Note G - Pension and Other Postretirement Benefit Plans

9 Months Ended

Mar. 26, 2021

Notes to Financial Statements

Retirement Benefits [Text Block]

G. Pension and Other Postretirement Benefit Plans

The Company has non-contributory, qualified defined benefit plans covering substantially all domestic employees hired prior to October 1, 2003 and certain foreign employees. Additionally, the Company provides health care and life insurance benefits for certain domestic retirees. The components of the net periodic benefit cost for the defined benefit pension plans and the other postretirement benefit plan are as follows:

	For the Quarter Ended						For the Three Quarters Ended
	March 26, 2021			March 27, 2020			March 26, 2021			March 27, 2020
Pension Benefits:
Service cost	$	144		$	205		$	432		$	612
Prior service cost		16			-			48			-
Interest cost		715			909			2,072			2,703
Expected return on plan assets		(1,133	)		(1,245	)		(3,400	)		(3,733	)
Amortization of transition obligation		9			9			28			26
Amortization of prior service cost		(4	)		(4	)		(12	)		(11	)
Amortization of actuarial net loss		811			673			2,434			2,241
Net periodic benefit cost	$	558		$	547		$	1,602		$	1,838
Postretirement Benefits:
Service cost	$	4		$	4		$	12		$	13
Interest cost		39			55			116			164
Amortization of prior service cost		(69	)		(69	)		(206	)		(206	)
Net periodic benefit gain	$	(26	)	$	(10	)	$	(78	)	$	(29	)

The service cost component is included in cost of goods sold and marketing, engineering and administrative expenses. All other components of net periodic benefit cost are included in other expense (income), net.

The Company expects to contribute approximately $2,346 to its pension plans in fiscal 2021. As of March 26, 2021, the amount of $2,095 in contributions has been made.

The Company has reclassified $583 (net of $177 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended March 26, 2021, and $1,593 (net of $490 in taxes) during the quarter ended March 27, 2020. The Company has reclassified $1,691 (net of $529 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the three quarters ended March 26, 2021, and $2,698 (net of $828 in taxes) during the three quarters ended March 27, 2020. These reclassifications are included in the computation of net periodic benefit cost.