Pension and Postretirement Benefits

9 Months Ended

Sep. 30, 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 (income) cost for the three and nine months ended September 30, 2020 and 2019 are as

follows:

Three Months Ended September 30,

Nine Months Ended September 30,

Other

Other

Postretirement

Postretirement

Pension Benefits

Benefits

Pension Benefits

Benefits

2020

2019

2020

2019

2020

2019

2020

2019

Service cost

$

1,227

$

993

$

2

$

2

$

3,565

$

2,956

$

5

$

5

Interest cost

1,527

1,852

25

36

4,782

4,068

77

107

Expected return on plan assets

(3,526)

(2,140)

—

—

(7,246)

(4,102)

—

—

Settlement charge

—

—

—

—

22,667

—

—

—

Actuarial loss amortization

626

799

15

—

2,288

2,348

46

—

Prior service cost amortization

(42)

(34)

—

—

(123)

(117)

—

—

Net periodic benefit (income)

cost

$

(188)

$

1,470

$

42

$

38

$

25,933

$

5,153

$

128

$

112

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. In the third quarter of

2020, the Company finalized the amount of the liability and related annuity payments and received a refund in premium of

approximately $1.6 million. 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 income (loss) (“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 of

September 30, 2020, $

6.9

 million and $

0.2

 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.