Postretirement Benefits

Postretirement Medical and Life Insurance Benefit Plans

We and certain of our operating subsidiaries provide multiple postretirement medical and life insurance benefit plans. We recognize the cost of benefits as the employees render service. Postretirement benefits are funded as incurred. At the end of the year, we discount our plan liabilities using an assumed discount rate. In estimating this rate, we, along with our third-party actuaries, review the projected timing of future benefit payments, bond indices, consider yield curve analysis results and the past history of discount rates.

The actuarial present value of benefit obligations summarized below was based on the following assumption:



	2014		2013
Weighted-average assumption as of June 30
Discount rate	4.02	%	4.57	%

The net periodic benefit costs were determined utilizing the following beginning-of-the-year assumptions:



	2014		2013		2012
Discount rate	4.57	%	3.78	%	5.29	%
Health care cost trend rate - pre-Medicare eligible claims	8.00	%	10.00	%	10.00	%
Health care cost trend rate - Medicare eligible claims	7.00	%	7.00	%	10.00	%

Relevant information with respect to our postretirement medical and life insurance benefits as of June 30 can be summarized as follows:



	2014			2013
Change in benefit obligation
Benefit obligation at beginning of year	$	2,934		$	3,054
Service cost	31			31
Interest cost	130			113
Actuarial gain	(31		)	(162		)
Curtailment gain	(161		)	—
Plan participant contributions	53			55
Benefits paid	(177		)	(157		)
Benefit obligation at end of year	$	2,779		$	2,934



	2014			2013
Change in plan assets
Employer contributions	$	124		$	102
Plan participant contributions	53			55
Benefits paid	(177		)	(157		)
Fair value of plan assets at end of year	$	—		$	—



	2014			2013
Reconciliation of funded status
Net accrued benefit cost	$	(2,779	)	$	(2,934	)



	2014			2013
Amounts recognized in the consolidated balance sheets consist of
Current accrued benefit liability	$	(171	)	$	(187	)
Noncurrent accrued benefit liability	$	(2,608	)	$	(2,747	)



	2014		2013
Accumulated benefit obligation	$	2,779	$	2,934

Amounts recognized in accumulated other comprehensive loss at June 30 were as follows:



	2014			2013
Net actuarial gain	$	(788	)	$	(784	)
Prior service benefit	(13		)	(18		)
Income taxes	296			296
Total	$	(505	)	$	(506	)

Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows:



	2015
Prior service asset amortization	$	(5	)
Unrecognized gain amortization	(28		)
Total	$	(33	)

The following table summarizes the components of net periodic benefit (income) cost at June 30:



	2014			2013			2012
Components of net periodic benefit (income) cost
Service cost	$	31		$	31		$	25
Interest cost	130			113			147
Curtailment benefit	(161		)	—			—
Amortization of unrecognized net gain	(27		)	(22		)	(31		)
Amortization of prior service asset	(5		)	(5		)	(5		)
Net periodic benefit (income) cost	$	(32	)	$	117		$	136

The above noted net periodic benefit (income) cost includes income of approximately $0.1 million for 2014, and immaterial amounts for 2013 and 2012, that are presented in discontinued operations because those amounts relate to sold operations. In 2014, our plans experienced a curtailment due to a significant reduction in future service as a result of the sale of our candle manufacturing and marketing operations.

We expect to contribute approximately $0.2 million to our postretirement benefit plans in 2015.

Benefit payments estimated for future years are as follows:




2015	$	171
2016	$	174
2017	$	168
2018	$	172
2019	$	176
2020 - 2024	$	866

The following table summarizes the health care costs trend assumptions for other postretirement benefit measurement purposes:



	2014		2013
Pre-Medicare eligible claims:
Health care cost trend rate assumed for next fiscal year	7.5	%	8	%
Ultimate health care cost trend rate	5	%	5	%
Year that rate reaches ultimate trend rate	2021		2021

Medicare eligible claims:
Health care cost trend rate assumed for next fiscal year	6.75	%	7	%
Ultimate health care cost trend rate	5	%	5	%
Year that rate reaches ultimate trend rate	2021		2021

Assumed health care cost rates can have a significant effect on the amounts reported for the health care plans. A one-percentage-point change in assumed health care cost trend rates would have the following effect:



	1-Percentage-Point Increase		1-Percentage-Point Decrease
Effect on total of service and interest cost components	$	7	$	(6	)
Effect on postretirement benefit obligation as of June 30, 2014	$	178	$	(157	)