| Postretirement Health Care |
Postretirement Health Care Guidance on employers’ accounting for other postretirement plans requires recognition of the overfunded or underfunded status on the balance sheet. Under this guidance, gains and losses, prior services costs and credits and any remaining transition amounts under previous guidance not yet recognized through net periodic benefit cost are recognized in accumulated other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost. Also, the measurement date – the date at which the benefit obligation and plan assets are measured – is required to be the Corporation’s fiscal year-end.
| | | | | | | | | | | | | (In thousands) | 2013 |
| | 2012 |
| | 2011 |
| Change in benefit obligation | | | | | | Benefit obligation at beginning of year | $ | 18,547 |
| | $ | 16,872 |
| | $ | 15,411 |
| Service cost | 525 |
| | 450 |
| | 364 |
| Interest cost | 668 |
| | 721 |
| | 804 |
| Benefits paid | (1,263 | ) | | (1,131 | ) | | (909 | ) | Actuarial (gain)/loss | (2,029 | ) | | 1,635 |
| | 1,202 |
| Benefit obligation at end of year | $ | 16,448 |
| | $ | 18,547 |
| | $ | 16,872 |
| Change in plan assets | |
| | |
| | |
| Fair value at beginning of year | $ | — |
| | $ | — |
| | $ | — |
| Actual return on assets | — |
| | — |
| | — |
| Employer contribution | 1,263 |
| | 1,131 |
| | 909 |
| Transferred out | — |
| | — |
| | — |
| Benefits paid | (1,263 | ) | | (1,131 | ) | | (909 | ) | Fair value at end of year | $ | — |
| | $ | — |
| | $ | — |
| Funded Status of Plan | $ | (16,448 | ) | | $ | (18,547 | ) | | $ | (16,872 | ) | Amounts recognized in the Statement of Financial Position consist of: | |
| | |
| | |
| Current liabilities | $ | 924 |
| | $ | 994 |
| | $ | 988 |
| Noncurrent liabilities | $ | 15,524 |
| | $ | 17,554 |
| | $ | 15,884 |
| Amounts recognized in Accumulated Other Comprehensive Income (before tax) consist of: | |
| | |
| | |
| Actuarial (gain)/loss | $ | (900 | ) | | $ | 1,129 |
| | $ | (506 | ) | Transition (asset)/obligation | — |
| | 117 |
| | 624 |
| Prior service cost | — |
| | — |
| | — |
| | $ | (900 | ) | | $ | 1,246 |
| | $ | 118 |
| Change in Accumulated Other Comprehensive Income (before tax): | |
| | |
| | |
| Amount disclosed at beginning of year | $ | 1,246 |
| | $ | 118 |
| | $ | (593 | ) | Actuarial (gain)/loss | (2,029 | ) | | 1,635 |
| | 1,202 |
| Amortization of actuarial gain or loss | — |
| | — |
| | 17 |
| Amortization of transition amount | (117 | ) | | (507 | ) | | (508 | ) | Amortization of prior service cost | — |
| | — |
| | — |
| Amount disclosed at end of year | $ | (900 | ) | | $ | 1,246 |
| | $ | 118 |
|
| | | | | Estimated Future Benefit Payments (In thousands) | Fiscal 2014 | 924 |
| Fiscal 2015 | 928 |
| Fiscal 2016 | 943 |
| Fiscal 2017 | 971 |
| Fiscal 2018 | 995 |
| Fiscal 2019 – 2023 | 5,773 |
| Expected Contributions During Fiscal 2014 | |
| Total | $ | 924 |
|
The discount rates at fiscal year-end 2013, 2012 and 2011, were 4.6%, 3.7% and 4.4%, respectively. The Corporation payment for these benefits has reached the maximum amounts per the plan; therefore, healthcare trend rates have no impact on the Corporation’s cost. There were no funds designated as plan assets.
| | | | | Components of Net Periodic Postretirement Benefit Cost (in thousands) | 2014 |
| Service cost | $ | 504 |
| Interest cost | 735 |
| Amortization of net (gain)/loss | — |
| Amortization of unrecognized transition (asset)/obligation | — |
| Net periodic postretirement benefit cost/(income) | $ | 1,239 |
|
A discount rate of 4.6% was used to determine net periodic benefit cost for 2014. The discount rate is set at the measurement date to reflect the yield of a portfolio of high quality, fixed income debt instruments. There are no plan assets invested. |