Annual report pursuant to Section 13 and 15(d)

PENSION AND OTHER RETIREMENTS BENEFITS (Tables)

v3.22.4
PENSION AND OTHER RETIREMENTS BENEFITS (Tables)
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
Funded Status of Company's Defined Benefit Pension Plans
The following table reconciles the funded status of the Company’s defined benefit pension plans (in thousands):
Year Ended December 31, 2022 Year Ended December 31, 2021
Accumulated benefit obligations $ 7,706  $ 20,314 
Changes in projected benefit obligations:
Projected benefit obligations at beginning of year $ 20,314  $ 41,112 
Service cost 41  63 
Interest cost 326  1,047 
Actuarial gain (3,084) (1,054)
Benefits paid (9,891) (20,854)
Projected benefit obligations at end of year 7,706  20,314 
Change in plans’ assets:
Fair value of plans’ assets at beginning of year 12,902  33,058 
Actual returns on plans’ assets (349) 372 
Employee contributions 360  326 
Benefits paid (9,891) (20,854)
Transfers related to plan termination (500) — 
Fair value of plans’ assets at end of year 2,522  12,902 
Net pension liability $ (5,184) $ (7,412)
Schedule of Amounts Recognized in Balance Sheet
Amounts recognized in the Company’s consolidated and combined balance sheets consisted of (in thousands):
Year Ended December 31, 2022 Year Ended December 31, 2021
Other assets $ 2,522  $ 2,367 
Accrued expenses and other current liabilities (355) (488)
Other liabilities (7,351) (9,291)
Net amount recognized $ (5,184) $ (7,412)
Schedule of Net Periodic Benefit Cost Not yet Recognized
Amounts recognized in accumulated other comprehensive income (loss), net of tax, which have not yet been recognized as a component of net periodic pension expense for the Company’s defined benefit pension plans, are as follows (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2022 Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020
Prior service cost $ —  $ —  $ —  $ 169 
Net actuarial (gain) loss (1,523) (207) (620) 13,997 
$ (1,523) $ (207) $ (620) $ 14,166 
Schedule of Amounts Recognized in Other Comprehensive Income (Loss)
The components of the changes in unrecognized amounts included in pension obligation, net in other comprehensive income (loss) for the Company’s defined benefit pension plans were as follows (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2022 Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020
Net actuarial (gain) loss $ (1,316) $ 527  $ —  $ 1,912 
Amortization of prior service costs —  —  —  (33)
Amortization of actuarial loss —  (36) —  (276)
Total (gain) loss recognized in other comprehensive income (loss) $ (1,316) $ 491  $ —  $ 1,603 
Components of Net Periodic Benefit (Credit) Expense
The components of net periodic benefit (credit) cost for the Company’s defined benefit pension plans for the Successor and Predecessor were as follows (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2022 Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020
Service cost $ 41  $ 63  $ 94  $ 41 
Interest cost 326  1,047  545  593 
Expected return on plan assets 144  (1,310) (783) (817)
Amortization of prior service cost —  —  —  33 
Amortization of net actuarial loss —  36  —  276 
Settlement income (1,178) (644) (25) — 
Net periodic benefit (credit) cost $ (667) $ (808) $ (169) $ 126 
Net periodic benefit (credit) cost is reflected in the Company’s consolidated and combined financial statements as follows for the Successor and Predecessor periods presented (in thousands):
(Successor) (Predecessor)
Year Ended December 31, 2022 Year Ended December 31, 2021 From June 26, 2020 to December 31, 2020 From January 1, 2020 to
June 25, 2020
Selling, general and administrative expense $ 41  $ 63  $ 69  $ 41 
Other (income) expense, net (708) (871) (238) 85 
Net periodic benefit (credit) cost $ (667) $ (808) $ (169) $ 126 
Schedule of Assumptions for Benefit Obligations The following assumptions were used to determine the benefit obligation at year end and net periodic benefit (credit) cost during the year for the Company’s funded defined benefit pension plan:
Year Ended December 31, 2022 Year Ended December 31, 2021
Weighted-average assumptions used to determine benefit obligation at year end:
Discount rate (1) —  % 2.38  %
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate 2.38  % 2.61  %
Expected long-term rate of return on plan assets 1.70  % 4.90  %
(1) The discount rate assumption used to determine the benefit obligation at December 31, 2021 was based on blended 7 year and 15 year duration annuity purchase contracts.
The following assumptions were used to determine the benefit obligation at year end and net periodic benefit (credit) cost during the year for the Company’s unfunded supplemental defined benefit pension plan:
Year Ended December 31, 2022 Year Ended December 31, 2021
Weighted-average assumptions used to determine benefit obligation at year end:
Discount rate 5.01  % 2.78  %
Rate of compensation increase —  % 3.50  %
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate 2.78  % 2.42  %
Rate of compensation increase 3.50  % 3.50  %
Schedule of Target Allocation and Fair Value of Plan Assets
The following tables set forth, by category, the Company’s pension plan assets as of December 31, 2022 and December 31, 2021, using the fair value hierarchy established under ASC Topic 820 and as described in Note 9. The fair value hierarchy in the table as of December 31, 2021 excludes certain investments which are valued using Net Asset Value (“NAV”) as a practical expedient (in thousands):
Pension Plan Assets as of December 31, 2022
Level 1 Level 2 Level 3 Total
Pension plan assets measured at fair value:
Cash and cash equivalents $ 2,522  $ —  $ —  $ 2,522 
Total pension plan assets measured at fair value $ 2,522  $ —  $ —  $ 2,522 
Pension Plan Assets as of December 31, 2021
Level 1 Level 2 Level 3 Total
Pension plan assets measured at fair value:
Cash and cash equivalents $ 325  $ —  $ —  $ 325 
U.S. Government securities —  6,283  —  6,283 
Corporate bonds —  6,283  —  6,283 
Total pension plan assets measured at fair value $ 325  $ 12,566  $ —  $ 12,891 
Pension plan assets measured at NAV as a practical expedient (1) 11 
Total pension plan assets $ 12,902 
(1)    Certain investments in real estate funds that are measured at fair value using the NAV per share practical expedient have not been categorized in the fair value hierarchy. The fair value amounts presented in the table above are intended to permit reconciliation of the fair value hierarchy to the total value of plan assets.
Schedule of Projected Benefit Payments The projected benefit payments for the unfunded non-qualified defined benefit pension plans are as follows (in thousands):
2023 $ 355 
2024 357 
2025 426 
2026 587 
2027 584 
2028-2032 3,125