Postretirement Plans

6 Months Ended

Jul. 16, 2022

Retirement Benefits [Abstract]

Postretirement Plans

16. POSTRETIREMENT PLANS

The following summarizes the company’s Condensed Consolidated Balance Sheets related pension and other postretirement benefit plan accounts at July 16, 2022 compared to accounts at January 1, 2022 (amounts in thousands):

	July 16, 2022			January 1, 2022
Noncurrent benefit asset	$	1,198		$	1,281
Current benefit liability	$	804		$	804
Noncurrent benefit liability	$	7,062		$	7,249
AOCI, net of tax	$	(3,413	)	$	(3,456	)

Defined Benefit Plans and Nonqualified Plan

The company sponsors two pension plans, the Flowers Foods, Inc. Retirement Plan No. 2, and the Tasty Baking Company Supplemental Executive Retirement Plan (“Tasty SERP”). The Tasty SERP is frozen and has only retirees and beneficiaries remaining in the plan.

The company used a measurement date of December 31, 2021 for the defined benefit and postretirement benefit plans described below.

There were no contributions made by the company to any plan during the twenty-eight weeks ended July 16, 2022 and July 17, 2021.

The net periodic pension cost for the company’s plans include the following components (amounts in thousands):

	For the Twelve Weeks Ended						For the Twenty-Eight Weeks Ended
	July 16, 2022			July 17, 2021			July 16, 2022			July 17, 2021
Service cost	$	274		$	224		$	640		$	523
Interest cost		204			175			476			408
Expected return on plan assets		(432	)		(431	)		(1,009	)		(1,006	)
Amortization of prior service cost		13			13			30			31
Amortization of net loss		107			171			249			400
Total net periodic pension cost	$	166		$	152		$	386		$	356

The components of net periodic benefit cost other than the service cost are included in the other components of net periodic pension and postretirement benefit plans credit line item on our Condensed Consolidated Statements of Income.

Postretirement Benefit Plan

The company provides certain medical and life insurance benefits for eligible retired employees covered under the active medical plans. The plan incorporates an up-front deductible, coinsurance payments and retiree contributions at various premium levels. Eligibility and maximum period of coverage is based on age and length of service.

The net periodic postretirement expense for the company includes the following components (amounts in thousands):

	For the Twelve Weeks Ended						For the Twenty-Eight Weeks Ended
	July 16, 2022			July 17, 2021			July 16, 2022			July 17, 2021
Service cost	$	49		$	78		$	115		$	181
Interest cost		26			28			60			64
Amortization of prior service credit		(54	)		(1	)		(126	)		(2	)
Amortization of net gain		(41	)		(48	)		(96	)		(113	)
Total net periodic postretirement (credit) cost	$	(20	)	$	57		$	(47	)	$	130

The components of net periodic postretirement benefits cost other than the service cost are included in the other components of net periodic pension and postretirement benefit plans credit line item on our Condensed Consolidated Statements of Income.

401(k) Retirement Savings Plan

The Flowers Foods, Inc. 401(k) Retirement Savings Plan covers substantially all the company’s employees who have completed certain service requirements. The total cost and employer contributions were as follows (amounts in thousands):

	For the Twelve Weeks Ended				For the Twenty-Eight Weeks Ended
	July 16, 2022		July 17, 2021		July 16, 2022		July 17, 2021
Total cost and employer contributions	$	6,747	$	6,219	$	16,153	$	15,355