8. Employee Benefit Plans

The Company has a qualified profit-sharing savings plan (401(k) plan) covering eligible employees. The 401(k) plan provides for a contribution of a minimum of 1% of defined compensation for all plan participants and matching of 25% of employee contributions up to 6% of defined compensation. In addition, the Company may make additional discretionary contributions. During fiscal 2017, the 401(k) plan will provide only one type of employer contribution: a matching contribution equal to 100% of the first 3% of compensation and 50% of the next 2% of compensation deposited by an employee into the 401(k) plan. During fiscal 2016, the Transition Period, fiscal 2015 and fiscal 2014, the 1% and the discretionary contributions were made with the Company’s common stock. The Company also sponsors unfunded, nonqualified, defined-benefit and deferred compensation plans. The Company’s unfunded, nonqualified retirement plan includes two components. The first component is a defined-benefit plan that applies to certain participants. The second component applies to all other participants and provides an account-based supplemental retirement benefit. During fiscal 2016, the plan was amended with an effective date of January 1, 2017, which curtailed benefits to certain participants included in the account-based supplemental plan. The curtailment resulted in a pre-tax gain of $251,000 during fiscal 2016. Pension and profit-sharing expense for all plans was $3,960,000, $2,362,000, $3,581,000 and $3,360,000 for fiscal 2016, the Transition Period, fiscal 2015 and fiscal 2014, respectively.

The Company recognizes actuarial losses and prior service costs related to its defined benefit plan in the consolidated balance sheets and recognizes changes in these amounts in the year in which changes occur through comprehensive income.

The status of the Company’s unfunded nonqualified, defined-benefit and account-based retirement plan based on the respective December 29, 2016 and December 31, 2015 measurement dates is as follows:

	December 29,		December 31,
	2016		2015

	(in thousands)
Change in benefit obligation:
Benefit obligation at beginning of period	$	31,671	$	31,037
Service cost		865		459
Interest cost		1,406		765
Actuarial loss		82		104
Curtailment		(261)		–
Benefits paid		(1,240)		(694)
Benefit obligation at end of year	$	32,523	$	31,671

Amounts recognized in the statement of financial position consist of:
Current accrued benefit liability (included in Other accrued liabilities)	$	(1,252)	$	(1,191)
Noncurrent accrued benefit liability (included in Deferred compensation and other)		(31,271)		(30,480)
Total	$	(32,523)	$	(31,671)

Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	$	9,049	$	9,410
Prior service credit		(642)		(711)
Total	$	8,407	$	8,699

	Year Ended		31 Weeks Ended		Year Ended
	December 29,		December 31,		May 28,		May 29,
	2016		2015		2015		2014
	(in thousands)
Net periodic pension cost:
Service cost	$	865	$	459	$	697	$	702
Interest cost		1,406		765		1,243		1,173
Net amortization of prior service cost and actuarial loss		364		211		326		268
Curtailment gain		(251)		–		–		–
	$	2,384	$	1,435	$	2,266	$	2,143

The $5,069,000 loss, net of tax, included in accumulated other comprehensive loss at December 29, 2016, consists of the $5,457,000 net actuarial loss, net of tax, and the $388,000 unrecognized prior service credit, net of tax, which have not yet been recognized in the net periodic benefit cost. The $5,219,000 loss, net of tax, included in accumulated other comprehensive loss at December 31, 2015, consists of the $5,645,000 net actuarial loss, net of tax, and the $426,000 unrecognized prior service credit, net of tax, which have not yet been recognized in the net periodic benefit cost.

The accumulated benefit obligation was $28,151,000 and $26,940,000 as of December 29, 2016 and December 31, 2015, respectively.

The pre-tax change in the benefit obligation recognized in other comprehensive loss during fiscal 2016 consisted of the current year net actuarial loss of $82,000, the amortization of the net actuarial loss of $442,000, the amortization of the prior service credit of $329,000 and the recognition of the current year plan change credit of $261,000. The pre-tax change in the benefit obligation recognized in other comprehensive loss during the Transition Period consisted of the current year net actuarial loss of $104,000, the amortization of the net actuarial loss of $256,000 and the amortization of the prior service credit of $45,000. The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal 2017 is $356,000, of which $420,000 relates to the actuarial loss and $64,000 relates to the prior service credit.

The weighted-average assumptions used to determine the benefit obligations as of the measurement dates were as follows:

	December 29, 2016			December 31, 2015
Discount rate		4.15	%		4.40	%
Rate of compensation increase		4.00	%		4.00	%

The weighted-average assumptions used to determine net periodic benefit cost were as follows:

				31 Weeks
	Year Ended			Ended			Year Ended
	December 29,			December 31,
	2016			2015			May 28, 2015			May 29, 2014
Discount rate		4.40	%		4.20	%		4.30	%		4.40	%
Rate of compensation increase		4.00	%		4.00	%		4.00	%		4.00	%

Benefit payments and contributions expected to be paid subsequent to December 29, 2016, are:

Fiscal Year	(in thousands)
2017	$	1,252
2018		1,337
2019		1,349
2020		1,520
2021		1,475
Years 2022 – 2026		10,995