Pension and Postretirement Benefits

9 Months Ended

Sep. 30, 2018

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

(9) Pension and Postretirement Benefits

The components of the net periodic cost of the Company's defined benefit pension and other postretirement plans for the quarter and nine-month periods ended September 30, 2018 and October 1, 2017 are as follows:

	Quarter Ended
	Pension				Postretirement
	September 30,		October 1,		September 30,		October 1,
	2018		2017		2018		2017
Service cost	$	678		925		189		172
Interest cost		3,997		4,443		292		295
Expected return on assets		(5,190)		(5,896)		-		-
Net amortization and deferrals		2,971		2,525		42		-
Net periodic benefit cost	$	2,456		1,997		523		467

	Nine Months Ended
	Pension				Postretirement
	September 30,		October 1,		September 30,		October 1,
	2018		2017		2018		2017
Service cost	$	2,030		2,798		566		517
Interest cost		11,993		13,598		877		885
Expected return on assets		(15,569)		(18,057)		-		-
Net amortization and deferrals		8,913		7,738		127		-
Net periodic benefit cost	$	7,367		6,077		1,570		1,402

During the nine months ended September 30, 2018, the Company made cash contributions of $770 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. As of September 30, 2018, the Company had unrecognized losses related to the Plan of $142,997. The Company will recognize this loss upon termination of the Plan, adjusted for year-end remeasurement, as well as the total required payout to plan participants which will be determined based on employee elections and market conditions present at the time of termination.