Note H — Employee Benefit Plans

Prior to

January

1999,

we provided a defined benefit pension plan for which most of our employees were eligible to participate (the “Qualified Pension Plan”). In conjunction with significant enhancements to our

401

(k) plan, we elected to freeze benefits under the Qualified Pension Plan as of

December

31,

1998.

1994,

we adopted a non-qualified, unfunded, supplemental pension plan (the “Restoration Pension Plan”) covering certain employees, which provides for incremental pension payments so that total pension payments equal those amounts that would have been payable from the principal pension plan were it

not

for limitations imposed by income tax regulation. The benefits under the Restoration Pension Plan were intended to provide benefits equivalent to our Qualified Pension Plan as if such plan had

not

been frozen. We elected to freeze benefits under the Restoration Pension Plan as of

April

2014.

At the end of

2020,

the Board of Directors of the Company approved the division of the Qualified Pension Plan into

two

distinct plans, “Qualified Pension Plan I” and “Qualified Pension Plan II.” The assets and liabilities of the Qualified Pension Plan that were attributable to certain participants in Qualified Pension Plan II were spun off and transferred into Qualified Pension Plan II effective as of the end of

December 31, 2020,

in accordance with Internal Revenue Code section

414

(I) and ERISA Section

4044.

The overfunded or underfunded status of our defined benefit post-retirement plans is recorded as an asset or liability on our balance sheet. The funded status is measured as the difference between the fair value of plan assets and the projected benefit obligation. Periodic changes in the funded status are recognized through other comprehensive income (loss). We currently measure the funded status of our defined benefit plans as of

December

31,

the date of our year-end consolidated balance sheets.

The status of the defined benefit pension plans at year-end was as follows:

	Year Ended December 31,
In thousands	2020			2019
Change in benefit obligation
Benefit obligation at beginning of year	$	189,807		$	171,761
Interest cost		5,894			7,254
Actuarial loss		13,380			21,174
Benefits paid		(10,495	)		(10,382	)
Benefit obligation at end of year	$	198,586		$	189,807

Change in plan assets
Fair value of plan assets at beginning of year	$	118,092		$	107,862
Actual return on plan assets		11,014			16,742
Contributions		10,737			3,870
Benefits paid		(10,495	)		(10,382	)
Fair value of plan assets at end of year	$	129,348		$	118,092
					\
Funded status at end of year	$	(69,238	)	$	(71,715	)

The following amounts have been recognized in the Consolidated Balance Sheets at

December

31:

In thousands	2020		2019
Other current liabilities	$	1,748	$	1,715
Pensions		67,490		70,000
Total	$	69,238	$	71,715

The following amounts have been recognized in accumulated other comprehensive loss, net of tax, at

December

31:

In thousands		2020				2019
Net loss		$	68,544			$	63,887

Based on current estimates, we will be required to make

$1.8

million and

$2.2

million contributions to our Qualified Pension Plan I and Qualified Pension Plan II, respectively, in

2021.

We are

not

required to make and do

not

intend to make any contributions to our Restoration Pension Plan in

2021

other than to the extent needed to cover benefit payments. We made benefit payments under this supplemental plan of

$1.7

million in

2020.

The following information is presented for pension plans with an accumulated benefit obligation in excess of plan assets:

In thousands	2020		2019
Projected benefit obligation	$	198,586	$	189,807
Accumulated benefit obligation	$	198,586	$	189,807
Fair value of plan assets	$	129,348	$	118,092

The Restoration Pension Plan had an accumulated benefit obligation of

$28.7

million and

$27.6

million at

December 31, 2020

and

2019

, respectively.

The following table presents the components of net periodic benefit cost and other amounts recognized in other comprehensive loss for both plans:

	Year Ended December 31,
In thousands	2020			2019
Net Periodic Benefit Cost (Pre-Tax)
Interest cost	$	5,894		$	7,254
Expected return on plan assets		(5,538	)		(4,446	)
Recognized actuarial loss		3,247			2,930
Net periodic benefit cost		3,603			5,738

Amounts Recognized in Other Comprehensive Loss (Pre-Tax)
Net loss		4,657			5,948

Net cost recognized in net periodic benefit cost and other comprehensive loss	$	8,260		$	11,686

The components of net periodic benefit costs other than the service cost component are included in Other, net in our Consolidated Statement of Comprehensive Loss. The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in

2021

$3.5

million. The period over which the net loss from the Qualified Pension Plan is amortized into net periodic benefit cost was the average future lifetime of all participants (approximately

17.3

years for Qualified Pension Plan I and approximately

27.0

years for Qualified Pension Plan II ). The Qualified Pension Plan is frozen and almost all of the plan's participants are

not

active employees.

The weighted-average assumptions used for measurement of the defined pension plans were as follows:

	Year Ended December 31,
	2020			2019
Weighted-average assumptions used to determine net periodic benefit cost
Discount rate
Qualified Plan I		3.20	%		4.35	%
Qualified Plan II		n/a			n/a
Restoration Plan		3.14	%		4.30	%

Expected return on plan assets
Qualified Plan I		4.75	%		4.25	%
Qualified Plan II		n/a			n/a
Restoration Plan		n/a			n/a

	December 31,
	2020			2019
Weighted-average assumptions used to determine benefit obligations
Discount rate
Qualified Plan I		2.37	%		3.20	%
Qualified Plan II		2.61	%		n/a
Restoration Plan		2.34	%		3.14	%

The discount rate assumptions are based on current yields of investment-grade corporate long-term bonds. The expected long-term return on plan assets is based on the expected future average annual return for each major asset class within the plan's portfolio (which is principally comprised of equity investments) over a long-term horizon. In determining the expected long-term rate of return on plan assets, we evaluated input from our investment consultants, actuaries, and investment management firms, including their review of asset class return expectations, as well as long-term historical asset class returns. Projected returns by such consultants and economists are based on broad equity and bond indices. Additionally, we considered our historical

-year compounded returns, which have been in excess of the forward-looking return expectations.

The funded pension plan assets as of

December 31, 2020

and

2019

, by asset category, are as follows:

In thousands	2020		%			2019		%
Equity securities	$	79,906		62	%	$	68,563		58	%
Debt securities		34,307		26	%		43,622		37	%
Other		15,135		12	%		5,907		5	%
Total plan assets	$	129,348		100	%	$	118,092		100	%

The fair values presented have been prepared using values and information available as of

December 31, 2020

and

2019

The following tables present the fair value measurements of the assets in our funded pension plan:

					Significant
			Quoted Prices		Other		Significant
			in Active Markets for		Observable		Unobservable
	December 31,		Identical Assets		Inputs		Inputs
In thousands	2020		(Level 1)		(Level 2)		(Level 3)
Equity securities	$	79,906	$	79,906	$	—	$	—
Debt securities		34,307		26,733		7,574		—
Total investments, excluding investments valued at NAV		114,213		106,639		7,574		—
Investments valued at NAV (1)		15,135		—		—		—
Total plan assets	$	129,348	$	106,639	$	7,574	$	—

					Significant
			Quoted Prices		Other		Significant
			in Active Markets for		Observable		Unobservable
	December 31,		Identical Assets		Inputs		Inputs
In thousands	2019		(Level 1)		(Level 2)		(Level 3)
Equity securities	$	68,563	$	68,563	$	—	$	—
Debt securities		43,622		39,380		4,242		—
Total investments, excluding investments valued at NAV		112,185		107,943		4,242		—
Investments valued at NAV (1)		5,907		—		—		—
Total plan assets	$	118,092	$	107,943	$	4,242	$	—

(

) Investment valued at NAV are comprised of cash, cash equivalents, and short-term investments used to provide liquidity for the payment of benefits and other purposes.

The commingled funds are valued at NAV based on the market value of the underlying investments, which are primarily government issued securities.

The investment policy for the Qualified Pension Plan focuses on the preservation and enhancement of the corpus of the plan's assets through prudent asset allocation, quarterly monitoring and evaluation of investment results, and periodic meetings with investment managers.

The investment policy's goals and objectives are to meet or exceed the representative indices over a full market cycle (

years). The policy establishes the following investment mix, which is intended to subject the principal to an acceptable level of volatility while still meeting the desired return objectives:

	Target			Acceptable Range	Benchmark Index
Equities		64	%	54% - 74%
U.S. Large Cap		23	%	18% - 28%	Russell 1000 TR
U.S. Mid Cap		15	%	10% - 20%	Russell Mid Cap Index TR
U.S. Small Cap		8	%	4% - 12%	Russell 2000 TR
International - Developed		13	%	8% - 25%	MSCI EAFE Net TR USD Index
Emerging Markets		5	%	0% - 8%	MSCI Emerging Net Total Return
Fixed Income		34	%	24% - 44%
Investment Grade		34	%	24% - 44%	BBG BARC US Aggregate Bond Index
Cash Equivalent		2	%	0% - 40%	ICE BofA US 3-Month Treasury Bill Index TR

The funded pension plan provides for investment in various investment types. Investments, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility risk. Due to the level of risk associated with investments, it is reasonably possible that changes in the value of investments will occur in the near term and

may

impact the funded status of the plan. To address the issue of risk, the investment policy places high priority on the preservation of the value of capital (in real terms) over a market cycle. Investments are made in companies with a minimum

five

-year operating history and sufficient trading volume to facilitate, under most market conditions, prompt sale without severe market effect. Investments are diversified across numerous market sectors and individual companies. Reasonable concentration in any

one

issue, issuer, industry, or geographic area is allowed if the potential reward is worth the risk.

Investment managers are evaluated by the performance of the representative indices over a full market cycle for each class of assets. The Pension Plan Committee reviews, on a quarterly basis, the investment portfolio of each manager, which includes rates of return, performance comparisons with the most appropriate indices, and comparisons of each manager's performance with a universe of other portfolio managers that employ the same investment style.

The expected future benefit payments for both pension plans over the next

ten

years as of

December 31, 2020

are as follows:

In thousands
2021	$	10,796
2022		11,033
2023		11,243
2024		11,323
2025		11,365
2026 - 2030		57,567
Total	$	113,327

The Company also has

two

pension plans in its foreign jurisdictions, the associated pension liabilities are

not

material.

We also sponsored a

401

(k) - retirement plan in which we matched a portion of employees' voluntary before-tax contributions prior to

2018.

Under this plan, both employee and matching contributions vest immediately. We stopped this

401

(k) match program in

2018.