Pension and Postretirement Benefits | Note 19. Pension and Postretirement Benefits Domestic Plans We have frozen defined benefit pension plans held in trust for certain employees which we funded. We also maintain certain unfunded defined benefit pension plans, which provide supplemental benefits to select management employees. These plans use traditional defined benefit formulas based on years of service and final average compensation. Funding policies provide that payments to defined benefit pension trusts shall be at least equal to the minimum funding required by applicable regulations. We also have certain defined benefit postretirement plans that provide medical and life insurance for certain eligible employees, retirees, and dependents. The related postretirement benefit liabilities are recognized over the period that services are provided by employees. In addition, we retained the obligations for these benefits for retirees of certain sold businesses. While the plans have no funding requirements, we typically fund the plans. The components of net periodic benefit cost and other amounts of our pension plans recognized in other comprehensive income (loss) consist of the following: December 31, (in thousands) 2023 2022 2021 Net periodic benefit cost: Interest cost $ 845 $ 478 $ 419 Expected return on plan assets ( 126 ) 93 ( 47 ) Amortization of prior service credit ( 38 ) — — Recognized net actuarial loss 291 444 623 Net periodic benefit cost 972 1,015 995 Other changes in plan assets and benefit obligations recognized in other Net actuarial (gain) loss 198 ( 3,409 ) ( 883 ) Reversal of amortization item: Prior service credit (cost) 38 ( 518 ) — Net actuarial loss ( 291 ) ( 444 ) ( 623 ) Total recognized in other comprehensive income ( 55 ) ( 4,371 ) ( 1,506 ) Total recognized in net periodic benefit cost and other $ 917 $ ( 3,356 ) $ ( 511 ) The components of net periodic benefit cost and other amounts of our postretirement benefit plans recognized in other comprehensive income (loss) consist of the following: December 31, (in thousands) 2023 2022 2021 Net periodic benefit cost: Service cost $ 21 $ 34 $ 70 Interest cost 347 179 181 Amortization of prior service cost (credit) 114 89 ( 6 ) Recognized net actuarial (gain) loss ( 200 ) ( 152 ) 115 Net periodic benefit cost 282 150 360 Settlement income — — ( 65 ) Total expenses, net 282 150 295 Other changes in plan assets and benefit obligations recognized in other Net actuarial (gain) loss 125 ( 2,540 ) ( 642 ) Prior service credit — 509 — Reversal of amortization items: Net actuarial gain (loss) 200 152 ( 115 ) Prior service (cost) credit ( 114 ) ( 89 ) 6 Settlement income — — 65 Total recognized in other comprehensive income 211 ( 1,968 ) ( 686 ) Total recognized in net periodic benefit cost and other $ 493 $ ( 1,818 ) $ ( 391 ) The following table indicates the funded status of the plans as of December 31: Postretirement Funded Plans Unfunded Plans Benefit Plans (in thousands) 2023 2022 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 11,454 $ 15,191 $ 5,966 $ 9,170 $ 7,723 $ 10,134 Service cost — — — — 21 34 Interest cost 555 321 290 157 347 179 Plan amendments — ( 518 ) — — — 509 Actuarial adjustments 232 ( 2,621 ) 163 ( 2,815 ) 125 ( 2,540 ) Benefits paid ( 821 ) ( 919 ) ( 585 ) ( 546 ) ( 517 ) ( 593 ) Benefit obligation at end of year 11,420 11,454 5,834 5,966 7,699 7,723 Change in plan assets: Fair value of plan assets at beginning of year 9,110 11,647 — — — — Actual return on plan assets 323 ( 2,120 ) — — — — Company contributions 510 502 585 546 517 593 Benefits paid ( 821 ) ( 919 ) ( 585 ) ( 546 ) ( 517 ) ( 593 ) Fair value of plan assets at end of year 9,122 9,110 — — — — Funded status at end of year $ ( 2,298 ) $ ( 2,344 ) $ ( 5,834 ) $ ( 5,966 ) $ ( 7,699 ) $ ( 7,723 ) The net amounts recognized in the Consolidated Balance Sheets under the captions “Pension and postretirement benefits” and “Other Current Liabilities” as of December 31 are as follows: Postretirement Funded Plans Unfunded Plans Benefit Plans (in thousands) 2023 2022 2023 2022 2023 2022 Non-current assets $ — $ ( 205 ) $ — $ — $ — $ — Other current liabilities — — 566 570 659 687 Non-current liabilities 2,298 2,549 5,268 5,396 7,040 7,036 Net amount recognized $ 2,298 $ 2,344 $ 5,834 $ 5,966 $ 7,699 $ 7,723 Amounts recognized in AOCI as of December 31 are as follows: Postretirement Funded Plans Unfunded Plans Benefit Plans Total Total (in thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Net actuarial loss (gain) $ 6,695 $ 6,926 $ 400 $ 261 $ ( 764 ) $ ( 1,088 ) $ 6,331 $ 6,099 Prior service (credit) cost ( 480 ) ( 518 ) — — 500 613 20 95 Subtotal 6,215 6,408 400 261 ( 264 ) ( 475 ) 6,351 6,194 Less tax effect — — — — — — — — Total $ 6,215 $ 6,408 $ 400 $ 261 $ ( 264 ) $ ( 475 ) $ 6,351 $ 6,194 The fair value of the domestic plans’ assets by asset class are as follows: Fair Value Measurements at December 31, 2023 Quoted Prices Significant Significant (in thousands) Total (Level 1) (Level 2) (Level 3) Domestic pension plans: Fixed income securities $ 5,205 $ 5,205 $ — $ — Equity securities 3,094 3,094 — — Cash 823 823 — — Total $ 9,122 $ 9,122 $ — $ — Fair Value Measurements at December 31, 2022 Quoted Prices Significant Significant (in thousands) Total (Level 1) (Level 2) (Level 3) Domestic pension plans: Fixed income securities $ 5,452 $ 5,452 $ — $ — Equity securities 3,473 3,473 — — Cash 185 185 — — Total $ 9,110 $ 9,110 $ — $ — We employ a total return investment approach whereby a mix of equities and fixed income securities is used to maximize the long-term return of plan assets for a prudent level of risk. Risk tolerance is established through careful consideration of plan liabilities, plan funded status, and corporate financial condition. The investment portfolio contains a diversified blend of equity and fixed income securities. Furthermore, equity securities are diversified across United States and non-United States stocks, as well as growth and value. Investment risk is measured and monitored on an ongoing basis through quarterly investment portfolio reviews and annual liability measurements. We utilize a building-block approach in determining the long-term expected rate of return on 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 a greater return over the long run. Current market factors such as inflation and interest rates are evaluated before long-term capital market assumptions are determined. The long-term portfolio return also considers diversification and rebalancing. Peer data and historical returns are reviewed relative to our assumed rates for reasonableness and appropriateness. The following pension and postretirement benefit payments, which reflect expected future service, as appropriate, are expected to be paid: (in thousands) Funded Unfunded Postretirement 2024 $ 985 $ 580 $ 675 2025 $ 1,035 $ 563 $ 688 2026 $ 1,013 $ 547 $ 694 2027 $ 957 $ 528 $ 675 2028 $ 948 $ 509 $ 654 2029-2033 $ 4,290 $ 2,213 $ 2,760 Foreign Pension Plans Certain of our foreign operations also maintain defined benefit pension plans held in trust for certain employees which are funded by the companies, and unfunded defined benefit pension plans providing supplemental benefits to select management employees. These plans use traditional defined benefit formulas based on years of service and final average compensation. Funding policies provide that payments to defined benefit pension trusts shall be at least equal to the minimum funding required by applicable regulations. The components of net periodic benefit cost and other amounts recognized in other comprehensive income (loss) included the following: December 31, (in thousands) 2023 2022 2021 Net periodic benefit cost: Service cost $ 176 $ 280 $ 457 Interest cost 391 361 339 Expected return on plan assets ( 345 ) ( 393 ) ( 508 ) Recognized net actuarial loss 105 105 171 Settlement — 593 — Net periodic benefit cost 327 946 459 Other changes in plan assets and benefit obligations recognized in other Net actuarial (income) loss 11 ( 724 ) ( 375 ) Reversal of amortization of net actuarial loss ( 105 ) ( 105 ) ( 171 ) Total recognized in other comprehensive income ( 94 ) ( 829 ) ( 546 ) Total recognized in net periodic benefit cost and other $ 233 $ 117 $ ( 87 ) The following table represents the funded status of the plans as of December 31: Funded Plans Unfunded Plans (in thousands) 2023 2022 2023 2022 Change in benefit obligation: Benefit obligation at beginning of year $ 6,085 $ 10,790 $ 1,957 $ 2,470 Service cost 176 280 — — Interest cost 303 283 88 78 Actuarial adjustments 382 ( 1,682 ) ( 98 ) ( 268 ) Benefits paid ( 525 ) ( 392 ) ( 174 ) ( 176 ) Settlements — ( 2,616 ) — — Translation adjustment 66 ( 578 ) 28 ( 147 ) Benefit obligation at end of year 6,487 6,085 1,801 1,957 Change in plan assets: Fair value of plan assets at beginning of year 6,200 11,171 — — Actual return on plan assets 643 ( 1,597 ) — — Company contributions ( 17 ) 222 174 176 Benefits paid ( 525 ) ( 392 ) ( 174 ) ( 176 ) Settlements — ( 2,616 ) — — Translation adjustment 66 ( 588 ) — — Fair value of plan assets at end of year 6,367 6,200 — — Funded status at end of year $ ( 120 ) $ 115 $ ( 1,801 ) $ ( 1,957 ) The net amounts recognized in the Consolidated Balance Sheets under the captions “Pension and postretirement benefits” and “Other Current Liabilities” as of December 31 were as follows: Funded Plans Unfunded Plans (in thousands) 2023 2022 2023 2022 Non-current assets $ ( 101 ) $ ( 115 ) $ — $ — Other current liabilities — — 171 169 Non-current liabilities 221 — 1,630 1,788 Net amount recognized $ 120 $ ( 115 ) $ 1,801 $ 1,957 Net actuarial losses for the foreign funded plans recognized in AOCI were $ 1.5 million ($ 1.2 million after-tax) as of December 31, 2023 and $ 1.5 million ($ 1.2 million after-tax) as of December 31, 2022 . Net actuarial losses for the foreign unfunded plans recognized in AOCI were $ 0.5 million ($ 0.5 million after-tax) as of December 31, 2023 and $ 0.6 million ($ 0.5 million after-tax) as of December 31, 2022. The fair value information related to the foreign pension plans’ assets is summarized in the following tables: Fair Value Measurements at Reporting Date Using (in thousands) December 31, 2023 Quoted Prices Significant Significant Assets: Fixed income securities $ 5,051 $ 5,051 $ — $ — Equity securities 1,268 1,268 — — Cash 48 48 — — Total $ 6,367 $ 6,367 $ — $ — Fair Value Measurements at Reporting Date Using (in thousands) December 31, 2022 Quoted Prices Significant Significant Assets: Fixed income securities $ 3,965 $ 3,965 $ — $ — Equity securities 2,036 2,036 — — Other 199 199 — — Total $ 6,200 $ 6,200 $ — $ — The following payments, which reflect expected future service, as appropriate, are expected to be paid: (in thousands) Funded Unfunded 2024 $ 375 $ 173 2025 $ 374 $ 172 2026 $ 370 $ 170 2027 $ 370 $ 168 2028 $ 365 $ 166 2029-2033 $ 2,012 $ 791 Information for Pension Plans with an Accumulated Benefit Obligation in Excess of Plan Assets The accumulated benefit obligations in excess of plan assets as of December 31 were as follows: Domestic Plans Funded Plans Unfunded Plans (in thousands) 2023 2022 2023 2022 Projected benefit obligation $ 11,420 $ 11,454 $ 5,834 $ 5,966 Accumulated benefit obligation $ 11,420 $ 11,454 $ 5,834 $ 5,966 Fair value of plan assets $ 9,122 $ 9,110 $ — $ — Foreign Plans Funded Plans Unfunded Plans (in thousands) 2023 2022 2023 2022 Projected benefit obligation $ 6,487 $ 6,085 $ 1,801 $ 1,957 Accumulated benefit obligation $ 6,079 $ 5,727 $ 1,801 $ 1,957 Fair value of plan assets $ 6,367 $ 6,200 $ — $ — Contributions In aggregate for both the domestic and foreign plans, we anticipate contributing $ 0.8 million to the funded pension plans, $ 0.8 million to the unfunded pension plans, and $ 0.7 million to the postretirement benefit plans in 2024. Weighted-Average Assumptions Weighted-average assumptions used to determine benefit obligations as of December 31 were as follows: Domestic Plans Funded Plans Unfunded Plans Postretirement Foreign Plans 2023 2022 2023 2022 2023 2022 2023 2022 Discount rate 4.94 % 5.13 % 4.94 % 5.13 % 4.98 % 5.17 % 4.28 % 4.68 % Rate of compensation increase N/A N/A N/A N/A N/A N/A 2.24 % 2.16 % Weighted-average assumptions used to determine net periodic benefit costs as of December 31 were as follows: Domestic Plans Funded Plans Unfunded Plans Postretirement Foreign Plans 2023 2022 2023 2022 2023 2022 2023 2022 Discount rate 5.13 % 2.73 % 5.13 % 2.73 % 5.17 % 2.85 % 4.67 % 4.71 % Expected return on plan assets 5.55 % 3.75 % N/A N/A N/A N/A 4.01 % 4.47 % Rate of compensation increase N/A N/A N/A N/A N/A N/A 2.24 % 2.16 % Multi-employer Plans We contribute to various defined benefit pension plans under the terms of collective bargaining agreements that cover our union-represented employees. The financial risks of participating in these multi-employer pension plans generally include the fact that the unfunded obligations of the plan may be borne by solvent participating employers. In addition, if we were to discontinue participating in some of our multi-employer pension plans, we could be required to pay a withdrawal liability amount based on the underfunded status of the plan. Currently, we do not anticipate triggering any withdrawal from any multi-employer pension plan to which we currently contribute. We also contribute to defined contribution plans pursuant to collective bargaining agreements, which are generally not subject to the funding risks inherent in defined benefit pension plans. The overall level of contributions to our multi-employer plans may significantly vary from year to year based on the demand for union-represented labor to support our operations. We do not have any minimum contribution requirements for future periods pursuant to our collective bargaining agreements for individually significant multi-employer plans. Our participation in multi-employer pension plans for 2023 is outlined in the following table. Unless otherwise noted, the most recent Pension Protection Act zone status available in 2023 and 2022 relates to the plan’s year end as of December 31, 2022 and 2021 , respectively, and is based on information received from the plan. Among other factors, plans in the red zone are generally less than 65 % funded, plans in the yellow zone are less than 80 % funded, and plans in the green zone are at least 80 % funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan or a rehabilitation plan is either pending or has been implemented. Plan Pension FIP/RP Viad Contributions Surcharge Paid Expiration (in thousands) EIN No. 2023 2022 2023 2022 2021 Pension Fund: Western Conference of Teamsters Pension Plan 91-6145047 1 Green Green No $ 5,113 $ 4,466 $ 2,571 No Continuous Chicago Regional Council of Carpenters Pension Fund 36-6130207 1 Green Green No 2,257 2,255 658 No 5/31/2027 Southern California Local 831—Employer Pension Fund (1) 95-6376874 1 Green Green No 1,964 1,181 302 No Continuous IBEW Local Union No 357 Pension Plan A 88-6023284 1 Green Green No 1,061 912 628 No Continuous New England Teamsters & Trucking Industry Pension 04-6372430 1 Red Red Yes 966 477 109 No 3/31/2027 Electrical Contractors Assoc. Chicago Local Union 134, IBEW Joint Pension Trust of Chicago Plan #2 51-6030753 2 Green Green No 902 384 306 No Continuous Southwest Carpenters Pension Trust 95-6042875 1 Green Green No 599 573 352 No 7/31/2028 Machinery Movers Riggers & Mach Erect Local 136 Supplemental Retirement Plan (1) 36-1416355 11 Yellow Yellow Yes 462 900 176 Yes 6/30/2024 All other funds (2) 3,270 3,134 1,024 Total contributions to defined benefit plans 16,594 14,282 6,126 Total contributions to other plans 2,387 3,236 931 Total contributions to multi-employer plans $ 18,981 $ 17,518 $ 7,057 (1) We contributed more than 5 % of total plan contributions for the plan year detailed in the plans’ most recent Form 5500 s. (2) Represents participation in 28 pension funds during 2023. Other Employee Benefits We match United States employee contributions to the 401(k) Plan with shares of our common stock held in treasury up to 100 % of the first 3 % of a participant’s salary plus 50 % of the next 2 %. The expense associated with our match was $ 4.0 million for 2023 , $ 3.5 million for 2022 , and $ 2.2 million for 2021 . |