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Pension and Profit Sharing | 12 Months Ended
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Dec. 31, 2019
Compensation And Retirement Disclosure [Abstract] |
Pension and Profit Sharing | 6. Pension and Profit Sharing United States employees, hired prior to July 1, 1993, are covered by a funded, defined benefit pension plan. The benefits of this pension plan are based on years of service and the average compensation of the highest three consecutive years during the last ten years of employment. In December 1995, the Company's Board of Directors approved an amendment to the United States pension plan that terminated all future benefit accruals as of February 1, 1996, without terminating the pension plan. The Company’s funding policy with respect to its qualified plan is to contribute at least the minimum amount required by applicable laws and regulations. In 2019, the Company contributed $14,413 to the plan. The plan asset weighted average allocation at December 31, 2019 and December 31, 2018, by asset category, were as follows:
Asset Category: |  | 2019 |  |  | 2018 |
Equity Securities |  |  | 66 | % |  |  | 65 | %
Fixed Income Securities |  |  | 32 | % |  |  | 33 | %
Other Securities / Investments |  |  | 2 | % |  |  | 2 | %
Total: |  |  | 100 | % |  |  | 100 | %
The Company’s investment policy for the pension plan is to minimize risk by balancing investments between equity securities and fixed income securities. Plan funds are invested in long-term obligations with a history of moderate to low risk. The pension plan asset information included below is presented at fair value. ASC 820 establishes a framework for measuring fair value and requires disclosures about assets and liabilities measured at fair value. The fair value hierarchy prioritizes the inputs to valuation techniques used to measure fair value into three levels as follows:
| • | Level 1 – Inputs to the valuation methodology based on unadjusted quoted market prices in active markets that are accessible at the measurement date.
| • | Level 2 – Inputs to the valuation methodology that include quoted market prices that are not considered to be active or financial instruments for which all significant inputs are observable, either directly or indirectly.
| • | Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.
The following tables present the pension plan assets by level within the fair value hierarchy as of December 31, 2019 and 2018:
2019 |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Money Market Fund |  | $ | 31 |  |  | $ | 16,763 |  |  | $ | — |  |  | $ | 16,794 |
Equity Common and Collected Funds |  |  | 102,030 |  |  |  | 580,839 |  |  |  | — |  |  |  | 682,869 |
Fixed Income Common and Collected Funds |  |  | 82,670 |  |  |  | 246,316 |  |  |  | — |  |  |  | 328,986 |
Total: |  | $ | 184,731 |  |  | $ | 843,918 |  |  | $ | — |  |  | $ | 1,028,649 |
2018 |  | Level 1 |  |  | Level 2 |  |  | Level 3 |  |  | Total |
Money Market Fund |  | $ | 4 |  |  | $ | 17,320 |  |  | $ | — |  |  | $ | 17,324 |
Equity Common and Collected Funds |  |  | 99,616 |  |  |  | 564,371 |  |  |  | — |  |  |  | 663,957 |
Fixed Income Common and Collected Funds |  |  | 83,211 |  |  |  | 249,309 |  |  |  | — |  |  |  | 332,520 |
Total: |  | $ | 182,831 |  |  | $ | 831,000 |  |  | $ | — |  |  | $ | 1,013,831 |
Other disclosures related to the pension plan follow:
|  | 2019 |  |  | 2018 |
Assumptions used to determine benefit obligation: |  |  |  |  |  |  |  |
Discount rate |  |  | 2.74 | % |  |  | 3.87 | %
Changes in benefit obligation: |  |  |  |  |  |  |  |
Benefit obligation at beginning of year |  | $ | (1,160,930 | ) |  | $ | (1,362,867 | )
Interest cost |  |  | (41,841 | ) |  |  | (39,851 | )
Service cost |  |  | (25,000 | ) |  |  | (33,000 | )
Actuarial (loss) gain |  |  | (46,288 | ) |  |  | 71,338 |
Benefits and plan expenses paid |  |  | 200,743 |  |  |  | 203,450 |
Benefit obligation at end of year: |  | $ | (1,073,316 | ) |  | $ | (1,160,930 | )
Changes in plan assets: |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  | $ | 1,013,831 |  |  | $ | 1,249,825 |
Actual return on plan assets |  |  | 201,148 |  |  |  | (57,651 | )
Employer contribution |  |  | 14,413 |  |  |  | 25,107 |
Benefits and plan expenses paid |  |  | (200,743 | ) |  |  | (203,450 | )
Fair value of plan assets at end of year |  |  | 1,028,649 |  |  |  | 1,013,831 |
Funded status: |  | $ | (44,667 | ) |  | $ | (147,099 | )
Amounts recognized in accumulated other comprehensive income: |  |  |  |  |  |  |  |
Net actuarial loss |  | $ | 689,398 |  |  | $ | 880,370 |
Prior service cost |  |  | 538 |  |  |  | 1,082 |
Total: |  | $ | 689,936 |  |  | $ | 881,452 |
Accrued benefits costs are included in other accrued liabilities (non-current).
|  |  | 2019 |  |  |  | 2018 |
Assumptions used to determine net periodic benefit cost: |  |  |  |  |  |  |  |
Discount rate |  |  | 3.87 | % |  |  | 3.14 | %
Expected return on plan assets |  |  | 6.00 | % |  |  | 6.00 | %
Components of net benefit expense: |  |  |  |  |  |  |  |
Service cost |  | $ | 25,000 |  |  | $ | 33,000 |
Interest cost |  |  | 41,841 |  |  |  | 39,851 |
Expected return on plan assets |  |  | (54,330 | ) |  |  | (67,547 | )
Amortization of prior service costs |  |  | 544 |  |  |  | 543 |
Amortization of actuarial loss |  |  | 90,442 |  |  |  | 87,360 |
|  |  | 78,497 |  |  |  | 60,207 |
Net periodic benefit cost: |  | $ | 103,497 |  |  | $ | 93,207 |
The Company employs a building block approach in determining the long-term rate of return for plan assets. Historical markets are studied and long-term historical relationships between equity securities and fixed income securities are preserved consistent with the widely-accepted capital market principle that assets with higher volatility generate higher returns over the long run. Our expected 6% long-term rate of return on plan assets is determined based on long-term historical performance of plan assets, current asset allocation and projected long-term rates of return. The following table discloses the change recorded in other comprehensive income related to benefit costs:
|  |  | 2019 |  |  |  | 2018 |
Balance at beginning of the year |  | $ | 881,452 |  |  | $ | 915,495 |
Change in net loss |  |  | (100,530 | ) |  |  | 53,860 |
Amortization of actuarial loss |  |  | (90,442 | ) |  |  | (87,360 | )
Amortization of prior service cost |  |  | (544 | ) |  |  | (543 | )
Change recognized in other comprehensive income |  |  | (191,516 | ) |  |  | (34,043 | )
Total recognized in other comprehensive income |  | $ | 689,936 |  |  | $ | 881,452 |
The Company anticipates that in 2020, net periodic benefit cost will include approximately $74,720 of net actuarial loss and $543 of prior service cost. The following benefits are expected to be paid:
2020 |  | $ | 152,000 |
2021 |  |  | 135,000 |
2022 |  |  | 120,000 |
2023 |  |  | 106,000 |
2024 |  |  | 95,000 |
Years 2025 - 2029 |  |  | 332,000 |
The Company also has a qualified, 401k plan covering substantially all of its United States employees. Annual Company contributions to this plan are determined by the Company’s Compensation Committee. For the years ended December 31, 2019 and 2018, the Company contributed 50% of employee’s contributions, up to the first 6% contributed by each employee. Total contribution expense under this 401k plan was $309,922 in 2019 and $271,541 in 2018.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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