Pension and Other Postretirement Benefits

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Pension and Other Postretirement Benefits

NOTE 11 – PENSION AND OTHER POSTRETIREMENT BENEFITS:

U.S. Pension Benefits

The Corporation has a qualified domestic defined benefit pension plan that covers substantially all of the Corporation’s U.S. employees. For all locations except one, benefit accruals and participation in the plan have been curtailed and replaced with a defined contribution pension plan. The defined benefit pension plan is covered by the Employee Retirement Income Security Act of 1974 (“ERISA”); accordingly, the Corporation’s policy is to fund at least the minimum actuarially determined annual contribution required under ERISA. Minimum contributions for 2024 and 2023 approximated $5,438 and $339, respectively. Minimum contributions for 2025 are expected to approximate $3,000. The fair value of the plan assets as of December 31, 2024 and 2023 approximated $158,704 and $163,929, respectively, in comparison to accumulated benefit obligations of $168,139 and $185,839, respectively, for the same periods. Employer contributions to the defined contribution plan totaled $3,200 and $2,695 for 2024 and 2023, respectively, and are expected to approximate $3,200 in 2025.

The Corporation also maintained nonqualified defined benefit pension plans for selected executive officers in addition to the benefits provided under the Corporation’s qualified defined benefit pension plan. Benefit accruals and participation in the plans have been curtailed. The objectives of the nonqualified plans were to provide supplemental retirement benefits or restore benefits lost due to limitations set by the Internal Revenue Service. The assets of the nonqualified plans are held in a grantor tax trust known as a “Rabbi” trust and are subject to claims of the Corporation’s creditors, but otherwise must be used only for purposes of providing benefits under the plans. The fair market value of the trust at December 31, 2024 and 2023, which is included in other noncurrent assets on the consolidated balance sheets, was $3,026 and $3,245, respectively (see Note 16). The plans are treated as non-funded pension plans for financial reporting purposes. Accordingly, benefit payments would represent employer contributions. Accumulated benefit obligations approximated $8,022 and $8,526 at December 31, 2024 and 2023, respectively.

Employees at one location participate in a multi-employer plan, I.A.M. National Pension Fund (employer identification number 51-6031295, plan number 002), in lieu of the Corporation’s defined benefit pension plan. A multi-employer plan generally receives contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements. The assets contributed by one employer may be used to fund the benefits provided to employees of other employers in the plan because the plan assets, once contributed, are not restricted to individual employers. The latest report of summary plan information (for the 2023 plan year) provided by I.A.M. National Pension Fund indicates:

•Approximately 977 employers were obligated to contribute to the plan;

•Approximately 100,000 active employees participate in the plan; and

•Assets of approximately $14.7 billion and a funded status of approximately 86.5%.

Less than 100 of the Corporation’s employees participate in the plan and contributions are based on a rate per hour. The Corporation’s contributions to the plan were less than $300 for 2024 and 2023 and represent less than five percent of total contributions to the plan by all contributing employers. Contributions are expected to be less than $300 in 2025.

Foreign Pension Benefits

Employees of UES-UK participated in a defined benefit pension plan that was curtailed effective December 31, 2004, and replaced with a defined contribution pension plan. The plans are non-U.S. plans and, therefore, are not covered by ERISA. Employer contributions to the defined benefit pension plan, when necessary, are agreed to by the Trustees and UES-UK, based on U.K. regulations, with the objective of maintaining the self-sufficiency of the plan. Accordingly, estimated contributions are subject to change based on the future investment performance of the plan’s assets. Currently, the plan is fully funded. No contributions were required in 2024 or 2023 and none are expected in 2025. The fair value of the plan’s assets as of December 31, 2024 and 2023 approximated $36,101 (£28,800) and $42,338 (£33,257), respectively, in comparison to accumulated benefit obligations of $32,449 (£25,887) and $37,386 (£29,368) for the same periods. Contributions to the defined contribution pension plan approximated $267 and $235 in 2024 and 2023, respectively, and are expected to approximate $300 in 2025.

The Corporation has two additional foreign defined benefit pension plans, which are not funded. Accordingly, benefit payments would represent employer contributions. Projected and accumulated benefit obligations approximated $5,169 and $5,061 at December 31, 2024 and 2023, respectively.

Other Postretirement Benefits

The Corporation provides a monthly reimbursement of postretirement health care benefits for up to a 6-year period principally to the bargaining groups of two subsidiaries. The plans cover participants and their spouses who retire under an existing pension plan on other than a deferred vested basis and at the time of retirement also have rendered 10 or more years of continuous service irrespective of age. Retiree life insurance is provided to those who meet applicable eligibility requirements. The Corporation’s postretirement health care and life insurance plans are not funded or subject to any minimum regulatory funding requirements. Instead, benefit payments are made from the general assets of the Corporation at the time they are due.

Significant Activity

Actuarial (gains) losses in projected benefit obligations for each of the years were comprised of the following components:

	U.S. Pension Benefits					Foreign Pension Benefits					Other Postretirement Benefits
	2024			2023		2024			2023		2024			2023
Changes in assumptions	$	(7,239	)	$	6,007	$	(2,636	)	$	469	$	(352	)	$	217
Impact from lump-sum window, net		(977	)		—		—			—		—			—
Other		7			108		(199	)		1,158		(486	)		(396	)
Total actuarial (gains) losses	$	(8,209	)	$	6,115	$	(2,835	)	$	1,627	$	(838	)	$	(179	)

Changes in actuarial assumptions principally include the effect of changes in discount rates which are used to estimate plan liabilities. A 25 basis point decrease in the discount rate would increase projected and accumulated benefit obligations by approximately $5,000. Conversely, a 25 basis point increase in the discount rate would decrease projected and accumulated benefit obligations by approximately $5,000. Discount rates increased by approximately 55 basis points at December 31, 2024 from December 31, 2023 whereas discount rates decreased by approximately 32 basis points at December 31, 2023 from December 31, 2022.

During 2024, the U.S. pension benefit plan was amended to add a lump-sum window for certain eligible deferred vested participants or their beneficiaries to receive a single sum payment or commence an immediate annuity in December 2024. As a result of this lump- sum window, total lump sum paid from plan assets was $3,880 and the plan’s benefit obligation decreased by $4,857 as measured prior to changes in assumptions at December 31, 2024 resulting in an actuarial gain of $977.

Reconciliations

The following tables provide a reconciliation of projected benefit obligations (“PBO”), plan assets and the funded status of the plans for the Corporation’s defined benefit plans calculated using a measurement date as of the end of the respective years.

	U.S. Pension Benefits(a)						Foreign Pension Benefits(b)						Other Postretirement Benefits
	2024			2023			2024			2023			2024			2023
Change in projected benefit obligations:
PBO at January 1	$	194,365		$	193,670		$	42,447		$	39,319		$	7,748		$	7,644
Service cost		29			37			145			304			168			170
Interest cost		9,317			9,941			1,834			1,859			362			390
Foreign currency exchange rate changes		—			—			(930	)		2,006			—			—
Actuarial (gains) losses		(8,209	)		6,115			(2,835	)		1,627			(838	)		(179	)
Plan amendment		—			—			—			—			—			146
Participant contributions		—			—			—			—			45			42
Benefits paid from plan assets		(18,573	)		(14,630	)		(2,642	)		(2,165	)		—			—
Benefits paid by the Corporation		(768	)		(768	)		(401	)		(503	)		(417	)		(465	)
PBO at December 31	$	176,161		$	194,365		$	37,618		$	42,447		$	7,068		$	7,748
Change in plan assets:
Fair value of plan assets at January 1	$	163,929		$	161,374		$	42,338		$	41,679		$	—		$	—
Actual return on plan assets		7,910			16,845			(3,053	)		649			—			—
Foreign currency exchange rate changes		—			—			(541	)		2,175			—			—
Corporate contributions		6,206			1,108			400			503			372			423
Participant contributions		—			—			—			—			45			42
Gross benefits paid		(19,341	)		(15,398	)		(3,043	)		(2,668	)		(417	)		(465	)
Fair value of plan assets at December 31	$	158,704		$	163,929		$	36,101		$	42,338		$	—		$	—
Funded status of the plans:
Fair value of plan assets	$	158,704		$	163,929		$	36,101		$	42,338		$	—		$	—
Less benefit obligations		176,161			194,365			37,618			42,447			7,068			7,748
Funded status at December 31	$	(17,457	)	$	(30,436	)	$	(1,517	)	$	(109	)	$	(7,068	)	$	(7,748	)

(a)Includes the nonqualified defined benefit pension plan.

(b)Includes the over-funded U.K. defined benefit pension plan and two smaller unfunded defined benefit pension plans.

The following tables provide a summary of amounts recognized in the consolidated balance sheets at December 31, 2024 and 2023.

	U.S. Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
	2024			2023			2024			2023			2024			2023
Employee benefit obligations:
Prepaid pensions(a)	$	—		$	—		$	3,652		$	4,951		$	—		$	—
Accrued payrolls and employee benefits(b)		(723	)		(725	)		—			—			(767	)		(835	)
Employee benefit obligations(c)		(16,734	)		(29,711	)		(5,169	)		(5,060	)		(6,301	)		(6,913	)
Total employee benefit obligations	$	(17,457	)	$	(30,436	)	$	(1,517	)	$	(109	)	$	(7,068	)	$	(7,748	)
Accumulated other comprehensive loss:(d)
Net actuarial loss (gain)	$	45,248		$	47,889		$	20,388		$	19,900		$	(3,410	)	$	(2,887	)
Prior service cost (credit)		—			1			(5,614	)		(5,984	)		(2,574	)		(3,598	)
Total accumulated other comprehensive loss	$	45,248		$	47,890		$	14,774		$	13,916		$	(5,984	)	$	(6,485	)

(a)Represents the over-funded U.K. defined benefit pension plan which is recorded as a noncurrent asset in the consolidated balance sheets.

(b)Recorded as a current liability in the consolidated balance sheets.

(c)Recorded as a noncurrent liability in the consolidated balance sheets.

(d)Amounts are pre-tax.

As of December 31, 2024, estimated benefit payments for subsequent years are as follows:

	U.S. Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits
2025	$	15,822	$	2,352	$	788
2026		15,630		2,414		617
2027		15,412		2,369		593
2028		15,141		2,552		604
2029		14,823		2,624		573
2030-2034		68,494		13,394		2,619
Total benefit payments	$	145,322	$	25,705	$	5,794

Investment Policies and Strategies

The investment policies and strategies are determined by the Ampco-Pittsburgh Corporation Retirement Committee (the “Retirement Committee”) and monitored by the Finance and Investment Committee of the Board of Directors of the Corporation for the U.S. pension plan and by the Trustees (as appointed by UES-UK and the employees of UES-UK) for the UES-UK pension plan, each of whom employ their own investment managers to manage the plan’s assets in accordance with the policy guidelines. The U.S. defined benefit pension plan follows a glide-path strategy whereby target asset allocations are rebalanced based on projected payment obligations and the funded status of the plan. The U.K. defined benefit pension plan employs a liability-matching portfolio whereby a higher percentage of plan assets is invested in fixed-income securities. Pension assets of the UES-UK plan are invested with the objective of the plan maintaining self-sufficiency.

Attempts to minimize risk include allowing temporary changes to the allocation mix in response to market conditions, diversifying investments among asset categories (e.g., equity securities, fixed-income securities, alternative investments, cash and cash equivalents) and within these asset categories (e.g., economic sector, industry, geographic distribution, size) and consulting with independent financial and legal counsels to assure the investments and their expected returns and risks are consistent with the goals of the Retirement and Finance and Investment Committees for the U.S. pension plan or Trustees for the UES-UK pension plan.

Investments in equity securities are primarily in common stocks of publicly traded U.S. and international companies across a broad spectrum of industry sectors. Investments in fixed-income securities are principally A-rated or better bonds with maturities of less than ten years, preferred stocks and convertible bonds. Investments in equity and fixed-income securities are either direct or through designated mutual funds. The Corporation believes there are no significant concentrations of risk associated with the plans’ assets. With respect to the U.S. pension plan, the following investments are prohibited unless otherwise approved by the Board of Directors: stock of the Corporation, futures and options except for hedging purposes, unregistered or restricted stock, warrants, margin trading, short-selling, real estate excluding public or real estate partnerships, and commodities including art, jewelry and gold. The UES-UK pension plan invests in specific funds. Any investments other than those specifically identified would be considered prohibited.

The following table summarizes target asset allocations for 2024 (within +/-5% considered acceptable) and major asset categories. Certain investments are classified differently for target asset allocation purposes and external reporting purposes. The Corporation intends to continue to liquidate the alternative investments of the U.S. pension plan to provide additional flexibility with investment allocation.

	U.S. Pension Benefits									Foreign Pension Benefits
	Target Allocation			Percentage of Plan Assets						Target Allocation			Percentage of Plan Assets
	Dec. 31, 2024			2024			2023			Dec. 31, 2024			2024			2023
Equity securities		43	%		41	%		52	%		0	%		0	%		0	%
Fixed-income securities		54	%		46	%		41	%		86	%		87	%		90	%
Alternative investments		0	%		4	%		4	%		0	%		0	%		2	%
Other (primarily cash and cash equivalents)		3	%		9	%		3	%		14	%		13	%		8	%

Fair Value Measurement of Plan Assets

Equity securities, exchange-traded funds (“ETFs”), mutual funds and treasury bonds are actively traded on exchanges or broker networks and price quotes for these investments are readily available. While not quoted on active exchanges, price quotes for corporate bonds are readily available. Similarly, certain commingled funds are not traded publicly, but the underlying assets (such as stocks and bonds) held in the funds are traded on active markets and the prices for the underlying assets are readily observable. For securities not actively traded, the fair value may be based on third-party appraisals, discounted cash flow analysis, benchmark yields, and inputs that are currently observable in markets for similar securities.

Investment Strategies

The significant investment strategies of the various funds are summarized below.

Fund	Investment Strategy	Primary Investment Objective
Various Equity Funds	Each fund maintains a diversified holding in common stock of applicable companies (e.g., common stock of small capitalization companies if a small-cap fund, common stock of medium capitalization companies if a mid-cap fund, common stock of foreign corporations if an international fund, etc.).	Outperform the fund’s related index.
Various Fixed- Income Funds	Invests primarily in a diversified portfolio of fixed-income securities of varying maturities or in commingled funds which invest in a diversified portfolio of fixed-income securities of varying maturities.	Achieve a rate of return that matches or exceeds the expected growth in plan liabilities.
Alternative Investments – Managed Funds	Invests in equities and equity-like asset classes and strategies (such as public equities, venture capital, private equity, real estate, natural resources, and hedged strategies) and fixed-income securities approved by the Retirement Committee.	Generate a minimum annual inflation adjusted return of 5% and outperform a traditional 70/30 equities/bond portfolio.
Temporary Investment Fund	Invests primarily in a diversified portfolio of investment grade money market instruments.	Achieve a market level of current income while maintaining stability of principal and liquidity.

Categories of Plan Assets

Asset categories based on the nature and risks of the U.S. pension benefit plan’s assets as of December 31, 2024 are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity Securities:
U.S.
Consumer discretionary	$	2,353	$	—	$	—	$	2,353
Consumer staples		894		—		—		894
Energy		398		—		—		398
Financial		2,696		—		—		2,696
Healthcare		2,959		—		—		2,959
Industrials		3,590		—		—		3,590
Information technology		4,280		—		—		4,280
Materials		176		—		—		176
Mutual funds and ETFs		44,830		—		—		44,830
Real estate		107		—		—		107
Telecommunications		981		—		—		981
Utilities		104		—		—		104
International
Financial		144		—		—		144
Industrials		401		—		—		401
Information technology		488		—		—		488
Materials		226		—		—		226
Total Equity Securities		64,627		—		—		64,627
Fixed-Income Securities:
U.S.
Corporate bonds		—		35,728		—		35,728
Treasury bonds		28,253		—		—		28,253
Mutual funds and ETFs		6,566		—		—		6,566
International
Corporate bonds		—		3,143		—		3,143
Total Fixed-Income Securities		34,819		38,871		—		73,690
Alternative Investments:
Managed funds(a)		436		—		5,645		6,081
Total Alternative Investments		436		—		5,645		6,081
Other:
Cash and cash equivalents(b)		14,306		—		—		14,306
Total Other		14,306		—		—		14,306
Total assets	$	114,188	$	38,871	$	5,645	$	158,704

(a)Substantially all investments are in real assets, commodities and resources, and absolute return funds.

(b)Includes investments in temporary funds.

Asset categories based on the nature and risks of the U.S. pension benefit plan’s assets as of December 31, 2023 are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Equity Securities:
U.S.
Consumer discretionary	$	3,491	$	—	$	—	$	3,491
Consumer staples		1,848		—		—		1,848
Energy		791		—		—		791
Financial		4,659		—		—		4,659
Healthcare		5,907		—		—		5,907
Industrials		5,117		—		—		5,117
Information technology		6,993		—		—		6,993
Materials		456		—		—		456
Mutual funds and ETFs		51,729		—		—		51,729
Real estate		209		—		—		209
Telecommunications		1,674		—		—		1,674
Utilities		211		—		—		211
International
Consumer discretionary		64		—		—		64
Financial		437		—		—		437
Healthcare		114		—		—		114
Industrials		401		—		—		401
Information technology		306		—		—		306
Materials		573		—		—		573
Total Equity Securities		84,980		—		—		84,980
Fixed-Income Securities:
U.S.
Corporate bonds		—		32,482		—		32,482
Treasury bonds		23,456		—		—		23,456
Mutual funds and ETFs		7,825		—		—		7,825
International
Corporate bonds		—		3,394		—		3,394
Total Fixed-Income Securities		31,281		35,876		—		67,157
Alternative Investments:
Managed funds(a)		321		—		5,714		6,035
Total Alternative Investments		321		—		5,714		6,035
Other:
Cash and cash equivalents(b)		5,757		—		—		5,757
Total Other		5,757		—		—		5,757
Total assets	$	122,339	$	35,876	$	5,714	$	163,929

(a)Substantially all investments are in real assets, commodities and resources, and absolute return funds.

(b)Includes investments in temporary funds.

Asset categories based on the nature and risks of the foreign pension benefit plan’s assets as of December 31, 2024 are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed-Income Securities:
Commingled funds (U.K.)	$	—	$	1,636	$	—	$	1,636
Commingled funds (International)		—		29,618		—		29,618
Total Fixed-Income Securities		—		31,254		—		31,254
Cash and cash equivalents		643		4,204		—		4,847
Total assets	$	643	$	35,458	$	—	$	36,101

Asset categories based on the nature and risks of the foreign pension benefit plan’s assets as of December 31, 2023 are summarized below.

	Quoted Prices in Active Markets for Identical Inputs (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Fixed-Income Securities:
Commingled funds (U.K.)	$	—	$	25,754	$	—	$	25,754
Commingled funds (International)		—		12,251		928		13,179
Total Fixed-Income Securities		—		38,005		928		38,933
Cash and cash equivalents		1,697		1,708		—		3,405
Total assets	$	1,697	$	39,713	$	928	$	42,338

The following table sets forth a summary of changes in the fair value of the Level 3 plan assets for the U.S. and foreign pension benefit plans for the years ended December 31, 2024 and 2023.

	U.S. Pension Benefits						Foreign Pension Benefits
	2024			2023			2024			2023
Fair value as of January 1	$	5,714		$	6,569		$	928		$	831
Transfers to other plan assets		(299	)		(627	)		(926	)		—
Realized gains		86			186			14			—
Change in net unrealized gains (losses)		144			(414	)		—			52
Other, primarily impact from changes in foreign currency    exchange rates		—			—			(16	)		45
Fair value as of December 31	$	5,645		$	5,714		$	—		$	928

Net Periodic Pension and Other Postretirement Benefit Costs

The actual return on the fair value of the plan assets is included in determining the funded status of the plans. In determining net periodic pension benefit costs, the expected long-term rate of return on the market-related value of the plan assets is used. Differences between the actual return on the fair value of the plan assets and the expected long-term rate of return on the market-related value of the plan assets are classified as part of unrecognized actuarial gains or losses and are recorded as a component of accumulated other comprehensive loss on the consolidated balance sheet. When these gains or losses exceed 10% of the greater of the projected benefit obligation or the market-related value of plan assets, they are amortized to net periodic pension and other postretirement benefit costs over the average remaining service period or life expectancy of the employees expected to receive benefits under the plans. When the gains or losses are less than 10% of the greater of the projected benefit obligation or the market-related value of plan assets, they are included in net periodic pension and other postretirement benefit costs indirectly as a result of lower/higher interest costs arising from a decrease/increase in the projected benefit obligation.

Net periodic pension and other postretirement benefit costs include the following components for each of the years.

	U.S. Pension Benefits						Foreign Pension Benefits						Other Postretirement Benefits
	2024			2023			2024			2023			2024			2023
Service cost	$	29		$	37		$	145		$	304		$	168		$	170
Interest cost		9,317			9,941			1,834			1,859			362			390
Expected return on plan assets		(13,660	)		(14,386	)		(1,926	)		(1,931	)		—			—
Amortization of:
Prior service cost (credit)		1			8			(284	)		(271	)		(1,024	)		(1,024	)
Actuarial loss (gain)		181			127			716			591			(315	)		(322	)
Total net periodic pension and other postretirement benefit costs	$	(4,132	)	$	(4,273	)	$	485		$	552		$	(809	)	$	(786	)

Assumptions

Assumptions are reviewed on an annual basis. The expected long-term rate of return on plan assets is an estimate of average rates of earnings expected to be earned on funds invested, or to be invested, to provide for the benefits included in the projected benefit obligation. Since these benefits will be paid over many years, the expected long-term rate of return is reflective of current investment returns and investment returns over a longer period. Consideration is also given to target and actual asset allocations, inflation and real risk-free return. A percentage point decrease in the expected long-term rate of return would increase annual pension expense by approximately $2,300. Conversely, a percentage point increase in the expected long-term rate of return would decrease annual pension expense by approximately $2,300. The discount rates used in determining future pension obligations and other postretirement benefits

for each of the plans are based on rates of return on high-quality fixed-income investments currently available, and expected to be available, during the period to maturity of the pension and other postretirement benefits. High-quality fixed-income investments are defined as those investments which have received one of the two highest ratings given by a recognized rating agency with maturities of 10+ years. Assumptions about wage increases are not relevant since substantially all the benefits available under the defined benefit pension plans are either frozen or based on a multiplier, versus wages.

The discount rates used to determine the benefit obligations as of December 31, 2024 and 2023 are summarized below.

	U.S. Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits
	2024	2023	2024	2023	2024	2023
Discount rate	5.61-5.64%	5.13-5.16%	5.55%	4.65%	5.70%	5.19%

In addition, the assumed health care cost trend rate at December 31, 2024 for other postretirement benefits is 7.30% for 2024 gradually decreasing to 4.75% in 2030. In selecting rates for current and long-term health care assumptions, the Corporation considers known health care cost increases, the design of the benefit programs, the demographics of its active and retiree populations, and expectations of inflation rates in the future.

The following assumptions were used to determine net periodic pension and other postretirement benefit costs for the years ended December 31, 2024 and 2023.

	U.S. Pension Benefits		Foreign Pension Benefits		Other Postretirement Benefits
	2024	2023	2024	2023	2024	2023
Discount rate	5.13-5.16%	5.48-5.49%	4.65%	4.85%	5.19%	5.49%
Expected long-term rate of return	7.40%	7.70%	4.65%	4.60%	n/a	n/a