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10. PENSION PLANS | 12 Months Ended
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Dec. 31, 2015
Compensation and Retirement Disclosure [Abstract] |
PENSION PLANS | Retirement Plan - The Company sponsors a defined benefit pension plan (the “Retirement Plan”) that is noncontributory, and covers only “grandfathered” unionized employees at its Pekin, Illinois, facility. Benefits are based on a prescribed formula based upon the employee's years of service. On October 31, 2015, the Union ratified a new collective bargaining agreement with the Company for its hourly production workers in Pekin, Illinois. This new agreement was effective November 1, 2015. The revised amended agreement states that, among other things, employees hired after November 1, 2010, will not be eligible to participate in the Retirement Plan. The Company uses a December 31 measurement date for its Retirement Plan. The Company's funding policy is to make the minimum annual contribution that is required by applicable regulations. The Company assumed the Retirement Plan as part of its acquisition of Aventine on July 1, 2015. Information related to the Retirement Plan as of and for the period from July 1, 2015 to December 31, 2015 is presented below (dollars in thousands):
Amounts at the end of the year: |  |  |  |
Accumulated/projected benefit obligation |  | $ | 16,552 |
Fair value of plan assets |  |  | 12,567 |
Funded status, (underfunded)/overfunded |  | $ | (3,985 | )
Amounts recognized in the consolidated balance sheets: |  |  |  |
Other liabilities |  | $ | (3,985 | )
Accumulated other comprehensive income, unrecognized net income |  | $ | (885 | )
Amounts recognized in the plan for the year: |  |  |  |
Company contributions |  | $ | – |
Participant contributions |  | $ | – |
Benefits paid |  | $ | (315 | )
Net periodic benefit cost |  | $ | 49 |
Other changes recognized in other comprehensive income: |  |  |  |
Net gain |  | $ | 885 |
Amortization of net gain/(loss) |  |  | – |
Total recognized in other comprehensive income |  | $ | 885 |
Assumptions used in computation benefit obligations: |  |  |  |
Discount rate |  |  | 4.23% |
Expected long-term return on plan assets |  |  | 7.75% |
Rate of compensation increase |  |  | – |
The Company is not expected to make contributions in the year ending December 31, 2016. Expected net periodic benefit cost for 2016 is estimated at approximately $0.2 million. The following table summarizes the expected benefit payments for the Company's plan for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter (in thousands):
| December 31: |  |  |  |  |
| 2016 |  |  | $ | 648 |
| 2017 |  |  |  | 657 |
| 2018 |  |  |  | 672 |
| 2019 |  |  |  | 684 |
| 2020 |  |  |  | 699 |
| 2021-25 |  |  |  | 3,893 |
|  |  |  | $ | 7,253 |
See Note 16 for discussion of the plan’s fair value disclosures. Historical and future expected returns of multiple asset classes were analyzed to develop a risk-free real rate of return and risk premiums for each asset class. The overall rate for each asset class was developed by combining a long-term inflation component, the risk-free real rate of return, and the associated risk premium. A weighted average rate was developed based on those overall rates and the target asset allocation of the plan. The Company's pension committee is responsible for overseeing the investment of pension plan assets. The pension committee is responsible for determining and monitoring the appropriate asset allocations and for selecting or replacing investment managers, trustees, and custodians. The pension plan's current investment target allocations are 50% equities and 50% debt. The pension committee reviews the actual asset allocation in light of these targets periodically and rebalances investments as necessary. The pension committee also evaluates the performance of investment managers as compared to the performance of specified benchmarks and peers and monitors the investment managers to ensure adherence to their stated investment style and to the plan's investment guidelines. Postretirement Plan - The Company also sponsors a health care plan and life insurance plan (the “Postretirement Plan”) that provides postretirement medical benefits and life insurance to certain “grandfathered” unionized employees. Employees hired after December 31, 2000, are not eligible to participate in the Postretirement Plan. The plan is contributory, with contributions required at the same rate as active employees. Benefit eligibility under the plan reduces at age 65 from a defined benefit to a defined dollar cap based upon years of service. The Company assumed the Postretirement Plan as part of its acquisition of Aventine on July 1, 2015. Information related to the Postretirement Plan as of and for the period from July 1, 2015 to December 31, 2015 is presented below (dollars in thousands):
Amounts at the end of the year: |  |  |  |
Accumulated/projected benefit obligation |  | $ | 3,619 |
Fair value of plan assets |  |  | – |
Funded status, (underfunded)/overfunded |  | $ | (3,619 | )
Amounts recognized in the consolidated balance sheets: |  |  |  |
Accrued liabilities |  | $ | (214 | )
Other liabilities |  | $ | (3,405 | )
Accumulated other comprehensive income, unrecognized net income |  | $ | (155 | )
Amounts recognized in the plan for the year: |  |  |  |
Company contributions |  | $ | 20 |
Participant contributions |  | $ | 15 |
Benefits paid |  | $ | (35 | )
Net periodic benefit cost |  | $ | 97 |
Other changes recognized in OCI: |  |  |  |
Net gain |  | $ | 155 |
Amortization of net gain/(loss) |  |  | – |
Total recognized in other comprehensive income |  | $ | 155 |
Assumptions used in computation benefit obligations: |  |  |  |
Discount rate |  |  | 3.95% |
The Company does not expect to recognize any amortization of net actuarial loss during the year ended December 31, 2016. The following table summarizes the expected benefit payments for the Company's plan for each of the next five fiscal years and in the aggregate for the five fiscal years thereafter (in thousands):
| December 31: |  |  |  |  |
| 2016 |  |  | $ | 214 |
| 2017 |  |  |  | 226 |
| 2018 |  |  |  | 174 |
| 2019 |  |  |  | 190 |
| 2020 |  |  |  | 177 |
| 2021-25 |  |  |  | 1,056 |
|  |  |  | $ | 2,037 |
For purposes of determining the cost and obligation for pre-Medicare postretirement medical benefits, a 5.0% annual rate of increase in the per capita cost of covered benefits (i.e., health care trend rate) was assumed for the plan in 2016, adjusting to a rate of 5.5% in 2025. Assumed health care cost trend rates have a significant effect on the amounts reported for health care plans.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References No definition available. + Details
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