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Note 20 - Defined Benefit Plan

9 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Defined Benefit Plan [Text Block]

20. Defined Benefit Plan

In August 2021, the Company assumed sponsorship of Weingarten Realty Investors’ noncontributory qualified cash balance retirement plan (the “Benefit Plan”) in connection with the merger with Weingarten Realty Investors (“Weingarten”). The Benefit Plan was frozen as of the date of the merger and subsequently terminated as of December 31, 2021. On March 28, 2023, the Internal Revenue Service (the “IRS”) issued a favorable determination letter for the termination of the Benefit Plan. As a result, the Company elected to settle the Benefit Plan’s obligations through third-party annuity payments, lump sum distributions and direct rollover of funds in an Individual Retirement Account (“IRA Rollovers”) based on elections made by the Benefit Plan’s participants.

During the three months ended September 30, 2023, the Benefit Plan’s obligations of $25.5 million were settled through third-party annuity contracts, lump sum distributions and IRA Rollovers. In addition, during the three months ended September 30, 2023, the Benefit Plan transferred excess assets with a value of $3.9 million to the qualified replacement plan managed by the Company and reverted excess assets with a value of $10.6 million to the Company. As of September 30, 2023, the Benefit Plan had excess assets of with a value of $0.5 million remaining. Upon the liquidation of the Benefit Plan, the Company realized $10.8 million of settlement gains during the three months ended September 30, 2023, which are included in Other income, net on the Company’s Condensed Consolidated Statements of Income and were previously included in Accumulated other comprehensive income on the Company’s Condensed Consolidated Balance Sheets. In addition, the Company incurred excise taxes of $2.2 million resulting from the pension reversion of excess pension plan assets during the three months ended September 30, 2023, which are included in Other income, net on the Company’s Condensed Consolidated Statements of Income.

The components of net periodic benefit income/(cost), included in Other income, net in the Company’s Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2023 and 2022 are as follows (in thousands):

		Three Months Ended September 30,								Nine Months Ended September 30,
		2023				2022				2023				2022
Interest cost		$	(319	)		$	(208	)		$	(958	)		$	(851	)
Expected return on plan assets			316				-				1,218				212
Settlement gain			10,848				-				10,848				-
Total		$	10,845			$	(208	)		$	11,108			$	(639	)