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 $2.5 million is recognized in the consolidated balance sheet as a component of other non-current liabilities at March 31, 2025. Net periodic benefit cost consists of the following for the three months ended March 31, 2025 and 2024 (in thousands):


	Three months ended March 31,
	2025		2024
Service cost	$	166	$	132
Interest cost	40		60
Expected return on plan assets	(29)		(49)
Amortization of prior service cost	(13)		—
Amortization of unrecognized loss	23		—
Effect of settlement	9		(11)
Net periodic benefit cost	$	196	$	132

During the three months ended March 31, 2025, per the terms of the pension agreement, Arnold contributed approximately $0.2 million to the plan. For the remainder of 2025, the expected contribution to the plan will be approximately $0.5 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 March 31, 2025 were considered Level 3.