Pension And Other Liabilities

12 Months Ended

Dec. 31, 2025

Pension And Other Liabilities [Abstract]

NOTE 14 – PENSION AND OTHER LIABILITIES

Other liabilities including pension are summarized as follows:



	December 31,
(Dollars in thousands)	2025		2024
Current liabilities
Lease liability⁽²⁾		—		5,900
Accrued pension⁽¹⁾		575		500
Security deposit payable		165		117
Finance lease liabilities		—		43
Other		34		33
Other current liabilities	$	774	$	6,593
Other liabilities
Accrued pension⁽¹⁾		1,747		2,312
Lease make-good provision		6,284		5,908
Deferred rent liability		3,439		3,786
Environmental reserve		1,656		1,656
Other non-current liabilities	$	13,126	$	13,662

(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 21 – 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 $2.3 million and $2.8 million as of December 31, 2025 and 2024, respectively. The benefits of our pension plans are fully vested and therefore no service costs were recognized in 2025 and 2024. 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)	2025		2024
Benefit obligation at January 1	$	2,812	$	3,330
Service cost
Interest cost		193		165
Payments made		(683)		(683)
Benefit obligation at December 31	$	2,322	$	2,812
Unfunded status at December 31	$	(2,322)	$	(2,812)

Amounts recognized in the balance sheet consists of:



	December 31,
(Dollars in thousands)	2025		2024
Current liabilities	$	633	$	547
Other liabilities - Non current		1,689		2,265
Total pension liability	$	2,322	$	2,812

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



	December 31,
(Dollars in thousands)	2025		2024
Net periodic benefit cost
Interest cost	$	193	$	165
Amortization of prior service costs		—		—
Amortization of net actuarial gain		151		172
Net periodic benefit cost	$	344	$	337
Items recognized in other comprehensive income
Net loss	$	—	$	—
Amortization of net loss		(151)		(172)
Total recognized in other comprehensive income	$	(151)	$	(172)
Total recognized in net periodic benefit cost and other comprehensive income	$	193	$	165

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



	December 31,
(Dollars in thousands)	2025		2024
Unamortized actuarial loss	$	1,346	$	1,497
Accumulated other comprehensive income	$	1,346	$	1,497

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, 2025:



(Dollars in thousands)	Estimated ‎Future ‎Pension ‎Payments
2026	$	633
2027		607
2028		638
2029		444
2030		—
Thereafter		—
Total pension payments	$	2,322

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, 2025		As of and for the year ended December 31, 2024
Lease make-good provision, at January 1	$	5,908	$	6,050
Liabilities incurred during the year		32		59
Liabilities settled during the year		(213)		(71)
Liabilities remeasured during the year		—		—
Accretion expense		282		266
Effect of changes in foreign currency		275		(396)
Lease make-good provision, at December 31	$	6,284	$	5,908