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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2022
Retirement Benefits [Abstract] |
Employee Benefit Plans | Employee Benefit Plans Pension and Profit-Sharing Benefits The Company provides a defined contribution profit sharing plan for the benefit of substantially all the Company's domestic salaried and non-union hourly employees. The plan contains both contributory and noncontributory profit sharing arrangements, as defined. Aggregate charges included in the accompanying consolidated statement of operations under this plan were $3.7 million in 2022 and $3.4 million in each of 2021 and 2020, respectively. Certain of the Company's non-U.S. and union hourly employees participate in defined benefit pension plans. Plan Assets, Expenses and Obligations Net periodic pension benefit expense recorded in the Company's consolidated statement of operations for defined benefit pension plans include the following components (dollars in thousands):
|  | Pension Benefit |  |
|  | 2022 |  | 2021 |  | 2020 |  |  |  |  |  |
Service cost |  | $ | 690 |  |  | $ | 1,280 |  |  | $ | 1,230 |  |  |  |  |  |  |
Interest cost |  | 890 |  |  | 800 |  |  | 930 |  |  |  |  |  |  |
Expected return on plan assets |  | (1,590) |  |  | (1,530) |  |  | (1,450) |  |  |  |  |  |  |
Settlements and curtailments |  | 150 |  |  | — |  |  | — |  |  |  |  |  |  |
Amortization of net loss |  | 570 |  |  | 910 |  |  | 890 |  |  |  |  |  |  |
Net periodic benefit expense |  | $ | 710 |  |  | $ | 1,460 |  |  | $ | 1,600 |  |  |  |  |  |  |
The service cost component of net periodic benefit expense is recorded in cost of goods sold and selling, general and administrative expenses, while non-service cost components are recorded in other income (expense), net in the accompanying consolidated statement of operations. During the 2022, the Company recorded a non-cash curtailment expense of $0.2 million, as it transitioned certain active employees previously participating in a defined benefit plan in the United Kingdom to a defined contribution plan, thereby eliminating future service cost accruals for all employees under this defined benefit plan. Actuarial valuations of the Company's defined benefit pension plans were prepared as of December 31, 2022, 2021 and 2020. Weighted average assumptions used in accounting for the U.S. defined benefit pension plans are as follows:
|  | Pension Benefit |  |
|  | 2022 |  | 2021 |  | 2020 |  |  |  |  |  |
Discount rate for obligations |  | 5.24 | % |  | 3.06 | % |  | 2.79 | % |  |  |  |  |  |
Discount rate for benefit costs |  | 3.06 | % |  | 2.79 | % |  | 3.41 | % |  |  |  |  |  |
Rate of increase in compensation levels |  | N/A |  | N/A |  | N/A |  |  |  |  |  |
Expected long-term rate of return on plan assets |  | 6.13 | % |  | 6.13 | % |  | 6.13 | % |  |  |  |  |  |
The Company utilizes a high-quality (Aa or greater) corporate bond yield curve as the basis for its domestic discount rate for its pension benefit plans. Management believes this yield curve removes the impact of including additional required corporate bond yields (potentially considered in the above-median curve) resulting from the uncertain economic climate that does not necessarily reflect the general trend in high-quality interest rates. Weighted average assumptions used in accounting for the non-U.S. defined benefit pension plans are as follows:
|  | Pension Benefit
|  | 2022 |  | 2021 |  | 2020
Discount rate for obligations |  | 4.90 | % |  | 2.10 | % |  | 1.50 | %
Discount rate for benefit costs |  | 2.10 | % |  | 1.50 | % |  | 2.10 | %
Rate of increase in compensation levels |  | 4.80 | % |  | 3.30 | % |  | 2.80 | %
Expected long-term rate of return on plan assets |  | 4.20 | % |  | 3.90 | % |  | 4.10 | %
The following provides a reconciliation of the changes in the Company's defined benefit pension plans' projected benefit obligations and fair value of assets for each of the years ended December 31, 2022 and 2021 and the funded status as of December 31, 2022 and 2021 (dollars in thousands):
|  | Pension Benefit
|  | 2022 |  | 2021
Changes in Projected Benefit Obligations |  |  |  |
Benefit obligations at January 1 |  | $ | (37,560) |  |  | $ | (40,830) |
Service cost |  | (690) |  |  | (1,280) |
Interest cost |  | (890) |  |  | (800) |
Participant contributions |  | (10) |  |  | (50) |
Actuarial gain (a) |  | 10,260 |  |  | 3,290 |
Benefit payments |  | 1,310 |  |  | 1,840 |
Change in foreign currency |  | 2,020 |  |  | 270 |
Projected benefit obligations at December 31 |  | $ | (25,560) |  |  | $ | (37,560) |
Changes in Plan Assets |  |  |  |
Fair value of plan assets at January 1 |  | $ | 38,130 |  |  | $ | 36,060 |
Actual return on plan assets |  | (10,070) |  |  | 2,060 |
Employer contributions |  | 1,520 |  |  | 2,050 |
Participant contributions |  | 10 |  |  | 50 |
Benefit payments |  | (1,310) |  |  | (1,840) |
Change in foreign currency |  | (2,810) |  |  | (250) |
Fair value of plan assets at December 31 |  | $ | 25,470 |  |  | $ | 38,130 |
Funded status at December 31 |  | $ | (90) |  |  | $ | 570 |
__________________________ (a) The actuarial gain for the year ended December 31, 2022 was primarily due to an increase in the discount rate utilized in measuring the projected benefit obligations, partially offset by experience losses. The actuarial gain for the year ended December 31, 2021 was primarily due to an increase in the discount rate utilized in measuring the projected benefit obligations as well as other assumptions and experience gains.
|  | Pension Benefit |  |
|  | 2022 |  | 2021 |  |  |  |
Amounts Recognized in Balance Sheet |  |  |  |  |  |  |  |
Other assets |  | $ | 4,860 |  |  | $ | 7,740 |  |  |  |  |
Current liabilities |  | (310) |  |  | (300) |  |  |  |  |
Noncurrent liabilities |  | (4,640) |  |  | (6,870) |  |  |  |  |
Net asset (liability) recognized at December 31 |  | $ | (90) |  |  | $ | 570 |  |  |  |  |
|  | Pension Benefit |  |
|  | 2022 |  | 2021 |  |  |  |
Amounts Recognized in Accumulated Other Comprehensive Loss |  |  |  |  |  |  |  |
Unrecognized prior service cost |  | $ | 160 |  |  | $ | 310 |  |  |  |  |
Unrecognized net loss |  | 7,370 |  |  | 6,550 |  |  |  |  |
Total accumulated other comprehensive loss recognized at December 31 |  | $ | 7,530 |  |  | $ | 6,860 |  |  |  |  |
|  | Accumulated Benefit Obligations |  | Projected Benefit Obligations
|  | 2022 |  | 2021 |  | 2022 |  | 2021
Benefit Obligations at December 31, |  |  |  |  |  |  |  |
Total benefit obligations |  | $ | (25,400) |  |  | $ | (35,970) |  |  | $ | (25,560) |  |  | $ | (37,560) |
Plans with benefit obligations exceeding plan assets |  |  |  |  |  |  |  |
Benefit obligations |  | $ | (13,000) |  |  | $ | (16,630) |  |  | $ | (13,170) |  |  | $ | (16,780) |
Plan assets |  | $ | 8,220 |  |  | $ | 9,610 |  |  | $ | 8,220 |  |  | $ | 9,610 |
The assumptions regarding discount rates and expected return on plan assets can have a significant impact on amounts reported for benefit plans. A 25 basis point change in benefit obligation discount rates or 50 basis point change in expected return on plan assets would have the following effect (dollars in thousands):
|  | Pension Benefit |  |
|  | December 31, 2022 Benefit Obligation |  |  |  | 2022 Expense |  |
Discount rate |  |  |  |  |  |  |  |
25 basis point increase |  | $ | (810) |  |  |  |  | $ | (60) |  |  |
25 basis point decrease |  | $ | 860 |  |  |  |  | $ | 60 |  |  |
Expected return on assets |  |  |  |  |  |  |  |
50 basis point increase |  | N/A |  |  |  | $ | (160) |  |  |
50 basis point decrease |  | N/A |  |  |  | $ | 160 |  |  |
The Company expects to make contributions of $1.2 million to fund its pension plans during 2023. Plan Assets The Company's overall investment goal is to provide for capital growth with a moderate level of volatility by investing assets in targeted allocation ranges. Specific long term investment goals include total investment return, diversity to reduce volatility and risk, and to achieve an asset allocation profile that reflects the general nature and sensitivity of the plans' liabilities. Investment goals are established after a comprehensive review of current and projected financial statement requirements, plan assets and liability structure, market returns and risks as well as special requirements of the plans. The Company reviews investment goals and actual results annually to determine whether stated objectives are still relevant and the continued feasibility of achieving the objectives. The actual weighted average asset allocation of the Company's domestic and foreign pension plans' assets at December 31, 2022 and 2021 and target allocations by class, were as follows:
|  | Domestic Pension |  | Foreign Pension
|  |  |  | Actual |  |  |  | Actual
|  | Target |  | 2022 |  | 2021 |  | Target |  | 2022 |  | 2021
Equity securities |  | 60 | % |  | 60 | % |  | 62 | % |  | 12 | % |  | 14 | % |  | 34 | %
Fixed income |  | 36 | % |  | 37 | % |  | 37 | % |  | 70 | % |  | 66 | % |  | 44 | %
Diversified growth(a) |  | — | % |  | — | % |  | — | % |  | 18 | % |  | 19 | % |  | 22 | %
Cash and other |  | 4 | % |  | 3 | % |  | 1 | % |  | — |  |  | 1 | % |  | — | %
Total |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
________________________________________ (a) Diversified growth funds invest in a broad range of asset classes including equities, investment grade and high yield bonds, commodities, property, private equity, infrastructure and currencies. Actual allocations to each asset vary from target allocations due to periodic investment strategy changes, market value fluctuations and the timing of benefit payments and contributions. The expected long-term rate of return for both the domestic and foreign plans' total assets is based on the expected return of each of the above categories, weighted based on the target allocation for each class. Actual allocation is reviewed regularly and investments are rebalanced to their targeted allocation range when deemed appropriate. In managing the plan assets, the Company reviews and manages risk associated with the funded status risk, interest rate risk, market risk, liquidity risk and operational risk. Investment policies reflect the unique circumstances of the respective plans and include requirements designed to mitigate these risks by including quality and diversification standards. The following table summarizes the level under the fair value hierarchy (see Note 3, "Summary of Significant Accounting Policies") that the Company's pension plan assets are measured, on a recurring basis as of December 31, 2022 (dollars in thousands):
|  | Total |  | Level 1 |  | Level 2 |  | Level 3
Plan assets subject to leveling |  |  |  |  |  |  |  |
Investment funds |  |  |  |  |  |  |  |
Equity securities |  | $ | 4,870 |  |  | $ | 4,870 |  |  | $ | — |  |  | $ | — |
Fixed income |  | 3,030 |  |  | 3,030 |  |  | — |  |  | — |
Cash and cash equivalents |  | 160 |  |  | 160 |  |  | — |  |  | — |
Plan assets measured at net asset value(a) |  |  |  |  |  |  |  |
Investment funds |  |  |  |  |  |  |  |
Equity securities |  | 2,350 |  |  |  |  |  |  |
Fixed income |  | 11,410 |  |  |  |  |  |  |
Diversified growth |  | 3,330 |  |  |  |  |  |  |
Cash and cash equivalents |  | 320 |  |  |  |  |  |  |
Total |  | $ | 25,470 |  |  | $ | 8,060 |  |  | $ | — |  |  | $ | — |
________________________________________ (a) Certain investments that are measured at fair value using the net asset value per share as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amount presented in the fair value of plan assets. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the following years (dollars in thousands):
|  | Pension Benefit
2023 |  | $ | 1,220 |
2024 |  | 1,240 |
2025 |  | 1,310 |
2026 |  | 1,340 |
2027 |  | 1,420 |
Years 2028-2032 |  | 8,410 |

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