Retirement Plans

12 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Retirement Plans

14. Retirement Plans

The Company and certain of its subsidiaries have pension and profit sharing plans covering substantially all of their employees. The Company’s defined benefit pension plan, The Pension Agreement between Akro-Mils and United Steelworkers of America Local No. 1761-02, (the “Plan”) provides benefits primarily based upon a fixed amount for each year of service. The Plan was frozen in 2007, and no benefits for service have accumulated after this date.

Net periodic pension cost of the Plan for the years ended December 31, 2021, 2020 and 2019 was as follows:

	For the Year Ended December 31,
	2021			2020			2019
Interest cost	$	151		$	191		$	242
Expected return on assets		(193	)		(206	)		(184	)
Amortization of net loss		85			81			97
Net periodic pension cost	$	43		$	66		$	155

The reconciliation of changes in the Plan’s projected benefit obligations and assets are as follows:

	December 31,
	2021			2020
Change in benefit obligation:
Projected benefit obligation at beginning of year	$	6,749		$	6,339
Interest cost		151			191
Actuarial (gain) loss		(258	)		567
Benefits paid		(344	)		(348	)
Projected benefit obligation at end of year	$	6,298		$	6,749
Change in plan assets:
Fair value of plan assets at beginning of year	$	5,808		$	5,383
Actual return on plan assets		294			623
Company contributions		119			150
Benefits paid		(344	)		(348	)
Fair value of plan assets at end of year	$	5,877		$	5,808
Funded status	$	(421	)	$	(941	)

The Plan’s funded status shown above is included in Other liabilities (long term) in the Company’s Consolidated Statements of Financial Position at December 31, 2021 and 2020. The Company expects to make voluntary contributions to the plan of approximately $100 in 2022. Because the Plan has been frozen, the accumulated benefit obligation is equal to the projected benefit obligation. The actuarial gain incurred during the year ended December 31, 2021 was due to an increase in the discount rate for benefit obligations during the year and the actuarial loss incurred during the year ended December 31, 2020 was a result of the decrease in the discount rate for benefit obligations during the year.

The assumptions used to determine the Plan’s net periodic benefit cost and benefit obligations are as follows:

	December 31,
	2021			2020			2019
Discount rate for net periodic pension cost		2.30	%		3.10	%		4.20	%
Discount rate for benefit obligations		2.65	%		2.30	%		3.10	%
Expected long-term return of plan assets		5.25	%		6.25	%		7.00	%

The expected long-term rate of return is based on the long-term expected returns for the investment mix consistent with the Plan’s current asset allocation and investment policy. The Plan’s asset allocation and investment policy increases the allocation of fixed income investments that are managed to match the duration of the underlying pension liability as the funding status improves. The assumed discount rates represent long-term high-quality corporate bond rates commensurate with the liability duration of the Plan.

The fair value of Plan assets at December 31, 2021 and 2020 consist of mutual funds valued at $2,031 and $3,396, respectively, and pooled separate accounts valued at $3,846 and $2,412, respectively. All of the Plan asset values are categorized as Level 1. Mutual fund values are determined based on period end, closing quoted prices in active markets. The pooled separate accounts are measured at net asset value, which is made readily available to investors. Each of the pooled separate accounts invest in multiple fixed securities and provide for daily redemptions by the plan with no advance notice requirements, and have redemption prices that are also determined by the fund’s net asset value per unit with no redemption fees.

The weighted average asset allocations for the Plan at December 31, 2021 and 2020 were as follows:

	December 31,
	2021			2020
U.S. equities securities		35	%		58	%
U.S. debt securities		65	%		42	%
		100	%		100	%

Benefit payments projected for the Plan are as follows:

2022	$	360
2023		360
2024		360
2025		370
2026		380
2027-2031		1,810

The Company maintains defined contribution plans for its U.S.-based employees, who are not covered under defined benefit plans and have met eligibility service requirements. The Company recognized expense related to the 401(k) employer matching contribution in the amount of $3,398, $2,689 and $2,500 in 2021, 2020 and 2019, respectively.

In addition, the Company has a Supplemental Executive Retirement Plan (“SERP”) to provide certain former senior executives with retirement benefits in addition to amounts payable under the 401(k) plan. Expense related to the SERP was approximately $27, $110 and $174 for the years ended December 2021, 2020 and 2019, respectively. The SERP liability was based on the discounted present value of expected future benefit payments using a discount rate of 2.7% at December 31, 2021 and 2.3% at December 31, 2020. The SERP liability was approximately $1,531 and $1,892 at December 31, 2021 and 2020, respectively, and is included in Accrued employee compensation and other liabilities (long term) on the accompanying Consolidated Statements of Financial Position. The SERP is unfunded.