Defined Contribution Plan

The Company recognized expense related to discretionary matching contributions to the Plan in the amount of $17.4 million, $14.8 million, and $10.4 million for the years ended December 31, 2022, 2021, and 2020, respectively, which was included in Compensation and benefits on the Consolidated Statements of Income.

Deferred Compensation Plan

The Company recognized a liability for employee deferrals, inclusive of changes in the value of deferred amounts held, of $2.2 million and $10.0 million in Current Accrued compensation and Non-current Accrued compensation, respectively, on the Consolidated Balance Sheets as of December 31, 2022. As of December 31, 2021, $4.2 million was recognized in Non-current Accrued compensation on the Consolidated Balance Sheets.

Prepaid Incentives

Employee Retention Incentives

As of December 31, 2022, $2.3 million and $3.5 million related to employee retention incentives was recognized in Current and Non-current Prepaid incentives – net, respectively, on the Consolidated Balance Sheets. As of December 31, 2021, $0.7 million and $1.2 million related to employee retention incentives was recognized in Current and Non-current Prepaid incentives – net, respectively, on the Consolidated Balance Sheets. The compensation expense related to these incentives was $1.4 million, $0.8 million, and $0.2 million as of December 31, 2022, 2021 and 2020, respectively.

Forgivable Notes

As of December 31, 2022, $6.3 million and $17.2 million related to forgivable notes was recognized in Current and Non-current Prepaid incentives – net, respectively, in the Consolidated Balance Sheets. As of December 31, 2021, $7.0 million and $24.2 million related to forgivable notes was recognized in Current and Non-current Prepaid incentives – net, respectively, in the Consolidated Balance Sheets. The amortization expense associated with the forgiveness of the principal amount of the notes and accrued interest was recognized in Compensation and benefits on the Consolidated Statements of Income. Amortization expense, net of interest on the forgivable notes, was $6.7 million, $7.2 million, and $8.6 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Long-Term Incentive Compensation Agreements

The Company recognized expense of $0.1 million, $1.8 million, and $1.8 million related to these awards for the years ended December 31, 2022, 2021, and 2020, respectively, in Compensation and benefits on the Consolidated Statements of Income. As of December 31, 2022, $0.1 million related to such agreements was included within Non-current Accrued compensation in the Consolidated Balance Sheets. As of December 31, 2021, $5.2 million and $0.2 million related to such agreements was included in Current Accrued compensation and Non-current Accrued compensation, respectively, in the Consolidated Balance Sheets.

All Risks Long-Term Incentive Plans

ARL had established various long-term incentive plans (“LTIPs”) throughout its history to incentivize certain executives, producers and key employees. ARL additionally established sales bonuses, implemented by the management of ARL, as compensation for past services performed in connection with executing the sale. The LTIPs were fully paid in the third quarter of 2022. Of the expense related to post-combination services, the Company recognized $19.8 million, $36.6 million, and $11.3 million related to these awards for the years ended December 31, 2022, 2021, and 2020, respectively. The expense was recognized in Compensation and benefits in the Consolidated Statements of Income. The Company made cash payments of $110.8 million, $99.7 million, and $114.7 million for the years ended December 31, 2022, 2021, and 2020, respectively.