The Company provides retirement plans, including defined benefit and defined contribution plans, and other postretirement benefit plans to certain employees. The Company applies ASC Topic 715 “Compensation – Retirement Benefits,” which required the recognition in pension and other postretirement benefits obligations and accumulated other comprehensive income of actuarial gains or losses, prior service costs or credits and transition assets or obligations that had previously been deferred. This statement also requires an entity to measure a defined benefit postretirement plan’s assets and obligations that determine its funded status as of the end of the fiscal year.

The Company provides defined benefit pension plans to certain employees. The Company uses March 31 as the measurement date. The following provides a reconciliation of benefit obligation, plan assets, and funded status of the plans:


	March 31,
	2025		2024
Change in benefit obligation:
Benefit obligation at beginning of year	$	268,025	$	300,210
Service cost	477		512
Interest cost	9,783		13,548
Actuarial (gain) loss	(5,937)		(2,754)
Benefits paid	(18,733)		(22,650)
Settlement	(95,080)		(20,510)
Foreign exchange rate changes	94		(331)
Benefit obligation at end of year	$	158,629	$	268,025

Change in plan assets:
Fair value of plan assets at beginning of year	$	199,592	$	231,667
Actual gain (loss) on plan assets	10,327		4,328
Employer contribution	5,136		6,761
Benefits paid	(18,733)		(22,650)
Settlement	(95,080)		(20,510)
Assets transferred out related to plan termination (see below)	(6,974)		—
Foreign exchange rate changes	(28)		(4)
Fair value of plan assets at end of year	$	94,240	$	199,592

Funded status	$	(64,389)	$	(68,433)
Unrecognized actuarial loss	(16,867)		16,229
Net amount recognized	$	(81,256)	$	(52,204)

The Company terminated both of its Canadian pension plans in fiscal 2024 and terminated one of its U.S. pension plans in fiscal 2025. Lump sum payments were made to eligible participants who elected to receive them in the third and fourth quarter of fiscal year 2024. In fiscal 2024, these lump sum payments along with the overall termination of the two Canadian plans resulted in a settlement charge of $4,984,000 which was recorded in Other (income) expense, net on the Consolidated Statements of Operations. On September 30, 2024, the Company purchased annuity contracts to settle the remaining liabilities of the terminated U.S. plan. The annuity contract purchase resulted in a non-cash settlement charge of $23,634,000 for the year ended March 31, 2025, which was recorded in Other (income) expense, net on the Condensed Consolidated Statements of Operations. At termination, the pension plan had a pension asset surplus of $6,974,000. This surplus is being used to fund certain obligations associated with the Company's U.S. defined contribution plans. The remaining surplus of the terminated plan is $6,342,000 as of March 31, 2025.


	March 31,
	2025		2024
Other assets	$	1,995	$	5,905
Accrued liabilities	(3,709)		(3,786)
Other non-current liabilities	(62,675)		(70,552)
Accumulated other comprehensive loss, before tax	(16,867)		16,229
Net amount recognized	$	(81,256)	$	(52,204)


	Year Ended March 31,
	2025		2024		2023
Service costs—benefits earned during the period	477		$	512	$	707
Interest cost on projected benefit obligation	9,783		13,548		11,312
Expected return on plan assets	(7,348)		(11,459)		(10,844)
Net amortization	484		360		851
Settlement	23,634		4,984		(62)
Net periodic pension cost (benefit)	$	27,030	$	7,945	$	1,964

Unrecognized gains and losses are amortized through March 31, 2025, on a straight-line basis over the average remaining service period of active participants. Starting in fiscal 2016, the Company changed the amortization period of its largest plan to the average remaining lifetime of inactive participants, as a significant portion of the plan population is now inactive. This change increases the amortization period of the unrecognized gains and losses.

The weighted-average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also net periodic pension cost for the following year:


	2025		2024		2023
Discount rate	4.75	%	4.82	%	4.82	%
Expected long-term rate of return on plan assets	5.05	%	5.27	%	4.13	%
Rate of compensation increase on active plans	3.00	%	3.00	%	3.00	%
Interest crediting rates used in cash balance pension plans	4.38	%	4.95	%	4.05	%

The Company has an investment objective for domestic pension plans to adequately provide for both the growth and liquidity needed to support all current and future benefit payment obligations. The Company's policy is to de-risk the portfolio by

increasing liability-hedging investments as the pension liability funded status increases, which is known as the glide path method. In fiscal 2026, the Company expects its U.S. plan to be fully funded, and will therefore further de-risk its portfolio. Within the table above, cash equivalents are categorized as fixed income as they earn lower returns than equity securities which includes alternative real estate funds (shown in the fair value tables below).

The Company’s funding policy with respect to the defined benefit pension plans is to contribute annually at least the minimum amount required by the Employee Retirement Income Security Act of 1974 (ERISA). Additional contributions may be made to minimize PBGC premiums. The Company plans to contribute approximately $3,778,000 to its pension plans in fiscal 2026.

The Company sponsors a defined benefit other postretirement health care plan that provide medical and life insurance coverage to certain U.S. retirees and their dependents of one of its subsidiaries. Prior to the acquisition of this subsidiary, the Company did not sponsor any postretirement benefit plans. The Company pays the majority of the medical costs for certain retirees and their spouses who are under age 65. For retirees and dependents of retirees who retired prior to January 1, 1989, and are age 65 or over, the Company contributes 100% toward the American Association of Retired Persons (“AARP”) premium frozen at the 1992 level. For retirees and dependents of retirees who retired after January 1, 1989, the Company contributes $35 per month toward the AARP premium. The life insurance plan is noncontributory. The net periodic postretirement benefit income for fiscal 2025 was $144,000 and the liability at March 31, 2025 is $733,000 with $597,000 included in Other non-current liabilities and $136,000 included in Accrued liabilities in the Consolidated Balance Sheet.

The Company has collateralized split-dollar life insurance arrangement with one of its former officers. Under this arrangement, the Company pays certain premium costs on life insurance policy for the former officer. Upon the later of the death of the former officer and their spouse, the Company will receive all of the premiums paid to-date. The net periodic pension cost for fiscal 2025 was $32,000 and the liability at March 31, 2025 is $2,917,000 with $2,837,000 included in Other non-current liabilities and $80,000 included in Accrued liabilities in the Consolidated Balance Sheet. The cash surrender value of the policies is $2,474,000 and $2,392,000 at March 31, 2025 and 2024, respectively. The balance is included in Other assets in the consolidated balance sheet.

The Company also sponsors defined contribution plans covering substantially all domestic employees and certain international employees. Participants may elect to contribute basic contributions. These plans provide for employer contributions based on employee eligibility and participation. The Company recorded a charge for such contributions of approximately $6,686,000, $6,288,000, and $5,808,000 for the years ended March 31, 2025, 2024, and 2023, respectively which are included in Cost of Products Sold, Selling Expenses, and General and Administrative Expenses within the Consolidated Statements of Operations.

The Company classified its investments within the categories of equity securities, fixed income securities, common collective trusts, alternative real estate, and cash equivalents, as the Company’s management bases its investment objectives and decisions from these four categories. The Company’s investment policy is to use its glide-path method to de-risk the portfolio by increasing liability-hedging investments as the pension liability funded status increases.

The fair values of our defined benefit plans’ consolidated assets were determined using the fair value hierarchy of inputs described in Note 5. The fair values by category of inputs as of March 31, 2025 and March 31, 2024 were as follows:


	Measured at NAV (1)		Quoted Prices in Active Markets for Identical Assets		Significant other observable Inputs		Significant unobservable Inputs
As of March 31, 2025:			(Level 1)		(Level 2)		(Level 3)		Total
Asset categories:
Equity securities	$	—	$	10,735	$	—	$	—	$	10,735
Fixed income securities	—		83,216		—		—		83,216

Cash equivalents	—		289		—		—		289
Total	$	—	$	94,240	$	—	$	—	$	94,240


	Measured at NAV (1)		Quoted Prices in Active Markets for Identical Assets		Significant other observable Inputs		Significant unobservable Inputs
As of March 31, 2024:			(Level 1)		(Level 2)		(Level 3)		Total
Asset categories:
Equity securities	$	—	$	15,266	$	—	$	—	$	15,266
Fixed income securities	—		81,890		—		—		81,890
Common collective trusts	98,117		—		—		—		98,117

Cash equivalents	—		4,319		—		—		4,319
Total	$	98,117	$	101,475	$	—	$	—	$	199,592

NAV is used as a practical expedient to estimate fair value. NAV is based on the fair value of the underlying investments held by the fund less its liability based on published daily rate. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different from the reported NAV. We are not aware of any significant restrictions on the issuances or redemption of shares of these funds.