Pension Plan

9 Months Ended

Nov. 30, 2024

Retirement Benefits [Abstract]

Pension Plan

13. Pension Plan

The Company and certain subsidiaries have a noncontributory defined benefit retirement plan (the "Pension Plan"), covering approximately 12% of the Company’s aggregate employees. Benefits are based on years of service and the employee’s average compensation for the highest five compensation years preceding retirement or termination.

Pension expense is composed of the following components included in cost of goods sold and selling, general, and administrative expenses in the Company’s consolidated statements of earnings (in thousands):

	Three months ended						Nine months ended
	November 30,						November 30,
	2024			2023			2024			2023
Components of net periodic benefit cost
Service cost	$	166		$	168		$	498		$	504
Interest cost		649			614			1,947			1,841
Expected return on plan assets		(755	)		(776	)		(2,265	)		(2,328	)
Amortization of:
Unrecognized net loss		436			474			1,308			1,422
Net periodic benefit cost	$	496		$	480		$	1,488		$	1,439

The Company is required to make contributions to the Pension Plan. These contributions are required under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 ("ERISA"). The assumptions used to calculate the pension funding deficit are different from the assumptions used to determine the net pension obligation for purposes of our condensed consolidated financial statements. Due to the enactment of the American Rescue Plan ("ARP") Act of 2021, plan sponsors can calculate the discount rate used to measure the Pension Plan liability using a 25-year average of interest rates plus or minus a corridor. Assuming a stable funding status, the Company would expect to make a cash contribution to the Pension Plan of between $1.0 million and $3.0 million per year. However, changes in actual investment returns or in discount rates could change this amount significantly. The Company made a $1.2 million contribution during the nine months ended November 30, 2024 and a $1.2 million contribution to the Pension Plan during the fiscal year 2024. As our Pension Plan assets are invested in marketable securities, fluctuations in market values could potentially impact our funding status, associated liabilities recorded and future required minimum contributions. At November 30, 2024, we had an unfunded pension asset recorded on our condensed consolidated balance sheet of approximately $0.1 million.