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Retirement Plans
9 Months Ended
Sep. 30, 2019
Retirement Benefits [Abstract]  
Retirement Plans

Note 8 — Retirement Plans

 

Pension Plans

 

Beginning in September 2018, the Company entered into discussions with the U.S. Pension Benefit Guaranty Corporation (the “PBGC”), a United States government agency established by Title IV of the Employee Retirement Income Security Act of 1974 (“ERISA”) which insures certain pension plans, for the purpose of obtaining certain relief from the Company’s obligations under the Plan. The Company and the PBGC entered into an agreement on May 13, 2019 to terminate the Imation Cash Balance Pension Plan (the “Plan”) based on the PBGC’s findings that (i) the Plan did not meet the minimum funding standard required under Section 412 of the Internal Revenue Code of 1986, as amended; (ii) the Plan would be unable to pay benefits when due and (iii) the Plan should be terminated in order to protect the interests of the Plan participants. GlassBridge and all other members of GlassBridge’s (as seller) controlled group (within the meaning of 29 U.S.C. §1301(a)(14))  (the “Controlled Group Members”) were jointly and severally liable to the PBGC for all liabilities under Title IV of ERISA in connection with the Plan’s termination, including unfunded benefit liabilities, due and unpaid Plan contributions, premiums, and interest on each of the foregoing, as a result of which a lien in favor of the Plan, on all property of each Controlled Group Member, arose and was perfected by PBGC. On October 1, 2019, the Company entered into a settlement agreement with the PBGC (the “Settlement Agreement”). Pursuant to the terms and subject to the conditions set forth in the Settlement Agreement, on October 3, 2019, GlassBridge paid $3,000,000 in cash to the PBGC, which was within five days of the date of the execution of the Settlement Agreement (the “Settlement Payment”). On the 95th day following payment of the Settlement Payment to the PBGC, the PBGC will be deemed to have released all Controlled Group Members from the PBGC’s lien (the “Release Date”).

 

The Company had one remaining international employee-eligible retirement plan in Germany (the “German Plan” and all international plans the “International Plans”). Following the Subsidiary Sale in the first quarter of 2019, the Company no longer has any obligations under the German Plan or any other prior International Plans.