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Note 4 - Periodic Pension Expense
 9 Months Ended
Sep. 30, 2022
Notes to Financial Statements  
Retirement Benefits [Text Block]

NOTE 4 – Periodic Pension Expense:

 

The Company is the sponsor of an unfunded supplemental executive retirement plan in which several employees participate.

 

The Company had previously sponsored two noncontributory qualified defined benefit pension plans, providing for normal retirement at age 65, covering all eligible employees (as defined). During 2021, the Company completed the termination of its two noncontributory qualified defined benefit pension plans, which were fully funded.

 

The following table details the net periodic pension expense under the Company’s plans for the periods presented (in thousands):

 

  

Three Months Ended September 30,

  

Nine Months Ended September 30,

 
  

2022

  

2021

  

2022

  

2021

 

Service cost - benefits earned during the period

 $51  $46  $153  $138 

Interest cost on projected benefit obligation

  100   84   300   424 

Expected return on plan assets

  -   -   -   (597)

Recognized actuarial loss

  428   375   1,284   1,501 

Pension plan termination charge

  -   -   -   6,945 

Net periodic pension cost

 $579  $505  $1,737  $8,411 

 

The service cost component is included in selling and administrative expenses in our statements of comprehensive income (loss) and the other components of net periodic pension cost are included in other periodic pension costs in our statements of comprehensive income (loss).

 

In the second quarter of 2021, the Company terminated its two noncontributory qualified defined benefit pension plans, which were fully funded. Consequently, the Company recognized a settlement charge of $6.9 million during the nine months ended September 30, 2021, which represents the acceleration of deferred charges previously included within accumulated other comprehensive loss and the impact of remeasuring the plan assets and obligations at termination. The pension plan terminations did not require a cash outlay by the Company.