Quarterly report pursuant to Section 13 or 15(d)

PENSION BENEFITS

v3.21.2
PENSION BENEFITS
6 Months Ended
Jun. 30, 2021
Retirement Benefits [Abstract]  
PENSION BENEFITS
NOTE 10: PENSION BENEFITS
Certain current and former employees of the Company are covered under a funded qualified defined benefit retirement plan. Plan provisions covering certain of the Company’s salaried employees generally provide pension benefits based on years of service and compensation. Plan provisions covering certain of the Company’s union members generally provide stated benefits for each year of credited service. The Company’s funding policy is to contribute annually the statutory required amount as actuarially determined. The Company froze the pension plan on December 31, 2019. In addition, the Company has unfunded non-qualified plans covering certain salaried employees with additional retirement benefits in excess of qualified plan limits imposed by federal tax law. The Company uses December 31 as a measurement date for the plans.
In February 2021, the Compensation Committee approved the termination of the Company’s qualified defined benefit retirement plan at Flavors & Ingredients. During 2021, the Company expects to offer a lump-sum payout to plan participants prior to completing the purchase of annuity contracts that will transfer the remaining pension obligation to an insurance company.
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)
Three Months Ended
June 30, 2021
Six Months Ended
June 30, 2021
From
June 26, 2020 to June 30, 2020
From
 April 1, 2020 to June 25, 2020
From
January 1, 2020 to June 25, 2020
Service cost $ 16  $ 32  $ —  $ 27  $ 41 
Interest cost 260  519  —  542  593 
Expected return on plan assets (400) (799) —  (817) (817)
Recognized actuarial loss 18  —  236  276 
Amortization of prior service cost —  —  —  33  33 
Net periodic benefit (credit) cost $ (115) $ (230) $ —  $ 21  $ 126 
Net periodic benefit (credit) cost is reflected in the Company’s consolidated financial statements as follows for the Successor and Predecessor periods presented (in thousands):
(Successor) (Predecessor)
Three Months Ended
June 30, 2021
Six Months Ended
June 30, 2021
From
June 26, 2020 to June 30, 2020
From
 April 1, 2020 to June 25, 2020
From
January 1, 2020 to June 25, 2020
Selling, general and administrative expense $ 16  $ 32  $ —  $ 27  $ 41 
Other income, net (131) (262) —  (6) 85 
Net periodic benefit (credit) cost $ (115) $ (230) $ —  $ 21  $ 126 
The Company currently does not expect to make contributions to its funded defined benefit pension plan in 2021 due to the funded status.