Pension And Other Liabilities

12 Months Ended

Dec. 31, 2023

Pension And Other Liabilities [Abstract]

Pension And Other Liabilities

NOTE 13 – PENSION AND OTHER LIABILITIES

Other liabilities including pension are summarized as follows:

	December 31,
(Dollars in thousands)	2023		2022
Current liabilities
Lease liability(2)		5,900		—
Accrued pension(1)		684		684
Security deposit payable		74		68
Finance lease liabilities		40		28
Other		33		33
Other current liabilities	$	6,731	$	813
Other liabilities
Accrued pension(1)		2,646		3,138
Lease make-good provision		6,050		6,131
Deferred rent liability		1,314		2,484
Environmental reserve		1,656		1,656
Lease liability(2)		—		5,900
Acquired leases		2		11
Finance lease liabilities		43		—
Other non-current liabilities	$	11,711	$	19,320

(1)Represents the pension liability associated with the Supplemental Executive Retirement Plan explained below.

(2)Represents the lease liability of the option associated with the ground lease purchase of the Village East Cinema. See Note 20 – Related Parties for more information.

Pension Liability – Supplemental Executive Retirement Plan

On August 29, 2014, the Supplemental Executive Retirement Plan (“SERP”) that was effective since March 1, 2007, was ended and replaced with a new pension annuity. As a result of the termination of the SERP program, the accrued pension liability of $7.6 million was reversed and replaced with a new pension annuity liability of $7.5 million. The valuation of the liability is based on the present value of $10.2 million discounted at 4.25% over a 15-year term, resulting in a monthly payment of $57,000 payable to the estate of Mr. James J. Cotter, Sr. The discounted value of $2.7 million (which is the difference between the estimated payout of $10.2 million and the present value of $7.5 million) will be amortized and expensed based on the 15-year term. In addition, the accumulated actuarial loss of $3.1 million recorded, as part of other comprehensive income, will also be amortized based on the 15-year term.

As a result of the above, included in our other current and non-current liabilities are accrued pension costs of $3.3 million and $3.8 million as of December 31, 2023 and 2022, respectively. The benefits of our pension plans are fully vested and therefore no service costs were recognized in 2023 and 2022. Our pension plans are unfunded.

The change in the SERP pension benefit obligation and the funded status are as follows:

	December 31,
(Dollars in thousands)	2023		2022
Benefit obligation at January 1	$	3,822	$	4,289
Service cost
Interest cost		191		216
Payments made		(683)		(683)
Benefit obligation at December 31	$	3,330	$	3,822
Unfunded status at December 31	$	(3,330)	$	(3,822)

Amounts recognized in the balance sheet consists of:

	December 31,
(Dollars in thousands)	2023		2022
Current liabilities	$	519	$	684
Other liabilities - Non current		2,811		3,138
Total pension liability	$	3,330	$	3,822

The components of the net periodic benefit cost and other amounts recognized in other comprehensive income are as follows:

	December 31,
(Dollars in thousands)	2023		2022
Net periodic benefit cost
Interest cost	$	191	$	216
Amortization of prior service costs		—		—
Amortization of net actuarial gain		153		147
Net periodic benefit cost	$	344	$	363
Items recognized in other comprehensive income
Net loss	$	—	$	—
Amortization of net loss		(153)		(147)
Total recognized in other comprehensive income	$	(153)	$	(147)
Total recognized in net periodic benefit cost and other comprehensive income	$	191	$	216

Items not yet recognized as a component of net periodic pension cost consist of the following:

	December 31,
(Dollars in thousands)	2023		2022
Unamortized actuarial loss	$	1,669	$	1,822
Accumulated other comprehensive income	$	1,669	$	1,822

The estimated unamortized actuarial loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year will be $207,000 (gross of any tax effects).

The following table presents estimated future benefit payments for the next five years and thereafter as of December 31, 2023:

(Dollars in thousands)	Estimated ‎Future ‎Pension ‎Payments
2024	$	519
2025		547
2026		576
2027		607
2028		638
Thereafter		443
Total pension payments	$	3,330

Lease Make-Good Provision

We recognize obligations for future leasehold restoration costs relating to properties that we use mostly on our cinema operations under operating lease arrangements. Each lease is unique to the negotiated conditions with the lessor, but in general most leases require for the removal of cinema-related assets and improvements. There are no assets specifically restricted to settle this obligation.

A reconciliation of the beginning and ending carrying amounts of the lease make-good provision is presented in the following table:

(Dollars in thousands)	As of and for the year ended December 31, 2023		As of and for the year ended December 31, 2022
Lease make-good provision, at January 1	$	6,131	$	7,766
Liabilities incurred during the year		45		—
Liabilities settled during the year		(408)		(67)
Liabilities remeasured during the year		(24)		(1,567)
Accretion expense		292		293
Effect of changes in foreign currency		14		(294)
Lease make-good provision, at December 31	$	6,050	$	6,131