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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
Pension plans
The Company has three frozen defined benefit pension plans covering certain employees or former employees of three U.S. subsidiaries. The Company also has pension plans covering certain employees of several foreign subsidiaries. The Company’s policy is to fund pension costs as required by law, which is consistent with the funding requirements of federal laws and regulations. Certain foreign subsidiaries maintain unfunded pension plans consistent with local practices and requirements.
The Company’s recorded liability for pensions is based on a number of assumptions, including discount rates, rates of return on investments, mortality rates, and other factors.  Certain of these assumptions are determined by the Company with the assistance of outside actuaries.  Assumptions are based on past experience and anticipated future trends.  These assumptions are reviewed on a regular basis and revised when appropriate. In 2020, the Company changed the assumptions related to the mortality projection scale to better reflect anticipated plan experience and adjusted the discount rate to reflect market conditions as of the measurement date. In 2021, the Company changed the assumption related to the expected long-term return on plan assets to reflect market conditions as of the measurement date.
The following table provides the change in benefit obligation, change in plan assets, funded status, and amounts recognized in the Consolidated Balance Sheet of the defined benefit pension plans as of December 31, 2021 and 2020 (amounts in thousands):
Change in benefit obligation:20212020
Benefit obligation at beginning of year$114,940 $113,559 
Service cost655 801 
Interest cost2,880 3,496 
Actuarial assumption changes— 5,589 
Actuarial loss(1,985)1,237 
Benefits paid(8,381)(8,634)
Foreign currency translation(1,522)(1,108)
Benefit obligation at end of year$106,587 $114,940 
Change in plan assets:  
Fair value of plan assets at beginning of year$89,744 $81,375 
Actual return on plan assets13,259 12,749 
Employer contributions1,397 3,433 
Benefits paid(7,355)(7,740)
Foreign currency translation(38)(73)
Fair value of plan assets at end of year$97,007 $89,744 
Unfunded status at end of year$(9,580)$(25,196)
Amounts recognized in Consolidated Balance Sheet:  
Noncurrent assets$11,095 $1,740 
Current liabilities(1,551)(1,529)
Noncurrent liabilities(19,124)(25,407)
Net amount recognized in the Consolidated Balance Sheet$(9,580)$(25,196)

The change in the benefit obligation was mainly driven by the benefits paid from the plans, negative impact of foreign currency translation due to unfavorable exchange rates and actuarial losses and offset by interest costs positively impacting the benefit obligation. The change in the benefit obligation was favorably impacted by the actuarial assumption changes primarily related to discount rate and mortality projection scale table to better reflect the market conditions and anticipated plan experience.

The pension benefit obligation included $90.0 million of pension benefit obligation for the three frozen plans in the U.S. and $16.6 million of pension benefit obligation for plans at foreign subsidiaries. The fair value of plan assets included $96.1 million of plan assets for the three frozen plans in the U.S. and $0.9 million of plan assets for foreign plans.

Information for pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets were (amounts in thousands):
 20212020
Projected and accumulated benefit obligations (1)$59,895 $68,265 
Fair value of plan assets39,561 41,695 

(1) The majority of the Company's pension plans are frozen plans and therefore there is no difference between the projected and accumulated benefit obligations.
Amounts recognized in accumulated other comprehensive loss: 
 20212020
Unrecognized prior service cost$668 $779 
Unrecognized net loss(22,231)(34,650)
Deferred tax effect of unrecognized items11,181 11,181 
Net amount recognized in accumulated other comprehensive loss$(10,382)$(22,690)
The weighted-average assumptions used in the actuarial computation that derived the benefit obligations at December 31 were as follows:20212020
Discount rate2.7 %2.5 %
Expected long-term return on plan assets6.5 %7.0 %
 
The following table provides the components of net periodic pension cost for the plans, settlement cost, and the assumptions used in the measurement of the Company’s benefit obligation for the years ended December 31, 2021, 2020, and 2019 (amounts in thousands):
Components of net periodic benefit cost and other
amounts recognized in other comprehensive income (loss)		   
Net periodic benefit cost:202120202019
Service cost$655 $801 $765 
Interest cost2,880 3,496 4,385 
Assumed return on assets(6,024)(5,463)(4,737)
Amortization of unrecognized prior service cost(95)(69)49 
Amortization of net unrecognized loss2,805 2,840 3,238 
Net periodic pension cost$221 $1,605 $3,700 

Service cost is recorded as cost of sales in the Consolidated Statement of Operations while all other components are recorded in other income.

The weighted-average assumptions used in the actuarial computation that derived net periodic pension cost for the years ended December 31, 2021, 2020, and 2019 were as follows:
 202120202019
Discount rate1.4 %3.6 %5.0 %
Expected long-term return on plan assets6.5 %6.9 %6.9 %

The allocation of the fair value of plan assets was as follows:
 Percentage of Plan Assets
at December 31,		Target
Allocation
Asset Category202120202021
U.S. equities (a)62 %61 %40% - 80%
Fixed income23 %20 %20% - 50%
Cash and cash equivalents6 %10 %0% - 20%
International equities (a)7 %7 %0% - 16%
REITs2 %2 %
 100 %100 % 
(a)Total equities may not exceed 80% of total plan assets.

The majority of the Company's foreign plans do not have plan assets. The foreign plans which have plan assets holds these plan assets in an insurance or money market fund.
The fair value of the plan assets by asset categories consisted of the following as of the dates set forth below (amounts in thousands):
 Fair Value Measurements as of December 31, 2021
 TotalLevel 1Level 2Level 3
Money market funds$5,830 $5,830 $— $— 
Common stock38,231 38,231 — — 
Bonds and securities8,240 8,240 — — 
Mutual and insurance funds44,706 44,194 512 — 
Totals$97,007 $96,495 $512 $— 
 Fair Value Measurements as of December 31, 2020
 TotalLevel 1Level 2Level 3
Money market funds$8,916 $8,916 $— $— 
Common stock35,951 35,951 — — 
Bonds and securities3,638 3,638 — — 
Mutual and insurance funds41,239 40,410 829 — 
Totals$89,744 $88,915 $829 $— 
    
The Company invests in a diversified portfolio consisting of an array of asset classes in an attempt to maximize returns while minimizing risk.  These asset classes include U.S. equities, fixed income, cash and cash equivalents, international equities and REITs.  The investment objectives are to provide for the growth and preservation of plan assets on a long-term basis through investments in: investment grade securities that provide investment returns that meet or exceed the Standard & Poor’s 500 Index and investment grade fixed income securities that provide investment returns that meet or exceed the Barclays Capital Aggregate Bond Index.  The U.S. equities asset category included the Company’s common stock in the amount of $1.9 million (approximately one percent of total plan assets) at December 31, 2021, and $0.8 million (approximately two percent of total plan assets) at December 31, 2020.

The fair value of money market funds, stock, bonds, U.S. government securities and mutual funds is determined based on valuation for identical instruments in active markets.

The long-term rate of return for plan assets is determined using a weighted-average of long-term historical approximate returns on cash and cash equivalents, fixed income securities, and equity securities considering the anticipated investment allocation within the plans.  The expected return on plan assets is anticipated to be 6.5% over the long-term.  This rate assumes long-term historical returns of approximately 8.5% for equities and approximately 4.0% for fixed income securities using the plans’ target allocation percentages.  Professional investment firms, none of which are Titan employees, manage the plan assets.

Although the 2022 minimum pension funding calculations are not finalized, the Company estimates those funding requirements will be approximately $0.8 million.

Projected benefit payments from the plans as of December 31, 2021, are estimated as follows (amounts in thousands):
20228,472 
20237,908 
20247,823 
20257,570 
20267,272 
2027-203131,062 

401(k)/Defined contribution plans
The Company sponsors two 401(k) retirement savings plans in the U.S. and a number of defined contribution plans at foreign subsidiaries.  One U.S. plan is for the benefit of substantially all employees who are not covered by a collective bargaining arrangement.  Titan provides a 50% matching contribution in the form of the Company’s common stock on the first 6% of the employee’s contribution in this plan.  The Company issued 162,356 shares, 653,211 shares and 266,121 shares of common
stock in connection with this 401(k) plan during 2021, 2020, and 2019, respectively.  Expenses to the Company related to this common stock matching contribution were $1.4 million, $1.2 million, and $1.2 million for 2021, 2020, and 2019, respectively. The other U.S. 401(k) plan is for employees covered by collective bargaining agreements and does not include a Company matching contribution. Expenses related to foreign defined contribution plans were $3.8 million, $3.7 million, and $3.9 million for 2021, 2020, and 2019, respectively.