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RETIREMENT BENEFIT PLANS
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
RETIREMENT BENEFIT PLANS RETIREMENT BENEFIT PLANS
DEFINED BENEFIT PLANS
The Company has various defined benefit plans which covers certain employees in France, Japan, Germany and Switzerland.
Net periodic benefit costs for the Company’s defined benefit pension plans for the years ended December 31, 2023 and 2022 included the following (amounts in thousands):
Year ended December 31,
20232022
Service cost$2,226 $2,419 
Interest cost1,157 194 
Expected return on plan assets(1,450)(1,381)
Amortization of prior service cost (credit)(389)(326)
Recognized actuarial losses(391)9 
Settlements— — 
Net period benefit cost$1,153 $915 
The following weighted average assumptions were used to develop net periodic pension benefit costs and the actuarial present values of projected pension benefit obligations for the years ended December 31, 2023 and 2022, respectively:
As of December 31,
20232022
Discount rate1.51 %2.44 %
Expected return on plan assets3.67 %3.61 %
Rate of compensation increase2.00 %1.97 %
Interest crediting rate for cash balance plans1.00 %1.00 %
The Company’s discount rates are determined by considering current yield curves representing high quality, long-term fixed income instruments. The resulting discount rates are consistent with the duration of plan liabilities. In 2023 and 2022, the
discount rates were prescribed as the current yield on corporate bonds with an average rating of AA or AAA of equivalent currency and term to the liabilities. The expected returns on plan assets represent the average rate of return expected to be earned on plan assets over the period the benefits included in the benefit obligation are to be paid. In developing the expected rates of return, the Company considers returns of historical market data as well as actual returns on the plan assets. Using this reference information, the long-term return expectations for each asset category are developed according to the allocation among those investment categories.
The assessment is determined using projections from external financial sources, long-term historical averages, actual returns by asset class and the various asset class allocations by market.
The following sets forth the change in projected benefit obligations and the change in plan assets for the years ended December 31, 2023 and 2022 and a reconciliation of the funded status at December 31, 2023 and 2022, respectively (amounts in thousands):
Year Ended December 31,
20232022
Change In Projected Benefit Obligations
Projected benefit obligations, beginning of year$50,364 $65,184 
Interest cost1,157 194 
Service cost2,226 2,419 
Actuarial (gain) loss8,229 (14,822)
Plan amendments(1,772)(390)
Plan settlements(25)(20)
Employee contribution1,182 999 
Premiums paid(406)(391)
Benefit payment(812)(999)
Effect of foreign currency exchange rates4,958 (1,810)
Projected benefit obligations, end of year$65,101 $50,364 
Year Ended December 31,
20232022
Change In Plan Assets
Plan assets at fair value, beginning of year$38,053 $39,914 
Actual return on plan assets1,350 (2,863)
Employer contributions2,700 2,356 
Employee contributions1,182 999 
Plan settlements— — 
Benefits paid(812)(998)
Premiums paid(406)(391)
Effect of foreign currency exchange rates3,657 (964)
Plan assets at fair value, end of year$45,724 $38,053 
Year Ended December 31,
20232022
Reconciliation Of Funded Status
Fair value of plan assets$45,724 $38,053 
Benefit obligations65,101 50,364 
Unfunded benefit obligations$19,377 $12,311 
The unfunded benefit obligations are included in other liabilities in the consolidated balance sheets at December 31, 2023 and 2022, respectively.
During the periods ended December 31, 2023 and 2022, the Company had a net loss of $6.6 million and a net gain of $7.4 million, respectively, recognized within accumulated other comprehensive loss that has not been recognized as a component of net periodic benefit cost. The combined accumulated benefit obligations for the defined benefit plans was $62.8 million and $46.4 million as of December 31, 2023 and 2022, respectively.
Unrecognized gains and losses are amortized over the average remaining future service for each plan. For plans with no active employees, they are amortized over the average life expectancy. The amortization of gains and losses is determined by using a 10% corridor of the greater of the market value of assets or the accumulated benefit obligation. Total unamortized gains and losses in excess of the corridor are amortized over the average remaining future service.
Prior service costs/benefits for the pension plans are amortized over the average remaining future service of plan participants at the time of the plan amendment.
The net plan assets of the pension plans are invested in common trusts. Common trusts are classified as Level 2 in fair value hierarchy. The fair value of common trusts is valued at net asset value based on the fair values of the underlying investments of the trusts as determined by the sponsor of the trusts. The investment strategy of the Company's defined benefit plans is both to meet the liabilities of the plans as they fall due and to maximize the return on invested assets within appropriate risk profile.
The benefit plans in France and Germany had no assets at December 31, 2023.
As of December 31, 2023, no plan assets are expected to be returned to the Company in the next twelve months.
The following table is the summary of expected future benefit payments (in thousands):
2024$2,457 
2025$2,618 
2026$2,251 
2027$2,193 
2028$2,388 
Next five years$12,953 
As of December 31, 2023, contributions expected to be paid to the plan in 2024 is $3.0 million.
DEFINED CONTRIBUTION PLANS
The Company also has various defined contribution savings plans that cover substantially all employees in the United States, Belgium, Canada, France, Japan, Netherlands, the U.K. and Puerto Rico. The Company matches a certain percentage of each employee’s contributions as per the provisions of the plans. Total contributions by the Company to the plans were $10.4 million, $9.8 million and $8.8 million for the years ended December 31, 2023, 2022 and 2021, respectively.
DEFERRED COMPENSATION PLAN
The Company maintains a Deferred Compensation Plan in which certain employees of the Company may defer the payment and taxation of up to 75% of their base salary and up to 100% of bonus amounts and other eligible cash compensation.
This deferred compensation is invested in funds offered under this plan and is valued based on Level 1 measurements in the fair value hierarchy. Assets of the Company's deferred compensation plan are included in Other current assets and recorded at fair value based on their quoted market prices. The fair value of these assets at December 31, 2023 and 2022 was $6.1 million and $4.7 million. Offsetting liabilities relating to the deferred compensation plan are included in Other liabilities.