Pension and Other Postretirement Benefits

6 Months Ended

Jan. 31, 2017

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure

PENSION AND OTHER POSTRETIREMENT BENEFITS

The components of net periodic pension and postretirement health benefit costs were as follows:

	Pension Benefits
	(in thousands)
	For the Three Months Ended January 31,						For the Six Months Ended January 31,
	2017			2016			2017			2016
Service cost	$	446		$	267		$	913		$	756
Interest cost	474			484			931			967
Expected return on plan assets	(411		)	(485		)	(887		)	(962		)
Amortization of:
Prior service costs	—			2			1			4
Other actuarial loss	485			209			914			496
Net periodic benefit cost	$	994		$	477		$	1,872		$	1,261
	Postretirement Health Benefits
	(in thousands)
	For the Three Months Ended January 31,						For the Six Months Ended January 31,
	2017			2016			2017			2016
Service cost	$	33		$	21		$	63		$	43
Interest cost	21			21			39			41
Amortization of:
Prior service costs	(1		)	(1		)	(3		)	(3		)
Other actuarial loss	14			—			20			—
Net periodic benefit cost	$	67		$	41		$	119		$	81

The postretirement health plan is an unfunded plan. We pay insurance premiums and claims from our assets.

The pension plan is funded based upon actuarially determined contributions that take into account the amount deductible for income tax purposes, the normal cost and the minimum contribution required and the maximum contribution allowed under applicable regulations.We contributed $335,000 and $636,000 to our pension plan during the second quarter and first six months of fiscal 2017, respectively. We estimate contributions will be $840,000 for the remainder of fiscal 2017. See Item 3. “Quantitative and Qualitative Disclosures About Market Risk” for a discussion of the potential impact of financial market fluctuations on pension plan assets and future funding contributions.

Assumptions used in the previous calculations were as follows:

	Pension Benefits				Postretirement Health Benefits
	For the Three and Six Months Ended January 31,
	2017		2016		2017		2016
Discount rate for net periodic benefit cost	3.36	%	4.22	%	2.71	%	3.51	%
Rate of increase in compensation levels	3.50	%	3.50	%	—		—
Long-term expected rate of return on assets	7.00	%	7.50	%	—		—

The medical cost trend assumption for postretirement health benefits was 7.35%. The graded trend rate is expected to decrease to an ultimate rate of 4.5% in fiscal 2036.