The Company and certain subsidiaries have a noncontributory defined benefit retirement plan (the “Pension Plan”), covering approximately 17% of the Company’s aggregate employees. Benefits are based on years of service and the employee’s average compensation for the highest five compensation years preceding retirement or termination.

Pension expense is composed of the following components included in cost of goods sold and selling, general, and administrative expenses in the Company’s consolidated statements of earnings (in thousands):

	Three months ended
	May 31,
	2019			2018
Components of net periodic benefit cost
Service cost	$	272		$	277
Interest cost		564			568
Expected return on plan assets		(1,050	)		(1,027	)
Amortization of:
Unrecognized net loss		509			511
Net periodic benefit cost	$	295		$	329

The Company is required to make contributions to the Pension Plan. These contributions are required under the minimum funding requirements of the Employee Retirement Income Security Act of 1974 (“ERISA”). Due to the enactment of the Highway and Transportation Funding Act (HATFA) in August 2014, plan sponsors can calculate the discount rate used to measure the Pension Plan liability using a 25-year average of interest rates plus or minus a corridor. The Company’s minimum required contribution to the Pension Plan is zero for the Pension Plan year ending February 29, 2020. Given current funding status, the Company expects to make a cash contribution to the Pension Plan of between $1.0 million and $1.5 million during fiscal year 2020. The Company contributed $3.0 million to the Pension Plan during fiscal year 2019.