Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 674

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 7
Chunk 674
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 - 6.65% 
 Rate of compensation increase 3.25%3.30%3.30% 

   Included in the above are the following assumptions relating to the obligations for defined benefit pension plans in the United States at  June 30, 2025; a discount rate of 5.60% and expected return on assets of 6.35%. The U.S. defined benefit pension plans represent the majority of our pension obligations. The expected return on plan assets assumption is based on our expectation of the long-term average rate of return on assets in the pension funds and is reflective of the current and projected asset mix of the funds. The discount rate reflects the current rate at which pension liabilities could be effectively settled at the end of the year. The discount rate is determined by matching our expected benefit payments from a stream of AA- or higher bonds available in the marketplace, adjusted to eliminate the effects of call provisions.
    
   Expected benefit payments for all plans during the next five fiscal years are as follows: 2026, $17.5 million; 2027, $17.6 million; 2028, $17.4 million; 2029, $17.0 million; 2030, $16.6 million and years thereafter, $77.7 million. The Company expects to make $6.9 million of contributions to its pension plans in fiscal year 2026.
    
   The Company operates defined benefit plans in Germany and Japan which are unfunded.

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   Multi-Employer Pension Plans
    
   We contribute to two multiemployer defined benefit plans under the terms of collective bargaining agreements that cover our union-represented employees. These plans generally provide for retirement, death and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods and benefit formulas. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:
    
     ●  Assets contributed to the multiemployer plan by one employer  may be used to provide benefits to employees of other participating employers. 

     ●  If a participating employer stops contributing to the multiemployer plan, the unfunded obligations of the plan  may be borne by the remaining participating employers. 

     ●  If we choose to stop participating in some of our multiemployer plans, we  may be required to pay those plans an amount based on the underfunded status of