Defined Benefit Plan

6 Months Ended

Jun. 30, 2023

In connection with the acquisition of Arnold, the company has a defined benefit plan covering substantially all of Arnold’s employees at its Lupfig, Switzerland location. The benefits are based on years of service and the employees’ highest average compensation during the specific period.

The unfunded liability of $1.7 million is recognized in the consolidated balance sheet as a component of other non-current liabilities at June 30, 2023. Net periodic benefit cost consists of the following for the three and six months ended June 30, 2023 and 2022 (in thousands):


	Three months ended June 30,				Six months ended June 30,
	2023		2022		2023		2022
Service cost	$	91	$	107	$	181	$	217
Interest cost	62		10		122		21
Expected return on plan assets	(55)		(18)		(109)		(37)
Amortization of unrecognized loss	(9)		(7)		(18)		(14)
Effect of curtailment	—		(28)		(13)		(31)
Net periodic benefit cost	$	89	$	64	$	163	$	156

During the six months ended June 30, 2023, per the terms of the pension agreement, Arnold contributed $0.2 million to the plan. For the remainder of 2023, the expected contribution to the plan will be approximately $0.2 million.

The plan assets are pooled with assets of other participating employers and are not separable; therefore, the fair values of the pension plan assets at June 30, 2023 were considered Level 3.