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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2019
Retirement Benefits [Abstract]  
Employee Benefit Plans Employee Benefit Plans
Defined Benefit Pension and Post-Retirement Plans
The Company has defined benefit pension plans that cover certain union and nonunion employees in the U.S. Benefits under these plans are based either on years of credited service and compensation during the years preceding retirement or on years of credited service and established monthly benefit levels. The Company also has a post-retirement plan that provides life insurance coverage to eligible retired employees (collectively, with the defined benefit plans, the U.S. Plans). The Company froze benefit accruals for the U.S. Plans for nonunion employees effective April 1, 2005, and these employees no longer earn additional pension benefits. The Company also has a defined benefit plan that covers certain employees in Australia and is referenced as superannuation (the Offshore Plan). The Company uses a December 31 measurement date for the U.S. Plans and the Offshore Plan.
Actuarial information regarding these plans is as follows:
 
2019
 
Retirement
Income Plan
National
Service-Related Pension Plan
Other
Post-Retirement Benefits
Superannuation
Total
Change in benefit obligation:
(In thousands)
Benefit obligation – January 1, 2019
$
(43,364
)
$
(30,627
)
$
(678
)
$
(1,385
)
$
(76,054
)
Service cost
—

—

—

(78
)
(78
)
Interest cost
(1,590
)
(1,245
)
(23
)
(49
)
(2,907
)
Actuarial loss
(3,251
)
(4,167
)
(62
)
(77
)
(7,557
)
Benefits paid
2,990

1,003

—

447

4,440

Plan participants’ contributions
—

—

—

(12
)
(12
)
Foreign currency translation loss
—

—

—

2

2

Effect of settlement
—

—

152

—

152

Benefit obligation – end of year
(45,215
)
(35,036
)
(611
)
(1,152
)
(82,014
)
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
Fair value of plan assets – January 1, 2019
34,958

23,277

—

1,502

59,737

Actual return on plan assets
6,804

4,556

—

237

11,597

Employer contributions
1,339

1,011

152

58

2,560

Benefits paid
(2,990
)
(1,003
)
—

(447
)
(4,440
)
Effect of settlement
—

—

(152
)
—

(152
)
Plan participants’ contributions
—

—

—

12

12

Foreign currency translation loss
—

—

—

(6
)
(6
)
Fair value of plan assets – end of year
40,111

27,841

—

1,356

69,308

Funded status
$
(5,104
)
$
(7,195
)
$
(611
)
$
204

$
(12,706
)
 
 
 
 
 
 
Amounts recognized on the consolidated balance sheet as of December 31, 2019:
 
 
 
 
 
Pension and post-retirement liability
$
(5,104
)
$
(7,195
)
$
(611
)
$
204

$
(12,706
)
Accumulated other comprehensive loss (income)
6,417

4,501

(21
)
62

10,959

Amounts in accumulated other comprehensive loss consist of:
 
 
 
 
 
Net loss (gain)
6,417

4,501

(21
)
(15
)
10,882

Prior service cost
—

—

—

77

77

 
 
 
 
 
 
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
 
 
 
 
 
Net (gain) loss
(1,793
)
788

(94
)
(78
)
(1,177
)
Amortization of net (loss) gain
(1,509
)
(564
)
4

—

(2,069
)
Amortization of prior service cost
—

—

—

(28
)
(28
)
Amount recognized due to special event
—

—

5

5

10

Foreign currency translation loss
—

—

—

(5
)
(5
)
Total recognized in other comprehensive loss (income)
$
(3,302
)
$
224

$
(85
)
$
(106
)
$
(3,269
)
 
 
 
 
 
 
Information for plans with accumulated benefit obligation in excess of plan assets:
 
 
 
 
 
Projected benefit obligation
$
45,215

$
35,036

$
611

$
1,152

$
82,014

Accumulated benefit obligation
$
45,215

$
35,036

$
611

$
1,038

$
81,900

Fair value of plan assets
$
40,111

$
27,841

$
—

$
1,356

$
69,308



 
2018
 
Retirement
Income Plan
National
Service-Related Pension Plan
Other
Post-Retirement Benefits
Superannuation
Total
Change in benefit obligation:
(In thousands)
Benefit obligation – January 1, 2018
$
(45,386
)
$
(33,405
)
$
(691
)
$
(3,002
)
$
(82,484
)
Service cost
(31
)
(78
)
—

(137
)
(246
)
Interest cost
(1,418
)
(1,199
)
(20
)
(104
)
(2,741
)
Actuarial loss
753

3,125

33

179

4,090

Benefits paid
2,718

930

—

1,391

5,039

Plan participants’ contributions
—

—

—

(21
)
(21
)
Foreign currency translation gain
—

—

—

309

309

Benefit obligation – end of year
(43,364
)
(30,627
)
(678
)
(1,385
)
(76,054
)
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
Fair value of plan assets – January 1, 2018
38,218

24,518

—

2,992

65,728

Actual return on plan assets
(2,042
)
(1,446
)
—

50

(3,438
)
Employer contributions
1,499

1,135

—

125

2,759

Benefits paid
(2,717
)
(930
)
—

(1,391
)
(5,038
)
Plan participants’ contributions
—

—

—

21

21

Foreign currency translation gain
—

—

—

(295
)
(295
)
Fair value of plan assets – end of year
34,958

23,277

—

1,502

59,737

Funded status
$
(8,406
)
$
(7,350
)
$
(678
)
$
117

$
(16,317
)
 
 
 
 
 
 
Amounts recognized on the consolidated balance sheet as of December 31, 2018:
 
 
 
 
 
Pension and post-retirement liability
$
(8,406
)
$
(7,350
)
$
(678
)
$
117

$
(16,317
)
Accumulated other comprehensive loss (income)
9,718

4,278

(92
)
170

14,074

Amounts in accumulated other comprehensive loss consist of:
 
 
 
 
 
Net loss (gain)
9,718

4,278

(92
)
65

13,969

Prior service cost
—

—

—

105

105

 
 
 
 
 
 
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss):
 
 
 
 
 
Net loss (gain)
3,337

(311
)
(34
)
(66
)
2,926

Amortization of net gain
(1,244
)
(715
)
—

—

(1,959
)
Amortization of prior service cost
—

—

—

(28
)
(28
)
Amount recognized due to special event
—

—

—

(64
)
(64
)
Foreign currency translation loss
—

—

—

26

26

Total recognized in other comprehensive loss (income)
$
2,093

$
(1,026
)
$
(34
)
$
(132
)
$
901

 
 
 
 
 
 
Information for plans with accumulated benefit obligation in excess of plan assets:
 
 
 
 
 
Projected benefit obligation
$
43,364

$
30,627

$
678

$
1,385

$
76,054

Accumulated benefit obligation
$
43,364

$
30,627

$
678

$
1,186

$
75,855

Fair value of plan assets
$
34,958

$
23,277

$
—

$
1,502

$
59,737


The components of net period benefit cost for the years ended December 31, 2019, 2018 and 2017 are as follows:
 
December 31, 2019
 
Retirement Income Plan
National Service-Related Pension Plan
Other
Post-Retirement Benefits
Superannuation
Total
Components of net periodic benefit cost:
(In thousands)
Service cost
$
—

$
—

$
—

$
78

$
78

Interest cost
1,590

1,245

23

49

2,907

Expected return on plan assets
(1,760
)
(1,176
)
—

(74
)
(3,010
)
Amortization of net loss (gain)
1,509

564

(4
)
—

2,069

Amortization of prior service cost
—

—

—

28

28

Effect of settlement
—

—

(5
)
(5
)
(10
)
Net pension benefit cost
$
1,339

$
633

$
14

$
76

$
2,062

 
December 31, 2018
 
Retirement Income Plan
National Service-Related Pension Plan
Other
Post-Retirement Benefits
Superannuation
Total
Components of net periodic benefit cost:
(In thousands)
Service cost
$
31

$
78

$
—

$
137

$
246

Interest cost
1,418

1,199

20

104

2,741

Expected return on plan assets
(2,047
)
(1,369
)
—

(172
)
(3,588
)
Amortization of net loss
1,244

715

—

—

1,959

Amortization of prior service cost
—

—

—

30

30

Effect of settlement
—

—

—

68

68

Net pension benefit cost
$
646

$
623

$
20

$
167

$
1,456

 
December 31, 2017
 
Retirement Income Plan
National Service-Related Pension Plan
Other
Post-Retirement Benefits
Superannuation
Total
Components of net periodic benefit cost:
(In thousands)
Service cost
$
65

$
504

$
—

$
153

$
722

Interest cost
1,583

1,256

22

120

2,981

Expected return on plan assets
(1,757
)
(1,175
)
—

(174
)
(3,106
)
Amortization of net loss (gain)
1,889

815

(1
)
—

2,703

Amortization of prior service cost
—

212

—

9

221

Effect of settlement
—

—

(4
)
67

63

Net pension benefit cost
$
1,780

$
1,612

$
17

$
175

$
3,584

The service cost component of defined benefit pension cost and postretirement benefit cost are presented in “Selling, general and administrative” and all other components of net period benefit cost are presented in “Other (expense) income, net” on the Consolidated Statements of Operations.
The Company recognizes all changes in the fair value of plan assets and net actuarial gains or losses at December 31 each year. Prior service costs and gains/losses are amortized based on a straight-line method over the average future service of members that are expected to receive benefits.
All actuarial gains/losses are exposed to amortization over an average future service period of 6.3 years for the Retirement Income Plan, 7.4 years for the National Service-Related Pension Plan, 5.0 years for Other Post-Retirement Benefits, and 5.8 years for Superannuation as of December 31, 2019.
The weighted average assumptions used to determine benefit obligations and net period benefit costs for the years ended December 31, 2019, 2018 and 2017 are as follows:
 
December 31, 2019
 
Retirement Income
Plan
National Service-Related Pension
Plan
Other
Post-Retirement Benefits
Superan-
nuation
Weighted-average assumptions used to determine obligations (balance sheet):
 
 
 
 
Discount rate
3.00
%
3.25
%
2.55
%
2.30
%
Rate of compensation increase
N/A

N/A

N/A

3.25
%
Weighted-average assumptions used to determine net periodic benefit cost (statement of operations):
 
 
 
 
Discount rate
3.95
%
4.15
%
3.70
%
3.70
%
Expected return on plan assets
6.50
%
6.50
%
N/A

5.00
%
Rate of compensation increase
3.50
%
N/A

N/A

3.25
%
 
December 31, 2018
 
Retirement Income
Plan
National Service-Related Pension
Plan
Other
Post-Retirement Benefits
Superan-
nuation
Weighted-average assumptions used to determine obligations (balance sheet):
 
 
 
 
Discount rate
3.95
%
4.15
%
3.70
%
3.70
%
Rate of compensation increase
3.50
%
N/A

N/A

3.25
%
Weighted-average assumptions used to determine net periodic benefit cost (statement of operations):
 
 
 
 
Discount rate
3.35
%
3.65
%
3.10
%
3.70
%
Expected return on plan assets
7.00
%
7.00
%
N/A

6.00
%
Rate of compensation increase
3.50
%
N/A

N/A

4.00
%
 
December 31, 2017
 
Retirement Income
Plan
National Service-Related Pension
Plan
Other
Post-Retirement Benefits
Superan-
nuation
Weighted-average assumptions used to determine obligations (balance sheet):
 
 
 
 
Discount rate
3.35
%
3.65
%
3.10
%
3.70
%
Rate of compensation increase
3.50
%
N/A

N/A

4.00
%
Weighted-average assumptions used to determine net periodic benefit cost (statement of operations):
 
 
 
 
Discount rate
3.75
%
4.15
%
3.40
%
4.20
%
Expected return on plan assets
7.00
%
7.00
%
N/A

6.00
%
Rate of compensation increase
3.50
%
N/A

N/A

4.00
%

The estimated net loss for the defined benefit plans in the U.S. that will be amortized from accumulated other comprehensive loss into net periodic benefit cost during 2020 is $1.6 million. There is no estimated prior service cost associated with this plan to be amortized from accumulated other comprehensive income during 2020.
There is no estimated net gain for the Offshore Plan that will be amortized from accumulated other comprehensive income into net periodic benefit cost during 2020. The estimated prior service cost associated with this plan to be amortized from accumulated other comprehensive income during 2020 is nominal.
The Company determines the expected return on plan assets based on their market value as of December 31 of each year, as adjusted for a) expected employer contributions, b) expected benefit distributions, and c) estimated administrative expenses.
Plan Assets
The Company’s overall investment strategy is to achieve a mix of investments for long-term growth and near-term benefit payments. The Company invests in both U.S. and non-U.S. equity securities, fixed-income securities, and real estate.
The allocations of the U.S. Plans’ and the Offshore Plan’s investments by fair value as of December 31, 2019 and 2018 are as follows:
 
U.S. Plans
 
Offshore Plan
 
Actual
Target Allocation
 
Actual
Target Allocation
 
2019
2018
 
2019
2018
 
 
 
 
 
 
 
 
U.S. equities
35%
35%
25–55%
 
20%
16%
19%
Non-U.S. equities
25%
25%
15–45%
 
42%
46%
41%
Fixed-income securities
35%
35%
15–40%
 
8%
9%
13%
Real estate
5%
5%
0–5%
 
8%
8%
8%
Cash and other
—%
—%
—%
 
22%
21%
19%


To develop the assumption for the long-term rate of return on assets, the Company considered the historical returns and the future expectations for returns for each asset class, as well as the target asset allocation of the U.S. Plans’ and Offshore Plan’s assets and the effect of periodic rebalancing, consistent with the Company’s investment strategies. For 2020, the Company expects to receive a long-term rate of return of 6.5% for the U.S. Plans and 5.0% for the Offshore Plan. All plans are invested to maximize the return on assets while minimizing risk by diversifying across a broad range of asset classes.
The fair values of the Company’s pension plan assets as of December 31, 2019, by category, are as follow:
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Balance as of December 31, 2019
Assets
(In thousands)
U.S. equities:
 
 
 
 
Large cap(1)
$
—

$
17,698

$
—

$
17,698

Medium cap(1)
—

3,404

—

3,404

Small cap(1)
1,360

1,360

—

2,720

Non-U.S. equities:
 
 
 
 
Large cap(2)
12,919

—

—

12,919

Emerging markets(3)
4,060

—

—

4,060

Fixed-income securities:
 
 
 
 
Money markets(4)
—

3,381

—

3,381

U.S. bonds(5)
10,172

3,397

—

13,569

Non-U.S. bonds(5)
6,806

—

—

6,806

Real estate(6)
—

3,395

—

3,395

Common/collective trusts
—

1,356

—

1,356

Total assets
$
35,317

$
33,991

$
—

$
69,308

The fair values of the Company’s pension plan assets as of December 31, 2018, by category, are as follows:
 
Quoted Prices in Active Markets for Identical Assets
(Level 1)
Significant Observable Inputs
(Level 2)
Significant Unobservable Inputs
(Level 3)
Balance as of December 31, 2018
Assets
(In thousands)
U.S. equities:
 
 
 
 
Large cap(1)
$
—

$
15,141

$
—

$
15,141

Medium cap(1)
—

2,912

—

2,912

Small cap(1)
1,165

1,165

—

2,330

Non-U.S. equities:
 
 
 
 
Large cap(2)
11,065

—

—

11,065

Emerging markets(3)
3,494

—

—

3,494

Fixed-income securities:
 
 
 
 
Money markets(4)
—

2,912

—

2,912

U.S. bonds(5)
8,735

2,912

—

11,647

Non-U.S. bonds(5)
5,822

—

—

5,822

Real estate(6)
—

2,912

—

2,912

Common/collective trusts
—

1,502

—

1,502

Total assets
$
30,281

$
29,456

$
—

$
59,737

(1) 
Includes funds that primarily invest in U.S. common stock.
(2) 
Includes funds that invest primarily in foreign equity and equity-related securities.
(3) 
Includes funds that invest primarily in equity securities of companies in emerging market countries.
(4) 
Includes funds that invest primarily in short-term securities, such as commercial paper.
(5) 
Includes funds either publicly traded (Level 1) or within a separate account (Level 2) held by a regulated investment company. These funds hold primarily debt and fixed-income securities.
(6) 
Includes funds in a separate account held by a regulated investment company that invest primarily in commercial real estate and includes mortgage loans which are backed by the associated properties. The Company can call the investment in these assets with no restrictions.
The U.S. Plans’ assets are in commingled funds that are valued using net asset values. The net asset values are based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding. The pension assets are classified as Level 1 when the net asset values are based on a quoted price in an active market. The U.S. Plans’ assets are classified as Level 2 when the net asset value is based on a quoted price on a private market that is not active and the underlying investments are traded on an active market.
The Offshore Plans are common/collective trusts and commingled trusts investments, which invest in other collective trust funds otherwise known as the underlying funds. The Company’s interests in the commingled trust funds are based on the fair values of the investments of the underlying funds and therefore are classified as Level 2.
As of December 31, 2019 and 2018, the Company does not have any investments classified as Level 3.
Cash Flow
The Company expects to contribute to all plans an aggregate of $2.5 million in 2020.
Estimated Future Benefit Payments
The following benefit payments, which reflect expected future services, as appropriate, are expected to be paid for all plans as of December 31, 2019:
Years Ending December 31:
(In thousands)
2020
$
7,796

2021
5,090

2022
5,034

2023
4,862

2024
4,867

Thereafter
22,846

 
$
50,495



Multi-Employer Plans

The Company contributes to a number of multi-employer benefit plans under the terms of collective bargaining agreements that cover union-represented employees. These plans generally provide for retirement, death, and/or termination benefits for eligible employees within the applicable collective bargaining units, based on specific eligibility/participation requirements, vesting periods, and benefit formulas. The risks of participating in these multi-employer plans are different from single-employer plans in the following aspects:
•
Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other current or former participating employers.
•
If a participating employer stops contributing to the multi-employer plan without paying its unfunded liability, the unfunded obligations of the plan may be borne by the remaining participating employers.
•
If the Company chooses to cease participation in a multi-employer plan, such full withdrawal is subject to the payment of any unfunded liability applicable to the Company, referred to as a withdrawal liability. Additionally, such withdrawal is subject to collective bargaining.
The table below outlines the Company’s participation in multi-employer pension plans for the periods ended December 31, 2019, 2018 and 2017, and sets forth the contributions into each plan. The “EIN/Pension Plan Number” column provides the Employer Identification Number (EIN) and the three-digit plan number. The most recent Pension Protection Act zone status available in 2018 and 2019 relates to the plans’ two most recent fiscal year-ends. The zone status is based on information that we received from the plans’ administrators and is certified by each plan’s actuary. Among other factors, plans certified in the red zone are generally less than 65% funded, plans certified in the orange zone are (i) less than 80% funded and (ii) have an accumulated funding deficiency or are expected to have a deficiency in any of the next six plan years, plans certified in the yellow zone are less than 80% funded, and plans certified in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates whether a financial improvement plan (FIP) for yellow/orange zone plans, or a rehabilitation plan (RP) for red zone plans, is
either pending or has been implemented. As of December 31, 2019, all plans that have either a FIP or RP requirement have had the respective FIP or RP implemented (see table below).
The Company’s collective-bargained contributions satisfy the requirements of all implemented FIPs and RPs and do not currently require the payment of any surcharges. In addition, minimum contributions outside the agreed-upon contractual rate are not required. For the plans detailed in the following table, the expiration dates of the associated collective bargaining agreements range from February 13, 2019 to June 30, 2026. For all the plans detailed in the following table, the Company has not contributed more than 5% of the total plan contribution for 2019, 2018 and 2017.
The Company contributes to multi-employer plans that cover approximately 60% of union employees. The amounts charged to expense within the Consolidated Statements of Operations for the years ended December 31, 2019, 2018 and 2017 were $18.0 million, $17.4 million and $17.0 million, respectively. Projected minimum contributions required for the upcoming fiscal year are approximately $17.3 million.
During the third quarter of 2017, the Company recorded a charge of $9.2 million representing the present value of a liability associated with its withdrawal obligation under the New England Teamsters & Trucking Industry Multi-Employer Pension Fund (the Fund) for hourly, unionized associates at four of its domestic warehouse facilities. The Fund is significantly underfunded in accordance with Employee Retirement Income Security Act of 1974 (ERISA) funding standards and, therefore, ERISA required the Fund to develop a Rehabilitation Plan. The Fund Trustees chose to create a new fund that minimizes the pension withdrawal liability. As a result, current employers participating in the Fund were given the opportunity to exit the Fund and convert to a new fund. The Company’s portion of the unfunded liability (undiscounted), estimated at $13.7 million, will be repaid in equal monthly installments of approximately $0.04 million over 30 years, interest free. The Company recognized an expense and related liability equal to the present value of the withdrawal liability upon exiting the Fund, and amortizes the difference between such present value and the estimated unfunded liability through interest expense over the repayment period.
Pension Fund
EIN/Pension
Plan Number
Pension Protection
Act Zone Status
FIP/RP Status Pending/
Implemented
Americold Contributions
Surcharge Imposed
2019
2018
2019
2018
2017
 
 
 
 
 
(In thousands)
 
Central Pension Fund of the International Union of Operating Engineers and Participating Employers (2)
36-6052390
Green
Green
No
$
6

$
6

$
3

No
 
 
 
 
 
 
 
 
 
Central States SE & SW Areas Health and Welfare Pension
Plans (1)
36-6044243
Red
Red
Yes/
Implemented
9,238

8,424

8,427

No
 
 
 
 
 
 
 
 
 
New England Teamsters & Trucking Industry Pension Plan (3)
04-6372430
Red
Red
Yes/
Implemented
456

456

566

No
 
 
 
 
 
 
 
 
 
Alternative New England Teamsters & Trucking Industry Pension Plan
04-6372430
Green
Green
No
449

493

98

No
 
 
 
 
 
 
 
 
 
I.U.O.E Stationary Engineers Local 39 Pension Fund (1)
94-6118939
Green
Green
No
194

160

197

No
 
 
 
 
 
 
 
 
 
United Food & Commercial Workers International Union-Industry Pension Fund (4)
51-6055922
Green
Green
No
105

90

87

No
 
 
 
 
 
 
 
 
 
Western Conference of Teamsters Pension Fund (1)
91-6145047
Green
Green
No
7,398

7,632

7,265

No
 
 
 
 
 
 
 
 
 
Minneapolis Food Distributing Industry Pension Plan (1)
41-6047047
Green
Green
Yes/
Implemented
116

180

326

No
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Contributions
$
17,962

$
17,441

$
16,969

 

(1) 
The status information is for the plans’ year end at December 31, 2019 and 2018.
(2) 
The status information is for the plans’ year end at January 31, 2019 and 2018.
(3) 
The status information is for the plans’ year end at September 30, 2019 and 2018. The Company withdrew from the multi-employer plan on October, 31, 2017.
(4) 
The status information is for the plans’ year end at June 30, 2019 and 2018.
Government-Sponsored Plans
The Company contributes to certain government-sponsored plans in Australia and Argentina. The amounts charged to expense within the Consolidated Statements of Operations and for the years ended December 31, 2019, 2018 and 2017 were $5.8 million, $5.7 million and $5.4 million, respectively.
Defined Contribution Plan
The Company has defined contribution employee benefit plans, which cover all eligible employees. The plans also allow contributions by plan participants in accordance with Section 401(k) of the IRC. The Company matches a percentage of each employee’s contributions consistent with the provisions of the plans. The aggregate cost of our contributions to the 401(k) Plan charged to expense within the Consolidated Statements of Operations for each of the years ended December 31, 2019, 2018 and 2017 was $4.2 million, $3.9 million and $3.6 million, respectively.
Deferred Compensation
The Company has deferred compensation and supplemental retirement plan agreements with certain of its executives. The agreements provide for certain benefits at retirement or disability and also provide for survivor benefits in the event of death of the employee. The Company contribution amounts charged to expense relative to this plan were nominal for the years ended December 31, 2019, 2018 and 2017.