Note 7 - Pension and Other Postretirement Benefits

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Retirement Benefits [Text Block]

NOTE 7 - PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company sponsors a defined benefit pension plan (“GR Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The GR Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The GR Plan was closed to new participants effective January 1, 2008. Employees hired after this date, in eligible locations, participate in an enhanced 401(k) plan instead of the defined benefit pension plan. Employees hired prior to this date continue to accrue benefits.

The Company established a defined benefit pension plan for certain Fill-Rite employees (“Fill-Rite Plan”) upon the acquisition as of June 1, 2022. The activity is included in the tables within this footnote.

Additionally, the Company sponsors defined contribution pension plans made available to all domestic and Canadian employees. The Company funds the cost of these benefits as incurred.

The Company also sponsors a non-contributory defined benefit postretirement health care plan that provides health benefits to certain domestic and Canadian retirees and eligible spouses and dependent children. The Company funds the cost of these benefits as incurred.

The following tables present the components of net periodic benefit costs:

	Pension Benefits						Postretirement Benefits
	Three Months Ended September 30,						Three Months Ended September 30,
	2023			2022			2023			2022
Service cost	$	530		$	496		$	209		$	287
Interest cost		635			580			299			190
Expected return on plan assets		(657	)		(665	)		-			-
Amortization of prior service cost		-			-			(249	)		(282	)
Recognized actuarial loss		301			379			(9	)		92
Settlement loss		-			4,759			-			-
Net periodic benefit cost (a)	$	809		$	5,549		$	250		$	287

	Pension Benefits						Postretirement Benefits
	Nine Months Ended September 30,						Nine Months Ended September 30,
	2023			2022			2023			2022
Service cost	$	1,591		$	1,642		$	626		$	860
Interest cost		1,904			1,745			897			570
Expected return on plan assets		(1,971	)		(2,169	)		-			-
Amortization of prior service cost		-			-			(746	)		(847	)
Recognized actuarial loss		902			1,314			(28	)		276
Settlement loss		-			6,355			-			-
Net periodic benefit cost (a)	$	2,426		$	8,887		$	749		$	859

(a) The components of net periodic cost other than the service cost component are included in Other income (expense), net in the Consolidated Statements of Income.

During the three and nine months ended September 30, 2022, the Company recorded a settlement loss relating to retirees that received lump sum distributions from the Company’s defined benefit pension plan totaling $4.8 million and $6.4 million, respectively. There were no settlement losses recorded for the three and nine month periods ended September 30, 2023. These changes were the result of lump sum payments to retirees exceeding the Plan’s actuarial service and interest cost.