What changed in this filing

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Item 1. Financial Statements

2025-08-05 compared with 2025-05-06 · 198 added, 152 removed, 361 unchanged (49% of the section changed)

3 unchanged sentences

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

$ 136,101,298

$ 139,798,820

Cost of products sold

1 unchanged sentence

( 54,108,036 )

( 104,642,211 )

( 105,103,868 )

Product development expense

1 unchanged sentence

( 1,301,487 )

( 2,140,902 )

( 2,661,284 )

Selling and administrative expenses

1 unchanged sentence

( 11,140,681 )

( 22,534,931 )

( 22,261,047 )

Operating profit

Interest expense

Other (expense) income

Income before income taxes from continuing operations

( 1,330,941 )

( 1,507,472 )

Other income (expense)

Income from continuing operations before income taxes

Income tax expense

( 1,176,830 )

( 1,124,703 )

( 1,844,265 )

Net income from continuing operations

Discontinued Operations (see note B)

Income (Loss) from operations of discontinued unit

Loss from operations of discontinued unit

$ ( 234,237 )

Income tax benefit (expense)

Income (Loss) on discontinued operations

$ ( 724,903 )

$ ( 520,005 )

$ ( 1,230,656 )

Income from disposal of discontinued unit

Income tax (expense) benefit

Income (Loss) from discontinued operations

$ ( 562,318 )

$ ( 955,727 )

Earnings per share from continuing operations:

6 unchanged sentences

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Other comprehensive income:

9 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

June 28, 2025

December 28, 2024

Current Assets

3 unchanged sentences

2025 - $ 585,993 2024 - $ 530,560

2024 - $ 530,560

Current portion of notes receivable

17 unchanged sentences

CONDENSED CONSOLIDATED BALANCE SHEETS

June 28, 2025

December 28, 2024

LIABILITIES AND SHAREHOLDERS’ EQUITY

36 unchanged sentences

( 2,276,590 )

Unrealized gain on foreign currency swap, net of tax

Unrealized gain (loss) on foreign currency swap, net of tax

Unrecognized net pension and postretirement benefit costs, net of tax

11 unchanged sentences

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

Three Months Ended

Six Months Ended

June 28, 2025

June 29, 2024

Operating Activities

1 unchanged sentence

Income from continuing operations

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

Acquisition related expenses

Reduction in carrying amount of ROU assets

2 unchanged sentences

Provision for doubtful accounts

Stock compensation (benefit) expense

Stock compensation expense

Changes in operating assets and liabilities:

1 unchanged sentence

( 2,271,343 )

( 5,266,259 )

Prepaid expenses and other

1 unchanged sentence

Accrued compensation

( 1,256,224 )

Change in operating lease liability

( 1,502,376 )

Other accrued expenses

( 1,553,455 )

Net cash (used in) provided by operating activities

Other accrued expenses

( 6,908,197 )

Net cash provided by operating activities

Investing Activities

1 unchanged sentence

Payments received from notes receivable

Proceeds from sale of equipment

Proceeds from sale of discontinued operations

Purchases of property, plant, and equipment

( 1,598,980 )

Net cash used in investing activities

( 2,834,977 )

Net cash provided by (used in) investing activities

( 3,346,000 )

Financing Activities

Payments on short term borrowings (revolver)

Principal payments on long-term debt

( 5,919,065 )

( 1,505,952 )

Financing leases, net

2 unchanged sentences

Dividends paid

( 1,347,951 )

( 1,368,924 )

Net cash used in financing activities

2 unchanged sentences

Discontinued Operations

Cash provided by operating activities

Cash used in investing activities

Cash used in financing activities

Cash provided by discontinued operations

Cash used in operating activities

Cash used in discontinued operations

Effect of exchange rate changes on cash

7 unchanged sentences

Lease liability

See accompanying notes

1 includes cash from assets held for sale of $1.2 million as of March 29, 2025 and $0.4 million as of March 30, 2024

( 1,468,961 )

See accompanying notes

THE EASTERN COMPANY AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

June 28, 2025

Note A – Basis of Presentation

7 unchanged sentences

The Company’s fiscal year is a 52-53-week fiscal year ending on the Saturday nearest to December 31.

References in this Quarterly Report on Form 10-Q for the quarterly period ended March 29, 2025 (this “Form 10-Q”) to 2024, the 2024 fiscal year or fiscal 2024 mean the 52-week period ended on December 28, 2024, and references to 2025, the 2025 fiscal year or fiscal 2025 mean the 53-week period ending on January 3, 2026.

References in this Quarterly Report on Form 10-Q for the quarterly period ended June 28, 2025 (this “Form 10-Q”) to 2024, the 2024 fiscal year or fiscal 2024 mean the 52-week period ended on December 28, 2024, and references to 2025, the 2025 fiscal year or fiscal 2025 mean the 53-week period ending on January 3, 2026.

In a 52-week fiscal year, each quarter has 13 weeks.

References to the first quarter of 2024, the first fiscal quarter of 2024, the first three months of 2024 or the three months ended March 30, 2024 mean the 13-week period from December 31, 2023 to March 30, 2024.

References to the first quarter of 2025, the first fiscal quarter of 2025, the first three months of 2025 or the three months ended March 29, 2025, mean the 13-week period from December 29, 2024 to March 29, 2025.

References to the second quarter of 2024, the second fiscal quarter of 2024 or the three months ended June 29, 2024, mean the 13-week period from March 31, 2024 to June 29, 2024.

References to the second quarter of 2025, the second fiscal quarter of 2025 or the three months ended June 28, 2025, mean the 13-week period from March 30, 2025 to June 28, 2025.

References to the first six months of 2024 or the six months ended June 29, 2024 mean the period from December 31, 2023 to June 29, 2024.

References to the first six months of 2025 or the six months ended June 28, 2025 mean the period from December 29, 2024 to June 28, 2025.

Certain amounts in the 2024 financial statements have been reclassified to conform with the 2025 presentation with no impact or change to previously reported net income or shareholders’ equity.

See Note B, Discontinued Operations , for additional information.

Note B – Discontinued Operations

In the third quarter of 2024, we determined that the business of Big 3 Mold Services, Inc.

In the third quarter of 2024, we determined that the business of Big 3 Precision Mold Services, Inc.

(“Big 3 Mold”) meets the criteria to be held for sale and that the assets held for sale qualify for discontinued operations.

1 unchanged sentence

Additionally, current and non-current assets and liabilities of discontinued operations are reflected in the unaudited condensed consolidated balance sheets for both periods presented.

On April 30, 2025, the Company sold the equipment, workforce and customer list of the ISBM division of Big 3 Precision Mold Service, Inc.

On April 30, 2025, the Company sold the equipment, workforce and customer list of the ISBM division of Big 3 Mold.

ISBM, which is located in Centralia, Illinois, is an injection stretch blow mold toolmaker.

Summarized Financial Information of Discontinued Operations

The following table represents income (loss) from discontinued operations, net of tax:

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Cost of products sold

2 unchanged sentences

Selling and administrative expenses

Income from disposal of discontinued Unit

Operating Income (Loss)

( 1,063,159 )

Interest expense

Income (Loss) from discontinued operations before income taxes

( 1,230,656 )

Income tax (expense) benefit

1 unchanged sentence

$ ( 562,318 )

The following table represents the assets and liabilities from discontinued operations:

March 29, 2025

December 28, 2024

Accounts receivable

Prepaid expenses

Right of use assets

Total assets of discontinued operations

Current assets of discontinued operations¹

Non-current assets of discontinued operations

Total assets of discontinued operations

Accounts payable

Accrued compensation and other accrued expenses

Current portion of lease liability

Other long-term liabilities

Total liabilities of discontinued operations

Current liabilities of discontinued operations¹

Non-current liabilities of discontinued operations

Total liabilities of discontinued operations

1 The total assets and liabilities of discontinued operations are presented as current in the March 29, 2025 and December 28, 2024 balance sheet as we expect to sell the discontinued operations and collect proceeds within one year of such dates.

$ ( 955,727 )

Note C – Earnings Per Share

1 unchanged sentence

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Weighted average shares outstanding

2 unchanged sentences

Denominator for diluted earnings per share

Note D – Fair Value of Instruments and Fair Value Measurements

The Company incurs certain manufacturing, marketing, and selling costs in international markets in local currency.

Accordingly, earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the U.S.

dollar, the Company’s reporting currency.

The Company has a program in place that is designed to mitigate the exposure to changes in foreign currency exchange rates.

The program includes the use of derivative financial instruments to minimize, for a period of time, the impact on its financial results from changes in foreign exchange rates.

The Company utilizes foreign currency forward contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies, namely Mexican pesos.

This does not eliminate the impact of the volatility of foreign exchange rates.

However, because the Company generally enters into forward contracts twelve to eighteen months out, rates are fixed for a twelve-to-eighteen-month period, thereby facilitating financial planning and resource allocation.

Designated Foreign Currency Hedge Contracts

All of the Company’s designated foreign currency hedge contracts as of March 29, 2025 were cash flow hedges under ASC Topic 815, “Derivatives and Hedging” (“ASC 815”).

The Company records the effective portion of any change in the fair value of designated foreign currency hedge contracts in other comprehensive income until the related third-party transaction occurs.

Once the related third-party transaction occurs, the Company reclassifies the effective portion of any related gain or loss on the designated foreign currency hedge contracts to earnings.

In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur, the Company will reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time.

The Company had designated foreign currency hedge contracts outstanding in the contract amount of $ 7.2 million as of March 29, 2025 and $ 9.6 million as of December 28, 2024.

As of March 29, 2025 a loss of $ 0.3 million is expected to be reclassified to earnings within the next nine months.

All currency cash flow hedges outstanding as of March 29, 2025 mature within nine months.

Fair Value of Derivative Instruments

The following table presents the effect of the Company’s derivative instruments designated as cash flow hedges under ASC 815 in its unaudited Condensed Consolidated Statements of Operations for the three months ended March 29, 2025:

Note D – Fair Value of Derivative Instruments

The following table presents the effect of the Company’s derivative instruments designated as cash flow hedges under Accounting Standards Codification (“ASC”) Topic 815, “Hedge Accounting Improvements,” in its unaudited Condensed Consolidated Statements of Operations for the six months ended June 28, 2025:

Derivative Instruments

Amount of Loss Recognized in Accumulated Other Comprehensive Income

Amount of Loss Reclassified from Accumulated Other Comprehensive

Income into Earnings

Amount of Gain Recognized in Accumulated Other Comprehensive Income

Amount of Loss Reclassified from Accumulated Other Comprehensive Income into Earnings

Location in Condensed Consolidated Statement of Income

1 unchanged sentence

$ ( 425,150 )

$ ( 291,128 )

Cost of products sold

5 unchanged sentences

and inputs derived principally from, or corroborated by, observable market data by correlation or other means.

As of March 29, 2025, the Company has classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments.

As of June 28, 2025, the Company classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments.

Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.

1 unchanged sentence

or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability.

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable.

The following tables present the fair value of the Company’s derivative instruments as they appear in its Condensed Consolidated Balance Sheets as of March 29, 2025 and December 28, 2024:

Location in Condensed

Consolidated Balance Sheets

March 29, 2025

Prices or valuation techniques that require inputs that are both significant to the fair value measurement and

unobservable.

The following tables present the fair value of the Company’s derivative instruments as they appear in its Condensed Consolidated Balance Sheets as of June 28, 2025, and December 28, 2024:

Location in Condensed Consolidated Balance Sheets

June 28, 2025

December 28, 2024

Derivative Assets:

Designated foreign currency hedge contracts

Other current assets

Derivative Liabilities:

3 unchanged sentences

Inventories consist of the following components:

June 28, 2025

December 28, 2024

Raw material and component parts

2 unchanged sentences

Total inventories

1 Includes inventory of discontinued operations of $ 0.8 million and $ 0.8 million as of March 29, 2025 and December 28, 2024, respectively.

Note F - Goodwill

The aggregate carrying amount of goodwill from continuing operations is approximately $ 58.6 million as of March 29, 2025.

In the first quarter of 2025, there was no write-off of goodwill.

See Note B – Discontinued Operations for further discussion.

The aggregate carrying amount of goodwill is approximately $ 58.6 million as of June 28, 2025.

No impairment was recognized in the second quarter of 2025.

The Company evaluates its reporting units for impairment annually in December, or more frequently if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying amount.

17 unchanged sentences

All options to extend, when it is reasonably certain the option will be exercised, have been included in the calculation of the ROU asset and lease liability.

Currently, the Company has 19 operating leases with a lease liability of $ 18.1 million and 6 finance leases with a lease liability of $ 3.7 million as of March 29, 2025.

Currently, the Company has 18 operating leases with a lease liability of $ 17.4 million and 6 finance leases with a lease liability of $ 3.6 million as of June 28, 2025.

The terms and conditions of the leases are determined by the individual agreements.

2 unchanged sentences

There are no leases that have not yet commenced that could create significant rights and obligations for the Company.

The future payments (in millions) due under non-cancelable operating and finance leases as of March 29, 2025 are as follows:

The future payments (in millions) due under non-cancelable operating and finance leases as of June 28, 2025 are as follows:

Less effects of discounting

Lease liabilities recognized

1 includes 0.1 million operating lease payments attributable to discontinued operations.

As of March 29, 2025, the weighted average lease term for all operating and finance leases was 5.9 and 6 .0 years, respectively.

As of March 29, 2025, the weighted average discount rate associated with operating and finance leases was 6.8 % and 6.4 %, respectively, as of such date.

As of June 28, 2025 the weighted average lease term for all operating and finance leases is 5.8 and 5.8 years, respectively.

The weighted average discount rate associated with operating and finance leases was 6.4 % and 6.8 %, respectively.

Note H - Debt

2 unchanged sentences

In April 2025, the Company entered into an amendment to the Credit Agreement that increased the revolving commitment portion to $ 50 million.

The proceeds of the term loan were used to repay the Company’s remaining outstanding term loan and to terminate its credit facility with Santander Bank, N.A.

(approximately $ 59 million).

The term loan portion of the credit facility requires quarterly principal payments of (i) $ 750,000 beginning on September 30, 2023 through June 30, 2025, (ii) $ 1,125,000 beginning on September 30, 2025 through June 30, 2027, and (iii) $ 1,500,000 beginning on September 30, 2027 through March 31, 2028, with the balance of the term loan payable on the maturity date of June 16, 2028 .

3 unchanged sentences

Currently, the commitment fee is 0.25 %.

The Company has $ 1.3 million of outstanding borrowings under the revolving commitment portion of the credit facility as of March 29, 2025.

The Company has no borrowings outstanding under the revolving commitment portion of the credit facility as of June 28, 2025.

The term loan bears interest at a variable rate based on the Term Secured Overnight Financing Rate (“SOFR”), plus an adjustment of ten basis points, plus an applicable margin of 1.87 5% to 2.62 5%, depending on the Company’s senior net leverage ratio.

3 unchanged sentences

In addition, the Company is required to maintain a fixed charge coverage ratio to be not less than 1.25 to 1 .

The Company was in compliance with all its covenants under the Credit Agreement on March 29, 2025, and through the date of filing this Form 10-Q.

The Company was in compliance with all its covenants under the Credit Agreement on June 28, 2025, and through the date of filing this Form 10-Q.

Note I - Stock Options and Awards

3 unchanged sentences

Restricted stock unit awards may be granted to participants under the 2020 Plan with restrictions determined by the Compensation Committee of the Board.

During the first three months of 2025 and 2024, the Company granted stock awards with respect to 35,856 and 0 shares of Company common stock, respectively, that were subject to the meeting of performance measurements or time-based.

For the first three months of 2025, the Company used fair market value to determine the associated expense with stock awards.

During the first six months of fiscal 2025 and 2024, the Company granted stock awards with respect to 35,856 and 38,448 shares of Company common stock, respectively, that were subject to the meeting of performance measurements or time- based.

For the first six months of fiscal years 2025 and 2024, the Company used fair market value to determine the associated expense with stock awards.

Incentive stock options granted under the 2020 Plan must have exercise prices that are not less than 100% of the fair market value of the Company’s common stock on the dates the stock options are granted.

Under the 2020 Plan, non-qualified stock options granted to participants will have exercise prices determined by the Compensation Committee of the Board.

The Company issued 48,240 and 0 options during the first three months of 2025 and 2024, respectively.

For the first three months of 2025, the Company used several assumptions which included an expected term of 3 years, volatility deviation of 40.34 % and a risk-free rate of 4.34 % to determine the expense associated with options.

Stock-based compensation (income) expense, including forfeitures, in connection with options and stock awards previously granted to employees was approximately $( 153,000 ) and $ 434,000 in the first quarter of 2025 and the first quarter of 2024, respectively.

As of March 29, 2025, there were 873,631 shares of Company common stock reserved and available for future grant under the 2020 Plan.

The following tables set forth the outstanding options for the period specified:

Three Months Ended

March 29, 2025

The Company issued 48,240 and 53,568 options during the first six months of fiscal 2025 and 2024, respectively.

For the first six months of fiscal 2025, the Company used several assumptions which included an expected term of three years, volatility deviation of 40.34 % and a risk-free rate of 4.34 % to determine the expense associated with options.

For the first six months of fiscal 2024, the Company used several assumptions which included an expected term of three years, volatility deviation of 38.30 % and a risk-free rate of 4.51 % to determine the expense associated with options.

Stock-based compensation expense (income), including forfeitures, in connection with SARs and stock awards previously granted to employees was approximately $ 147,000 and $( 20,000 ) in the second quarter of 2025 and the second quarter of 2024, respectively, and was approximately $( 6,000 ) and $ 414,000 in the first six months of fiscal years 2025 and 2024, respectively.

As of June 28, 2025, there were 874,096 shares of Company common stock reserved and available for future grant under the 2020 Plan.

The following tables set forth the outstanding stock options for the period specified:

Six Months Ended

June 28, 2025

December 30, 2024

Weighted Average Exercise Price

Weighted Average

Exercise Price

Weighted Average Exercise Price

Outstanding at beginning of period

Outstanding at end of period

Stock Options Outstanding and Exercisable

SARs Outstanding and Exercisable

Range of Exercise Prices

Outstanding as of March 29, 2025

Outstanding as of

June 28, 2025

Weighted Average Remaining Contractual Life

Weighted Average Exercise Price

Exercisable as of March 29, 2025

June 28, 2025

Weighted Average Remaining Contractual Life

1 unchanged sentence

$ 27.88 - $ 28.69

The following tables set forth the outstanding stock awards for the period specified:

Three Months Ended

The following table set forth the outstanding stock awards for the period specified:

Six Months Ended

June 28, 2025

December 28, 2024

Outstanding at beginning of period

Outstanding at end of period

As of March 29, 2025, outstanding SARs and stock awards had an intrinsic value of $ 1,450,000 .

As of June 28, 2025, outstanding stock options and stock awards had an intrinsic value of $ 1,200,000 .

Note J – Share Repurchase Program

On August 21, 2023, the Company announced that the Board of Directors of the Company had approved a share repurchase program authorizing the Company to repurchase up to 200,000 shares of the Company’s common stock through August 20, 2028.

On April 30, 2025, the Board had approved a new share repurchase program authorizing the Company to repurchase up to 400,000 shares of the Company’s common stock over a five-year term expiring in April 2030.

Current authorization for 200,000 shares expiring August 29, 2025.

The Company’s share repurchase program does not obligate it to acquire the Company’s common stock at any specific cost per share.

Under this program, the Company was authorized to repurchase shares in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

Below is a summary of the Company’s share repurchases during the first quarter of 2025 under the share repurchase program.

As of March 29, 2025, no shares remained available for repurchase under the authorization.

Under this program, shares may be repurchased in privately negotiated and/or open market transactions, including under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended.

Below is a summary of the Company’s share repurchases during the second quarter of 2025 under the share repurchase program.

Total Number of Shares Purchased

2 unchanged sentences

Maximum Number of Shares that may yet be Purchased Under the Plans or Programs

December 29, 2024 – February 1, 2025

February 2, 2025 – March 1, 2025

March 2, 2025 – March 29, 2025

April 30, 2025 - May 3, 2025

May 4, 2025 - May 31, 2025

June 1, 2025 - June 28, 2025

Note K – Revenue Recognition

The Company’s revenues result from the sale of goods and services and reflect the consideration to which the Company expects to be entitled.

The Company records revenues in accordance with FASB Accounting Standards Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers.” The Company has defined purchase orders as contracts in accordance with ASC Topic 606.

The Company records revenues in accordance with FASB Topic 606, “Revenue from Contracts with Customers.” The Company has defined purchase orders as contracts in accordance with ASC Topic 606.

For its customer contracts, the Company identifies its performance obligations, which are delivering goods or services, determines the transaction price, allocates the contract transaction price to the performance obligations (when applicable), and recognizes the revenue when (or as) the performance obligation is transferred to the customer.

11 unchanged sentences

income tax examinations by foreign tax authorities for years prior to 2018.

The total amount of unrecognized tax benefits could increase or decrease within the next 12 months for several reasons, including the closure of federal, state, and foreign tax years by expiration of the statute of limitations and the recognition and measurement considerations under FASB ASC Topic 740, “Income Taxes.” There have been no significant changes to the value of unrecognized tax benefits during the three months ended March 29, 2025.

The Company believes that it is reasonably possible that the total amount of unrecognized tax benefits will not increase or decrease significantly over the next twelve months.

On July 4, 2025, President Trump signed the One Big Beautiful Bill Act (“OBBBA”), which resulted in many tax extensions and other rule changes, including the following which we believe will have an effect on our tax provision in 2025 or 2026:

Full expensing of U.S.

research and development costs under Section 174A of the Internal Revenue Code;

Retroactive expensing of unamortized U.S.

research and development costs capitalized between 2022 and 2024;

either all in 2025, or over two years in 2025 and 2026;

Return of the Section 163(j) taxable income base excluding the deductions for depreciation and amortization in 2025 (change from “Tax EBIT” to “Tax EBITDA”);

Decrease in the Section 250 deduction for Net CFC Tested Income (formerly GILTI) to 40% (from 50%) in 2026, instead of the scheduled decrease to 37.5% prior to the OBBBA;

Decrease in the Section 250 deduction for foreign-derived income to 33.34% (from 37.5%) in 2026, instead of the scheduled decrease to 21.875% prior to the OBBBA;

Increase in the foreign tax credit rate on Net CFC Tested Income (formerly GILTI) to 90% (from 80%), and a 10% disallowance on repatriation, in 2026.

The Company is currently evaluating the effect of the OBBBA on its future interim and annual financial statements.

The Company’s deferred tax asset for U.S.

research and development costs may reverse in subsequent financial statements, decreasing tax payable for a similar amount or increasing other tax attributes;

and this research deduction may have an effect on the Section 163(j) limitation.

The Company is unable at this time to estimate the full impact of the OBBBA on its future interim and annual financial statements due to the complexity of the changes in the OBBBA and uncertainty regarding the effect of anticipated guidance from the U.S.

Department of the Treasury.

Note M - Retirement Benefit Plans

4 unchanged sentences

The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements.

Significant disclosures relating to these benefit plans for the first quarter of fiscal years 2025 and 2024 are as follows:

Significant disclosures relating to these benefit plans for the second quarter and first six months of fiscal years 2025 and 2024 are as follows:

Pension Benefits

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Interest cost

2 unchanged sentences

( 1,099,034 )

( 2,160,640 )

( 2,198,069 )

Amortization of prior service cost

Amortization of the net loss

Net periodic benefit cost

Net periodic benefit cost (benefit)

What changed 10-Q

Item 1. Financial Statements