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Note 7 - Pension and Other Postretirement Benefits
 9 Months Ended
Sep. 30, 2021
Notes to Financial Statements  
Retirement Benefits [Text Block]

NOTE 7 - PENSION AND OTHER POSTRETIREMENT BENEFITS

 

The Company sponsors a defined benefit pension plan (“Plan”) covering certain domestic employees. Benefits are based on each covered employee’s years of service and compensation. The Plan is funded in conformity with the funding requirements of applicable U.S. regulations. The Plan was closed to new participants effective January 1, 2008. Employees hired after this date, in eligible locations, participate in an enhanced 401(k) plan instead of the defined benefit pension plan. Employees hired prior to this date continue to accrue benefits.

 

Additionally, the Company sponsors defined contribution pension plans made available to all domestic and Canadian employees. The Company funds the cost of these benefits as incurred.

 

The Company also sponsors a non-contributory defined benefit postretirement health care plan that provides health benefits to certain domestic and Canadian retirees and eligible spouses and dependent children. The Company funds the cost of these benefits as incurred.

 

The following tables present the components of net periodic benefit costs:

 

  

Pension Benefits

  

Postretirement Benefits

 
  

Three Months Ended

September 30,

  

Three Months Ended

September 30,

 
  

2021

  

2020

  

2021

  

2020

 

Service cost

 $636  $688  $365  $343 

Interest cost

  467   431   163   194 

Expected return on plan assets

  (907

)

  (984

)

  -   - 

Amortization of prior service cost

  -   -   (282

)

  (282

)

Recognized actuarial loss

  423   538   145   77 

Settlement loss

  388   991   -   - 

Net periodic benefit cost (a)

 $1,007  $1,664  $391  $332 

 

   

Pension Benefits

    

Postretirement Benefits

  
   

Nine Months Ended

September 30,

    

Nine Months Ended

September 30,

  
   

2021

    

2020

    

2021

    

2020

 

Service cost

   $ 2,034     $ 2,029     $ 1,096     $ 1,029  

Interest cost

     1,252       1,522       490       584  

Expected return on plan assets

     (2,707

)

     (2,928

)

     -       -  

Amortization of prior service cost

     -       -       (847

)

     (847

)

Recognized actuarial loss

     1,482       1,673       435       230  

Settlement loss

     2,116       4,373       -       -  

Net periodic benefit cost (a)

   $ 4,177     $ 6,669     $ 1,174     $ 996  

 

 (a)

The components of net periodic benefit cost other than the service cost component are included in Other income (expense), net in the Consolidated Statements of Income.

 

During the three and nine months ended September 30, 2021, the Company recorded a settlement loss relating to retirees that received lump-sum distributions from the Company’s defined benefit pension plan totaling $0.4 million and $2.1 million, respectively. The Company recorded settlement losses of $1.0 million and $4.4 million for the three and nine month periods ended September 30, 2020, respectively. These charges were the result of lump-sum distributions to retirees exceeding the Plan’s actuarial service and interest cost thresholds.