Note G – 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.

In addition, the Company provides health care and life insurance for retired salaried employees in the U.S.who meet specific eligibility requirements.

Significant disclosures relating to these benefit plans for the second quarter and first six months of fiscal years 2018 and 2017 are as follows:

	Pension Benefits
	Six Months Ended						Three Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Service cost	$	659,922		$	634,718		$	329,901		$	317,358
Interest cost		1,553,583			1,582,112			776,791			791,055
Expected return on plan assets		(2,609,758	)		(2,391,787	)		(1,304,878	)		(1,195,892	)
Amortization of prior service cost		65,381			72,874			32,690			36,436
Amortization of the net loss		555,056			615,743			277,528			307,873
Net periodic benefit cost	$	224,184		$	513,660		$	112,032		$	256,830

	Postretirement Benefits
	Six Months Ended						Three Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Service cost	$	18,512		$	13,695		$	9,256		$	6,848
Interest cost		38,581			40,414			19,291			20,207
Expected return on plan assets		(27,825	)		(25,747	)		(13,912	)		(12,873	)
Amortization of prior service cost		(2,536	)		(10,722	)		(1,268	)		(5,361	)
Amortization of the net loss		(32,796	)		(38,801	)		(16,398	)		(19,401	)
Net periodic benefit cost	$	(6,064	)	$	(21,161	)	$	(3,031	)	$	(10,580	)

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 fiscal year 2018, the Company expects to contribute $510,000 into its pension plans and $105,000 into its postretirement plan. As of June 30, 2018, the Company has not made contributions into its pension plans, has contributed $64,000 to its postretirement plan and intends to 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 (the "401(k) Plan") covering substantially all U.S. non-union employees. The 401(k) Plan allows participants to make voluntary contributions from their annual compensation on a pre-tax basis, subject to limitations under the Internal Revenue Code. The 401(k) Plan provides for contributions by the Company at its discretion.

The Company made contributions to the plan as follows:


	Six Months Ended						Three Months Ended
	June 30, 2018			July 1, 2017			June 30, 2018			July 1, 2017
Regular matching contribution		$	306,121		$	235,423		$	140,106		$	118,947
Transitional credit contribution			205,614			231,072			81,506			95,702
Non-discretionary contribution			540,831			323,232			16,458			15,664
Total contributions for the period		$	1,052,566		$	789,727		$	238,070		$	230,313

The non-discretionary contribution of $502,617 made in the six months ended June 30, 2018 was expensed in the prior fiscal year.