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Defined Benefit Plan
 12 Months Ended
Dec. 31, 2023
Postemployment Benefits [Abstract]  
Compensation and Employee Benefit Plans [Text Block] Defined Benefit Plan
In connection with the acquisition of Arnold, the Company has a defined benefit plan covering substantially all of Arnold’s employees at its Lupfig, Switzerland location. The benefits are based on years of service and the employees’ highest average compensation during the specific period.
The following table sets forth the plan’s funded status and amounts recognized in the Company’s consolidated balance sheets at December 31, 2023 and 2022:
December 31,
(in thousands)
20232022
Change in benefit obligation:
Benefit obligation, beginning of year$10,649 $12,311 
Service cost369 432 
Interest cost257 42 
Actuarial (gain)/loss1,090 (1,792)
Plan amendment(67)(73)
Employee contributions and transfer444 349 
Benefits paid1,037 74 
Settlement(1,139)(518)
Foreign currency translation1,207 (176)
Benefit obligation$13,847 $10,649 
Change in plan assets:
Fair value of assets, beginning of period$9,521 $9,449 
Actual return on plan assets90 (122)
Company contribution465 371 
Employee contributions and transfer444 349 
Benefits paid1,037 74 
Settlement(1,139)(518)
Foreign currency translation1,008 (82)
Fair value of assets11,426 9,521 
Funded status$(2,421)$(1,128)
The unfunded liability of $2.4 million and $1.1 million at December 31, 2023 and 2022, respectively, is recognized in the consolidated balance sheet within other non-current liabilities. Net periodic benefit cost consists of the following:
Year ended December 31,
(in thousands)
202320222021
Service cost$369 $432 $422 
Interest cost257 42 38 
Expected return on plan assets(184)(73)(73)
Amortization of unrecognized gain (loss)(37)(27)(12)
Effect of settlement(1)(40)— 
Effect of curtailment— — 111 
Net periodic benefit cost$404 $334 $486 
Assumptions used to determine the benefit obligations and components of the net periodic benefit cost at December 31, 2023 and 2022:
December 31,
20232022
Discount rate1.85 %2.25 %
Expected return on plan assets1.85 %2.25 %
Rate of compensation increase4.00 %4.00 %
The Company considers the historical level of long-term returns and the current level of expected long-term returns for the plan assets, as well as the current and expected allocation of assets when developing its expected long-term rate of return on assets assumption. The assumptions used for the plan are based upon customary rates and practices for the location of the Company.
Arnold expects to contribute approximately $0.6 million to the defined benefit plan in 2024.
The following presents the benefit payments which are expected to be paid for the plan in each year indicated (in thousands):
2024$595 
2025624 
2026782 
20271,088 
2028812 
Thereafter4,262 
$8,163 
Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and providing adequate liquidity to meet immediate and future benefit payment requirements.
The assets of the plan are reinsured in their entirety with Swiss Life Ltd. (“Swiss Life”) within the framework of the corresponding contracts with Swiss Life Collective BVG Foundation and Swiss Life Complementary Foundation. The assets are guaranteed by the insurance company and pooled with the assets of other participating employers. The allocation of pension plan assets by category in Swiss Life’s group life portfolio is as follows at December 31, 2023:
Fixed income bonds and securities60 %
Real estate24 %
Equities and investment funds14 %
Certificates of deposit and cash and cash equivalents1 %
Other investments1 %
100 %
The plan assets are pooled with assets of other participating employers and are not separable; therefore the fair values of the pension plan assets at December 31, 2023 and 2022 were considered Level 3.