EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2023

Defined-Contribution Plans

The Company’s U.S. employees are eligible to participate in a 401(k) savings plan. Under this plan, an employee can make pre-tax and post-tax contributions, subject to IRS limitations for Highly Compensated Employees, and the Company will match 50% of the employee’s first 5% of pay contributed to the plan, up to a maximum match of $5,000 per year. Employees vest in these Company matching contributions based upon their years of service to the Company. The Company recorded contributions to this plan of $3.3 million, $2.9 million and $2.4 million in 2023, 2022 and 2021, respectively, as a component of operating expenses.

The Company’s international employees participate in retirement plans administered as a service by third-party administrators. Related to its continuing operations, the Company recorded contributions to these plans of $7.3 million, $7.6 million and $2.8 million in 2023, 2022 and 2021, respectively, as a component of operating expenses.

Defined-Benefit Pension Plans

The Company also maintains defined-benefit pension plans for employees in certain of the Company’s international markets. Benefits under the defined-benefit pension plans are typically based either on years of service and the employee’s compensation (generally during a fixed number of years immediately before retirement) or on annual credits. The range of assumptions used for the defined-benefit pension plans reflects the different economic environments within the various countries.

Net Periodic Pension Benefit

The table below presents the components of net periodic pension benefit for continuing operations recognized in the Consolidated Statements of Loss:


(In thousands)	Year Ended December 31,
	2023		2022		2021
Service cost	$	137	$	162	$	99
Interest cost	3,318		1,912		1,732
Expected return on plan assets	(5,028)		(4,680)		(4,476)
Amortization of actuarial losses	1,050		452		1,227
Amortization of prior service costs	(85)		15		(4,939)

Curtailment/forfeiture gain	(19)		—		—
Total net periodic pension benefit	$	(627)	$	(2,139)	$	(6,357)

On the Consolidated Statements of Loss, the service cost component of net periodic pension benefit is reported in “Direct operating expenses” and “Selling, general and administrative expenses,” and the remaining components of net periodic pension benefit are reported in “Other income (expense), net.”

Projected Benefit Obligation and Fair Value of Plan Assets

The following table presents the changes in the Company’s projected benefit obligation and the fair value of plan assets:


(In thousands)	Year Ended December 31,
	2023		2022
Projected benefit obligation:
Beginning balance, projected benefit obligation	$	73,669	$	124,199
Service cost	137		162
Interest cost	3,318		1,912
Contributions by plan participants	97		88
Actuarial loss (gain)(1),(2)	12,686		(36,785)
Foreign exchange impact	3,938		(12,748)
Benefits paid	(3,414)		(3,159)


Plan curtailment/forfeitures	(19)		—

Ending balance, projected benefit obligation	$	90,412	$	73,669
Fair value of plan assets:
Beginning balance, fair value of plan assets	$	76,336	$	132,490
Actual return (loss) on plan assets	4,755		(40,743)
Foreign exchange impact	4,167		(13,688)
Contributions by Company(1)	7,156		1,348
Contributions by plan participants	97		88
Benefits paid	(3,414)		(3,159)

Ending balance, fair value of plan assets	$	89,097	$	76,336
(Underfunded) / Overfunded status, net(3)	$	(1,315)	$	2,667

(1)In 2023, the Company entered into a buy-in transaction for one of its plans. Under such transaction, the Company purchased a group annuity contract from an insurer that will cover benefit payment reimbursements for the plan’s beneficiaries. The value of the benefit obligation associated with the participants covered by this contract was increased to equal the fair value of the buy-in contract, resulting in an actuarial loss.

(2)The actuarial gain in 2022 represents the decrease to the projected benefit obligation resulting from changes in the actuarial assumptions used, primarily an increased discount rate.

(3)Represents the net underfunded or overfunded status of the Company’s defined-benefit pension plans. The related liability or asset for each plan, dependent upon whether it is underfunded or fully funded, is recorded within “Other long-term liabilities” or “Other assets,” respectively, on the Company’s Consolidated Balance Sheet. As of December 31, 2023, the Company had $1.3 million reported in “Other long-term liabilities,” and as of December 31, 2022, the Company had $3.7 million reported in “Other assets” and $1.0 million reported in “Other long-term liabilities.”

The accumulated benefit obligation is the present value of benefits earned to date, assuming no future salary increases. The aggregate accumulated benefit obligation for the Company’s defined-benefit pension plans as of December 31, 2023 and 2022 was $90.2 million and $73.3 million, respectively. As of December 31, 2023, the aggregate accumulated benefit obligation for the defined-benefit pension plans exceeded plan assets. As of December 31, 2022, plan assets exceeded the aggregate accumulated benefit obligation.

Other Comprehensive Income (Loss)

The following table presents the pre-tax net loss (gain) and the amortization of pre-tax net loss and prior service costs recognized in accumulated other comprehensive loss:


(In thousands)	Year Ended December 31,
	2023		2022		2021
Beginning balance, accumulated other comprehensive loss	$	26,718	$	24,926	$	50,985
Reclassification adjustment related to sold businesses	3,106		—		—
Net actuarial loss (gain) arising during the period	12,959		1,314		(21,932)
Amortization of net actuarial loss	(1,050)		(320)		(923)
Amortization of prior service costs	85		289		4,911
Plan amendments during the period	—		—		(4,604)
Other adjustments	1,532		509		(3,511)
Ending balance, accumulated other comprehensive loss	$	43,350	$	26,718	$	24,926

For the years ended December 31, 2023, 2022 and 2021, the total change in “Other comprehensive income” related to the impact of pensions on deferred income tax liabilities was $(0.1) million, $(0.4) million and $0.2 million, respectively.

The following table presents the amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic pension cost (benefit):


(In thousands)	Year Ended December 31,
	2023		2022		2021
Unrecognized net actuarial loss	$	43,640	$	27,822	$	26,729
Unrecognized prior service cost	(290)		(1,104)		(1,803)
Total	$	43,350	$	26,718	$	24,926

Assumptions Used

The following table presents the assumptions used to measure the net periodic pension cost (benefit) and the year-end projected benefit obligation:


	Year Ended December 31,
	2023	2022	2021
Weighted-average assumptions used to measure net periodic pension cost (benefit):
Discount rates	1.50% - 4.65%	0.20% - 1.80%	0.00% - 1.30%
Expected long-term rates of return on plan assets	2.00% - 6.80%	1.50% - 4.00%	1.50% - 3.90%
Rates of compensation increase	1.00% - 3.75%	0.50% - 2.60%	0.50% - 2.30%

Weighted-average assumptions used to measure projected benefit obligation:
Discount rates	1.50% - 4.15%	2.25% - 4.65%	0.20% - 1.80%
Expected long-term rates of return on plan assets	2.00% - 4.15%	2.00% - 6.80%	1.50% - 4.00%
Rates of compensation increase	1.00% - 3.80%	1.00% - 3.75%	0.50% - 2.60%

Discount Rates

The discount rate assumptions for jurisdictions for which rates are not determined by the government reflect the yields available on high-quality, fixed income debt instruments at the measurement date. A portfolio of high-quality corporate bonds is used to construct a yield curve. The cash flows from the Company’s expected benefit obligation payments are then matched to the yield curve to derive the discount rates. In certain countries, where the markets for high-quality long-term bonds are not generally as well developed, a portfolio of long-term government bonds is used as a base, to which a credit spread is added to simulate corporate bond yields at these maturities in the jurisdiction of each plan, as the benchmark for developing the respective discount rates.

Expected Long-Term Rates of Return on Plan Assets

Expected long-term rates of return on plan assets, a component of net periodic pension cost (benefit), are based on the calculated market-related value of plan assets and take into account long-term expectations for future returns and the investment policies and strategies of the respective plans. These rates of return are developed by the Company and are tested for reasonableness against historical returns. The use of expected long-term rates of return on plan assets may result in recognized pension income that is greater or less than the actual returns of those plan assets in any given year. Over time, however, the expected long-term rates of return are designed to approximate the actual long-term returns and therefore result in a pattern of income and cost recognition that more closely matches the pattern of the services provided by the employees. Differences between actual and expected returns are recognized as a component of net loss or gain in accumulated other comprehensive loss, which is amortized as a component of net periodic pension cost (benefit) over the service lives or life expectancy of the plan participants, depending on the plan, provided such amounts exceed certain thresholds provided by accounting standards.

Rates of Compensation Increase and Mortality Rate

The rates of compensation increase is determined by the Company, based upon its long-term plans for such increases. Mortality rate assumptions are based on life expectancy and death rates for different types of participants. Mortality rates are periodically updated based on actual experience.

Defined-Benefit Pension Plan Assets

The following tables present the fair value of each class of plan assets held by the Company’s defined-benefit pension plans, categorized by level of the fair value hierarchy, at December 31, 2023 and 2022:


(In thousands)	December 31, 2023
	Level 1(1)		Level 2(2)		Level 3
Cash and short-term investments	$	—	$	554	$	—

Equity securities	—		1,243		—
Real estate	—		831		—
Fixed income:
Corporate bonds	—		1,104		—

Insurance contracts	—		85,365		—
Fair value of plan assets	$	—	$	89,097	$	—

(In thousands)	December 31, 2022
	Level 1(1)		Level 2(2)		Level 3
Cash and short-term investments	$	—	$	2,174	$	—
Credit instruments	—		10,493		—
Equity securities	—		45,796		—
Real estate	—		870		—
Fixed income:
Corporate bonds	—		13,781		—

Insurance contracts	—		3,222		—
Fair value of plan assets	$	—	$	76,336	$	—

(1) Assets categorized as Level 1 are measured at fair value using unadjusted quoted prices in active markets for identical assets.

(2) Assets categorized as Level 2 are measured at fair value using inputs other than quoted prices in active markets that are observable for the assets, either directly or indirectly.

Expected Benefit Payments

The following table presents the expected benefit payments to defined-benefit pension plan participants over the next ten years. These payments have been estimated based on the same assumptions used to measure the plans’ pension benefit obligation at December 31, 2023 and include benefits attributable to estimated future compensation increases, where applicable:


(In thousands)
Expected benefit payments:
2024	$	3,149
2025	3,364
2026	2,999
2027	3,168
2028	3,416
2029 - 2033	20,631

Plan Contributions

It is the Company’s general practice to fund amounts for pensions sufficient to meet the minimum requirements set forth in applicable employee benefits laws and local tax laws. From time to time, the Company contributes additional amounts as it deems appropriate. The Company contributed $7.2 million, $1.3 million and $2.8 million to its defined-benefit pension plans for its continuing operations during 2023, 2022 and 2021, respectively. The increase in the Company contributions during the year is due to a buy-in transaction that occurred in relation to one of the plans.