Pension and Postretirement Benefit Obligations

3 Months Ended

Mar. 29, 2020

Pension and Postretirement Benefit Obligations

Pension Plans

There are two Company-sponsored pension plans. The primary Company-sponsored pension plan was frozen as of June 30, 2006 and no benefits accrued to participants after this date. The second Company-sponsored pension plan (the “Bargaining Plan”) is for certain employees under collective bargaining agreements. Benefits under the Bargaining Plan are determined in accordance with negotiated formulas for the respective participants. Contributions to the plans are based on actuarially determined amounts and are limited to the amounts currently deductible for income tax purposes.

The components of net periodic pension cost were as follows:


	First Quarter
(in thousands)	2020		2019
Service cost	$	1,659	$	1,207
Interest cost	2,760		3,063
Expected return on plan assets	(3,383)		(2,574)
Recognized net actuarial loss	1,189		901
Amortization of prior service cost	5		5
Net periodic pension cost	$	2,230	$	2,602

The Company did not make any contributions to the two Company-sponsored pension plans during the first quarter of 2020. Contributions to the two Company-sponsored pension plans are expected to be in the range of $7 million to $12 million for the remainder of 2020.

Postretirement Benefits

The Company provides postretirement benefits for employees meeting specified criteria. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Company does not pre-fund these benefits and has the right to modify or terminate certain of these benefits in the future.

The components of net periodic postretirement benefit cost were as follows:


	First Quarter
(in thousands)	2020		2019
Service cost	$	376	$	389
Interest cost	503		693
Recognized net actuarial loss	88		196
Amortization of prior service cost	—		(324)
Net periodic postretirement benefit cost	$	967	$	954