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Pension Plans | 12 Months Ended
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Dec. 31, 2019
Compensation And Retirement Disclosure [Abstract] |
Pension Plans | Note C - Pension Plans PLP-USA hourly employees of the Company who meet specific requirements as to age and length and date of service are covered by a defined benefit pension plan (“Plan”). On December 12, 2012, the Company approved a freeze on further benefit accruals under the Plan and notified the participants of the freeze on December 19, 2012. Beginning February 1, 2013, participants ceased earning additional benefits under the Plan and no new participants entered the Plan. The Company uses a December 31 measurement date for its Plan. Net periodic pension cost for the Plan consists of the following components for the year ended December 31:
|  |  |  | 2019 |  |  | 2018 |  |  | 2017 |
Service cost |  |  |  | $ | 299 |  |  | $ | 250 |  |  | $ | 255 |
Interest cost |  |  |  |  | 1,411 |  |  |  | 1,349 |  |  |  | 1,456 |
Expected return on plan assets |  |  |  |  | (1,946 | ) |  |  | (1,985 | ) |  |  | (1,903 | )
Recognized net actuarial loss |  |  |  |  | 520 |  |  |  | 525 |  |  |  | 468 |
Net periodic pension cost |  |  |  | $ | 284 |  |  | $ | 139 |  |  | $ | 276 |
The following tables set forth benefit obligations, plan assets and the accrued benefit cost of the Plan at December 31:
|  |  |  | 2019 |  |  | 2018 |
Projected benefit obligation at beginning of the year |  |  |  | $ | 33,931 |  |  | $ | 36,031 |
Service cost |  |  |  |  | 299 |  |  |  | 250 |
Interest cost |  |  |  |  | 1,411 |  |  |  | 1,349 |
Actuarial loss (gain) |  |  |  |  | 3,528 |  |  |  | (2,409 | )
Benefits paid |  |  |  |  | (1,233 | ) |  |  | (1,290 | )
Projected benefit obligation at end of year |  |  |  | $ | 37,936 |  |  | $ | 33,931 |
Fair value of plan assets at beginning of the year |  |  |  | $ | 28,672 |  |  | $ | 25,367 |
Actual return on plan assets |  |  |  |  | 5,219 |  |  |  | (745 | )
Employer contributions |  |  |  |  | 0 |  |  |  | 5,340 |
Benefits paid |  |  |  |  | (1,233 | ) |  |  | (1,290 | )
Fair value of plan assets at end of the year |  |  |  | $ | 32,658 |  |  | $ | 28,672 |
Unfunded pension obligation |  |  |  | $ | 5,278 |  |  | $ | 5,259 |
In accordance with ASC 715-20, the Company recognizes the underfunded status of the Plan as a liability. The amount recognized in Accumulated other comprehensive loss related to the Plan at December 31 is comprised of the following:
|  |  |  | 2019 |  |  | 2018 |
Balance at January 1 |  |  |  | $ | (5,873 | ) |  | $ | (6,015 | )
Reclassification adjustments: |  |  |  |  |  |  |  |  |  |
Pre-tax amortized net actuarial loss |  |  |  |  | 520 |  |  |  | 525 |
Tax provision |  |  |  |  | (123 | ) |  |  | (139 | )
|  |  |  |  | 397 |  |  |  | 386 |
Adjustment to recognize gain (loss) on unfunded pension obligations: |  |  |  |  |  |  |  |  |  |
Pre-tax loss |  |  |  |  | (255 | ) |  |  | (321 | )
Tax provision |  |  |  |  | 60 |  |  |  | 77 |
|  |  |  |  | (195 | ) |  |  | (244 | )
Balance at December 31 |  |  |  | $ | (5,671 | ) |  | $ | (5,873 | )
The 2019 pre-tax unfunded pension obligation loss of 0.2 million included a loss of $4.0 million due to a .75% decrease in the discount rate to 3.50%, a gain of less than $.1 million associated with the industry updates to the mortality table used, a gain of $.2 million due to demographic changes combined with a gain of $3.3 million resulting from asset performance above the 7.00% rate of return assumption and a gain of $.3 million to account for the service cost expense load on the Company’s frozen plan. The estimated net loss for the Plan that will be amortized from Accumulated other comprehensive income into periodic benefit cost for 2020 is $.5 million. There is no prior service cost to be amortized in the future. The Plan had accumulated benefit obligations in excess of Plan assets as follows:
|  |  |  | 2019 |  |  | 2018 |
Accumulated benefit obligation |  |  |  | $ | 37,936 |  |  | $ | 33,931 |
Fair market value of assets |  |  |  |  | 32,658 |  |  |  | 28,672 |
|  |  |  | 2019 |  |  | 2018 |
Discount rate |  |  |  | 3.50% |  |  | 4.25% |
Rate of compensation increase |  |  |  | n/a |  |  | n/a |
Weighted-average assumptions used to determine net periodic benefit cost for the year ended December 31 are as follows:
|  |  |  | 2019 |  |  | 2018 |  |  | 2017 |
Discount rate |  |  |  | 3.50% |  |  |  | 4.25% |  |  | 4.25% |
Rate of compensation increase |  |  |  | n/a |  |  | n/a |  |  | n/a |
Expected long-term return on plan assets |  |  |  |  | 7.00 |  |  |  | 8.00 |  |  |  | 8.00 |
The net periodic pension cost for 2019 was based on a long-term asset rate-of-return of 7.00%. This rate is based upon management’s estimate of future long-term rates of return on similar assets and is consistent with historical returns on such assets. Using the Plan’s mix of assets and based on the average historical returns and expected future returns for such mix, an expected long-term rate-of-return of 7.00% is justified. During the year ended December 31, 2019, the Company changed its Plan asset base from a combined Level 1 and Level 2 allocation to utilize net asset value (“NAV”) as the practical expedient for its pooled investment funds and the assets are no longer classified in the fair value hierarchy. At December 31, 2019, the Plan’s pooled investment funds were measured at fair value using the net asset value. The NAV is based on the value of the assets owned by the plan, less liabilities. These pooled assets are not quoted on an active exchange. At December 31, 2018, the fair value of the Plan assets included inputs in Level 1: Quoted market prices in active markets for identical assets or liabilities and Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. The fair value of the Plan assets as of December 31, 2019 and 2018, by category, are as follows:
|  | At December 31, 2019 |  |  |  |  |  |  |
Assets measured at net asset value |  |  |  |  |  |  |  |  |  |
Pooled investment fund |  | $ | 32,658 |  |  |  |  |  |  |
Total |  |  | 32,658 |  |  |  |  |  |  |
|  | At December 31, 2018 |
|  | Total Assets at Fair Value |  |  | Quoted Prices in Active Markets for Identical Assets (Level 1) |  |  | Significant Observable Inputs (Level 2) |  |  | Significant Unobservable Inputs (Level 3) |
Assets measured at fair value |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash |  | $ | 462 |  |  | $ | 462 |  |  | $ | 0 |  |  | $ | 0 |
Equity Securities |  |  | 10,470 |  |  |  | 10,470 |  |  |  | 0 |  |  |  | 0 |
U.S. Treasury Bonds |  |  | 13,109 |  |  |  | 13,109 |  |  |  | 0 |  |  |  | 0 |
Corporate Bonds |  |  | 4,631 |  |  | 0 |  |  |  | 4,631 |  |  |  | 0 |
Total |  | $ | 28,672 |  |  | $ | 24,041 |  |  | $ | 4,631 |  |  | $ | 0 |
The Plan weighted-average asset allocations at December 31, 2019 and 2018, by asset category, are as follows:
|  |  |  | Plan assets |  |
|  |  |  | at December 31 |  |
|  |  |  | 2019 |  |  |  | 2018 |  |
Asset category |  |  |  |  |  |  |  |  |  |  |  |
Equity securities |  |  |  |  | 48 |  | % |  |  | 37 |  | %
Debt securities |  |  |  |  | 51 |  |  |  |  | 61 |  |
Cash and equivalents |  |  |  |  | 1 |  |  |  |  | 2 |  |
|  |  |  |  | 100 |  | % |  |  | 100 |  | %
Management seeks to maximize the long-term total return of financial assets consistent with the fiduciary standards of ERISA. The ability to achieve these returns is dependent upon the need to accept moderate risk to achieve long-term capital appreciation. In recognition of the expected returns and volatility from financial assets, Plan assets are invested in the following ranges with the target allocation noted:
|  | Range |  | Target |
Equities |  | 40-60% |  | 50% |
Fixed Income |  | 40-60% |  | 50% |
Cash Equivalents |  | 0-10% |  | 0.0% |
Investment in these markets is projected to provide performance consistent with expected long-term returns with appropriate diversification. The Company's policy is to fund amounts deductible for federal income tax purposes. The Company does not expect to contribute to the Plan in 2020. The benefits expected to be paid out of the Plan assets in each of the next five years and the aggregate benefits expected to be paid for the subsequent five years are as follows:
Year |  | Pension Benefits |
2020 |  | $ | 1,225 |
2021 |  |  | 1,292 |
2022 |  |  | 1,382 |
2023 |  |  | 1,469 |
2024 |  |  | 1,566 |
2025-2029 |  |  | 9,077 |
The Company also provides retirement benefits through various defined contribution plans including PLP-USA’s Profit Sharing Plan. Expense for these defined contribution plans was $6.0 million in 2019, $5.6 million in 2018 and $5.1 million in 2017. Further, the Company also provides retirement benefits through the Supplemental Profit Sharing Plan. To the extent an employee’s award under PLP-USA’s Profit Sharing Plan exceeds the maximum allowable contribution permitted under existing tax laws, the excess is accrued for (but not funded) under a non-qualified Supplemental Profit Sharing Plan. During January 2018, the Company amended the Supplemental Profit Sharing Plan to allow the participants the ability to hypothetically invest their proportionate award into various investment options, which primarily includes mutual funds. Expense for the Supplemental Profit Sharing Plan was $1.1 million for 2019, $.2 million for 2018 and $.5 million for 2017. The Supplemental Profit Sharing Plan unfunded status for the years ended December 31, 2019 and 2018 was $6.1 million and $4.9 million, respectively, and is included in Other noncurrent liabilities.

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