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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 31, 2023
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. 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, 2023 and 2022 (amounts in thousands):
Change in benefit obligation: | 2023 |  | 2022
Benefit obligation at beginning of year | $ | 79,379 |  |  | $ | 106,587 |
Plan amendments | 1,391 |  |  | — |
Service cost | 606 |  |  | 590 |
Interest cost | 4,331 |  |  | 2,872 |
Disposition of Australia benefit obligation | — |  |  | (853) |
Actuarial gain | (632) |  |  | (19,991) |
Benefits paid | (7,588) |  |  | (8,866) |
Foreign currency translation | (279) |  |  | (960) |
Benefit obligation at end of year | $ | 77,208 |  |  | $ | 79,379 |
Change in plan assets: |  |  |
Fair value of plan assets at beginning of year | $ | 75,025 |  |  | $ | 97,007 |
Actual return on plan assets | 14,558 |  |  | (14,179) |
Employer contributions | 442 |  |  | 436 |
Benefits paid | (7,294) |  |  | (8,228) |
Foreign currency translation | 38 |  |  | (11) |
Fair value of plan assets at end of year | $ | 82,769 |  |  | $ | 75,025 |
Funded (unfunded) status at end of year | $ | 5,561 |  |  | $ | (4,354) |
Amounts recognized in Consolidated Balance Sheet: |  |  |
Noncurrent assets | $ | 19,566 |  |  | $ | 11,241 |
Current liabilities | (1,210) |  |  | (1,718) |
Noncurrent liabilities | (12,795) |  |  | (13,877) |
Net amount recognized in the Consolidated Balance Sheet | $ | 5,561 |  |  | $ | (4,354) |
The pension benefit obligation included $63.7 million of pension benefit obligation for the three frozen plans in the U.S. and $13.5 million of pension benefit obligation for plans at foreign subsidiaries. The fair value of plan assets included $82.0 million of plan assets for the three frozen plans in the U.S. and $0.8 million of plan assets for foreign plans. Information for pension plans with accumulated benefit obligations and projected benefit obligations in excess of plan assets were (amounts in thousands):
| 2023 |  | 2022
Pension Plans in which Accumulated Benefit Obligation Exceeds Plan Assets at December 31, |  |  |
Accumulated benefit obligation | $ | 44,976 |  |  | $ | 45,225 |
Fair value of plan assets | $ | 31,903 |  |  | $ | 30,558 |
Accumulated Benefit Obligation at December 31 | $ | 76,746 |  |  | $ | 78,853 |
Pension Plans in which Projected Benefit Obligation Exceeds Plan Assets at December 31, |  |  |
Projected benefit obligation | $ | 45,439 |  |  | $ | 45,751 |
Fair value of plan assets | $ | 31,903 |  |  | $ | 30,558 |
Projected Benefit Obligation at December 31 | $ | 77,208 |  |  | $ | 79,379 |
Amounts recognized in accumulated other comprehensive loss: |  |  |
| 2023 |  | 2022
Unrecognized prior service cost | $ | 634 |  |  | $ | 643 |
Unrecognized net loss | (11,480) |  |  | (21,091) |
Deferred tax effect of unrecognized items | 8,518 |  |  | 11,181 |
Net amount recognized in accumulated other comprehensive loss | $ | (2,328) |  |  | $ | (9,267) |
The weighted-average assumptions used in the actuarial computation that derived the benefit obligations at December 31 were as follows: | 2023 |  | 2022
Discount rate | 5.2 | % |  | 5.8 | %
Expected long-term return on plan assets | 6.5 | % |  | 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, 2023, 2022, and 2021 (amounts in thousands):
Components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) |  |  |  |  |
Net periodic benefit cost: | 2023 |  | 2022 |  | 2021
Service cost | $ | 606 |  |  | $ | 590 |  |  | $ | 655 |
Interest cost | 4,331 |  |  | 2,872 |  |  | 2,880 |
Assumed return on assets | (4,669) |  |  | (6,071) |  |  | (6,024) |
Amortization of unrecognized prior service cost | (114) |  |  | (85) |  |  | (95) |
Amortization of net unrecognized loss | 1,004 |  |  | 1,426 |  |  | 2,805 |
Net periodic pension cost (benefit) | $ | 1,158 |  |  | $ | (1,268) |  |  | $ | 221 |
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, 2023, 2022, and 2021 were as follows:
| 2023 |  | 2022 |  | 2021
Discount rate | 5.8 | % |  | 2.7 | % |  | 1.4 | %
The allocation of the fair value of plan assets was as follows:
| Percentage of Plan Assets at December 31, |  | Target Allocation
Asset Category | 2023 |  | 2022 |  | 2023
U.S. equities (a) | 57 | % |  | 62 | % |  | 40% - 80%
Fixed income | 21 | % |  | 23 | % |  | 20% - 50%
Cash and cash equivalents | 10 | % |  | 8 | % |  | 0% - 20%
International equities (a) | 12 | % |  | 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, 2023
| Total |  | Level 1 |  | Level 2 |  | Level 3
Money market funds | $ | 8,186 |  |  | $ | 8,186 |  |  | $ | — |  |  | $ | — |
Common stock | 27,658 |  |  | 27,658 |  |  | — |  |  | — |
Bonds and securities | 10,302 |  |  | 10,302 |  |  | — |  |  | — |
Mutual and insurance funds | 36,623 |  |  | 35,828 |  |  | 795 |  |  | — |
Totals | $ | 82,769 |  |  | $ | 81,974 |  |  | $ | 795 |  |  | $ | — |
| Fair Value Measurements as of December 31, 2022
| Total |  | Level 1 |  | Level 2 |  | Level 3
Money market funds | $ | 5,377 |  |  | $ | 5,377 |  |  | $ | — |  |  | $ | — |
Common stock | 29,759 |  |  | 29,759 |  |  | — |  |  | — |
Bonds and securities | 4,891 |  |  | 4,891 |  |  | — |  |  | — |
Mutual and insurance funds | 34,998 |  |  | 34,084 |  |  | 914 |  |  | — |
Totals | $ | 75,025 |  |  | $ | 74,111 |  |  | $ | 914 |  |  | $ | — |
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 two percent of total plan assets) at December 31, 2023, and $2.6 million (approximately three percent of total plan assets) at December 31, 2022. 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. Based on the 2023 minimum pension funding calculations, the Company does not anticipate any minimum funding requirements. Projected benefit payments from the plans as of December 31, 2023, are estimated as follows (amounts in thousands):
2024 | $ | 8,235 |
2025 | 7,471 |
2026 | 7,273 |
2027 | 6,793 |
2028 | 7,006 |
2029-2033 | 29,080 |
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 144,439 shares, 124,645 shares and 175,267 shares of common stock in connection with this 401(k) plan during 2023, 2022, and 2021, respectively. Expenses to the Company related to this common stock matching contribution were $1.8 million, $1.7 million, and $1.4 million for 2023, 2022, and 2021, 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 $3.7 million, $4.1 million, and $3.8 million for 2023, 2022, and 2021, respectively.

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