|9 Months Ended|
Sep. 30, 2021
|Retirement Benefits [Abstract]|
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. The Company expects to settle the long-term liability associated with the termination through a combination of (i) lump-sum payments in the fourth quarter of 2021 to eligible participants who elect to receive them and (ii) the purchase of annuity contracts in the first half of 2022.
The components of net periodic benefit (credit) cost for the Company’s defined benefit for the Successor and Predecessor were as follows (in thousands):
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):
The Company currently does not expect to make contributions to its funded defined benefit pension plan in 2021 due to the funded status.
The entire disclosure for retirement benefits.
Reference 1: http://www.xbrl.org/2003/role/exampleRef