Benefit Plans (Tables)

12 Months Ended

Oct. 03, 2015

Compensation and Retirement Disclosure [Abstract]

Schedule of Changes in Projected Benefit Obligations

The reconciliation of the beginning and ending balances of the PBO for the Defined Benefit Plan is as follows:

(in thousands of dollars)	2015			2014
Change in benefit obligation
Benefit obligation, beginning of year	$	142,555		$	131,293
Interest cost	5,707			6,084
Assumption changes (a)	1,246			11,489
Actuarial gain	394			65
Benefits paid	(7,104		)	(6,376		)
Projected benefit obligation, end of year	$	142,798		$	142,555

(a) The assumption changes referenced in the table above result from (i) changes in the utilized discount rate to value Blue Bird’s future obligations and (ii) updates to the mortality table projections used in the calculation of the benefit obligations.

Schedule of Changes in Fair Value of Plan Assets

The summary and reconciliation of the beginning and ending balances of the fair value of the plan assets are as follows:

(in thousands of dollars)	2015			2014
Change in plan assets
Fair value of plan assets, beginning of year	$	101,674		$	93,590
Actual return on plan assets	(3,039		)	9,343
Employer contribution	5,516			5,642
Expenses	(676		)	(525		)
Benefits paid	(7,104		)	(6,376		)
Fair value of plan assets, end of year	$	96,371		$	101,674

Schedule of Net Funded Status

The net pension liability is reflected in the Consolidated Balance Sheets within accrued pension liability.

(in thousands of dollars)	2015			2014
Benefit obligation	$	142,798		$	142,555
Fair value of plan assets	96,371			101,674
Funded status	(46,427		)	(40,881		)
Net pension liability recognized	(46,427		)	(40,881		)

Schedule of Allocation of Plan Assets

The weighted-average asset allocations of plan assets for the Defined Benefit Plan at October 2, 2015 and September 27, 2014, the measurement date, are as follows:

	2015		2014
Equity securities	76	%	75	%
Debt securities	24	%	25	%
	100	%	100	%

The following tables set forth, by level within the fair value hierarchy, a summary of the Defined Benefit Plan’s investments measured at fair value.

	2015
(in thousands of dollars)	Level 1		Level 2		Level 3		Total
Investment Type
Equity securities	$	—	$	73,336	$	—	$	73,336
Debt securities	—		23,035		—		23,035
Total	$	—	$	96,371	$	—	$	96,371
	2014
(in thousands of dollars)	Level 1		Level 2		Level 3		Total
Investment Type
Equity securities	$	—	$	76,242	$	—	$	76,242
Debt securities	—		25,432		—		25,432
Total	$	—	$	101,674	$	—	$	101,674

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

The following table represents net periodic benefit cost and changes in plan assets and benefit obligations recognized in other comprehensive income, before tax effect, as of October 3, 2015, September 27, 2014 and September 27, 2014:

(in thousands of dollars)	2015			2014			2013
Interest cost	$	5,707		$	6,084		$	5,700
Expected return on plan assets	(6,443		)	(6,524		)	(6,097		)
Amortization of net loss	3,567			2,804			4,233
Net periodic benefit cost	$	2,831		$	2,364		$	3,836
Net (income) loss	11,797			9,261			(11,649		)
Amortization of net loss	(3,567		)	(2,804		)	(4,233		)
Total recognized in other comprehensive income	$	8,230		$	6,457		$	(15,882	)
Total recognized in net periodic pension benefit cost and other comprehensive income	$	11,061		$	8,821		$	(12,046	)

Schedule of Assumptions Used

Weighted-average assumptions used to determine net periodic benefit cost

	2015		2014
Discount rate	4.10	%	4.75	%
Expected long-term return on plan assets	6.37	%	7.00	%
Rate of compensation increase	N/A		N/A

Weighted-average assumptions used to determine benefit obligations

	2015		2014
Discount rate	4.05	%	4.10	%
Rate of compensation increase	N/A		N/A

Schedule of Expected Benefit Payments

The following benefit payments are expected to be paid to the Company’s pension plan participants in the years indicated:

(in thousands of dollars)	Amount
2016	$	6,932
2017	7,088
2018	7,296
2019	7,440
2020	7,557
2021-2025	41,092
	$	77,405