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EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2022
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 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, 2022 and 2021 (amounts in thousands):
Change in benefit obligation:20222021
Benefit obligation at beginning of year$106,587 $114,940 
Service cost590 655 
Interest cost2,872 2,880 
Disposition of Australia benefit obligation(853)— 
Actuarial gain(19,991)(1,985)
Benefits paid(8,866)(8,381)
Foreign currency translation(960)(1,522)
Benefit obligation at end of year$79,379 $106,587 
Change in plan assets:  
Fair value of plan assets at beginning of year$97,007 $89,744 
Actual return on plan assets(14,179)13,259 
Employer contributions436 1,397 
Benefits paid(8,228)(7,355)
Foreign currency translation(11)(38)
Fair value of plan assets at end of year$75,025 $97,007 
Unfunded status at end of year$(4,354)$(9,580)
Amounts recognized in Consolidated Balance Sheet:  
Noncurrent assets$11,241 $11,095 
Current liabilities(1,718)(1,551)
Noncurrent liabilities(13,877)(19,124)
Net amount recognized in the Consolidated Balance Sheet$(4,354)$(9,580)

The pension benefit obligation included $66.1 million of pension benefit obligation for the three frozen plans in the U.S. and $13.3 million of pension benefit obligation for plans at foreign subsidiaries. The fair value of plan assets included $74.1 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):
 20222021
Projected and accumulated benefit obligations (a)$79,379 $59,895 
Fair value of plan assets75,025 39,561 

(a) 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: 
 20222021
Unrecognized prior service cost$643 $668 
Unrecognized net loss(21,091)(22,231)
Deferred tax effect of unrecognized items11,181 11,181 
Net amount recognized in accumulated other comprehensive loss$(9,267)$(10,382)
The weighted-average assumptions used in the actuarial computation that derived the benefit obligations at December 31 were as follows:20222021
Discount rate5.5 %2.7 %
Expected long-term return on plan assets6.5 %6.5 %
 
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, 2022, 2021, and 2020 (amounts in thousands):
Components of net periodic benefit cost and other
amounts recognized in other comprehensive income (loss)		   
Net periodic benefit cost:202220212020
Service cost$590 $655 $801 
Interest cost2,872 2,880 3,496 
Assumed return on assets(6,071)(6,024)(5,463)
Amortization of unrecognized prior service cost(85)(95)(69)
Amortization of net unrecognized loss1,426 2,805 2,840 
Net periodic pension cost$(1,268)$221 $1,605 

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, 2022, 2021, and 2020 were as follows:
 202220212020
Discount rate2.7 %1.4 %3.6 %
Expected long-term return on plan assets6.5 %6.5 %6.9 %


The allocation of the fair value of plan assets was as follows:
 Percentage of Plan Assets
at December 31,		Target
Allocation
Asset Category202220212022
U.S. equities (a)62 %64 %
40% - 80%
Fixed income23 %23 %
20% - 50%
Cash and cash equivalents8 %6 %
0% - 20%
International equities (a)7 %7 %
0% - 16%
 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, 2022
 TotalLevel 1Level 2Level 3
Money market funds$5,377 $5,377 $— $— 
Common stock29,759 29,759 — — 
Bonds and securities4,891 4,891 — — 
Mutual and insurance funds34,998 34,084 914 — 
Totals$75,025 $74,111 $914 $— 
 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 $— 
    
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 $2.6 million (approximately three percent of total plan assets) at December 31, 2022, and $1.9 million (approximately one percent of total plan assets) at December 31, 2021.

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 2023 minimum pension funding calculations are not finalized, the Company does not anticipate any minimum funding requirements.

Projected benefit payments from the plans as of December 31, 2022, are estimated as follows (amounts in thousands):
2023$8,197 
20247,665 
20257,487 
20267,294 
20276,819 
2028-203230,037 

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 124,645 shares, 175,267 shares and 653,211 shares of common
stock in connection with this 401(k) plan during 2022, 2021, and 2020, respectively.  Expenses to the Company related to this common stock matching contribution were $1.7 million, $1.4 million, and $1.2 million for 2022, 2021, and 2020, 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 $4.1 million, $3.8 million, and $3.7 million for 2022, 2021, and 2020, respectively.