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Pensions | 12 Months Ended
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Dec. 31, 2021
Retirement Benefits [Abstract] |
Pensions | Pensions The Company maintains pension obligations associated with non-contributory defined benefit pension plans that are currently frozen and incur no additional service costs. The Company updates the estimates used to measure the defined benefit pension obligation and plan assets annually or upon a remeasurement date to reflect the actual rate of return on plan assets and updated actuarial assumptions. The Company immediately recognizes actuarial gains and losses in its operating results in the year in which the gains and losses occur. The Company estimates the interest cost component of net periodic pension cost by utilizing a full yield curve approach and applying the specific spot rates along the yield curve used in the determination of the benefit obligations of the relevant projected cash flows. This method provides a more precise measurement of interest costs by improving the correlation between projected cash flows to the corresponding spot yield curve rates. Net Periodic Pension Cost The following table details the other components of net periodic pension cost for the Company's pension plans:
| Years Ended December 31,
(in thousands) | 2021 |  | 2020 |  | 2019
Interest cost | $ | 10,469 |  |  | $ | 13,949 |  |  | $ | 22,146 |
Expected return on assets | (11,560) |  |  | (16,027) |  |  | (15,044) |
Settlement (gain)/loss | (374) |  |  | 819 |  |  | 693 |
Remeasurement (gain)/loss | (13,364) |  |  | 43,495 |  |  | 45,366 |
Net periodic pension (benefit) cost | $ | (14,829) |  |  | $ | 42,236 |  |  | $ | 53,161 |
Since all pension plans are frozen and no employees accrue future pension benefits under any of the pension plans, the rate of compensation increase assumption is no longer applicable. The Company determines the weighted-average discount rate by applying a yield curve comprised of the yields on several hundred high-quality, fixed income corporate bonds available on the measurement date to expected future benefit cash flows. The following table sets forth the weighted-average assumptions used for determining the Company's net periodic pension cost:
| Years Ended December 31,
| 2021 |  | 2020 |  | 2019
Pension benefit obligations discount rate | 2.39 | % |  | 3.16 | % |  | 4.30 | %
Interest cost discount rate | 1.71 | % |  | 2.74 | % |  | 3.93 | %
Expected return on plan assets, net of administrative expenses | 2.69 | % |  | 3.73 | % |  | 3.68 | %
Rate of compensation expense increase | N/A |  | N/A |  | N/A
The following table sets forth the weighted-average assumptions used for determining the Company's pension benefit obligations:
| Years Ended December 31,
| 2021 |  | 2020
Pension benefit obligations discount rate | 2.77 | % |  | 2.39 | %
Rate of compensation increase | N/A |  | N/A
Interest crediting rate | 3.01 | % |  | 3.00 | %
Pension Benefit Obligations and Plan Assets The following table summarizes the benefit obligations, plan assets, and funded status associated with the Company's pension and benefit plan:
(in thousands) | 2021 |  | 2020
Change in Benefit Obligations |  |  |
Balance as of January 1 | $ | 636,497 |  |  | $ | 643,961 |
Interest cost | 10,469 |  |  | 13,949 |
Actuarial (gain) loss, net | (12,565) |  |  | 63,164 |
Benefits paid | (42,434) |  |  | (66,746) |
Annuity purchase | — |  |  | (17,831) |
Balance as of December 31 | $ | 591,967 |  |  | $ | 636,497 |
Change in Plan Assets |  |  |
Balance as of January 1 | $ | 444,228 |  |  | $ | 449,019 |
Plan contributions | 36,185 |  |  | 44,908 |
Actual return on plan assets, net of administrative expenses | 12,734 |  |  | 34,878 |
Benefits paid | (42,434) |  |  | (66,746) |
Annuity purchase | — |  |  | (17,831) |
Balance as of December 31 | $ | 450,713 |  |  | $ | 444,228 |
Funded Status as of December 31 (plan assets less benefit obligations) | $ | (141,254) |  |  | $ | (192,269) |
The accumulated obligations for all defined pension plans was $592.0 million and $636.5 million as of December 31, 2021 and 2020, respectively. The following table sets forth cash contributions made by the Company to its qualified and non-qualified plans during the years ended December 31, 2021, 2020 and 2019:
| Years Ended December 31,
(in thousands) | 2021 |  | 2020 |  | 2019
Qualified plans | $ | 35,000 |  |  | $ | 43,875 |  |  | $ | 29,635 |
Non-qualified plans | 1,176 |  |  | 1,034 |  |  | 734 |
For fiscal year 2022, the Company expects to contribute approximately $25.0 million to the qualified plans and approximately $1.1 million to the non-qualified plans. The net actuarial gain in the benefit obligations of $13.7 million for the year ended December 31, 2021 was a result of gains attributable to increasing discount rates due to changes in the corporate bond markets and actual asset performance exceeding expectations, partially offset by losses attributable to economic and demographic assumption updates and plan experience different than expected. The following table sets forth the amounts associated with pension plans recognized within Pension obligations, net on the Company's consolidated balance sheets:
(in thousands) | December 31, 2021 |  | December 31, 2020
Current liabilities | $ | (1,087) |  |  | $ | (1,442) |
Long-term liabilities | (140,167) |  | (190,827)
Total pension liability as of December 31 | $ | (141,254) |  |  | $ | (192,269) |
The following table sets forth the amounts associated with the Company's pension plans that have accumulated pension obligations greater than plan assets (underfunded):
(in thousands) | December 31, 2021 |  | December 31, 2020
Accumulated benefit obligations | $ | 591,967 |  |  | $ | 636,497 |
Projected benefit obligations | 591,967 |  |  | 636,497 |
Plan assets | $ | 450,713 |  |  | $ | 444,228 |
Expected Cash Flows The following table sets forth the Company's expected future pension benefit payments:
(in thousands) | Expected Future Pension Benefit Payments
2022 | $ | 52,312
2023 | 42,725
2024 | 40,738
2025 | 40,617
2026 | 39,854
2027 to 2031 | 176,245
Pension Plan Assets The Company's overall investment strategy is to achieve a mix of assets, allowing it to meet projected benefits payments while taking into consideration expected levels of risk and return. Depending on perceived market pricing and various other factors, both active and passive approaches are utilized. The following tables set forth the fair values of the Company's pension plan assets by asset category:
| December 31, 2021
(in thousands) | Total |  | Level 1 (Quoted Market Prices in Active Markets) |  | Level 2 (Significant Observable Input) |  | Level 3 (Unobservable Inputs)
Cash and cash equivalents | $ | 10,687 |  |  | $ | 10,687 |  |  | $ | — |  |  | $ | — |
Equity funds | 92,689 |  |  | 92,689 |  |  | — |  |  | — |
U.S. treasuries and agencies | 41,535 |  |  | — |  |  | 41,535 |  |  | — |
Corporate bond funds | 184,034 |  |  | 184,034 |  |  | — |  |  | — |
Total | $ | 328,945 |  |  | $ | 287,410 |  |  | $ | 41,535 |  |  | $ | — |
Hedge funds-investments measured at net asset value (“NAV”) as a practical expedient | 121,768 |  |  |  |  |  |  |
Total plan assets | $ | 450,713 |  |  |  |  |  |  |
| December 31, 2020
| Total |  | Level 1 (Quoted Market Prices in Active Markets) |  | Level 2 (Significant Observable Input) |  | Level 3 (Unobservable Inputs)
Cash and cash equivalents | $ | 17,831 |  |  | $ | 17,831 |  |  | $ | — |  |  | $ | — |
Equity funds | 88,118 |  |  | 88,118 |  |  | — |  |  | — |
U.S. treasuries and agencies | 35,797 |  |  | — |  |  | 35,797 |  |  | — |
Corporate bond funds | 170,552 |  |  | 170,552 |  |  | — |  |  | — |
Total | $ | 312,298 |  |  | $ | 276,501 |  |  | $ | 35,797 |  |  | $ | — |
Hedge funds-investments measured at NAV as a practical expedient | 131,930 |  |  |  |  |  |  |
Total plan assets | $ | 444,228 |  |  |  |  |  |  |
Cash and cash equivalents are comprised of cash and high-grade money market instruments with short-term maturities. Equity funds are mutual funds invested in equity securities. U.S. treasuries and agencies are fixed income investments in U.S. government or agency securities. Corporate bonds are mutual fund investments in corporate debt. Hedge funds are private investment vehicles that use a variety of investment strategies with the objective of providing positive total returns regardless of market performance. Pension Plan Hedge Fund Investments The Company's hedge fund investments are made through limited partnership interests in various hedge funds that employ different trading strategies. Examples of strategies followed by hedge funds include directional strategies, relative value strategies and event driven strategies. A directional strategy entails taking a net long or short position in a market. Relative value seeks to take advantage of mis-pricing between two related and often correlated securities with the expectation that the pricing discrepancy will be resolved over time. Relative value strategies typically involve buying and selling related securities. An event driven strategy uses different investment approaches to profit from reactions to various events. Typically, events can include acquisitions, divestitures or restructurings that are expected to affect individual companies and may include long and short positions in common and preferred stocks, as well as debt securities and options. The Company has no unfunded commitments to these investments and has redemption rights with respect to its investments that range up to three years. As of December 31, 2021 and 2020, no single hedge fund accounted for more than 3% of total pension plan assets. The Company uses NAV to determine the fair value of all the underlying investments which do not have a readily determinable fair market value, and either have the attributes of an investment company or prepare their financial statements consistent with the measurement principles of an investment company. As of December 31, 2021 and 2020, the Company used NAV to value its hedge fund investments. The following table sets forth the weighted asset allocation percentages for the pension plans by asset category:
| December 31,
| 2021 |  | 2020
Cash and cash equivalents | 2.4 | % |  | 4.0 | %
U.S. treasuries and agencies, corporate bond funds, and other fixed income | 50.0 | % |  | 46.4 | %
Equity funds | 20.6 | % |  | 19.9 | %
Hedge funds | 27.0 | % |  | 29.7 | %
Total | 100.0 | % |  | 100.0 | %
Prospective Pension Plan Investment Strategy The Company uses a liability driven investment (“LDI”) strategy, and as part of the strategy, the Company may invest in hedge fund investments, fixed income investments, equity investments and will hold an adequate amount of cash and cash equivalents to meet daily pension obligations. Expected Rate of Return for Pension Assets The expected rate of return for the pension assets represents the average rate of return to be earned on plan assets over the period the benefits are expected to be paid. The expected rate of return on the plan assets is developed from the expected future return on each asset class, weighted by the expected allocation of pension assets to that asset class. Historical performance is considered for the types of assets in which the plan invests. Independent market forecasts and economic and capital market considerations are also utilized. For 2022, the expected rates of return, net of administrative expenses, for the Consolidated Pension Plan of Dex Media and the YP Pension Plan are 3.0% and 4.0%, respectively, with a weighted-average expected rate of return of 3.2%. In 2021, the actual rates of return on assets for the Consolidated Pension Plan of Dex Media and the YP Pension Plan were 2.4% and 5.1%, respectively. In 2020, the actual rates of return on assets for the Consolidated Pension Plan of Dex Media and the YP Pension Plan were 7.4% and 11.1%, respectively. Savings Plan Benefits The Company sponsors a defined contribution savings plan to provide opportunities for eligible employees to save for retirement. Substantially all of the Company's employees are eligible to participate in the plan. Participant contributions may be made on a pre-tax, after-tax, or Roth basis. Under the plan, a certain percentage of eligible employee contributions are matched with Company cash contributions that are allocated to the participants' current investment elections. The Company recognizes its contributions as savings plan expense based on its matching obligation to participating employees. For the years ended December 31, 2021, 2020 and 2019, the Company recorded total savings plan expense of $7.7 million, $3.0 million, and $10.8 million, respectively. The decline in savings plan expense for year ended December 31, 2020 was due to the Company's suspension of the employee matching program in April 2020 as part of managing costs in response to the COVID-19 pandemic.

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