In connection with the acquisition of Arnold, the company has a defined benefit plan covering substantially all of Arnold’s employees at its Lupfig, Switzerland location. The benefits are based on years of service and the employees’ highest average compensation during the specific period.

The unfunded liability of $2.7 million is recognized in the consolidated balance sheet as a component of other non-current liabilities at September 30, 2026. Net periodic benefit cost consists of the following for the three and nine months ended September 30, 2026 and 2025 (in thousands):


	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
Service cost	$	190	$	183	$	585	$	533
Interest cost	50		45		154		129
Expected return on plan assets	(40)		(32)		(123)		(93)
Amortization of prior service cost	(13)		(15)		(42)		(43)
Amortization of unrecognized loss	—		25		—		73
Effect of settlement	—		24		—		57
Net periodic benefit cost	$	187	$	230	$	574	$	656

During the nine months ended September 30, 2026, per the terms of the pension agreement, Arnold contributed approximately $0.5 million to the plan. For the remainder of 2026, the expected contribution to the plan will be approximately $0.2 million.

The plan assets are pooled with assets of other participating employers and are not separable; therefore, the fair values of the pension plan assets at September 30, 2026 were considered Level 3.