Retirement Plans

12 Months Ended

Dec. 31, 2024

Retirement Benefits [Abstract]

Retirement Plans

12. Retirement Plans

The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s defined benefit pension plan, The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02, (the “Plan”) provides benefits primarily based upon a fixed amount for each year of service. The Plan was frozen in 2007, and no benefits for service have accumulated after this date.

Net periodic pension cost of the Plan for the years ended December 31, 2024, 2023 and 2022 was as follows:

	For the Year Ended December 31,
	2024			2023			2022
Interest cost	$	222		$	233		$	162
Expected return on assets		(125	)		(144	)		(156	)
Amortization of net loss		64			70			67
Net periodic pension cost	$	161		$	159		$	73

The reconciliation of changes in the Plan’s projected benefit obligations and assets are as follows:

	December 31,
	2024			2023
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	4,766		$	4,783
Interest cost		222			233
Actuarial (gain) loss		(291	)		84
Benefits paid		(417	)		(334	)
Projected benefit obligation at end of year	$	4,280		$	4,766
Change in plan assets:
Fair value of plan assets at beginning of year	$	4,631		$	4,599
Actual return on plan assets		(13	)		316
Company contributions		—			50
Benefits paid		(417	)		(334	)
Fair value of plan assets at end of year	$	4,201		$	4,631
Funded status	$	(79	)	$	(135	)

The Plan’s funded status shown above is included in Other liabilities - long-term in the Company’s Consolidated Statements of Financial Position at December 31, 2024 and 2023. In 2024 the Company began the process to terminate the Plan and expects the Plan to be fully terminated in 2025. The Company expects to make contributions of $0.4 million in 2025 and does not plan to make voluntary contributions other than as required in the termination process. Because the Plan has been frozen, the accumulated benefit obligation is equal to the projected benefit obligation. The actuarial gain incurred during the year ended December 31, 2024 was due to an increase in the discount rate whereas the actuarial loss incurred during the year ended December 31, 2023 was due to a decrease in the discount rate for benefit obligations.

The assumptions used to determine the Plan’s net periodic benefit cost and benefit obligations are as follows:

	December 31,
	2024			2023			2022
Discount rate for net periodic pension cost		4.85	%		5.05	%		2.65	%
Discount rate for benefit obligations		5.40	%		4.85	%		5.05	%
Expected long-term return of plan assets		5.00	%		5.25	%		4.50	%

The expected long-term rate of return is based on the long-term expected returns for the investment mix consistent with the Plan’s current asset allocation and investment policy. The Plan’s asset allocation and investment policy increases the allocation of fixed income investments that are managed to match the duration of the underlying pension liability as the funding status improves. The assumed discount rates represent long-term high-quality corporate bond rates commensurate with the liability duration of the Plan.

The fair value of Plan assets at December 31, 2024 and 2023 consist of mutual funds valued at $0.4 million and $0.5 million, respectively, and pooled separate accounts valued at $3.8 million and $4.1 million. Fair values of all Plan assets are categorized as Level 1. Mutual fund values are determined based on period end closing quoted prices in active markets. The pooled separate accounts are measured at net asset value, which is made readily available to investors. Each of the pooled separate accounts invest in multiple fixed securities and provide for daily redemptions by the plan with no advance notice requirements and have redemption prices that are also determined by the fund’s net asset value per unit with no redemption fees.

The weighted average asset allocations for the Plan at December 31, 2024 and 2023 were as follows:

	December 31,
	2024			2023
U.S. equities securities		10	%		11	%
U.S. debt securities		90	%		89	%
		100	%		100	%

Benefit payments projected for the Plan are as follows:

2025	$	360
2026		360
2027		360
2028		350
2029		350
2030-2034		1,690

The Company maintains defined contribution plans for its U.S.-based employees, who are not covered under defined benefit plans and have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of, $4.9 million, $4.5 million and $4.2 million in 2024, 2023 and 2022, respectively.

In addition, the Company has a Supplemental Executive Retirement Plan (“SERP”) to provide certain former senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Net expense (benefit) related to the SERP was not meaningful for the years ended December 2024, 2023 and 2022, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 5.4% at December 31, 2024 and 4.9% at December 31, 2023. The SERP liability was approximately $0.6 million and $0.9 million at December 31, 2024 and 2023, respectively, and is included in Accrued employee compensation and Other liabilities - long-term on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.