Pensions and Other Benefit Plans

12 Months Ended

Mar. 31, 2026

The Company provides retirement plans, including defined benefit and defined contribution plans, and other postretirement benefit plans to certain employees. The Company applies ASC Topic 715 “Compensation – Retirement Benefits,” which required the recognition in pension and other postretirement benefits obligations and accumulated other comprehensive income of actuarial gains or losses, prior service costs or credits and transition assets or obligations that had previously been deferred. This statement also requires an entity to measure a defined benefit postretirement plan’s assets and obligations that determine its funded status as of the end of the fiscal year.

Pension Plans

The Company provides defined benefit pension plans to certain employees. The Company uses March 31 as the measurement date. The following provides a reconciliation of benefit obligation, plan assets, and funded status of the plans:


	March 31,
	2026		2025
Change in benefit obligation:
Benefit obligation at beginning of year	$	158,629	$	268,025
Acquired benefit obligation from the Kito Crosby Acquisition	49,916		—
Service cost	730		477
Interest cost	7,653		9,783
Actuarial (gain) loss	(5,611)		(5,937)
Benefits paid	(13,580)		(18,733)
Settlement	—		(95,080)
Foreign exchange rate changes	3,284		94
Benefit obligation at end of year	$	201,021	$	158,629

Change in plan assets:
Fair value of plan assets at beginning of year	$	94,240	$	199,592
Fair value of plan assets acquired from the Kito Crosby Acquisition	35,953		—
Actual gain (loss) on plan assets	2,165		10,327
Employer contribution	4,487		5,136
Benefits paid	(13,580)		(18,733)
Settlement	—		(95,080)
Assets transferred out related to plan termination (see below)	—		(6,974)
Foreign exchange rate changes	(495)		(28)
Fair value of plan assets at end of year	$	122,770	$	94,240

Funded status	$	(78,251)	$	(64,389)
Unrecognized actuarial loss	(19,258)		(16,867)
Net amount recognized	$	(97,509)	$	(81,256)

The acquired pension obligation and related plan assets pertain to the Kito Crosby Acquisition, as described in Note 3. The pension obligation and plan assets were measured as of the acquisition date. Subsequent activity is included in the remaining lines of the table above and is presented together with the Company’s other pension plans. The Company terminated both of its Canadian pension plans in fiscal 2024 and terminated one of its U.S. pension plans in fiscal 2025. Lump sum payments were made to eligible participants who elected to receive them in the third and fourth quarter of fiscal year 2024. In fiscal 2024, these lump sum payments along with the overall termination of the two Canadian plans resulted in a settlement charge of $4,984,000 which was recorded in Other (income) expense, net on the Consolidated Statements of Operations. On September 30, 2024, the Company purchased annuity contracts to settle the remaining liabilities of the terminated U.S. plan. The annuity contract purchase resulted in a non-cash settlement charge of $23,634,000 for the year ended March 31, 2025, which was recorded in Other (income) expense, net on the Consolidated Statements of Operations. At termination, the pension plan had a pension asset surplus of $6,974,000. This surplus is being used to fund certain obligations associated with the Company's U.S. defined contribution plans. The remaining surplus of the terminated plan is $3,938,000 as of March 31, 2026.

Amounts recognized in the consolidated balance sheets are as follows:


	March 31,
	2026		2025
Other assets	$	8,844	$	1,995
Accrued liabilities	(5,614)		(3,709)
Other non-current liabilities	(81,481)		(62,675)
Accumulated other comprehensive loss, before tax	(19,258)		(16,867)
Net amount recognized	$	(97,509)	$	(81,256)

Other assets are presented separately from pension liabilities for pension plans that are over funded.

Net periodic pension cost included the following components:


	Year Ended March 31,
	2026		2025		2024
Service costs—benefits earned during the period	730		$	477	$	512
Interest cost on projected benefit obligation	7,653		9,783		13,548
Expected return on plan assets	(5,076)		(7,348)		(11,459)
Net amortization	(1,027)		484		360
Settlement	—		23,634		4,984
Net periodic pension cost (benefit)	$	2,280	$	27,030	$	7,945

Information for pension plans with a projected benefit obligation in excess of plan assets is as follows:


	March 31,
	2026		2025
Projected benefit obligation	$	87,095	$	66,384
Fair value of plan assets	—		—

Information for pension plans with an accumulated benefit obligation in excess of plan assets is as follows:


	March 31,
	2026		2025
Accumulated benefit obligation	$	84,967	$	64,219
Fair value of plan assets	—		—

Unrecognized gains and losses are amortized through March 31, 2026, on a straight-line basis over the average remaining service period of active participants.

The weighted-average assumptions in the following table represent the rates used to develop the actuarial present value of the projected benefit obligation for the year listed and also net periodic pension cost for the following year:


	2026		2025		2024
Discount rate	4.79	%	4.75	%	4.82	%
Expected long-term rate of return on plan assets	5.06	%	5.05	%	5.27	%
Rate of compensation increase on active plans	2.96	%	3.00	%	3.00	%
Interest crediting rates used in cash balance pension plans	4.64	%	4.38	%	4.95	%

The expected rates of return on plan asset assumptions are determined considering long-term historical averages and real returns on each asset class.

The Company’s retirement plan target and actual asset allocations are as follows:


	Target	Actual
	2027		2026	2025
Equity securities	5%		6%	11%
Fixed income securities	95%		94%	89%
Total plan assets	100%		100%	100%

The targets above include Kito Crosby's asset allocations. We will continue to evaluate these targets in fiscal 2027, and will revise them as necessary.

The Company has an investment objective for domestic pension plans to adequately provide for both the growth and liquidity needed to support all current and future benefit payment obligations. The Company's policy is to de-risk the portfolio by increasing liability-hedging investments as the pension liability funded status increases, which is known as the glide path method. In fiscal 2026, the Company expects its U.S. plan to be fully funded, and will therefore further de-risk its portfolio. Within the table above, cash equivalents are categorized as fixed income as they earn lower returns than equity securities which includes alternative real estate funds (shown in the fair value tables below).

The Company’s funding policy with respect to the defined benefit pension plans is to contribute annually at least the minimum amount required by the Employee Retirement Income Security Act of 1974 (ERISA). Additional contributions may be made to minimize PBGC premiums. The Company plans to contribute approximately $7,418,000 to its pension plans in fiscal 2027.

Information about the expected benefit payments for the Company’s defined benefit plans is as follows:


2027	$	18,295
2028	18,709
2029	18,535
2030	18,389
2031	16,951
2032-2036	78,268

Postretirement Benefit Plans

The Company sponsors a defined benefit other postretirement health care plan that provide medical and life insurance coverage to certain U.S. retirees and their dependents of one of its subsidiaries. The Company pays the majority of the medical costs for certain retirees and their spouses who are under age 65. For retirees and dependents of retirees who retired prior to January 1, 1989, and are age 65 or over, the Company contributes 100% toward the American Association of Retired Persons (“AARP”) premium frozen at the 1992 level. For retirees and dependents of retirees who retired after January 1, 1989, the Company contributes $35 per month toward the AARP premium. The life insurance plan is noncontributory. The net periodic postretirement benefit income for fiscal 2026 was $143,000 and the liability at March 31, 2026 is $567,000 with $465,000 included in Other non-current liabilities and $102,000 included in Accrued liabilities in the Consolidated Balance Sheet.

The Company has collateralized split-dollar life insurance arrangement with one of its former officers. Under this arrangement, the Company pays certain premium costs on life insurance policy for the former officer. Upon the later of the death of the former officer and their spouse, the Company will receive all of the premiums paid to-date. The net periodic pension cost for fiscal 2026 was $35,000 and the liability at March 31, 2026 is $2,975,000 with $2,898,000 included in Other non-current liabilities and $77,000 included in Accrued liabilities in the Consolidated Balance Sheet. The cash surrender value of the policies is $2,556,000 and $2,474,000 at March 31, 2026 and 2025, respectively. The balance is included in Other assets in the Consolidated Balance Sheet.

Other Benefit Plans

The Company also sponsors defined contribution plans covering substantially all domestic employees and certain international employees. Participants may elect to contribute basic contributions. These plans provide for employer contributions based on employee eligibility and participation. The Company recorded a charge for such contributions of approximately $6,770,000, $6,686,000, and $6,288,000 for the years ended March 31, 2026, 2025, and 2024, respectively which are included in Cost of Products Sold, Selling Expenses, and General and Administrative Expenses within the Consolidated Statements of Operations.

Fair Values of Plan Assets

The Company classified its investments within the categories of equity securities, fixed income securities, common collective trusts, alternative real estate, and cash equivalents, as the Company’s management bases its investment objectives and decisions from these four categories. The Company’s investment policy is to use its glide path method to de-risk the portfolio by increasing liability-hedging investments as the pension liability funded status increases.

The fair values of the Company’s defined benefit plans’ consolidated assets by asset category as of March 31 were as follows:


	March 31,
	2026		2025
Asset categories:
Equity securities	$	6,843	$	10,735
Fixed income securities	8,439		83,216
Common collective trusts	104,258		—

Cash equivalents	3,230		289
Total	$	122,770	$	94,240

The fair values of our defined benefit plans’ consolidated assets were determined using the fair value hierarchy of inputs described in Note 5. The fair values by category of inputs as of March 31, 2026 and March 31, 2025 were as follows:


	Measured at NAV (1)		Quoted Prices in Active Markets for Identical Assets		Significant other observable Inputs		Significant unobservable Inputs
As of March 31, 2026:			(Level 1)		(Level 2)		(Level 3)		Total
Asset categories:
Equity securities	$	3,112	$	3,731	$	—	$	—	$	6,843
Fixed income securities	4,155		—		4,284		—		8,439
Common collective trusts	104,258		—		—		—		104,258
Cash equivalents	955		2,275		—		—		3,230
Total	$	112,480	$	6,006	$	4,284	$	—	$	122,770

(1) Reflects the net asset value (NAV) practical expedient used to approximate fair value.


	Measured at NAV (1)		Quoted Prices in Active Markets for Identical Assets		Significant other observable Inputs		Significant unobservable Inputs
As of March 31, 2025:			(Level 1)		(Level 2)		(Level 3)		Total
Asset categories:
Equity securities	$	—	$	10,735	$	—	$	—	$	10,735
Fixed income securities	—		83,216		—		—		83,216


Cash equivalents	—		289		—		—		289
Total	$	—	$	94,240	$	—	$	—	$	94,240

(1) Reflects the net asset value (NAV) practical expedient used to approximate fair value.

Level 1 securities consist of mutual funds, domestic corporate bonds, securities issued by the U.S. government other similar fixed income investments with quoted market prices.

NAV is used as a practical expedient to estimate fair value. NAV is based on the fair value of the underlying investments held by the fund less its liability based on published daily rate. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different from the reported NAV. We are not aware of any significant restrictions on the issuances or redemption of shares of these funds.

Level 2 fixed income securities fair values of the underlying investments are generally based on independent broker dealer bids, or by comparison to other debt securities having similar durations, yields, and credit ratings.