Annual report pursuant to Section 13 and 15(d)

Employee Benefit Obligation

v3.20.4
Employee Benefit Obligation
12 Months Ended
Dec. 31, 2020
Compensation And Retirement Disclosure [Abstract]  
Employee Benefit Obligation

12. EMPLOYEE BENEFIT OBLIGATION

The Company sponsors two defined benefit plans covering the majority of Italian employees and all of Solutions Infini’s employees. Total costs of the defined benefit plans for the years ended December 31, 2020 and 2019 was $465,000 and $287,000, respectively.

Changes in obligations of the defined benefit plans is as follows (in thousands):

 

 

 

As of December 31,

 

 

 

2020

 

 

2019

 

Benefit obligation at the beginning of the period

 

$

1,424

 

 

$

1,173

 

Change in scope of consolidation

 

 

 

 

 

 

Service cost

 

 

231

 

 

 

165

 

Interest cost

 

 

31

 

 

 

33

 

Actuarial loss

 

 

203

 

 

 

89

 

Benefit paid

 

 

(102

)

 

 

(13

)

Foreign exchange translation reserve

 

 

123

 

 

 

(23

)

Benefit obligation at the end of the period

 

$

1,910

 

 

$

1,424

 

Of which:

 

 

 

 

 

 

 

 

Current (1)

 

$

24

 

 

$

26

 

Long-term

 

$

1,886

 

 

$

1,398

 

 

 

(1)

Included within “Payroll and payroll related accrued liabilities” in the accompanying consolidated balance sheets.

There are no plan assets servicing the defined benefits plans.

The assumptions used to determine benefit obligations at year-end are as follows:

 

 

 

As of December 31,

 

 

 

2020

 

 

2019

 

Discount rate for the Kaleyra S.p.A. plan (1)

 

0.30%

 

 

0.78%

 

Discount rate for the Solutions Infini plan (2)

 

6.65%

 

 

7.25%

 

Rate of compensation increase for Kaleyra S.p.A.

 

0.50% - 3.00%

 

 

0.50% - 3.00%

 

Rate of compensation increase for Solutions Infini

 

20.00%

 

 

15.00%

 

 

 

(1)

The discount rate for Kaleyra S.p.A. is based on the Euro area composite yields AA with a duration equal to the estimated term of the obligations at the balance sheet date.

 

(2)

The discount rate for Solutions Infini is based on the prevailing market yields of Indian government securities at the balance sheet date for the estimated term of the obligations.

The Company also has a 401(k) defined contribution plan (“401(k) plan”) covering substantially all U.S. domestic employees. The participation in this plan is voluntary. The Company matches plan participants’ contributions up to various limits. Participants’ contributions are limited based on their compensation and, for certain supplemental contributions which are not eligible for Company matching, based on their age. Contributions for the 401(k) plan were $102,000 and $54,000 for the years ended December 31, 2020 and 2019, respectively.