XML 33 R18.htm IDEA: XBRL DOCUMENT v3.25.0.1
Note 8 - Employee Benefit Plans
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Retirement Benefits [Text Block]

8.

Employee Benefit Plans

 

Employee Retirement Savings Plans

 

The Company sponsors various qualified employee retirement savings plans and makes contributions to match a certain portion of employee contributions. The Company contributed $1.1 million to these plans for each of the years ended December 31, 2024 and 2023.

 

Employee Pension Plans

 

The Company’s subsidiary in the United Kingdom, Biochrom Ltd., maintains defined benefit pension plans for its employees. In 2014, these defined benefit pension plans were closed to new employees, as well as closed to the future accrual of benefits for existing employees. The Company recognizes the funded status of the pension plans as an asset or liability in the consolidated balance sheets. The funded status equals the difference between the fair value of the plan’s assets and their benefit obligations and has historically been measured each year as of December 31st. The Company records net period benefit expense (credit) as a component of other expense in the Consolidated Statement of Operations.

 

The components of the Company’s net period benefit expense for the years ending December 31, 2024 and 2023, were as follows:

 

   

Year Ended December 31,

  

(in thousands)

  

2024

    

2023

  

Interest cost

   $ 667     $ 670  

Expected return on plan assets

     (887 )     (788 )

Net amortization loss

     408       328  

Net periodic benefit expense

   $ 188     $ 210  

 

The following provides a reconciliation of the changes in the plans’ fair value of assets and benefit obligations for the years ended December 31, 2024 and 2023, and a summary of the funded status as of December 31, 2024 and 2023:

 

   

December 31,

 

(in thousands)

  

2024

    

2023

  

Change in fair value of plan assets:

                

Balance at beginning of year

   $ 16,940     $ 15,576  

Actual return on plan assets

     (1,520 )     351  

Employer contributions

     575       622  

Benefits paid

     (565 )     (563 )

Currency translation adjustment

     (251 )     954  

Balance at end of year

   $ 15,179     $ 16,940  

 

   

December 31,

 

(in thousands)

  

2024

    

2023

  

Change in benefit obligation:

                

Balance at beginning of year

   $ 14,663     $ 13,263  

Interest cost

     662       665  

Actuarial (gain) loss

     (1,760 )     479  

Benefits paid

     (565 )     (563 )

Currency translation adjustment

     (211 )     819  

Balance at end of year

   $ 12,789     $ 14,663  

 

   

December 31,

 

(in thousands)

  

2024

    

2023

  

Fair value of plan assets

   $ 15,179     $ 16,940  

Benefit obligation

     12,789       14,663  

Net funded status

   $ 2,390     $ 2,277  

 

Changes in the actuarial (gain) loss disclosed above are primarily the result of changes in the discount rate and inflation assumptions due to underlying market conditions.

 

The amounts recognized in the consolidated balance sheets consist of:

 

   

December 31,

 

(in thousands)

  

2024

    

2023

  

Other long-term assets

   $ 2,390     $ 2,277  

Accumulated other comprehensive loss

     6,143       5,909  

 

The weighted average assumptions used in determining the net pension cost for these plans follows:

 

   

December 31,

 
   

2024

    

2023

  

Discount rate

     5.5 %     4.6 %

Expected return on assets

     5.5 %     5.3 %

 

The discount rate assumptions used for pension accounting reflect the prevailing rates available on high-quality, fixed-income debt instruments with terms that match the average expected duration of the Company’s defined benefit pension plan obligations.

 

The Company’s mix of pension plan investments among asset classes also affects the long-term expected rate of return on plan assets. As of December 31, 2024, the Company’s actual asset mix approximated its target mix. Differences between actual and expected returns are recognized in the calculation of net periodic pension cost over the average remaining expected future working lifetime, which is approximately 12 years for active plan participants.

 

The asset allocations and fair value of the Company’s pension benefits as of December 31, 2024 and 2023, were as follows:

 

   

December 31,

 

(in thousands)

  

2024

    

2023

  

Asset category:

                                

Debt securities

   $ 12,310       81 %   $ 11,761       69 %

Insurance contracts

     1,461       10 %     -       0 %

Equity securities

     712       5 %     3,567       21 %

Cash and cash equivalents

     402       3 %     304       2 %

Other

     294       2 %     1,308       8 %

Total

   $ 15,179       100 %   $ 16,940       100 %

 

   

December 31,

 

(in thousands)

  

2024

    

2023

  

Quoted prices in active markets for identical assets (Level 1)

   $ 402     $ 304  

Significant other observable inputs (Level 2)

     14,777       16,636  

Significant other unobservable inputs (Level 3)

     -       -  

Total

   $ 15,179     $ 16,940  

 

Level 1 assets consist of cash and cash equivalents held in the pension plans. The Level 2 assets primarily consist of investments in private investment funds that are valued using the net asset values provided by the trust or fund, including an insurance contract. Although these funds are not traded in an active market with quoted prices, the investments underlying the net asset value are based on quoted prices.

 

The Company expects to contribute approximately $0.3 million to its pension plan during 2025. The benefits expected to be paid from the pension plans are $0.8 million in 2025, $0.7 million in 2026, $0.7 million in 2027, $0.8 million in 2028, and $0.9 million in 2029. The expected benefits to be paid in the five years from 2030 to 2034 are $4.4 million. The expected benefits are based on the same assumptions used to measure the Company’s benefit obligation at December 31, 2024.