BENEFIT PLANS

9 Months Ended

Jan. 31, 2023

BENEFIT PLANS

BENEFIT PLANS

(10)          BENEFIT PLANS

Pension plan

Refer to Note 11 to the consolidated financial statements contained in the 2022 Form 10-K for detail regarding the Company’s defined benefit pension plan. The Company recognizes the known changes in the funded status of the pension plan in the period in which the changes occur through other comprehensive income, net of the related income tax effect. The Company recorded, net of tax, other comprehensive income of $65,000 and $67,000 during the three months ended January 31, 2023 and January 31, 2022 and $208,000 and $200,000 during the nine months ended January 31, 2023 and January 31, 2022 to account for the net effect of changes to the pension liability. The Company funds the pension plan in compliance with IRS funding requirements. The Company did not make any contributions to the pension plan during the three and nine months ended January 31, 2023 or January 31, 2022. The Company recognized a non-cash pre-tax pension settlement expense of $2,336,000 during the three and nine months ended January 31, 2023 due to the Company’s defined benefit pension plan paying an aggregate of $4,653,000 in lump sum payouts of pension benefits to 96 former employees.

Equity compensation plan

Refer to Note 11 to the consolidated financial statements contained in the 2022 Form 10-K for detail regarding the AMREP Corporation 2016 Equity Compensation Plan (the “Equity Plan”), including restricted common stock and an option to purchase shares of common stock granted thereunder. The summary of the restricted share award activity during the nine months ended January 31, 2023 presented below represents the maximum number of shares that could become vested after these dates:

	Number of
Restricted share awards	Shares
Non-vested as of April 30, 2022	21,500
Granted during the nine months ended January 31, 2023	14,600
Vested during the nine months ended January 31, 2023	(9,833)
Forfeited during the nine months ended January 31, 2023	—
Non-vested as of January 31, 2023	26,267

The Company recognized non-cash compensation expense related to the vesting of restricted shares of common stock net of forfeitures of $39,000 and $25,000 during the three months ended January 31, 2023 and January 31, 2022 and $101,000 and $72,000 during the nine months ended January 31, 2023 and January 31, 2022. As of January 31, 2023 and January 31, 2022, there was $143,000 and $111,000 of unrecognized compensation expense related to restricted shares of common stock previously issued under the Equity Plan that had not vested as of those dates, which is expected to be recognized over the remaining vesting term not to exceed three years.

In November 2021, the Company granted Christopher V. Vitale, the President and Chief Executive Officer of the Company, an option to purchase 50,000 shares of common stock of the Company under the Equity Plan with an exercise price of $14.24 per share. As of January 31, 2023, the option had not been exercised, cancelled or forfeited. The Company recognized non-cash compensation expense related to the option of $13,000 and $38,000 during the three and nine months ended January 31, 2023 and $16,000 during each of the three and nine months ended January 31, 2022. As of January 31, 2023, the option was out-of-the-money and therefore was not included in “weighted average number of common shares outstanding – diluted” when calculating diluted earnings per share. The option could be dilutive to earnings per share in the future.

Director compensation non-cash expense, which is recognized for the expected annual grant of deferred common share units to non-employee members of the Company’s Board of Directors ratably over the director’s service in office during the calendar year, was $23,000 during each of the three months ended January 31, 2023 and January 31, 2022 and $68,000 during each of the nine months ended January 31, 2023 and January 31, 2022. As of January 31, 2023, there was $8,000 of accrued compensation expense related to the deferred stock units expected to be issued in December 2023. As of January 31, 2022, there was $8,000 of accrued compensation expense related to the deferred stock units issued in December 2022.