Flowers Foods Inc., Thomasville, Ga., purchased a group annuity contract from an insurance company to complete the termination of one of its U.S. pension plans.
The company completed the transfer of assets in Flower Foods Inc. Retirement Plan No. 1 on March 4 and the insurer began benefit payments to recipients on May 1, it announced in a 10-Q filing with the SEC on Wednesday.
The amount transferred and the name of insurance company were not disclosed. The company had $116 million in non-cash termination charges, the filing said. The plan had been frozen to benefit accruals since Dec. 31, 2005.
As of Dec. 31, 2018, Flowers Foods Inc. Retirement Plan No. 1 had $313 million in assets, according to Flowers Foods' most recent Form 5500 filing.
The company still sponsors a pension plan for union employees: Flowers Foods Inc. Retirement Plan No. 2 had $24 million in assets as of Dec. 31, 2018, according to its most recent Form 5500 filing.
Flowers Foods officials could not be immediately reached for further information.
