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Retirement Plans
 12 Months Ended
Dec. 31, 2023
Retirement Plans [Abstract]  
Retirement Plans
9. Retirement Plans

The Company provides benefits under defined contribution plans including a savings plan and an employee stock ownership plan (ESOP). The savings plan covers substantially all domestic salaried and certain non-union hourly employees and provides for matching contributions up to 4% of each employee’s salary. The ESOP covers substantially all domestic employees and provides for contributions based on a percentage of each employee’s compensation as determined by the Company’s Board of Directors. Total expense for the Company’s defined contribution plans was $8.2 million in 2023, $7.8 million in 2022, and $6.7 million in 2021.

Although the Company intends for these defined contribution plans to be the primary retirement benefit for most employees, the Company also has several defined benefit plans. The funded status of the defined benefit plans was as follows at December 31:

(In thousands)
  
2023
    
2022
  
Benefit obligation at beginning of year
  
$
32,367
    
$
41,780
  
Service cost
    
1,741
      
1,622
  
Interest cost
    
1,886
      
953
  
Foreign currency exchange rate changes
    
999
      
(1,488
)
Benefits and settlements paid
    
(2,737
)
    
(1,724
)
Actuarial loss (gain)
    
2,157
      
(8,776
)
Benefit obligation at end of year
    
36,413
      
32,367
  
Plan assets at beginning of year
    
19,929
      
32,982
  
Company contributions
    
1,598
      
1,027
  
Foreign currency exchange rate changes
    
920
      
(2,430
)
Benefits paid
    
(2,737
)
    
(1,724
)
Actual gain (loss) on plan assets
    
1,560
      
(9,926
)
Plan assets at end of year
    
21,270
      
19,929
  
Funded status
  
$
(15,143
)
  
$
(12,438
)
Accumulated benefit obligation
  
$
34,786
    
$
31,472
  

Amounts recognized in the Consolidated Balance Sheets at December 31:

(In thousands)
  
2023
    
2022
  
Accrued employee and retiree benefits
  
$
(19,165
)
  
$
(16,822
)
Other accrued expenses
    
(726
)
    
(745
)
Other assets
    
4,748
      
5,129
  
Net liability
  
$
(15,143
)
  
$
(12,438
)

Components of annual benefit cost:
(In thousands)
  
2023
    
2022
    
2021
  
Service cost
  
$
1,741
    
$
1,622
    
$
1,740
  
Interest cost
    
1,886
      
953
      
851
  
Expected return on plan assets
    
(1,007
)
    
(785
)
    
(728
)
Recognized actuarial (gain) loss
    
(656
)
    
32
      
267
  
Settlement income
    
-
      
-
      
(151
)
Defined benefit expense
  
$
1,964
    
$
1,822
    
$
1,979
  

The Company’s non-service cost portion of defined benefit expense is recorded in Interest Expense on the Company’s Consolidated Statements of Earnings. The Company’s service cost portion of defined benefit expense is recorded in Selling and Administrative Expenses on the Company’s Consolidated Statements of Earnings.

Weighted average liability assumptions as of December 31:
 
  
2023
    
2022
  
Discount rate
    
5.15
%
    
5.12
%
Expected return on plan assets
    
4.91
%
    
4.89
%
Rate of compensation increase
    
1.14
%
    
0.90
%

Weighted average cost assumptions for the year ended December 31:

 
  
2023
    
2022
    
2021
  
Discount rate
    
5.12
%
    
2.35
%
    
1.87
%
Expected return on plan assets
    
4.89
%
    
2.54
%
    
2.17
%
Rate of compensation increase
    
0.90
%
    
1.02
%
    
1.07
%

The aggregate amounts of benefits expected to be paid from defined benefit plans in each of the next five years subsequent to December 31, 2023, which include employees’ expected future service, are as follows: 2024, $2.0 million; 2025, $9.2 million; 2026, $2.0 million; 2027, $2.0 million; 2028, $2.1 million; and $13.2 million in total for the years 2029 through 2033.

The Company expects to contribute $0.7 million to defined benefit plans in 2024.

Amounts in accumulated other comprehensive loss at December 31 were as follows:

(In thousands)
  
2023
    
2022
  
Unrecognized net actuarial loss
  
$
2,936
    
$
2,210
  
Prior service cost
    
155
      
153
  
Total before tax effects
  
$
3,091
    
$
2,363
  

The pension adjustments, net of tax, recognized in OCI, were as follows:

(In thousands)
  
2023
    
2022
    
2021
  
Net actuarial gain (loss) arising during the period
  
$
192
    
$
(1,466
)
  
$
1,528
  
Amortization of actuarial (gain) loss, included in defined benefit expense
    
(479
)
    
27
      
84
  
Pension adjustment, net of tax
  
$
(287
)
  
$
(1,439
)
  
$
1,612
  

The investment objectives and target allocations for the Company’s pension plans related to the assets of the plans are reviewed on a regular basis. The investment objectives for the pension assets are to maximize the return on assets while maintaining an overall level of risk appropriate for a retirement fund and ensuring the availability of funds for the payment of retirement benefits. The levels of risk assumed by the pension plans are determined by market conditions, the rate of return expectations, and the liquidity requirements of each pension plan. The actual asset allocations of each pension plan are reviewed on a regular basis to ensure that they are in line with the target allocations.

The following table presents the Company’s pension plan assets by asset category as of December 31, 2023 and 2022:

 
  
Fair Value
as of
December 31,
    
Fair Value Measurements at
December 31, 2023
Using Fair Value Hierarchy
    
Fair Value
as of
December 31,
    
Fair Value Measurements at
December 31, 2022
Using Fair Value Hierarchy
  
(In thousands)
  
2023
    
Level 1
    
Level 2
    
Level 3
    
2022
    
Level 1
    
Level 2
    
Level 3
  
Equity Funds
                                                
Domestic
  
$
5,623
    
$
5,623
    
$
—
    
$
—
    
$
5,208
    
$
5,208
    
$
—
    
$
—
  
International
    
47
      
—
      
47
      
—
      
55
      
—
      
55
      
—
  
International Fixed Income Funds
    
14,486
      
1,574
      
12,912
      
—
      
14,551
      
1,060
      
13,491
      
—
  
Other investments
    
1,114
      
1,097
      
17
      
—
      
115
      
84
      
31
      
—
  
Total assets at fair value
  
$
21,270
    
$
8,294
    
$
12,976
    
$
—
    
$
19,929
    
$
6,352
    
$
13,577
    
$
—
  

The Company is required to categorize pension plan assets based on the following fair value hierarchy:

Level 1:
Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
Level 2:
Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data.
Level 3:
Unobservable inputs that reflect the reporting entity’s own assumptions.