Pension And Other Liabilities

12 Months Ended

Dec. 31, 2022

Pension And Other Liabilities [Abstract]

NOTE 13 – PENSION AND OTHER LIABILITIES

Other liabilities including pension are summarized as follows:



	December 31,
(Dollars in thousands)	2022		2021
Current liabilities
Liability for demolition and remediation costs	$	—	$	2,783
Accrued pension⁽¹⁾		684		684
Security deposit payable		68		69
Finance lease liabilities		28		40
Other		33		43
Other current liabilities	$	813	$	3,619
Other liabilities
Accrued pension⁽¹⁾		3,138		3,605
Lease make-good provision		6,131		7,766
Deferred rent liability		2,484		3,930
Environmental reserve		1,656		1,656
Lease liability⁽²⁾		5,900		5,900
Acquired leases		11		21
Finance lease liabilities		—		28
Other		—		—
Other non-current liabilities	$	19,320	$	22,906

(1)Represents the pension liability associated with the Supplemental Executive Retirement Plan explained below.

(2)Represents the lease liability of the option associated with the ground lease purchase of the Village East Cinema. See Note 20 – Related Parties for more information.

Pension Liability – Supplemental Executive Retirement Plan

On August 29, 2014, the Supplemental Executive Retirement Plan (“SERP”) that was effective since March 1, 2007, was ended and replaced with a new pension annuity. As a result of the termination of the SERP program, the accrued pension liability of $7.6 million was reversed and replaced with a new pension annuity liability of $7.5 million. The valuation of the liability is based on the present value of $10.2 million discounted at 4.25% over a 15-year term, resulting in a monthly payment of $57,000 payable to the estate of Mr. James J. Cotter, Sr. The discounted value of $2.7 million (which is the difference between the estimated payout of $10.2 million and the present value of $7.5 million) will be amortized and expensed based on the 15-year term. In addition, the accumulated actuarial loss of $3.1 million recorded, as part of other comprehensive income, will also be amortized based on the 15-year term.

As a result of the above, included in our other current and non-current liabilities are accrued pension costs of $3.8 million and $4.3 million as of December 31, 2022 and 2021, respectively. The benefits of our pension plans are fully vested and therefore no service costs were recognized 2022 and 2021. Our pension plans are unfunded.

The change in the SERP pension benefit obligation and the funded status are as follows:



	December 31,
(Dollars in thousands)	2022		2021
Benefit obligation at January 1	$	4,289	$	4,732
Service cost
Interest cost		216		240
Payments made		(683)		(683)
Benefit obligation at December 31	$	3,822	$	4,289
Unfunded status at December 31	$	(3,822)	$	(4,289)

Amounts recognized in the balance sheet consists of:



	December 31,
(Dollars in thousands)	2022		2021
Current liabilities	$	684	$	684
Other liabilities - Non current		3,138		3,605
Total pension liability	$	3,822	$	4,289

The components of the net periodic benefit cost and other amounts recognized in other comprehensive income are as follows:



	December 31,
(Dollars in thousands)	2022		2021
Net periodic benefit cost
Interest cost	$	216	$	240
Amortization of prior service costs		—		—
Amortization of net actuarial gain		147		166
Net periodic benefit cost	$	363	$	406
Items recognized in other comprehensive income
Net loss	$	—	$	—
Amortization of net loss		(147)		(166)
Total recognized in other comprehensive income	$	(147)	$	(166)
Total recognized in net periodic benefit cost and other comprehensive income	$	216	$	240

Items not yet recognized as a component of net periodic pension cost consist of the following:



	December 31,
(Dollars in thousands)	2022		2021
Unamortized actuarial loss	$	1,822	$	1,969
Accumulated other comprehensive income	$	1,822	$	1,969

The estimated unamortized actuarial loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost over the next fiscal year will be $207,000 (gross of any tax effects).

The following table presents estimated future benefit payments for the next five years and thereafter as of December 31, 2022:



(Dollars in thousands)	Estimated ‎Future ‎Pension ‎Payments
2023	$	684
2024		684
2025		684
2026		684
2027		684
Thereafter		402
Total pension payments	$	3,822

Lease Make-Good Provision

We recognize obligations for future leasehold restoration costs relating to properties that we use mostly on our cinema operations under operating lease arrangements. Each lease is unique to the negotiated conditions with the lessor, but in general most leases require for the removal of cinema-related assets and improvements. There are no assets specifically restricted to settle this obligation.

A reconciliation of the beginning and ending carrying amounts of the lease make-good provision is presented in the following table:



(Dollars in thousands)	As of and for ‎the year ended ‎December 31, ‎2022		As of and for ‎the year ended ‎December 31, ‎2021
Lease make-good provision, at January 1	$	7,766	$	7,408
Liabilities incurred during the year		—		288
Liabilities settled during the year		(67)		—
Liabilities remeasured during the year		(1,567)		—
Accretion expense		293		343
Effect of changes in foreign currency		(294)		(273)
Lease make-good provision, at December 31	$	6,131	$	7,766