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.

Effective for fiscal year 2017, the Company changed the method used to measure Service Cost and Interest Cost for pension and other postretirement benefits for the Company's plans. Previously, the Company measured interest costs utilizing a single weighted-average discount rate derived from the yield curve used to measure the benefit obligations. For fiscal year 2017, interest costs will be measured by applying the specific spot rates along the yield curve to the plans' corresponding discounted cash flows that comprise the obligation (i.e., the Spot Rate approach). This new method provides a more precise measurement of interest costs by aligning the timing of the plans' discounted cash flows to the corresponding spot rates on the yield curve. The measurement of the Company's pension and other postretirement benefit obligations is not affected. The Company has accounted for this change as a change in accounting estimate, which is applied prospectively. Consequently, combined pension expense for the Company's pension plans and other postretirement plan under the Spot Rate approach for the nine-month period ended September 30, 2017 is approximately $406,000 lower when compared to the prior approach that the Company used.

Significant disclosures relating to these benefit plans for the third quarter and first nine months of fiscal years 2017 and 2016 are as follows:

	Pension Benefits
	Nine Months Ended						Three Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Service cost	$	952,078		$	1,612,278		$	317,360		$	270,721
Interest cost		2,373,167			2,541,968			791,055			767,625
Expected return on plan assets		(3,587,682	)		(3,603,483	)		(1,195,895	)		(1,121,311	)
Amortization of prior service cost		109,312			150,427			36,438			50,143
Amortization of the net loss		923,614			1,319617			307,871			277,469
Net periodic benefit cost	$	770,489		$	2,020,807		$	256,829		$	244,647

	Postretirement Benefits
	Nine Months Ended						Three Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Service cost	$	20,542		$	21,975		$	6,847		$	7,325
Interest cost		60,620			71,154			20,206			23,718
Expected return on plan assets		(38,621	)		(35,649	)		(12,874	)		(11,883	)
Amortization of prior service cost		(16,083	)		(17,918	)		(5,361	)		(5,973	)
Amortization of the net loss		(58,201	)		(70,441	)		(19,400	)		(23,480	)
Net periodic benefit cost	$	(31,743	)	$	(30,879	)	$	(10,582	)	$	(10,293	)

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 2017, the Company expects to contribute $700,000 into its pension plans and $140,000 into its postretirement plan. As of September 30, 2017, the Company has contributed $322,000 into its pension plans and $109,000 into 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 of 1986, as amended covering substantially all non-union employees. The plan allows participants to make voluntary contributions on a pretax basis of their annual compensation, subject to IRS limitations. At its discretion, the Company provides for matching contributions to the plan. The plan also provides for a transitional credit to certain eligible employees who were active participants of the Company's Salaried Retirement Plan at the time that benefits under such plan were frozen in fiscal year 2016, as well as a non-discretionary contribution to all eligible employees.

The Company made contributions to the plan as follows:


	Nine Months Ended						Three Months Ended
	September 30, 2017			October 1, 2016			September 30, 2017			October 1, 2016
Regular matching contribution		$	346,713		$	226,090		$	111,291		$	94,042
Transitional credit contribution			307,597			136,416			76,526			94,868
Non-discretionary contribution			339,220			51,470			15,987			--
Total contributions for the period		$	993,530		$	413,976		$	203,804		$	188,910

The non-discretionary contributions made in each of the periods disclosed above were expensed in the prior fiscal year.