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Retirement Plans
 12 Months Ended
Oct. 31, 2020
Retirement Benefits [Abstract]  
Retirement Plans Retirement Plans
The Limoneira Company Retirement Plan (the “Plan”) is a noncontributory, defined benefit, single employer pension plan, which provides retirement benefits for all eligible employees. Benefits paid by the Plan are calculated based on years of service, highest five-year average earnings, primary Social Security benefit and retirement age. Effective June 2004, the Company froze the Plan and no additional benefits accrued to participants subsequent to that date. The Plan is administered by Wells Fargo Bank and Mercer Human Resource Consulting.
The Plan is funded consistent with the funding requirements of federal law and regulations. There were funding contributions of zero and $600,000 for fiscal years 2020 and 2019, respectively. Plan assets are invested in a group trust consisting primarily of pooled funds, mutual funds, short-term investment funds and cash.
The investment policy and strategy has been established to provide a total investment return that will, over time, maintain purchasing power parity for the Plan’s variable benefits and keep the Plan funding at a reasonable level. The long-term target asset allocations are Domestic Equity 30%, International Equity 10% and Fixed Income 60%.
The following tables set forth the Plan’s net periodic cost, changes in benefit obligation and Plan assets, funded status, amounts recognized in the Company’s consolidated balance sheets, additional year-end information and assumptions used in determining the benefit obligations and net periodic benefit cost.
The components of net periodic benefit cost for the Plan for fiscal years 2020 and 2019 were as follows (in thousands):
 20202019
Administrative expenses$278 $188 
Interest cost641 828 
Expected return on plan assets(990)(1,088)
Prior service cost45 45 
Amortization of net loss739 402 
Net periodic benefit cost$713 $375 
17. Retirement Plans (continued)
Following is a summary of the Plan’s funded status as of October 31 (in thousands):
 20202019
Change in benefit obligation:  
Benefit obligation at beginning of year$22,267 $19,641 
Administrative expenses278 188 
Interest cost641 828 
Benefits paid(1,524)(1,453)
Actuarial loss1,236 3,063 
Benefit obligation at end of year$22,898 $22,267 
Change in plan assets:
Fair value of plan assets at beginning of year$19,229 $17,237 
Actual return on plan assets1,647 2,845 
Employer contributions— 600 
Benefits paid(1,524)(1,453)
Fair value of plan assets at end of year$19,352 $19,229 
Reconciliation of funded status:
Fair value of plan assets$19,352 $19,229 
Benefit obligations22,898 22,267 
Net plan obligations$(3,546)$(3,038)
Amounts recognized in statements of financial position:
Noncurrent assets$— $— 
Current liabilities— — 
Noncurrent liabilities(3,546)(3,038)
Net obligation recognized in statements of financial position$(3,546)$(3,038)
Reconciliation of amounts recognized in statements of financial position:
Prior service cost$(144)$(189)
Net loss(6,162)(6,322)
Accumulated other comprehensive loss(6,306)(6,511)
Accumulated contributions in excess of net periodic benefit cost2,760 3,473 
Net deficit recognized in statements of financial position$(3,546)$(3,038)
Presented below are changes in accumulated other comprehensive income, before tax, in the Plan as of October 31, (in thousands):
 20202019
Changes recognized in other comprehensive income:  
Net loss arising during the year$579 $1,306 
Amortization of prior service cost(45)(45)
Amortization of net loss(739)(402)
Total recognized in other comprehensive income$(205)$859 
Total recognized in net periodic benefit and other comprehensive income$508 $1,234 
17. Retirement Plans (continued)
The following assumptions, as of October 31, were used in determining benefit obligations and net periodic benefit cost ($ in thousands):
 20202019
Weighted-average assumptions used to determine benefit obligations:  
Discount rate2.50 %3.00 %
Assumptions used to determine net periodic benefit cost:
Discount rate3.00 %4.40 %
Expected return on plan assets5.66 %6.31 %
Additional year-end information:
Projected benefit obligation$22,898 $22,267 
Accumulated benefit obligation$22,898 $22,267 
Fair value of plan assets$19,352 $19,229 
Benefit payments are expected to be paid over the next 10 fiscal years as follows (in thousands):
2021$1,295 
20221,317 
20231,362 
20241,374 
20251,368 
Next five years6,569 
 $13,285 
The following table sets forth the Plan’s assets as of October 31, 2020, segregated by level using the hierarchy established by FASB ASC 820, Fair Value Measurements and Disclosures (in thousands):
 Level 1Level 2Level 3Total
Cash and cash equivalents$157 $— $— $157 
Mutual funds1,152 — — 1,152 
Pooled funds— 18,043 — 18,043 
 $1,309 $18,043 $— $19,352 
The Company has a 401(k) plan in which it contributes an amount equal to 4% of an eligible employee’s annual earnings beginning after one year of employment. Employees may elect to defer up to 100% of their annual earnings subject to Internal Revenue Code limits. The Company makes an additional matching contribution on these deferrals up to 4% of the employee’s annual earnings. Employees are 100% vested in the Company’s contribution after six years of employment. Participants vest in any matching contribution at a rate of 20% per year beginning after one year of employment. During fiscal years 2020, 2019 and 2018, the Company contributed to the plan and recognized expenses of $1,107,000, $927,000 and $823,000, respectively.