Note I – Retirement Benefit Plans

The Company has non-contributory defined benefit pension plans covering certain U.S. employees. Plan benefits are generally based upon age at retirement, years of service and, for its salaried plan, the level of compensation. The Company also sponsors unfunded nonqualified supplemental retirement plans that provide certain current and former officers with benefits in excess of limits imposed by federal tax law.

The Company also provides health care and life insurance for retired salaried employees in the United States who meet specific eligibility requirements.

Significant disclosures relating to these benefit plans for the second quarter and first six months of fiscal 2013 and 2012 follow:

	Pension Benefits
	Six Months Ended						Three Months Ended
	June 29, 2013			June 30, 2012			June 29, 2013			June 30, 2012
Service cost	$	1,504,062		$	1,347,196		$	752,030		$	674,549
Interest cost		1,420,117			1,427,960			710,058			713,980
Expected return on plan assets		(2,201,824	)		(1,965,495	)		(1,100,912	)		(982,748	)
Amortization of prior service cost		122,715			82,819			61,359			41,410
Amortization of the net loss		711,716			485,692			355,857			242,845
Net periodic benefit cost	$	1,556,786		$	1,378,172		$	778,392		$	690,036

	Postretirement Benefits
	Six Months Ended						Three Months Ended
	June 29, 2013			June 30, 2012			June 29, 2013			June 30, 2012
Service cost	$	101,284		$	86,807		$	50,642		$	49,307
Interest cost		71,043			71,694			35,521			37,694
Expected return on plan assets		(48,694	)		(48,520	)		(24,347	)		(24,270	)
Amortization of prior service cost		(11,944	)		(11,945	)		(5,972	)		(5,945	)
Amortization of the net loss		9,430			-			4,715			-
Net periodic benefit cost	$	121,119		$	98,036		$	60,559		$	56,786

The Company’s funding policy with respect to its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations. In 2013, the Company expects to contribute $2,057,000 into its pension plans and $55,000 into its postretirement plan. As of June 29, 2013, the Company has made contributions totaling $207,000 into its pension plans and $15,000 to its postretirement plan and will make the remaining contributions as required during the remainder of the year.

The Company has a contributory savings plan under Section 401(k) of the Internal Revenue Code covering substantially all U.S. non-union employees. The plan allows participants to make voluntary contributions of up to 100% of their annual compensation on a pretax basis, subject to IRS limitations. The plan provides for contributions by the Company at its discretion. The Company made contributions of $49,385 and $100,736 in the second quarter and first six months of 2013, respectively and $47,272 and $96,729 in the second quarter and first six months of 2012, respectively.