Employee Benefit Plans

6 Months Ended

Jun. 30, 2025

11. EMPLOYEE BENEFIT PLANS

Pension Benefit Plan

We maintain a defined benefit pension plan covering employees in certain foreign countries. The net amounts recognized in the Condensed Consolidated Balance Sheets for the unfunded pension liability as of June 30, 2025 and December 31, 2024 were as follows:


		As of			As of
(In thousands)	Balance Sheet Location	June 30, 2025			December 31, 2024
Non-current pension asset	Other non-current assets	$	588		$	517
Current pension liability	Accrued wages and benefits		(345	)		(303	)
Non-current pension liability	Non-current pension liability		(9,686	)		(8,983	)
Total		$	(9,443	)	$	(8,769	)

The Company's defined benefit pension liability represents the projected benefit obligation, which is the actuarial present value of the vested benefits to which the employee is currently entitled based on the employee's expected date of retirement.

The following table summarizes the components of net periodic pension cost related to the Company's defined benefit pension plans:


	Three Months Ended						Six Months Ended
	June 30,						June 30,
(In thousands)	2025			2024			2025			2024
Service cost	$	421		$	333		$	810		$	673
Interest cost		525			281			1,011			566
Expected return on plan assets		(635	)		(354	)		(1,223	)		(713	)
Amortization of actuarial losses		12			2			23			5
Net periodic pension cost	$	323		$	262		$	621		$	531

The components of net periodic pension cost, other than the service cost component, are included in other (expense) income, net in the Condensed Consolidated Statements of Loss. Service cost is included in cost of revenue, selling, general and administrative expenses and research and development expenses in the Condensed Consolidated Statements of Loss. The Company made contributions to the defined benefit pension plans totaling $2.0 million and $2.2 million during the six months ended June 30, 2025 and 2024, respectively. Contributions to the defined benefit pension plans for the remainder of 2025 will be limited to benefit payments to retirees which are paid out of the operating cash flows of the Company and are expected to be approximately $1.5 million.

- Definition

The entire disclosure for retirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

ADTRAN Holdings, Inc. 10-Q