

$

2,560

​

Assumptions used in the determination of the net periodic pension cost are:

​

​

​

​

​

​

​

​

​

​

​

Years Ended December 31, 

 

​

    

2022

    

2021

    

2020

 

Discount rate

 

2.6

%  

1.6

%  

1.8

%

Expected long-term return on plan assets

 

3.2

%  

3.2

%  

3.7

%

​

The fair value of our qualified pension plan assets by category was as follows:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2022

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Diversified Growth Fund

​

$

—

​

$

9,100

​

$

—

​

$

9,100

Corporate Bonds

​

 

—

​

​

2,333

​

​

—

​

​

2,333

Insurance Contracts

​

​

—

​

​

—

​

​

798

​

​

798

Cash

​

 

258

​

​

—

​

​

—

​

​

258

Total

​

$

258

​

$

11,433

​

$

798

​

$

12,489

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

December 31, 2021

​

    

Level 1

    

Level 2

    

Level 3

    

Total

Diversified Growth Fund

​

$

—

​

$

12,249

​

$

—

​

$

12,249

Corporate Bonds

​

 

—

​

 

4,640

​

 

—

​

 

4,640

Insurance Contracts

​

​

—

​

 

—

​

 

984

​

 

984

Cash

​

 

648

​

 

—

​

 

—

​

 

648

Total

​

$

648

​

$

16,889

​

$

984

​

$

18,521

​

The diversified growth fund aims to generate an “equity-like” return over an economic cycle with significantly reduced volatility relative to equity markets and has the scope to use a diverse range of asset classes, including equities, bonds, cash, and alternatives (e.g., property, infrastructure, high yield bonds, floating rate debt, private, equity, hedge funds and currency). These investments are intended to provide a degree of protection against changes in the value of our plan’s liabilities related to changes in long-term expectations for interest rates and inflation.

Expected future payments during the next ten years for our defined benefit pension plans are as follows:

​

​

​

​

​

Year Ending December 31,

    

​

​

2023

​

$

1,755

2024

​

​

2,771

2025

​

​

2,274

2026

​

​

4,698

2027

​

​

3,421

2028 to 2032

​

​

20,085

​