Note 10 - Benefit Plans

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Retirement Benefits [Text Block]

NOTE 10 – Benefit Plans: 

Defined Benefit Plans

The Company is the sponsor of an unfunded supplemental executive retirement plan (“SERP”) which includes one active participant. As of December 31, 2023, the Company’s projected benefit obligation under the unfunded SERP was $13.6 million. Contributions to the plan are made in accordance with statutory funding requirements and any additional funding that may be deemed appropriate.

The following tables present the changes in the benefit obligations and the various plan assets, the funded status of the plans, and the amounts recognized in the Company’s balance sheets at December 31, 2023 and 2022 (in thousands):

	December 31,
	2023			2022
Changes in benefit obligation:
Benefit obligation at beginning of year	$	12,993		$	15,523
Service cost		21			203
Interest cost		637			401
Actuarial (gain) loss		229			(3,031	)
Benefits paid		(280	)		(103	)
Benefit obligation at end of year		13,600			12,993
Changes in plan assets:
Employer contributions		280			103
Benefits paid		(280	)		(103	)
Fair value of plan assets at end of year		-			-
Funded status at end of year	$	(13,600	)	$	(12,993	)
Amounts recognized in balance sheets:
Other current liabilities	$	(316	)	$	(129	)
Long-term pension liability		(13,284	)		(12,864	)
Net amount recognized	$	(13,600	)	$	(12,993	)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	$	1,964		$	1,953

Information for benefit plans with projected benefit obligation in excess of plan assets depicted as follows (in thousands):

	December 31,
	2023		2022
Projected benefit obligation	$	13,600	$	12,993
Fair value of plan assets		-		-
Underfunded	$	13,600	$	12,993

Components of net periodic benefit cost related to the SERP were as follows (in thousands):

	Years Ended December 31,
	2023		2022
Service cost on benefits earned during the period	$	21	$	203
Interest cost on projected benefit obligation		637		401
Recognized actuarial loss		218		1,715
Net periodic pension cost after settlements	$	876	$	2,319

The service cost component is included in selling and administrative expenses in our statements of comprehensive income (loss) and the other components of net periodic pension cost are included in other periodic pension costs in our statements of comprehensive income (loss). The estimated net actuarial loss for the SERP that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost over the next fiscal year is $0.1 million.

The following table presents the weighted-average assumptions used to determine benefit obligations as of  December 31, 2023 and 2022:

	Discount Rate			Long Term Rate of Return		Salary Scale
2022		4.93	%		N/A		3.00	%
2023		4.73	%		N/A		3.00	%

The following table presents the weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, 2023 and 2022:

	Discount Rate			Long Term Rate of Return		Salary Scale
2022		2.59	%		N/A		3.00	%
2023		4.93	%		N/A		3.00	%

The following table includes projected benefit payments for the years indicated (in thousands):

Year	Projected Benefit Payments
2024	$	324
2025		1,537
2026		977
2027		985
2028		975
2029-2033		4,733

Rabbi Trust

In connection with the Company’s unfunded SERP, we have life insurance contracts on the lives of designated individuals. The insurance contracts associated with the SERP are held in a Rabbi trust. The trust is the owner and beneficiary of such insurance contracts. The policies are being utilized to help offset the costs and liabilities of the SERP. The cash surrender value of the life insurance contracts was $4.5 million and $3.9 million at December 31, 2023 and 2022, respectively. The cash surrender value of these policies is included in other assets in the balance sheets. During the years ended December 31, 2023 and 2022 we recognized an investment gain of $0.6 million and an investment loss of $0.8 million, respectively, on the cash surrender value of these life insurance contracts.

In 2013, we initiated a Non-Qualified Deferred Compensation Plan, and we have purchased life insurance contracts on the lives of designated individuals. The insurance contracts associated with the Non-Qualified Deferred Compensation Plan are also held in a Rabbi trust. The trust is the owner and beneficiary of such insurance contracts. The policies are being utilized to help offset the costs and liabilities of the Non-Qualified Deferred Compensation Plan. The cash surrender value of the life insurance contracts was $9.2 million and $7.7 million at December 31, 2023 and 2022, respectively. The cash surrender value of these policies is included in other assets in the balance sheets. The liability for participant deferrals was $7.9 million and $7.7 million as of December 31, 2023 and 2022, respectively, and is included in other long-term liabilities in the balance sheets.

Defined Contribution Plan

The Company provides a defined contribution plan covering qualified employees. The plan includes a provision that allows employees to make pre-tax contributions under Section 401(k) of the Internal Revenue Code. The plan provides for the Company to make a guaranteed match equal to 25% of each employee’s eligible contributions. The plan also provides the Company with the option of making an additional discretionary contribution to the plan each year. The Company expensed employer matching contributions of $0.5 million and $0.6 million during the years ended December 31, 2023 and 2022, respectively.