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:



	2015		2014
Weighted-average assumption as of June 30
Discount rate	4.12	%	4.02	%

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



	2015		2014		2013
Discount rate	4.02	%	4.57	%	3.78	%
Health care cost trend rate - pre-Medicare eligible claims	7.50	%	8.00	%	10.00	%
Health care cost trend rate - Medicare eligible claims	6.75	%	7.00	%	7.00	%

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



	2015			2014
Change in benefit obligation
Benefit obligation at beginning of year	$	2,779		$	2,934
Service cost	32			31
Interest cost	108			130
Actuarial loss (gain)	155			(31		)
Curtailment gain	—			(161		)
Plan participant contributions	49			53
Benefits paid	(148		)	(177		)
Benefit obligation at end of year	$	2,975		$	2,779



	2015			2014
Change in plan assets
Employer contributions	$	99		$	124
Plan participant contributions	49			53
Benefits paid	(148		)	(177		)
Fair value of plan assets at end of year	$	—		$	—



	2015			2014
Reconciliation of funded status
Net accrued benefit cost	$	(2,975	)	$	(2,779	)



	2015			2014
Amounts recognized in the consolidated balance sheets consist of
Current accrued benefit liability	$	(169	)	$	(171	)
Noncurrent accrued benefit liability	$	(2,806	)	$	(2,608	)



	2015		2014
Accumulated benefit obligation	$	2,975	$	2,779

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



	2015			2014
Net actuarial gain	$	(605	)	$	(788	)
Prior service benefit	(8		)	(13		)
Income taxes	226			296
Total	$	(387	)	$	(505	)

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:



	2016
Prior service asset amortization	$	(5	)
Unrecognized gain amortization	(17		)
Total	$	(22	)

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



	2015			2014			2013
Components of net periodic benefit cost (income)
Service cost	$	32		$	31		$	31
Interest cost	108			130			113
Curtailment benefit	—			(161		)	—
Amortization of unrecognized net gain	(28		)	(27		)	(22		)
Amortization of prior service asset	(5		)	(5		)	(5		)
Net periodic benefit cost (income)	$	107		$	(32	)	$	117

The above noted net periodic benefit cost (income) includes income of $0.1 million for 2014, and an immaterial amount for 2013, 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 2016.

Benefit payments estimated for future years are as follows:




2016	$	169
2017	$	160
2018	$	168
2019	$	175
2020	$	182
2021 - 2025	$	923

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



	2015		2014
Pre-Medicare eligible claims:
Health care cost trend rate assumed for next fiscal year	7.50	%	7.50	%
Ultimate health care cost trend rate	5.00	%	5.00	%
Year that rate reaches ultimate trend rate	2024		2021

Medicare eligible claims:
Health care cost trend rate assumed for next fiscal year	8.00	%	6.75	%
Ultimate health care cost trend rate	5.00	%	5.00	%
Year that rate reaches ultimate trend rate	2024		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	$	10	$	(8	)
Effect on postretirement benefit obligation as of June 30, 2015	$	233	$	(203	)