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Postretirement Benefit Obligations | 12 Months Ended
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Dec. 31, 2024
Retirement Benefits [Abstract] |
Postretirement Benefits Obligations | Postretirement Benefit Obligations Defined Contribution Benefit Plan On January 1, 2017, the Company established a defined contribution plan which covers all eligible U.S. employees. Our plan allows eligible employees to contribute a portion of their cash compensation to the plan on a tax-deferred basis to save for their future retirement needs. The Company matches 50% or 75% of the first 8% of contributions for employees covered by a collective bargaining agreement, dependent upon the terms of the respective collective bargaining agreement and matches 75% of the first 8% of the employee’s contribution election for all other employees. The plan’s matching contributions vest after three years of service with the Company. The Company may also provide an additional discretionary retirement savings contribution which is at the sole discretion of the Company. The Company made contributions to the defined contribution plan of $6.8 million, $6.0 million and $5.9 million for the years ended December 31, 2024, 2023 and 2022, respectively. Defined Benefit Pension Plan Prior to the Spin-Off certain of our employees participated in a defined benefit pension plan (the “Shared Plan”) sponsored by Honeywell which includes participants of other Honeywell subsidiaries and operations. We accounted for our participation in the Shared Plan as a multi-employer benefit plan. Accordingly, we did not record an asset or liability to recognize the funded status of the Shared Plan. The related pension expense was allocated based on annual service cost of active participants and reported within Costs of goods sold and Selling, general and administrative expenses in the Statements of Operations. As of the date of separation from Honeywell, these employees’ entitlement to benefits in Honeywell’s plans was frozen and they will accrue no further benefits in Honeywell’s plans. Honeywell retained the liability for benefits payable to eligible employees, which are based on age, years of service and average pay upon retirement. Upon consummation of the Spin-Off, AdvanSix employees who were participants in a Honeywell defined benefit pension plan became participants in the AdvanSix defined benefit pension plan (“AdvanSix Retirement Earnings Plan”). The AdvanSix Retirement Earnings Plan has the same benefit formula as the Honeywell defined benefit pension plan. Moreover, vesting service, benefit accrual service and compensation credited under the Honeywell defined benefit pension plan apply to the determination of pension benefits under the AdvanSix Retirement Earnings Plan. Benefits earned under the AdvanSix Retirement Earnings Plan shall be reduced by the value of benefits accrued under the Honeywell plans. The following tables summarize the balance sheet impact, including the benefit obligations, assets and funded status associated with the AdvanSix Retirement Earnings Plan.
Change in benefit obligation: | 2024 |  | 2023 |  | 2022
Benefit obligation at January 1, | $ | 93,270 |  |  | $ | 80,174 |  |  | $ | 91,389 |
Service Cost | 4,877 |  |  | 4,906 |  |  | 6,860 |
Interest Cost | 4,524 |  |  | 4,048 |  |  | 2,436 |
Actuarial losses (gains) | (12,285) |  |  | 6,636 |  |  | (18,665) |
Benefits Paid | (3,098) |  |  | (2,494) |  |  | (1,846) |
Benefit obligation at December 31, | $ | 87,288 |  |  | $ | 93,270 |  |  | $ | 80,174 |
Change in plan assets: |  |  |  |  |
Fair value of plan assets at January 1, | 86,084 |  |  | 77,362 |  |  | 71,252 |
Actual return on plan assets | 6,053 |  |  | 11,216 |  |  | (12,044) |
Benefits paid | (3,098) |  |  | (2,494) |  |  | (1,846) |
Company Contributions | — |  |  | — |  |  | 20,000 |
Fair value of plan assets at December 31, | 89,039 |  |  | 86,084 |  |  | 77,362 |
Under (Over)-Funded status of plan | $ | (1,751) |  |  | $ | 7,186 |  |  | $ | 2,812 |
Amounts recognized in Balance Sheet consists of: |  |  |  |  |
Accrued pension liabilities-current (1) | $ | — |  |  | $ | 3,526 |  |  | $ | 2,812 |
Accrued pension liabilities-noncurrent (2) | — |  |  | 3,660 |  |  | — |
Pension asset-noncurrent (3) | (1,751) |  |  | — |  |  | — |
Total pension liabilities (assets) recognized | $ | (1,751) |  |  | $ | 7,186 |  |  | $ | 2,812 |
(1) Included in accrued liabilities on Balance Sheet (2) Included in postretirement benefit obligations on Balance Sheet (3) Included in other assets on Balance Sheet Pension amount recognized in accumulated other comprehensive loss (income) associated with the Company's pension plan are as follows for:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
Transition obligation | $ | — |  |  | $ | — |  |  | $ | — |
Prior service cost | — |  |  | — |  |  | — |
Net actuarial (gain) loss | (14,725) |  |  | (1,271) |  |  | (1,087) |
Pension amounts recognized in other comprehensive loss (income) | $ | (14,725) |  |  | $ | (1,271) |  |  | $ | (1,087) |
The components of net periodic benefit cost and other amounts recognized in other comprehensive income for our pension plan include the following components:
|  | Years Ended December 31,
|  | 2024 |  | 2023 |  | 2022
Net periodic pension cost (benefit) |  |  |  |  |  |
Service cost |  | $ | 4,877 |  |  | $ | 4,906 |  |  | $ | 6,860 |
Interest cost |  | 4,524 |  |  | 4,048 |  |  | 2,436 |
Expected return on plan assets |  | (4,884) |  |  | (4,396) |  |  | (4,463) |
Recognition of actuarial losses |  | — |  |  | — |  |  | — |
Net periodic Pension Cost |  | 4,517 |  |  | 4,558 |  |  | 4,833 |
Other changes in benefits obligations recognized in other comprehensive loss (income) |  |  |  |  |  |
Actuarial losses (gains) |  | (13,455) |  |  | (184) |  |  | (2,157) |
Total recognized in other comprehensive income |  | (13,455) |  |  | (184) |  |  | (2,157) |
Total net periodic pension cost (benefit) recognized in Other comprehensive income |  | $ | (8,938) |  |  | $ | 4,374 |  |  | $ | 2,676 |
The estimated actuarial loss (gain) that will be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost in 2024 and 2023 was nil. Significant actuarial assumptions used in determining the benefit obligations and net periodic benefit cost for our pension plan were as follows:
Key actuarial assumptions used to determine benefit obligations at December 31, | 2024 | 2023 | 2022
| Effective discount rate for benefit obligation | 5.8% | 5.1% | 5.3%
| Expected annual rate of compensation increase | 2.9% | 2.9% | 2.9%
Key actuarial assumptions used to determine the net periodic benefit cost for the years ended December 31, | 2024 | 2023 | 2022
| Effective discount rate for service cost | 5.1% | 5.3% | 3.1%
| Effective discount rate for interest cost | 4.9% | 5.1% | 2.7%
| Expected long-term rate of return | 6.5% | 6.5% | 6.5%
| Expected annual rate of compensation increase | 2.9% | 2.9% | 2.4%
The discount rate for our pension plan reflects the current rate at which the associated liabilities could be settled at the measurement date of December 31 of a given year. To determine discount rates for our pension plan, we use a modeling process that involves matching the expected cash outflows of our benefit plan to a yield curve constructed from a portfolio of high quality, fixed-income debt instruments. We use the single weighted-average yield of this hypothetical portfolio as a discount rate benchmark. The long-term expected rate of return on funded assets is developed by using forward-looking long-term return assumptions for each asset class. Management incorporates the expected future investment returns on current and planned asset allocations using information from external investment consultants as well as management judgment. A single rate is then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for each asset class. The accumulated benefit obligation for our pension plan was $79.7 million, $81.3 million and $69.3 million as of December 31, 2024, 2023 and 2022, respectively. Benefit payments, including amounts to be paid from Company assets, and reflecting expected future service, as appropriate, are expected to be paid during the following years:
2025 | $ | 3,942 |
2026 | 4,485 |
2027 | 4,985 |
2028 | 5,427 |
2029 | 6,072 |
Thereafter | 35,584 |
Our general funding policy for our pension plan is to contribute amounts at least sufficient to satisfy regulatory funding standards. The Company made pension plan contributions sufficient to satisfy pension funding requirements under the AdvanSix Retirement Earnings Plan as follows:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
1st Quarter | $ | — |  |  | $ | — |  |  | $ | — |
2nd Quarter | — |  |  | — |  |  | 10,000 |
3rd Quarter | — |  |  | — |  |  | 5,000 |
4th Quarter | — |  |  | — |  |  | 5,000 |
Total | $ | — |  |  | $ | — |  |  | $ | 20,000 |
The Company expects to make pension plan contributions during 2025 sufficient to satisfy pension funding requirements of up to $1.0 million, if any, as well as evaluate contributions in future years sufficient to satisfy pension funding requirements in those periods. The pension plan assets are invested through a master trust fund. The strategic asset allocation for the trust fund is selected by the Company's Investment Committee reflecting the results of comprehensive asset and liability modeling. The Investment Committee establishes strategic asset allocation percentage targets and appropriate benchmarks for significant asset classes with the aim of achieving a prudent balance between return and risk. The target asset allocation percent for the Company's pension plan assets is summarized as follows:
| Years Ended December 31,
| 2024 |  | 2023
Cash and cash equivalents | 3% |  | 3%
US and non-US equity securities | 44% |  | 64%
Fixed income / real estate / other securities | 33% |  | 33%
Alternative Equity | 20% |  | —%
Total Pension Assets | 100% |  | 100%
Fixed income and other securities include investment grade securities covering the Treasury, agency, asset-backed, mortgage-backed and credit sectors of the U.S. Bond Market, as well as listed real estate companies and real estate investment trusts located in both developed and emerging markets.
| Fair Value at December 31,
Fair Value Measurements | 2024 |  | 2023 |  | 2022
Investments valued using NAV per share |  |  |  |  |
Emerging Markets Region Equities | $ | 5,184 |  |  | $ | 4,839 |  |  | $ | 4,427 |
International Region Equities | 17,618 |  |  | 16,975 |  |  | 14,370 |
United States Equities | 41,235 |  |  | 38,324 |  |  | 31,235 |
United States Bonds | 22,034 |  |  | 22,988 |  |  | 20,115 |
Real Estate | 1,360 |  |  | 1,391 |  |  | 1,563 |
Cash Fund | 1,608 |  |  | 1,567 |  |  | 5,652 |
Total Pension Plan Assets at Fair Value | $ | 89,039 |  |  | $ | 86,084 |  |  | $ | 77,362 |
The pension plan assets are invested in collective investment trust funds as shown above. These investments are measured at fair value using the net asset value per share practical expedient and have not been classified in the fair value hierarchy.

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