Annual report pursuant to Section 13 and 15(d)

Benefit Plans

v3.24.0.1
Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Benefit Plans
20. Benefit Plans:
The Company sponsors two funded defined benefit pension plans that cover certain employees. Benefits for the plans are generally based on average final pay and years of service. The Company’s funding policy is to fund the minimum required contributions consistent with statutory requirements based on actuarial computations utilizing the projected unit credit method of calculation.
The Company sponsors an unfunded plan to provide health care benefits to certain retired employees. The plan pays a stated percentage of medical expenses reduced by deductibles and other coverage and obligations are paid out of the Company’s operations.
The Company uses a December 31 measurement date for all of its defined benefit pension and postretirement medical plans. Of the Company’s two defined benefit pension plans, the Eco Services Hourly Pension Plan was frozen to future accruals as of December 31, 2020, and the Eco Services Pension Equity Plan was frozen to future accruals as of December 31, 2016. The retiree healthcare plan was closed to new retirees effective July 1, 2017. The Company no longer has a defined benefit pension plan covering its employees at a foreign subsidiary, as the plan was converted to a defined contribution plan during the year ended December 31, 2021.
Defined Benefit Pension Plans
The following tables summarize changes in the benefit obligation, plan assets and funded status of the Company’s defined benefit pension plans as well as the components of net periodic benefit cost, including key assumptions:
December 31,
2023 2022
Change in benefit obligation:
Benefit obligation at beginning of period $ 66,879  $ 86,465 
Interest cost 3,453  2,569 
Plan settlements (2,543) (862)
Benefits paid (2,798) (2,552)
Actuarial losses/(gains) 1,565  (18,741)
Benefit obligation at end of the period 66,556  66,879 
Change in plan assets:
Fair value of plan assets at beginning of period $ 60,629  $ 82,914 
Actual return on plan assets 6,330  (18,871)
Plan settlements (2,543) (862)
Benefits paid (2,798) (2,552)
Fair value of plan assets at end of the period 61,618  60,629 
Funded status of the plans (underfunded) $ (4,938) $ (6,250)
The total actuarial losses for the year ended December 31, 2023 was $1,565, which was driven by decreases in the discount rates of $1,365 and declines in general demographic experience of $200. The total actuarial gains for the year ended December 31, 2022 was $18,741, which was driven by increases in the discount rates of $18,641 and increase in general demographic experience of $100.
Amounts recognized in the consolidated balance sheets consist of:
December 31,
2023 2022
Noncurrent liability $ (4,937) $ (6,250)
Accumulated other comprehensive income (loss), net of tax 567  (509)
Net amount recognized $ (4,370) $ (6,759)
Amounts recognized in accumulated other comprehensive income (loss) consist of:
December 31,
2023 2022
Net (loss) gain $ 751  $ (1,039)
Gross amount recognized 751  (1,039)
Deferred income taxes (184) 530 
Net amount recognized $ 567  $ (509)
Components of net periodic benefit cost consist of:
U.S. Foreign
Years ended
December 31,		 Year ended
December 31,
2023 2022 2021 2021
Interest cost $ 3,453  $ 2,569  $ 2,210  $ 255 
Expected return on plan assets (3,305) (3,433) (4,360) (255)
Settlement loss (gain) recognized 61  38  (26) 2,084 
Net periodic expense (benefit) $ 209  $ (826) $ (2,176) $ 2,084 
All components of net periodic benefit cost other than service cost are presented within other expense (income), net in the Company’s consolidated statements of income.
Components of other changes in plan assets and benefit obligations recognized in other comprehensive income consists of:
December 31,
2023 2022
Net (gain) loss $ (1,461) $ 3,563 
Amortization or settlement recognition of net loss (61) (38)
Total recognized in other comprehensive (income) loss (1,522) 3,525 
Total recognized in net periodic benefit cost and other comprehensive (income) loss $ (1,313) $ 2,699 
The net amount of projected benefit obligation and plan assets for all underfunded plans was $4,938 and $6,250 as of December 31, 2023 and 2022, respectively, and was classified as noncurrent liabilities.
The following table presents selected information about the Company’s pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets:
December 31,
2023 2022
Projected benefit obligation $ 66,555  $ 66,879 
Accumulated benefit obligation 66,555  66,879 
Fair value of plan assets 61,618  60,629 
Significant weighted average assumptions used in determining the pension obligations include the following:
December 31,
2023 2022
Discount rate 5.17  % 5.40  %
Rate of compensation increase(1)
N/A N/A
Significant weighted average assumptions used in determining net periodic benefit cost include the following:
U.S. Foreign
Years ended
December 31,		 Year ended
December 31,
2023 2022 2021 2021
Discount rate 5.39  % 2.90  % 2.50  % 1.20  %
Expected return on assets 5.74  % 4.90  % 5.60  % 1.20  %
Rate of compensation increase(1)
N/A N/A N/A 1.75  %
(1)    Includes only plans not frozen to benefit accruals for the respective periods.
The discount rate was determined by utilizing a yield curve model. The model develops a spot rate curve based on the yields available from a broad-based universe of high quality corporate bonds. The discount rate is then set as the weighted average spot rate, using the respective plan’s expected benefit cash flows as the weights.
The investment objective for the plans is to generate returns sufficient to meet future obligations. The strategy to meet the objective includes generating attractive returns using higher returning assets such as equity securities and balancing risk using less volatile assets such as fixed income securities. The plans invest in an allocation of assets across the two broadly-defined financial asset categories of equity and fixed income securities. The target allocations for the plan assets across the two U.S. plans are as follows: 35% equity securities and 65% fixed income investments for the Eco Services Pension Equity Plan; and 30% equity securities and 70% fixed income investments for the Eco Services Hourly Pension Plan.
The Company classifies plan assets based upon a fair value hierarchy where each asset within the hierarchy is based on the lowest level input that is significant to its measurement. The fair value hierarchy consists of three levels as follows:
•Level 1—Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets. Level 1 assets primarily include investments in publicly traded equity securities and mutual funds. These securities (or the underlying investments of the funds) are actively traded and valued using quoted prices for identical securities from the market exchanges.
•Level 2—Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities,
spreads and yield curves. Level 2 assets primarily consist of fixed-income securities and commingled funds that are not actively traded or whose underlying investments are valued using observable marketplace inputs. The fair value of plan assets invested in fixed-income securities is generally determined using valuation models that use observable inputs such as interest rates, bond yields, low-volume market quotes and quoted prices for similar assets. Plan assets that are invested in commingled funds are valued using a unit price or net asset value (“NAV”) that is based on the underlying investments of the fund.
•Level 3—Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. Level 3 assets include investments covered by insurance contracts and real estate funds valued using significant unobservable inputs.
The following tables set forth by level, within the fair value hierarchy, plan assets at fair value:
December 31, 2023
Total Level 1 Level 2 Level 3
Cash and cash equivalents $ 264  $ 264  $ —  $ — 
Equity securities:
U.S. investment funds 11,539  11,539  —  — 
International investment funds 7,546  7,546  —  — 
Fixed income securities:
Government securities 11,691  11,691  —  — 
Corporate bonds 30,578  30,578  —  — 
Total $ 61,618  $ 61,618  $ —  $ — 
December 31, 2022
Total Level 1 Level 2 Level 3
Cash and cash equivalents $ 244  $ 244  $ —  $ — 
Equity securities:
U.S. investment funds 11,435  11,435  —  — 
International investment funds 7,803  7,803  —  — 
Fixed income securities:
Government securities 16,209  16,209  —  — 
Corporate bonds 24,938  24,938  —  — 
Total $ 60,629  $ 60,629  $ —  $ — 
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Year Amount
2024 $ 8,156 
2025 4,434 
2026 4,505 
2027 4,523 
2028 4,714 
Years 2029-2033 22,815 
The Company expects to contribute $1,680 to its pension plans in 2024.

Other Postretirement Benefit Plan
The following tables summarize changes in the benefit obligation, plan assets and funded status of the Company’s other postretirement benefit plan as well as the components of net periodic benefit cost, including key assumptions:
December 31,
2023 2022
Change in benefit obligation:
Benefit obligation at beginning of period $ 446  $ 624 
Interest cost 24  18 
Benefits paid (1) (1)
Premiums paid (3) (3)
Actuarial loss/(gain) 9  (192)
Benefit obligation at end of period 475  446 
Change in plan assets:
Employer contributions $ 4  $ 4 
Benefits paid (1) (1)
Premiums paid (3) (3)
Fair value of plan assets at end of period —  — 
Funded status of the plan (underfunded) $ (475) $ (446)
The actuarial loss for the year ended December 31, 2023 was $9, which was driven by decreases in the discount rates. The actuarial gain for the year ended December 31, 2022 was $192, which was driven by increases in the discount rates.
Amounts recognized in the consolidated balance sheets consist of:
December 31,
2023 2022
Current liability $ (18) $ (18)
Noncurrent liability (457) (428)
Accumulated other comprehensive income (loss), net of tax 79  (299)
Net amount recognized $ (396) $ (745)
Amounts recognized in accumulated other comprehensive income consist of:
December 31,
2023 2022
Prior service credit $ 30  $ 154 
Net gain (loss) 75  80 
Gross amount recognized 105  234 
Deferred income taxes (26) (533)
Net amount recognized $ 79  $ (299)
Components of net periodic benefit cost consist of:
Years ended
December 31,
2023 2022 2021
Interest cost $ 24  $ 18  $ 17 
Amortization of prior service credit (125) (210) (232)
Amortization of net (gain) loss (2) 3  5 
Net periodic benefit $ (103) $ (189) $ (210)
All components of net periodic benefit cost other than service cost are presented within other expense (income), net in the Company’s consolidated statements of income.
Components of other changes in plan assets and benefit obligations recognized in other comprehensive income consists of:
December 31,
2023 2022
Net loss (gain) $ 9  $ (192)
Amortization of prior service credit 125  210 
Amortization or settlement recognition of net gain (loss) 2  (3)
Total recognized in other comprehensive income 136  15 
Total recognized in net periodic benefit cost and other comprehensive loss (income) $ 33  $ (174)
The discount rate used in determining the other postretirement benefit plan obligation was 5.20% and 5.50% as of December 31, 2023 and 2022, respectively. The discount rate used in determining net periodic benefit cost was 5.50%, 2.90% and 2.60% for the years ended December 31, 2023, 2022 and 2021, respectively. There was no rate of interest crediting rate, as there are no cash balance accounts associated with this plan.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:
Year Amount
2024 $ 19 
2025 20 
2026 21 
2027 23 
2028 24 
Years 2028-2032 150 
The Company expects to contribute $18 to the retiree health plan in 2024. There are no expected Medicare subsidy receipts expected in future periods.
Defined Contribution Plans
The Company also has defined contribution plans covering domestic employees of the Company and a foreign subsidiary. The Company recorded expenses of $7,015, $7,113 and $7,097 related to these plans for the years ended December 31, 2023, 2022 and 2021, respectively.