Pension and Postretirement Benefits

3 Months Ended

Apr. 01, 2018

Pension and Postretirement Benefits (Thousands of Dollars) [Abstract]

(8) Pension and Postretirement Benefits

The components of the net periodic cost of the Company's defined benefit pension and other postretirement plans for the quarters ended April 1, 2018 and April 2, 2017 are as follows:

	Quarter Ended
	Pension				Postretirement
	April 1,		April 2,		April 1,		April 2,
	2018		2017		2018		2017
Service cost	$	685		952		188		172
Interest cost		4,016		4,725		292		295
Expected return on assets		(5,205)		(6,281)		-		-
Net amortization and deferrals		2,977		2,694		42		-
Net periodic benefit cost	$	2,473		2,090		522		467

During the three months ended April 1, 2018, the Company made cash contributions of $280 to its defined benefit pension plans. During fiscal 2018, the Company expects to make cash contributions to its defined benefit pension plans of approximately $1,300 in the aggregate.

In February 2018, the Compensation Committee of the Company’s Board of Directors approved a resolution to terminate the Company’s U.S. defined benefit pension plan (“Plan”). During the first quarter of 2018 the Company commenced the plan termination process and expects to complete the transfer of the Plan’s assets to a third-party administrator over a period of eighteen months. The decision to terminate the Plan follows the 2015 decision to freeze benefits being accrued covering non-union employees after the sale of the Company’s manufacturing facility in East Longmeadow, MA. Benefits covering non-union employees were frozen in December 2007.

In connection with the decision to terminate the Plan, the Company remeasured the projected benefit obligation based on the expected Plan termination costs. This remeasurement utilized a discount rate of 3.2% compared to the discount rate of 3.7% utilized in the December 31, 2017 measurement and resulted in an increase in the projected benefit obligation of $35,192 with offsetting amounts recorded to accumulated other comprehensive losses and deferred taxes. Upon settlement of the pension liability, the Company will reclassify the related pension losses currently recorded to accumulated other comprehensive loss, to the consolidated statements of operations.