Annual report [Section 13 and 15(d), not S-K Item 405]

Benefit Plans

v3.25.0.1
Benefit Plans
 12 Months Ended
Dec. 31, 2024
Retirement Benefits [Abstract]  
Benefit Plans
20. Benefit Plans:
The Company sponsors two funded defined benefit pension plans that cover certain employees. Benefits for the plans are generally based on average final pay and years of service. The Company’s funding policy is to fund the minimum required contributions consistent with statutory requirements based on actuarial computations utilizing the projected unit credit method of calculation.
The Company sponsors an unfunded plan to provide health care benefits to certain retired employees. The plan pays a stated percentage of medical expenses reduced by deductibles and other coverage and obligations are paid out of the Company’s operations.
The Company uses a December 31 measurement date for all of its defined benefit pension and postretirement medical plans. The Company has two defined benefit pension plans: the Eco Services Hourly Pension Plan which was frozen to future accruals as of December 31, 2020 and the Eco Services Pension Equity Plan which was frozen to future accruals as of December 31, 2016. The retiree healthcare plan was closed to new retirees effective July 1, 2017.
The following tables summarize changes in the benefit obligation, plan assets and funded status of the Company’s defined benefit pension plans and other postretirement benefit plan:
Defined Benefit Pension Plans Other Postretirement Benefit Plan
December 31, December 31,
2024 2023 2024 2023
Change in benefit obligation:
Benefit obligation at beginning of period $ 66,556  $ 66,879  $ 475  $ 446 
Interest cost 3,227  3,453  24  24 
Plan settlements (1,348) (2,543) —  — 
Benefits paid (3,254) (2,798) —  (1)
Premiums paid —  —  (3) (3)
Actuarial (gain) loss (3,460) 1,565  (33) 9 
Benefit obligation at end of the period 61,721  66,556  463  475 
Change in plan assets:
Fair value of plan assets at beginning of period $ 61,618  $ 60,629  $ —  $ — 
Actual return on plan assets 1,048  6,330  —  — 
Employer contributions 1,625  —  3  4 
Plan settlements (1,348) (2,543) —  — 
Benefits paid (3,254) (2,798) —  (1)
Premiums paid —  —  (3) (3)
Fair value of plan assets at end of the period 59,689  61,618  —  — 
Funded status of the plans (underfunded) $ (2,032) $ (4,938) $ (463) $ (475)
Defined Benefit Pension Plans — The actuarial gain for the year ended December 31, 2024 was $3,460, which was driven by increases in the discount rates of $2,760 and improvements in general demographic experience of $700. The actuarial loss for the year ended December 31, 2023 was $1,565, which was driven by decreases in the discount rates of $1,365 and declines in general demographic experience of $200.
Other Postretirement Benefit Plan — The actuarial gain for the year ended December 31, 2024 was $33, which was driven by increases in the discount rates. The actuarial loss for the year ended December 31, 2023 was $9, which was driven by decreases in the discount rates.
As of December 31, 2024, one of the defined benefit pension plans changed to a funded asset position, compared to an underfunded liability position in December 31, 2023. Amounts recognized in the consolidated balance sheets consist of:
Defined Benefit Pension Plans Other Postretirement Benefit Plan
December 31, December 31,
2024 2023 2024 2023
Noncurrent asset $ 90  $ —  $ —  $ — 
Current liability —  —  (20) (18)
Noncurrent liability (2,122) (4,937) (443) (457)
AOCI, net of tax 1,386  567  81  79 
Net amount recognized $ (646) $ (4,370) $ (382) $ (396)
The net amount of projected benefit obligation and plan assets for all underfunded plans was classified as noncurrent liabilities in the consolidated balance sheets.
Amounts recognized in AOCI consist of:
Defined Benefit Pension Plans Other Postretirement Benefit Plan
December 31, December 31,
2024 2023 2024 2023
Prior service cost $ —  $ —  $ —  $ 30 
Net gain 1,849  751  107  75 
Gross amount recognized 1,849  751  107  105 
Deferred income taxes (463) (184) (26) (26)
Net amount recognized $ 1,386  $ 567  $ 81  $ 79 
Components of net periodic benefit cost consist of:
Defined Benefit Pension Plans Other Postretirement Benefit Plan
Years ended December 31, Years ended December 31,
2024 2023 2022 2024 2023 2022
Interest cost $ 3,227  $ 3,453  $ 2,569  $ 24  $ 24  $ 18 
Expected return on plan assets (3,367) (3,305) (3,433) —  —  — 
Amortization of prior service credit —  —  —  (30) (125) (210)
Amortization of net (gain) loss —  —  —  (2) (2) 3 
Settlement (gain) loss (6) 61  38  —  —  — 
Net periodic (benefit) expense $ (146) $ 209  $ (826) $ (8) $ (103) $ (189)
All components of net periodic benefit cost other than service cost are presented within other expense (income), net in the Company’s consolidated statements of income.
Components of other changes in plan assets and benefit obligations recognized in other comprehensive income consists of:
Defined Benefit Pension Plans Other Postretirement Benefit Plan
December 31, December 31,
2024 2023 2024 2023
Net (gain) loss $ (1,136) $ (1,461) $ (33) $ 9 
Amortization of prior service credit —  —  30  125 
Amortization or settlement recognition of net gain (loss) 6  (61) 2  2 
Total recognized in other comprehensive (income) loss (1,130) (1,522) (1) 136 
Total recognized in net periodic benefit cost and other comprehensive (income) loss $ (1,280) $ (1,313) $ (9) $ 33 
The following table presents selected information about the Company’s pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets:
Defined Benefit Pension Plans Other Postretirement Benefit Plan
December 31, December 31,
2024 2023 2024 2023
Projected benefit obligation $ 18,305  $ 66,555  $ 463  $ 475 
Accumulated benefit obligation 18,305  66,555  —  — 
Fair value of plan assets 16,183  61,618  —  — 
Significant weighted average assumptions used in determining the pension obligations include the following:
Defined Benefit Pension Plans Other Postretirement Benefit Plan
December 31, December 31,
2024 2023 2024 2023
Discount rate 5.67  % 5.17  % 5.70  % 5.20  %
Rate of compensation increase N/A N/A N/A N/A
The discount rate for net periodic benefit costs is determined by utilizing a yield curve model. The model develops a spot rate curve based on the yields available from a broad-based universe of high quality corporate bonds. The discount rate is then set as the weighted average spot rate, using the respective plan’s expected benefit cash flows as the weights. Significant weighted average assumptions used in determining net periodic benefit cost include the following:
Defined Benefit Pension Plans Other Postretirement Benefit Plan
Years ended December 31, Years ended December 31,
2024 2023 2022 2024 2023 2022
Discount rate 5.23  % 5.39  % 2.90  % 5.20  % 5.50  % 2.90  %
Expected return on assets 5.76  % 5.74  % 4.90  % —  % —  % —  %
Rate of compensation increase N/A N/A N/A N/A N/A N/A
Fair value of plan assets
The investment objective for the plans is to generate returns sufficient to meet future obligations. The strategy to meet the objective includes generating attractive returns using higher returning assets such as equity securities and balancing risk using less volatile assets such as fixed income securities. The plans invest in an allocation of assets across the two broadly-defined financial asset categories of equity and fixed income securities. The target allocations for the plan assets across the two U.S. plans are as follows: 30% equity securities and 70% fixed income investments for the Eco Services Pension Equity Plan; and 20% equity securities and 80% fixed income investments for the Eco Services Hourly Pension Plan.
The Company classifies plan assets based upon a fair value hierarchy where each asset within the hierarchy is based on the lowest level input that is significant to its measurement. The fair value hierarchy consists of three levels as follows:
•Level 1—Values are unadjusted quoted prices for identical assets and liabilities in active markets accessible at the measurement date. Active markets provide pricing data for trades occurring at least weekly and include exchanges and dealer markets. Level 1 assets primarily include investments in publicly traded equity securities and mutual funds. These securities (or the underlying investments of the funds) are actively traded and valued using quoted prices for identical securities from the market exchanges.
•Level 2—Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices from those willing to trade in markets that are not active, or other inputs that are observable or can be corroborated by market data for the term of the instrument. Such inputs include market interest rates and volatilities, spreads and yield curves. Level 2 assets primarily consist of fixed-income securities and commingled funds that are not actively traded or whose underlying investments are valued using observable marketplace inputs. The fair value of plan assets invested in fixed-income securities is generally determined using valuation models that use observable inputs such as interest rates, bond yields, low-volume market quotes and quoted prices for similar assets. Plan assets that are invested in commingled funds are valued using a unit price or net asset value (“NAV”) that is based on the underlying investments of the fund.
•Level 3—Certain inputs are unobservable (supported by little or no market activity) and significant to the fair value measurement. Unobservable inputs reflect the Company’s best estimate of what hypothetical market participants would use to determine a transaction price for the asset or liability at the reporting date. Level 3 assets include investments covered by insurance contracts and real estate funds valued using significant unobservable inputs.
The following tables set forth by level, within the fair value hierarchy, plan assets at fair value:
December 31, 2024
Total Level 1 Level 2 Level 3
Cash and cash equivalents $ —  $ —  $ —  $ — 
Equity securities:
Domestic stocks 8,248  8,248  —  — 
International stocks 5,335  5,335  —  — 
Fixed income securities:
Treasury funds 11,853  11,853  —  — 
Corporate and other bonds 34,253  34,253  —  — 
Total $ 59,689  $ 59,689  $ —  $ — 
December 31, 2023
Total Level 1 Level 2 Level 3
Cash and cash equivalents $ 264  $ 264  $ —  $ — 
Equity securities:
Domestic stocks 11,539  11,539  —  — 
International stocks 7,546  7,546  —  — 
Fixed income securities:
Treasury funds 11,691  11,691  —  — 
Corporate and other bonds 30,578  30,578  —  — 
Total $ 61,618  $ 61,618  $ —  $ — 

The following benefit payments, which reflect expected future service as appropriate, are expected to be paid:
Year Defined Benefit Pension Plans Other Postretirement Benefit Plan
2025 $ 7,356  $ 20 
2026 4,561  22 
2027 4,542  23 
2028 4,720  25 
2029 4,552  27 
2030-2034 22,539  163 
The Company expects to contribute $500 to its defined benefit pension plans and $20 to the other postretirement benefit plan in 2025. There are no Medicare subsidy receipts expected in future periods.
Defined Contribution Plans
The Company has defined contribution plans covering domestic employees of the Company and a foreign subsidiary. The Company recorded expenses of $7,619, $7,015 and $7,113 related to these plans for the years ended December 31, 2024, 2023 and 2022, respectively.