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Employee Benefit Plans | 12 Months Ended
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Dec. 31, 2022
Retirement Benefits [Abstract] |
Compensation and Employee Benefit Plans | Employee Benefit Plan A subsidiary of the Company, sponsors a defined benefit plan with benefits based on each employee’s years of service and compensation. The benefits under the defined benefit pension plan are frozen. Net Periodic Pension Cost and Pension Benefit Obligation Net periodic pension benefit consists of the following components for the years ended December 31:
| Pension Benefits |  |  |  |
| 2022 |  | 2021 |  |  |  |
Interest cost on benefit obligation | $ | 1,104 |  |  | $ | 441 |  |  |  |  |
Expected return on plan assets | (1,659) |  |  | (697) |  |  |  |  |
Net periodic benefit income | $ | (555) |  |  | $ | (256) |  |  |  |  |
Settlement gain | (198) |  |  | — |  |  |  |  |
Total periodic benefit income | $ | (753) |  |  | $ | (256) |  |  |  |  |
The above components are included within Other, net on the Consolidated Statements of Operations. The following weighted average assumptions were used to determine net periodic costs at December 31:
| Pension Benefits
| 2022 |  | 2021
Discount rate | 2.82 | % |  | 2.62 | %
Expected return on plan assets | 6.50 | % |  | 6.50 | %
Rate of compensation increase | N/A |  | N/A
The expected return on plan assets is a long-term assumption established by considering historical and anticipated returns of the asset classes invested in by the pension plan and the allocation strategy currently in place among those classes. Other changes in plan assets and benefit obligation recognized in Other comprehensive income (loss) consist of the following components for the years ended December 31:
| Pension Benefits |  |  |  |
| 2022 |  | 2021 |  |  |  |
Current year actuarial gain | $ | (4,088) |  |  | $ | (722) |  |  |  |  |
Total recognized in other comprehensive (income) | (4,088) |  |  | (722) |  |  |  |  |
Total recognized in net periodic benefit income and other comprehensive loss | $ | (4,841) |  |  | $ | (978) |  |  |  |  |
The following table summarizes the change in benefit obligation and fair values of plan assets for the years ended December 31:
| Pension Benefits |  |  |  |
| 2022 |  | 2021 |  |  |  |
Change in benefit obligation: |  |  |  |  |  |  |
Benefit obligation, beginning balance (1) | $ | 40,005 |  |  | $ | 41,206 |  |  |  |  |
Interest cost | 1,104 |  |  | 441 |  |  |  |  |
Actuarial gains | (10,930) |  |  | (1,091) |  |  |  |  |
Benefits paid | (2,135) |  |  | (551) |  |  |  |  |
Benefit obligation, ending balance | 28,044 |  |  | 40,005 |  |  |  |  |
Change in plan assets: |  |  |  |  |  |  |
Fair value of plan assets, beginning balance (1) | 26,355 |  |  | 26,578 |  |  |  |  |
Actual loss on plan assets | (4,985) |  |  | 328 |  |  |  |  |
Benefits paid | (2,135) |  |  | (551) |  |  |  |  |
Fair value of plan assets, ending balance | 19,235 |  |  | 26,355 |  |  |  |  |
Funded status | $ | 8,809 |  |  | $ | 13,650 |  |  |  |  |
(1) Benefit obligation assumed in connection with the acquisition of MDC. Beginning balance is as of July 31, 2021. Amounts recognized in the Consolidated Balance Sheets at December 31 consist of the following:
| Pension Benefits |  |  |  |
| 2022 |  | 2021 |  |  |  |
Non-current liability | $ | 8,809 |  |  | $ | 13,650 |  |  |  |  |
Net amount recognized | $ | 8,809 |  |  | $ | 13,650 |  |  |  |  |
Amounts recognized in Accumulated other comprehensive loss before income taxes consists of the following components for the years ended December 31:
| Pension Benefits |  |  |  |
| 2022 |  | 2021 |  |  |  |
Accumulated net actuarial gains | $ | 4,810 |  |  | $ | 722 |  |  |  |  |
Amount recognized | $ | 4,810 |  |  | $ | 722 |  |  |  |  |
In 2023, the Company estimates that it will recognize $66 in amortization of net actuarial gains from Accumulated other comprehensive loss, net into net periodic cost related to the pension plan. The following weighted average assumptions were used to determine benefit obligations as of December 31:
| Pension Benefits
| 2022 |  | 2021
Discount rate | 5.47 | % |  | 2.82 | %
Rate of compensation increase | N/A |  | N/A
The discount rate assumptions at December 31, 2022 and 2021 were determined independently. The discount rate was derived from the effective interest rate of a hypothetical portfolio of high-quality bonds, whose cash flows match the expected future benefit payments from the plan as of the measurement date. Fair Value of Plan Assets and Investment Strategy The fair value of the plan assets as of December 31, is as follows:
| 2022 |  | Level 1 |  | Level 2 |  | Level 3
Asset Category: |  |  |  |  |  |  |
Receivables | $ | 15 |  |  | $ | 15 |  |  | $ | — |  |  | $ | — |
Money market fund – Short-term investments | 804 |  |  | 804 |  |  | — |  |  | — |
Mutual funds | 18,416 |  |  | 18,416 |  |  | — |  |  | — |
Total | $ | 19,235 |  |  | $ | 19,235 |  |  | $ | — |  |  | $ | — |
| 2021 |  | Level 1 |  | Level 2 |  | Level 3
Asset Category: |  |  |  |  |  |  |
Money market fund – Short-term investments | $ | 937 |  |  | $ | 937 |  |  | $ | — |  |  | $ | — |
Mutual funds | 25,418 |  |  | 25,418 |  |  | — |  |  | — |
Total | $ | 26,355 |  |  | $ | 26,355 |  |  | $ | — |  |  | $ | — |
See Note 18 of the Notes included herein for additional information regarding the fair value hierarchy. The pension plan’s weighted average asset allocation for the years ended December 31, 2022 and 2021 were as follows:
| Target Allocation |  | Actual Allocation
| 2022 |  | 2022 |  | 2021
Asset Category: |  |  |  |  |
Equity securities | 65.0 | % |  | 67.4 | % |  | 69.1 | %
Debt securities | 30.0 | % |  | 28.4 | % |  | 27.3 | %
Cash/cash equivalents and Short-term investments | 5.0 | % |  | 4.2 | % |  | 3.6 | %
Total | 100.0 | % |  | 100.0 | % |  | 100.0 | %
The goals of the pension plan investment program are to fully fund the obligation to pay retirement benefits in accordance with the plan documents and to provide returns that, along with appropriate funding from the Company, maintain an asset/liability ratio that is in compliance with all applicable laws and regulations and assures timely payment of retirement benefits. Equity securities primarily include investments in large-cap and mid-cap companies located in the United States. Debt securities are diversified across different asset types with bonds issued in the United States as well as outside the United States. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the preceding tables. Cash Flows The pension plan contributions are deposited into a trust, and the pension plan benefit payments are made from trust assets. During 2022 and 2021, the Company did not make any contributions to the pension plan. The Company estimates that it will make approximately $787 in contributions to the pension plan in 2023. Fluctuations in actual market returns as well as changes in general interest rates will result in changes in the market value of plan assets and may result in increased or decreased retirement benefit costs and contributions in future periods. The following estimated benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the years ending December 31:
Period |  | Amount
2023 |  | $ | 1,794 |
2024 |  | 2,014 |
2025 |  | 1,932 |
2026 |  | 1,958 |
2027 |  | 1,903 |
Thereafter |  | 10,022 |

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI https://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI https://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI https://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI https://asc.fasb.org/topic&trid=2235017 + Details
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