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Retirement Plans | 12 Months Ended
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Oct. 31, 2021
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. In fiscal year 2021, the Company decided to terminate the Plan effective December 31, 2021. The liabilities disclosed as of October 31, 2021, reflect an estimate of the additional cost to pay lump sums to a portion of the active and vested terminated participants and purchase annuities for all remaining participants from an insurance company. The Plan is funded consistent with the funding requirements of federal law and regulations. There were no funding contributions during fiscal years 2021 or 2020. Plan assets are invested in a group trust consisting primarily of pooled funds, mutual funds, short-term investment funds and cash. 17. Retirement Plans (continued) 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 Cash 1% and Fixed Income 99%. 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 2021 and 2020 were as follows (in thousands):
| 2021 |  | 2020
Administrative expenses | $ | 277 |  |  | $ | 278 |
Interest cost | 550 |  |  | 641 |
Expected return on plan assets | (867) |  |  | (990) |
Prior service cost | 45 |  |  | 45 |
Amortization of net loss | 737 |  |  | 739 |
Net periodic benefit cost | $ | 742 |  |  | $ | 713 |
Following is a summary of the Plan’s funded status as of October 31 (in thousands):
| 2021 |  | 2020
Change in benefit obligation: |  |  |
Benefit obligation at beginning of year | $ | 22,898 |  |  | $ | 22,267 |
Administrative expenses | 277 |  |  | 278 |
Interest cost | 550 |  |  | 641 |
Benefits paid | (1,450) |  |  | (1,524) |
Actuarial (gain) loss | (858) |  |  | 1,236 |
Benefit obligation at end of year | $ | 21,417 |  |  | $ | 22,898 |
Change in plan assets: |  |  |
Fair value of plan assets at beginning of year | $ | 19,352 |  |  | $ | 19,229 |
Actual return on plan assets | 2,668 |  |  | 1,647 |
Benefits paid | (1,450) |  |  | (1,524) |
Fair value of plan assets at end of year | $ | 20,570 |  |  | $ | 19,352 |
Reconciliation of funded status: |  |  |
Fair value of plan assets | $ | 20,570 |  |  | $ | 19,352 |
Benefit obligations | 21,417 |  |  | 22,898 |
Net plan obligations | $ | (847) |  |  | $ | (3,546) |
Amounts recognized in statements of financial position: |  |  |
Noncurrent liabilities | $ | (847) |  |  | $ | (3,546) |
Net obligation recognized in statements of financial position | $ | (847) |  |  | $ | (3,546) |
Reconciliation of amounts recognized in statements of financial position: |  |  |
Prior service cost | $ | (99) |  |  | $ | (144) |
Net loss | (2,766) |  |  | (6,162) |
Accumulated other comprehensive loss | (2,865) |  |  | (6,306) |
Accumulated contributions in excess of net periodic benefit cost | 2,018 |  |  | 2,760 |
Net deficit recognized in statements of financial position | $ | (847) |  |  | $ | (3,546) |
17. Retirement Plans (continued) Presented below are changes in accumulated other comprehensive income, before tax, in the Plan as of October 31, (in thousands):
| 2021 |  | 2020
Changes recognized in other comprehensive income: |  |  |
Net (gain) loss arising during the year | $ | (2,658) |  |  | $ | 579 |
Amortization of prior service cost | (45) |  |  | (45) |
Amortization of net loss | (737) |  |  | (739) |
Total recognized in other comprehensive income | $ | (3,440) |  |  | $ | (205) |
Total recognized in net periodic benefit and other comprehensive income | $ | (2,699) |  |  | $ | 508 |
The following assumptions, as of October 31, were used in determining benefit obligations and net periodic benefit cost ($ in thousands):
| 2021 |  | 2020
Weighted-average assumptions used to determine benefit obligations: |  |  |
Discount rate | 2.58 | % |  | 2.50 | %
Assumptions used to determine net periodic benefit cost: |  |  |
Discount rate | 2.50 | % |  | 3.00 | %
Expected return on plan assets | 5.05 | % |  | 5.66 | %
Additional year-end information: |  |  |
Projected benefit obligation | $ | 21,417 |  |  | $ | 22,898 |
Accumulated benefit obligation | $ | 21,417 |  |  | $ | 22,898 |
Fair value of plan assets | $ | 20,570 |  |  | $ | 19,352 |
Benefit payments are expected to be paid over the next 10 fiscal years as follows (in thousands):
2022 | $ | 1,120 |
2023 | 20,835 |
2024 - 2026 | — |
Next five years | — |
| $ | 21,955 |
The following table sets forth the Plan’s assets as of October 31, 2021, segregated by level using the hierarchy established by FASB ASC 820, Fair Value Measurements and Disclosures (in thousands):
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Cash and cash equivalents | $ | 250 |  |  | $ | — |  |  | $ | — |  |  | $ | 250 |
Pooled funds | — |  |  | 20,320 |  |  | — |  |  | 20,320 |
| $ | 250 |  |  | $ | 20,320 |  |  | $ | — |  |  | $ | 20,570 |
The Company has a 401(k) plan in which an employee can participate 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 a matching contribution on these deferrals up to 4% of the employee’s annual earnings. Participants vest in any matching contribution at a rate of 20% per year beginning after one year of employment. During fiscal years 2021, 2020 and 2019, the Company contributed to the plan and recognized expenses of $546,000, $1,107,000 and $927,000, respectively.

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