Ecovyst, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Benefit Plans (Tables)

Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2022

The following tables summarize changes in the benefit obligation, plan assets and funded status of the Company’s defined benefit pension plans as well as the components of net periodic benefit cost, including key assumptions:


	U.S.				Foreign
	December 31,				December 31,
	2022		2021		2021
Change in benefit obligation:
Benefit obligation at beginning of period	$	86,465	$	91,937	$	22,210

Interest cost	2,569		2,210		255



Plan settlements	(862)		(1,795)		(21,622)
Benefits paid	(2,552)		(2,069)		—




Actuarial gains	(18,741)		(3,818)		—
Translation adjustment	—		—		(843)
Benefit obligation at end of the period	$	66,879	$	86,465	$	—

Change in plan assets:
Fair value of plan assets at beginning of period	$	82,914	$	80,395	$	22,210
Actual return on plan assets	(18,871)		6,383		255


Plan settlements	(862)		(1,795)		(21,622)
Benefits paid	(2,552)		(2,069)		—




Translation adjustment	—		—		(843)
Fair value of plan assets at end of the period	$	60,629	$	82,914	$	—

Funded status of the plans (underfunded)	$	(6,250)	$	(3,551)	$	—

Schedule of Amounts Recognized in Balance Sheet

Amounts recognized in the consolidated balance sheets consist of:


	December 31,
	2022		2021


Noncurrent liability	$	(6,250)	$	(3,551)
Accumulated other comprehensive income (loss)	(509)		(672)
Net amount recognized	$	(6,759)	$	(4,223)

Schedule of Amounts Recognized in Other Comprehensive Income (Loss)

Amounts recognized in accumulated other comprehensive income (loss) consist of:


	December 31,
	2022		2021

Net (loss) gain	$	(1,039)	$	2,486
Gross amount recognized	(1,039)		2,486
Deferred income taxes	530		(3,158)
Net amount recognized	$	(509)	$	(672)

Components of Net Periodic Expense

Components of net periodic benefit cost consist of:


	U.S.						Foreign
	Years ended December 31,						Years ended December 31,
	2022		2021		2020		2021		2020
Service cost	$	—	$	—	$	769	$	—	$	1,080
Interest cost	2,569		2,210		2,665		255		299
Expected return on plan assets	(3,433)		(4,360)		(3,898)		(255)		(287)

Amortization of net loss	—		—		—		—		95

Settlement loss (gain) recognized	38		(26)		78		2,084		—
Net periodic (benefit) expense	$	(826)	$	(2,176)	$	(386)	$	2,084	$	1,187

Schedule of Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

Components of other changes in plan assets and benefit obligations recognized in other comprehensive income consists of:


	December 31,
	2022		2021

Net loss (gain)	$	3,563	$	(5,841)
Translation adjustment	—		(82)

Amortization or settlement recognition of net gain (loss)	(38)		(2,058)
Total recognized in other comprehensive income	3,525		(7,981)
Total recognized in net periodic benefit cost and other comprehensive income	$	2,699	$	(7,991)

Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets

The following table presents selected information about the Company’s pension plans with projected benefit obligations and accumulated benefit obligations in excess of plan assets:


	December 31,
	2022		2021
Projected benefit obligation	$	66,879	$	86,465
Accumulated benefit obligation	66,879		86,465
Fair value of plan assets	60,629		82,914

Schedule of Assumptions Used

Significant weighted average assumptions used in determining the pension obligations include the following:


	December 31,
	2022		2021
Discount rate	5.40	%	2.90	%
Rate of compensation increase(1)	N/A		N/A

Significant weighted average assumptions used in determining net periodic benefit cost include the following:


	U.S.						Foreign
	Years ended December 31,						Years ended December 31,
	2022		2021		2020		2021		2020
Discount rate	2.90	%	2.50	%	3.40	%	1.20	%	1.50	%
Rate of compensation increase(1)	N/A		N/A		3.00	%	1.75	%	1.75	%
Expected return on assets	4.90	%	5.60	%	5.70	%	1.20	%	1.50	%

(1) Includes only plans not frozen to benefit accruals for the respective periods.

Schedule of Allocation of Plan Assets

The following tables set forth by level, within the fair value hierarchy, plan assets at fair value:


	December 31, 2022
	Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	244	$	244	$	—	$	—
Equity securities:
U.S. investment funds	11,435		11,435		—		—
International investment funds	7,803		7,803		—		—
Fixed income securities:
Government securities	16,209		16,209		—		—
Corporate bonds	24,938		24,938		—		—



Total	$	60,629	$	60,629	$	—	$	—

	December 31, 2021
	Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	202	$	202	$	—	$	—
Equity securities:
U.S. investment funds	12,150		12,150		—		—
International investment funds	7,816		7,816		—		—
Fixed income securities:
Government securities	28,869		28,869		—		—
Corporate bonds	33,877		33,877		—		—



Total	$	82,914	$	82,914	$	—	$	—

Schedule of Expected Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:


Year	Amount
2023	$	4,751
2024	4,518
2025	4,336
2026	4,419
2027	4,473
Years 2028-2032	22,937

Other Postretirement Benefits Plans

Defined Benefit Plan Disclosure

Schedule of Benefit Plans Disclosures

The following tables summarize changes in the benefit obligation, plan assets and funded status of the Company’s other postretirement benefit plan as well as the components of net periodic benefit cost, including key assumptions:


	December 31,
	2022		2021
Change in benefit obligation:
Benefit obligation at beginning of period	$	624	$	650

Interest cost	18		17


Benefits paid	(1)		(1)

Premiums paid	(3)		(2)

Actuarial gains	(192)		(40)

Benefit obligation at end of period	$	446	$	624

Change in plan assets:

Employer contributions	$	4	$	3

Benefits paid	(1)		(1)

Premiums paid	(3)		(2)
Fair value of plan assets at end of period	$	—	$	—

Funded status of the plan (underfunded)	$	(446)	$	(624)