Quarterly report pursuant to Section 13 or 15(d)

PENSION BENEFITS

v3.21.2
PENSION BENEFITS
 9 Months Ended
Sep. 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. 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 pension plans for the Successor and Predecessor were as follows (in thousands):
(Successor) (Predecessor)
Three Months Ended
September 30, 2021		 Three Months Ended
September 30, 2020		 Nine Months Ended
September 30, 2021		 From
June 26, 2020 to September 30, 2020
From
January 1, 2020 to June 25, 2020
Service cost $ 15  $ 47  $ 47  $ 47  $ 41 
Interest cost 259  273  778  273  593 
Expected return on plan assets (398) (392) (1,197) (392) (817)
Recognized actuarial loss 9  —  27  —  276 
Amortization of prior service cost —  —  —  —  33 
Settlement/curtailment gain (97) —  (97) —  — 
Net periodic benefit (credit) cost $ (212) $ (72) $ (442) $ (72) $ 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
September 30, 2021		 Three Months Ended
September 30, 2020		 Nine Months Ended
September 30, 2021		 From
June 26, 2020 to September 30, 2020
From
January 1, 2020 to June 25, 2020
Selling, general and administrative expense $ 15  $ 47  $ 47  $ 47  $ 41 
Other income, net (227) (119) (489) (119) 85 
Net periodic benefit (credit) cost $ (212) $ (72) $ (442) $ (72) $ 126 
The Company currently does not expect to make contributions to its funded defined benefit pension plan in 2021 due to the funded status.