RETIREMENT PLANS |
6 Months Ended |
|---|---|
Jun. 30, 2025 | |
| RETIREMENT PLANS | |
| RETIREMENT PLANS | 11. RETIREMENT PLANS In the fourth quarter of 2024, the Board of Directors approved the termination of the Supplemental Executive Retirement Plan (“SERP”). Pursuant to the Internal Revenue Service rules, participant balances are required to be distributed between 12 and 24 months after termination. The Company currently plans to distribute the participant balances within the next 12 months through liquidation of assets currently held in the Rabbi Trust. As of June 30, 2025, the Retirement plan assets and Retirement plan liabilities related to the SERP are reported as part of current assets and current liabilities in the accompanying Consolidated Balance Sheet. Through December 31, 2024, the Company permitted selected highly compensated employees to defer a portion of their compensation into the SERP. The Company maintains certain securities primarily in mutual funds and company-owned life insurance (“COLI”) policies as a funding source to satisfy the obligation of the SERP that have been classified as trading and are stated at fair value totaling $19.1 million as of June 30, 2025 and $18.5 million as of December 31, 2024. Trading gains related to the SERP assets totaled $1.0 million during the three months ended June 30, 2025, compared to trading gains of $0.6 million during the three months ended June 30, 2024. Trading gains related to the SERP assets totaled $0.6 million during the six months ended June 30, 2025, compared to trading gains of $2.0 million during the six months ended June 30, 2024. The SERP assets are reported in Retirement plan assets in the accompanying Consolidated Balance Sheets and changes to the fair value of the assets are reported in Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. The SERP liabilities include participant deferrals net of distributions and are stated at fair value of $22.3 million as of June 30, 2025 and $21.7 million as of December 31, 2024. The SERP liabilities are reported in the accompanying Consolidated Balance Sheets in Retirement plan liabilities and any change in the fair value is recorded as compensation cost within Selling, general and administrative expenses in the accompanying Consolidated Statements of Operations. Changes in the fair value of the SERP liabilities were the result of an increase of $1.0 million due to unrealized gains on participant balances during the three months ended June 30, 2025, compared to an increase of $0.6 million due to unrealized gains on participant balances during the three months ended June 30, 2024. Changes in the fair value of the SERP liabilities were the result of an increase of $0.7 million due to unrealized gains on participant balances during the six months ended June 30, 2025, compared to an increase of $2.1 million due to unrealized gains on participant balances during the six months ended June 30, 2024. |