Retirement Benefit Plans

6 Months Ended

Jul. 04, 2015

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 2015 and 2014 follow:

	Pension Benefits
	Six Months Ended								Three Months Ended

	July 4, 2015				June 28, 2014				July 4, 2015				June 28, 2014
Service cost		$	1,929,975			$	1,396,848			$	964,988			$	698,424
Interest cost			1,718,476				1,658,557				859,217				829,258
Expected return on plan assets			(2,575,828	)			(2,405,262	)			(1,287,914	)			(1,202,630	)
Amortization of prior service cost			109,293				109,293				54,646				54,646
Amortization of the net loss			945,456				472,065				472,728				236,032
Net periodic benefit cost		$	2,127,372			$	1,231,501			$	1,063,665			$	615,730

	Postretirement Benefits
	Six Months Ended						Three Months Ended
	July 4, 2015			June 28, 2014			July 4, 2015			June 28, 2014
Service cost	$	108,785		$	86,951		$	54,393		$	44,951
Interest cost		77,458			78,741			38,729			38,491
Expected return on plan assets		(45,968	)		(47,406	)		(22,984	)		(25,156	)
Amortization of prior service cost		(11,944	)		(11,945	)		(5,972	)		(5,945	)
Amortization of the net loss		9,402			--			4,701			--
Net periodic benefit cost	$	137,733		$	106,341		$	68,867		$	52,341

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 2015, the Company expects to contribute $3.0 million into its pension plans and $150,000 into its postretirement plan. As of July 4, 2015, the Company has made contributions totaling approximately $1.2 million into its pension plans and $57,000 to its postretirement plan and will make the remaining contributions as required during the second half 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 $55,660 and $107,926 in the second quarter and first six months of 2015, respectively and $50,964 and $103,455 in the second quarter and first six months of 2014, respectively.