Note 7 - Accrued Retirement Benefits

12 Months Ended

Dec. 31, 2025

Notes to Financial Statements

Retirement Benefits [Text Block]

7. ACCRUED RETIREMENT BENEFITS

Accrued retirement benefits at December 31, 2025 and 2024 consisted of the following:

	December 31,			December 31,
	2025			2024
	(in thousands)
Defined benefit pension plan	$	-		$	912
Non-qualified retirement plans		1,620			1,596
Total		1,620			2,508
Less current portion		(1,620	)		(140	)
Non-current portion of accrued retirement benefits	$	-		$	2,368

The Company had two defined benefit pension plans which covered substantially all former bargaining and non-bargaining full-time, part-time and intermittent employees. In 2011, pension benefits under both plans were frozen. In 2018, the Company merged the two defined benefit pension plans (the “Defined Plan”) to streamline the administration of the frozen plan in. The Company also has an unfunded non-qualified retirement plan (the”Non-qualified Plan”) covering nine of its former employees. The Non-qualified plan was frozen in 2009 and future vesting of additional benefits was discontinued. The Board of Directors (the “Board”) approved the termination of the Defined Plan and the Non-qualified Plan in 2023. The benefits paid from of the plan towards the final annuitization and plan termination was $12.4 million.

The measurement date for the Company’s benefit plan disclosures is December 31 of each year. The changes in benefit obligations and plan assets for the years ended December 31, 2025 and 2024, and the funded status of the plans and assumptions used to determine benefit information at December 31, 2025 and 2024 were as follows:

	Years Ended December 31,
	2025			2024
	(in thousands)
Change in benefit obligations:
Benefit obligations at beginning of year	$	13,949		$	15,552
Interest cost		335			738
Actuarial gain		(248	)		(27			)
Benefits paid		(12,416	)		(2,314			)
Benefit obligations at end of year		1,620			13,949
Change in plan assets:					-
Fair value of plan assets at beginning of year		11,441			13,860
Actual return on plan assets		(210	)		(231			)
Employer contributions		1,283			126
Asset transfers		(98	)		-
Benefits paid		(12,416	)		(2,314			)
Fair value of plan assets at end of year		-			11,441
Funded status	$	(1,620	)	$	(2,508			)
Accumulated benefit obligations	$	(1,620	)	$	(13,949			)
Weighted average assumptions to determine benefit obligations:
Discount rate		4.98	%		5.40	-	5.52	%
Expected long-term return on plan assets		n/a			5.40			%
Rate of compensation increase		n/a			n/a

Components of net periodic benefit cost and other amounts recognized in comprehensive income were as follows:

	Years Ended December 31,
	2025			2024
	(in thousands)
Pensions and other benefits:
Interest cost	$	337		$	735
Expected return on plan assets		(216	)		(695	)
Amortization of net loss		235			273
Settlement expense		6,556			635
Pension and other postretirement expenses	$	6,912		$	948
Other changes in plan assets and benefits obligations recognized in comprehensive income:
Net loss (gain)		178		$	900
Amortization of recognized loss		(6,792	)		(907	)
Total recognized gain in comprehensive income	$	(6,614	)	$	(7	)

Weighted average assumptions used to determine net periodic benefit cost:

	2025		2024
Discount rate		4.98%		5.40	-	5.52%
Expected long-term return on plan assets		n/a			5.40%
Rate of compensation increase		n/a			n/a

Weighted average assumptions used to determine net periodic benefit cost:

	2025		2024
Discount rate		4.98%		5.40	-	5.52%
Expected long-term return on plan assets		n/a			5.40%
Rate of compensation increase		n/a			n/a

The expected long-term rate of return on plan assets was based on a building-block approach. Historical markets are studied and long-term historical relationships between equities and fixed income are presumed consistent with the widely accepted capital market principle that assets with higher volatility generate a greater return over the long run. Current market factors, such as inflation and interest rates, are evaluated before long-term capital markets are determined. Diversification and rebalancing of plan assets are properly considered as part of establishing long-term portfolio returns. As a result of the termination of the Defined Plan and the Non-qualified Plan in 2025, we did not have any plan assets at December 31, 2025.

At December 31, 2024, the Defined Plan held shares of various Aon Collective Investment Trust (“ACIT”) funds. At December 31, 2025 the plan assets were $0. The fair value of the Company’s pension plan assets by category at December 31, 2024 were as follows:

	2024 Fair Value Measurements
	( in thousands)
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable nputs (Level 2)		Measured at NAC as a practical expedient		Total
ACIT equity funds	$	-	$	94	$	-	$	94
ACIT fixed income funds		-		10,362		-		10,362
Cash management funds		-		985		-		985
	$	-	$	11,441	$	-	$	11,441

Level 1 assets are priced using quotes for trades occurring in active markets for the identical asset. Level 2 assets are priced using observable inputs for the asset (for example, interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). Net asset values (“NAV”) of ACIT funds included in Level 2 are readily determinable, measured daily and based on the fair value of each fund’s underlying investments. For certain ACIT funds, NAV is used as a practical expedient to estimate fair value and is not categorized in the fair value hierarchy. These funds determine NAV based on the fair value of its underlying investments on a monthly or quarterly basis and have redemption restrictions. Redemptions may be requested at the fund’s quarter-end NAV under the notification requirements of each fund, including a 105 day notice.

An administrative committee consisting of certain senior management employees administers the Company’s Defined Plan. The pension plan assets are allocated among approved asset types based on the plan’s current funded status and other characteristics set by the administrative committee, subject to liquidity requirements of the Defined Plan.

Estimated future benefit payments are as follows (in thousands):

Years ending December 31,
2026	$	1,620
2027		-
2028		-
2029		-
2030		-

Plan cash contributions in the amount of $1,060,000 were made to the Defined Plan during the year ended December 31, 2025. No contributions were required in 2024.

A settlement expense in the amount of $6,556,000 was recognized during the year ended December 31, 2025. A $6,556,000 non-cash GAAP expense to recognize the most current estimated costs to terminate the Defined pension plan was incurred during the year ended  December 31, 2025. A cash contribution to the Defined plan in the amount of $1,060,000 was made during the year ended  December 31, 2025. No contributions to the plan were required in 2024. Final expense recovery of $587,000 was recognized upon the final termination of the Defined plan which was completed during the third quarter of 2025.