Note K - Retirement Benefit Plans

The Company has non-contributory defined benefit pension plans covering most 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 non-qualified supplemental retirement plans that provide certain 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 of fiscal years 2019 and 2018 are as follows:

	Pension Benefits
	Six Months Ended								Three Months Ended
	June 29, 2019				June 30, 2018				June 29, 2019				June 30, 2018
Service cost		$	527,706			$	659,922			$	263,854			$	329,901
Interest cost			1,758,160				1,553,583				879,080				776,791
Expected return on plan assets			(2,380,661	)			(2,609,758	)			(1,190,331	)			(1,304,878	)
Amortization of prior service cost			49,690				65,381				24,845				32,690
Amortization of the net loss			581,099				555,056				290,550				277,528
Net periodic benefit cost		$	535,994			$	224,184			$	267,998			$	112,032

	Postretirement Benefits
	Six Months Ended								Three Months Ended
	June 29, 2019				June 30, 2018				June 29, 2019				June 30, 2018
Service cost		$	16,432			$	18,512			$	8,216			$	9,256
Interest cost			40,692				38,581				20,346				19,291
Expected return on plan assets			(28,963	)			(27,825	)			(14,482	)			(13,912	)
Amortization of prior service cost			(2,536	)			(2,536	)			(1,268	)			(1,268	)
Amortization of the net loss			(41,014	)			(32,796	)			(20,507	)			(16,398	)
Net periodic benefit cost		$	(15,389	)		$	(6,064	)		$	(7,695	)		$	(3,031	)

The Company's funding policy for its qualified plans is to contribute at least the minimum amount required by applicable laws and regulations. In the fiscal year 2019, the Company expects to contribute $600,000 into its pension plans and $105,000 into its postretirement plans. As of June 29, 2019, the Company has not made contributions to its pension plans, has contributed $33,000 to its postretirement plan and will make the remaining contributions as required during the remainder of the fiscal 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 29, 2019			June 30, 2018			June 29, 2019			June 30, 2018
Regular matching contribution		$	293,063		$	306,121		$	136,796		$	140,106
Transitional credit contribution			178,376			205,614			74,852			81,506
Non-discretionary contribution			605,129			540,831			18,088			16,458
Total contributions for the period		$	1,076,568		$	1,052,566		$	229,736		$	238,070

The non-discretionary contribution of $565,748 made in the six months ended June 29, 2019, was accrued for and expensed in the prior fiscal year.