XML 44 R27.htm IDEA: XBRL DOCUMENT v3.24.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans EMPLOYEE BENEFIT PLANS
The Company provides retirement and other post-retirement benefits to certain of its employees through defined benefit pension plans (the “pension plans”). The Company also offers defined contribution plans to its employees. The
pension plans generally provide benefits to participants based on average levels of compensation. Expenses related to the Company’s employee benefit plans are included in “compensation and benefits” expense for the service cost component, and “operating expenses–other” for the other components of benefit costs on the consolidated statements of operations.
Employer Contributions to Pension Plans—The Company’s funding policy for its U.S. and non-U.S. pension plans is to fund when required or when applicable upon an agreement with the plans’ trustees. Management also evaluates from time to time whether to make voluntary contributions to the plans.

Contributions to the non-U.S. pension plans during the year ending December 31, 2024 are not expected to be material.

The following table summarizes the changes in the benefit obligations, the fair value of the assets, the funded status and amounts recognized in the consolidated statements of financial condition for the post-retirement plans. The Company uses December 31 as the measurement date for its post-retirement plans.
Pension Plans
20232022
Change in benefit obligation
Benefit obligation at beginning of year$440,050 $731,978 
Service cost338 543 
Interest cost20,930 11,130 
Amendments10,201 – 
Actuarial (gain) loss21,937 (203,009)
Benefits paid(25,542)(29,357)
Foreign currency translation and other adjustments22,787 (71,235)
Benefit obligation at end of year490,701 440,050 
Change in plan assets
Fair value of plan assets at beginning of year468,872 782,463 
Actual return on plan assets22,461 (215,237)
Employer contributions5,673 4,206 
Benefits paid(25,542)(29,357)
Foreign currency translation and other adjustments24,987 (73,203)
Fair value of plan assets at end of year496,451 468,872 
Funded (deficit) at end of year$5,750 $28,822 
Amounts recognized in the consolidated statements of financial condition at December 31, 2023 and 2022 consist of:
Prepaid pension asset (included in “other assets”)$10,507 $35,268 
Accrued benefit liability (included in “other liabilities”)(4,757)(6,446)
Net amount recognized$5,750 $28,822 
Amounts recognized in AOCI (excluding tax benefits of $40,017 and $31,365 at December 31, 2023 and 2022, respectively) consist of:
Actuarial net loss$193,193 $167,724 
Prior service cost12,782 2,572 
Net amount recognized$205,975 $170,296 
For the years ended December 31, 2023 and 2022, the change in the benefit obligation related to the actuarial (gain) loss is principally attributable to changes in the discount rates.
The following table summarizes the fair value of plan assets, the accumulated benefit obligation and the projected benefit obligation at December 31, 2023 and 2022:
U.S. Pension Plans
As Of December 31,		Non-U.S. Pension Plans
As Of December 31,		Total
As Of December 31,
202320222023202220232022
Fair value of plan assets$15,511 $14,983 $480,940 $453,889 $496,451 $468,872 
Accumulated benefit obligation$19,999 $20,518 $470,702 $419,532 $490,701 $440,050 
Projected benefit obligation$19,999 $20,518 $470,702 $419,532 $490,701 $440,050 
The following table summarizes the components of net periodic benefit cost (credit), the return on the Company’s post-retirement plan assets, benefits paid, contributions and other amounts recognized in AOCI for the years ended December 31, 2023, 2022 and 2021:
Pension Plans
For The Year Ended
December 31,
202320222021
Components of Net Periodic Benefit Cost (Credit):
Service cost$338 $543 $876 
Interest cost20,930 11,130 8,679 
Expected return on plan assets(23,942)(24,482)(26,077)
Amortization of:   
Prior service cost107 106 118 
Net actuarial loss6,647 5,040 7,151 
Settlement loss– – 1,056 
Net periodic benefit cost (credit)$4,080 $(7,663)$(8,197)
Actual return on plan assets$22,461 $(215,237)$26,046 
Employer contributions$5,673 $4,206 $4,493 
Benefits paid$25,542 $29,357 $29,327 
Other changes in plan assets and benefit obligations recognized in AOCI (excluding tax expense (benefit) of $(8,652), $(4,984) and $14,872 during the years ended December 31, 2023, 2022 and 2021, respectively):
Net actuarial (gain) loss$23,521 $31,174 $(40,717)
Prior service cost10,172 – – 
Reclassification of prior service (cost) credit to earnings(107)(106)(118)
Reclassification of actuarial gain (loss) to earnings(6,647)(5,040)(7,151)
Currency translation and other adjustments8,740 (13,783)(5,860)
Total recognized in AOCI$35,679 $12,245 $(53,846)
Net amount recognized in total periodic benefit cost and AOCI$39,759 $4,582 $(62,043)
The assumptions used to develop actuarial present value of the projected benefit obligation and net periodic pension cost as of or for the years ended December 31, 2023, 2022 and 2021 are set forth below:
Pension Plans
December 31,
202320222021
Weighted average assumptions used to determine benefit obligations:
Discount rate4.4 %4.7 %1.8 %
Weighted average assumptions used to determine net periodic benefit cost:
Discount rate4.3 %2.1 %1.1 %
Expected long-term rate of return on plan assets5.1 %3.4 %3.3 %
Generally, the Company determined the discount rates for its defined benefit plans by utilizing indices for long-term, high-quality bonds and ensuring that the discount rate does not exceed the yield reported for those indices after adjustment for the duration of the plans’ liabilities.
In selecting the expected long-term rate of return on plan assets, the Company considered the average rate of earnings expected on the funds invested or to be invested to provide for the benefits of the plan, giving consideration to expected returns on different asset classes held by the plans in light of prevailing economic conditions as well as historical returns. This basis is consistent for all years presented.
Expected Benefit Payments—The following table summarizes the expected benefit payments for the Company’s pension plans for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter:
Pension
Plans
2024$28,564 
202527,844 
202628,130 
202728,654 
202829,105 
2029-2033146,096 
Plan Assets—The following tables present the categorization of our pension plans’ assets as of December 31, 2023 and 2022, measured at fair value, into a fair value hierarchy and investments measured at NAV or its equivalent as a practical expedient in accordance with fair value measurement disclosure requirements:
As of December 31, 2023
Level 1Level 2Level 3NAV (a)Total
Assets:
Cash$9,286 $– $– $– $9,286 
Debt41,215 – – – 41,215 
Equities11,496 – – – 11,496 
Funds:
Alternative investments– – – 6,640 6,640 
Debt7,268 58,876 – 236,553 302,697 
Equity58,773 55,692 – 6,434 120,899 
Other– 4,218 – – 4,218 
Total$128,038 $118,786 $– $249,627 $496,451 
As of December 31, 2022
Level 1Level 2Level 3NAV (a)Total
Assets:
Cash$18,084 $– $– $– $18,084 
Debt79,505 – – – 79,505 
Equities15,480 – – – 15,480 
Funds:
Alternative investments– – – 9,113 9,113 
Debt6,350 – – 220,141 226,491 
Equity49,041 49,297 – 7,138 105,476 
Other– 14,723 – – 14,723 
Total$168,460 $64,020 $– $236,392 $468,872 
_____________________
(a)Represents certain investments measured at NAV or its equivalent as a practical expedient in determining fair value. In accordance with current accounting guidance, these investments have not been classified in the fair value hierarchy.
Included in equity funds are $63,927 and $54,810 as of December 31, 2023 and 2022, respectively, that are invested in funds managed by the Company.
Consistent with the plans’ investment strategies, at December 31, 2023 and 2022, the Company’s U.S. pension plan had 50% and 57%, respectively, of the plans’ assets invested in equity funds in Level 1 and measured at NAV or its equivalent as a practical expedient, 47% and 42%, respectively, invested in Level 1 debt funds, and at December 31, 2023 and 2022, 3% and 1%, respectively, invested in cash, which is a Level 1 asset. The Company’s non-U.S. pension plans at December 31, 2023 and 2022 had 26% and 25%, respectively, of the plans’ assets invested in equities and equity funds that are primarily Level 1 and Level 2 assets; 70% and 66%, respectively, of the plans’ assets invested in debt and debt funds that are Level 1, Level 2 and measured at NAV or its equivalent as a practical expedient, and 4% and 9%, respectively, of the plans’ assets invested in cash, which is a Level 1 asset, other investments, which is a Level 2 asset, or in alternative investment funds that are primarily measured at NAV.
Investment Policies and Strategies—The primary investment goal is to ensure that the pension plans remain well funded, taking account of the likely future risks to investment returns and contributions. As a result, a portfolio of assets is maintained with appropriate liquidity and diversification that can be expected to generate long-term future returns that minimize the long-term costs of the pension plans without exposing the plans to an unacceptable risk of under-funding. The Company’s likely future ability to pay such contributions as are required to maintain the funded status of the plans over a reasonable time period is considered when determining the level of risk that is appropriate. The fair value of plan investments classified as Level 1 assets are based on market quotes. The fair value of plan investments classified as Level 2 assets are based on (i) quoted prices for similar assets or liabilities in an active market, or quoted prices for identical or similar assets or liabilities in non-active markets, or (ii) inputs other than quoted prices that are directly observable or derived principally from, or corroborated by, market data. The fair value of plan investments measured at NAV or its equivalent as a practical expedient is determined based on information provided by external fund administrators and such investments are redeemable in the near term.
Defined Contribution Plans—Pursuant to certain matching contributions, the Company contributes to employer sponsored defined contribution plans. Such contributions amounted to $22,190, $19,692 and $17,864 for the years ended December 31, 2023, 2022 and 2021, respectively, which are included in “compensation and benefits” expense on the consolidated statements of operations.