Note 4 - Periodic Pension Expense

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Retirement Benefits [Text Block]

NOTE 4 – Periodic Pension Expense:

Effective on June 30, 2013, the Company no longer accrues additional benefits for future service or for future increases in compensation levels for the Company’s primary defined benefit pension plan.

Effective on December 31, 2014, the Company no longer accrues additional benefits for future service for the Company’s hourly defined benefit plan.

The following table details the net periodic pension expense under the Company’s plans for the periods presented (in thousands):

	Three Months Ended March 31,
	2021			2020
Service cost - benefits earned during the period	$	46		$	38
Interest cost on projected benefit obligation		187			216
Expected return on plan assets		(358	)		(389	)
Recognized actuarial loss		600			320
Settlement loss		-			138
Net periodic pension cost after settlements	$	475		$	323

The pension settlement losses included in the table above resulted from lump sum pension payments made to various employees upon their retirement or termination during the periods specified. The pension settlement losses did not require a cash outlay by the Company and did not increase the Company’s total pension expense over time, as the charge was an acceleration of costs that otherwise would be recognized as pension expense in future periods. The service cost component is included in selling and administrative expenses in our statements of comprehensive income and the other components of net periodic pension cost are included in other periodic pension costs in our statements of comprehensive income.

The Company is in the process of terminating its two noncontributory qualified defined benefit pension plans, which were fully funded as of March 31, 2021. In April 2021, the Company settled the majority of its obligations under the plans by providing lump-sum payments of $13.7 million to eligible participants who elected to receive them, and expects to settle the remaining future obligations under the plans through the purchase of annuity contracts from one or more highly rated insurance companies in the second quarter of 2021. We estimate that we will record a total non-cash pre-tax charge associated with the plan termination during the second quarter of 2021 of between $7.5 million and $8.5 million, which primarily represents the acceleration of deferred charges currently accrued in accumulated other comprehensive loss.