XML 39 R25.htm IDEA: XBRL DOCUMENT v3.22.0.1
EMPLOYEE BENEFIT PLANS
 12 Months Ended
Dec. 31, 2021
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS EMPLOYEE BENEFIT PLANS
Defined Contribution Plans
The Company sponsored two 401(k) savings plans for eligible employees, which were merged into one plan on January 1, 2021. The remaining plan allows participants to make pretax contributions and the Company matches certain percentages of those pretax contributions. The remaining plan also has a discretionary profit sharing portion and matches 401(k) contributions with shares of the Company’s Common Stock. All amounts contributed to the plan are deposited into a trust fund administered by independent trustees. The Company provided for profit sharing contributions and matching 401(k) savings plan contributions of $1,459 and $4,142 in 2021, $1,022 and $3,751 in 2020, and $592 and $3,451 in 2019, respectively.
Postretirement Medical Plans
The Company provides postretirement benefits in the form of two unfunded postretirement medical plans; one that is under a collective bargaining agreement and covers eligible retired employees of the Verona, Missouri facility and a plan for those named as executive officers in the Company’s proxy statement. The Company uses a December 31 measurement date for its postretirement medical plans. In accordance with ASC 715, “Compensation—Retirement Benefits,” the Company is required to recognize the over funded or underfunded status of a defined benefit post retirement plan (other than a multiemployer plan) as an asset or liability in its statement of financial position, and to recognize changes in that funded status in the year in which the changes occur through comprehensive income.
The actuarial recorded liabilities for such unfunded postretirement benefits are as follows:
Change in benefit obligation:
 20212020
Benefit obligation at beginning of year$1,374 $1,076 
Initial adoption of new plan— — 
Service cost with interest to end of year87 68 
Interest cost23 26 
Participant contributions28 23 
Benefits paid(426)(27)
Actuarial gain207 208 
Benefit obligation at end of year$1,293 $1,374 
Change in plan assets:
 20212020
Fair value of plan assets at beginning of year$— $— 
Employer (reimbursement)/contributions398 4 
Participant contributions28 23 
Benefits paid(426)(27)
Fair value of plan assets at end of year$— $— 
Amounts recognized in consolidated balance sheet:
 20212020
Accumulated postretirement benefit obligation$1,293 $1,374 
Fair value of plan assets— — 
Funded status1,293 1,374 
Unrecognized prior service cost74 74 
Unrecognized net gain(50)(46)
Net amount recognized in consolidated balance sheet (after ASC 715) (included in other long-term obligations)$1,293 $1,374 
Accrued postretirement benefit cost (included in other long-term obligations)N/AN/A
Components of net periodic benefit cost:
 202120202019
Service cost with interest to end of year$87 $68 $63 
Interest cost23 26 39 
Amortization of prior service cost74 74 74 
Amortization of gain(24)(50)(46)
Total net periodic benefit cost$160 $118 $130 
Estimated future employer contributions and benefit payments are as follows:
Year 
2022$107 
202391 
2024113 
202591 
202676 
Years 2027-2031479 
Defined Benefit Pension Plans
The Company contributes to one multiemployer defined benefit plan under the terms of a collective-bargaining agreement covering its union-represented employees of the Verona, Missouri facility. The risks of participation in this multiemployer plan are different from single-employer plans in the following aspects: (a) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers, (b) if a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers, and (c) if the Company was to stop participating in its multiemployer plan, the Company would be required to pay that plan an amount based on the underfunded status of the plan, referred to as the withdrawal liability.
The Company’s participation in this plan for the annual period ended December 31, 2021 is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN). The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone or critical and declining zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date of the collective-bargaining agreement to which the plan is subject. Finally, the period-to-period comparability of the contributions for 2021 and 2020 was affected by a 4.0% increase in the 2021 contribution rate. There have been no other significant changes that affect the comparability of 2021 and 2020 contributions. The Company does not represent more than 5% of the contributions to this pension fund.
Pension
Fund		EIN/Pension
Plan
Number		Pension Plan Protection Act Zone StatusFIP/RP Status
Pending/ Implemented		Contributions of Balchem CorporationSurcharge
Imposed		Expiration Date of Collective-
Bargaining
Agreement
20212020202120202019
Central States,
Southeast and
Southwest Areas
Pension Fund		36-6044243Critical & Declining as of 1/1/21Critical & Declining as of 1/1/20Implemented$816$774$677No7/12/2025

On May 27, 2019, the Company acquired Chemogas, which has an unfunded defined benefit pension plan. The plan provides for the payment of a lump sum at retirement or payments in case of death of the covered employees.
The actuarial recorded liabilities for such unfunded defined benefit pension plan are as follows:
Change in benefit obligation:
 20212020
Benefit obligation at beginning of year$2,053 $1,738 
Service cost with interest to end of year67 104 
Interest cost14 20 
Participant contributions24 21 
Benefits paid(18)(11)
Actuarial gain(127)18 
Exchange rate changes(154)163 
Benefit obligation at end of year$1,859 $2,053 
Change in plan assets:
 20212020
Fair value of plan assets at beginning of year$1,103 895 
Actual return on plan assets76 57 
Employer (reimbursement)/contributions73 57 
Participant contributions24 21 
Benefits paid(18)(11)
Exchange rate changes(83)84 
Fair value of plan assets at end of year$1,175 $1,103 
Amounts recognized in consolidated balance sheet:
 20212020
Benefit obligation$(1,859)$(2,053)
Fair value of plan assets1,175 1,103 
Funded status(684)(950)
Unrecognized prior service costN/AN/A
Unrecognized net (gain)/lossN/AN/A
Net amount recognized in consolidated balance sheet (after ASC 715) (included in other long-term obligations)$684 $950 
Accrued postretirement benefit cost (included in other long-term obligations)N/AN/A
Components of net periodic benefit cost:
 202120202019
Service cost with interest to end of year$67 $104 $— 
Interest cost14 20 — 
Expected return on plan assets(34)(14)— 
Amortization of prior service cost— — — 
Amortization of net loss3 — — 
Total net periodic benefit cost$50 $110 $— 
Estimated future benefit payments are as follows:
Year 
2022$1 
2023— 
2024— 
2025— 
2026— 
Years 2027-203122 
Assumptions to determine benefit obligations:
 20212020
Discount rate1.00 %0.75 %
Assumptions to determine net cost:
 202120202019
Discount rate0.75 %1.00 %N/A
Expected return on assets3.25 %1.00 %N/A
Deferred Compensation Plan
On June 1, 2018, the Company established an unfunded, non-qualified deferred compensation plan maintained for the benefit of a select group of management or highly compensated employees. Assets of the plan are held in a rabbi trust, which are subject to additional risk of loss in the event of bankruptcy or insolvency of the Company. The deferred compensation liability as of December 31, 2021 and 2020 was $6,270 and $3,581, respectively, and was included in other long-term obligations on the Company's balance sheet. The related rabbi trust assets were $6,267 and $3,582 as of December 31, 2021 and 2020, respectively, and were included in other non-current assets on the Company's consolidated balance sheets.