Pension and Postretirement Benefits

3 Months Ended

Mar. 31, 2020

General Discussion Of Pension And Other Postretirement Benefits [Abstract]

Pension And Other Postretirement Benefits Disclosure [Text Block]

Note 9 – Pension and Other Postretirement Benefits

The components of net periodic benefit cost for the three months ended March 31, 2020 and 2019 are as follows:

	Three Months Ended March 31,
					Other
	Pension Benefits				Postretirement Benefits
		2020		2019		2020		2019
Service cost	$	1,174	$	986	$	2	$	2
Interest cost		1,769		1,111		26		35
Expected return on plan assets		(1,959)		(984)		—		—
Settlement loss		22,667		—		—		—
Actuarial loss amortization		1,047		775		15		—
Prior service (credit) cost amortization		(40)		(42)		—		—
Total net periodic benefit cost	$	24,658	$	1,846	$	43	$	37

In the fourth quarter of 2018, the Company began the process of terminating its legacy Quaker non-contributory U.S. pension plan (“Legacy Quaker U.S. Pension Plan”). During the third quarter of 2019, the Company received a favorable termination determination letter from the Internal Revenue Service (“I.R.S.”) and amended the Legacy Quaker U.S. Pension Plan to comply with final regulations of the Internal Revenue Code. The Company completed the Legacy Quaker U.S. Pension Plan termination during the first quarter of 2020. In order to terminate the Legacy Quaker U.S. Pension Plan in accordance with I.R.S. and Pension Benefit Guaranty Corporation requirements, the Company was required to fully fund the Legacy Quaker U.S. Pension Plan on a termination basis and the amount necessary to do so was approximately $1.8 million, subject to final true up adjustments to be completed over the next several months. In addition, the Company recorded a non-cash pension settlement charge at plan termination of approximately $22.7 million. This settlement charge included the immediate recognition into expense of the related unrecognized losses within accumulated other comprehensive (loss) income (“AOCI”) on the balance sheet as of the plan termination date.

Employer Contributions

The Company previously disclosed in its 2019 Form 10-K that it expected to make minimum cash contributions of $10.0 million to its U.S. and foreign pension plans and approximately $0.4 million to its other postretirement benefit plans in 2020. As a result of certain current year pension plan funding relief provided by the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) enacted into law on March 27, 2020, the Company now expects to make minimum cash contributions of $8.0 million to its U.S. and foreign pension plans in 2020. As of March 31, 2020, $3.8 million and $0.1 million of contributions have been made to the Company’s U.S. and foreign pension plans and its other postretirement benefit plans, respectively. This excludes the $1.8 million of additional funding made in the first quarter of 2020, as required, to terminate the Legacy Quaker U.S. Pension Plan, noted above.