

NOTE 7	EMPLOYEE POSTRETIREMENT BENEFITS

The Company has two 401(k) plans covering substantially all employees as of January 31, 2015. One plan, which covers the majority of employees, matches employee contributions up to 4%. Under this plan all account balances and future contributions and related earnings can be invested in several investment alternatives as well as the Company's common stock in accordance with each participant's elections. Participants' contributions to the 401(k) and the employer matching contributions are limited to 20% investment in the Company's common stock. Participants may choose to make separate investment choices for current account balances and for future contributions. Officers of the Company may not include Raven's common stock in their 401(k) plan elections.

The other 401(k) plan was assumed as part of the Vista acquisition. Employee contributions under this plan include a 3% annual contribution. This plan was amended in fiscal 2015 to eliminate a provision allowing an additional annual discretionary contribution. The Company also assumed an additional 401(k) profit sharing plan as part of the Integra acquisition. This plan was merged into Raven's 401(k) plan on December 31, 2014. Total contribution expense to all such plans was $2,416, $2,412 and $2,021 for fiscal 2015, 2014, and 2013, respectively.

In addition, the Company provides postretirement medical and other benefits to senior executive officers and senior managers. These plan obligations are unfunded. The accumulated benefit obligation for these benefits is as follows:



	For the years ended January 31,
	2015			2014			2013
Benefit obligation at beginning of year	$	8,254		$	8,307		$	7,560
Service cost	195			202			187
Interest cost	366			348			335
Actuarial loss (gain) and assumption changes	3,543			(340		)	433
Retiree benefits paid	(233		)	(263		)	(208		)
Benefit obligation at end of year	$	12,125		$	8,254		$	8,307

The following tables set forth the plans' pre-tax adjustment to accumulated other comprehensive income/loss:



	For the years ended January 31,
	2015			2014			2013
Amounts not yet recognized in net periodic benefit cost:
Net actuarial loss	$	6,309		$	2,918		$	3,441
Total pre-tax accumulated other comprehensive loss	$	6,309		$	2,918		$	3,441

Pre-tax accumulated other comprehensive loss - beginning of year related to benefit obligation	$	2,918		$	3,441		$	3,241
Reclassification adjustments recognized in benefit cost:
Recognized net (loss)	(152		)	(183		)	(210		)
Amortization of transition obligation	—			—			(23		)
Amounts recognized in AOCI during the year:
Net actuarial loss (gain)	3,543			(340		)	433
Pre-tax accumulated other comprehensive loss - end of year related to benefit obligation	$	6,309		$	2,918		$	3,441

The net actuarial loss for fiscal year 2015 was the result of a decrease in the discount rate and application of updated mortality assumptions. The net actuarial gain in fiscal year 2014 was driven by an increase in the discount rate. The net actuarial loss in fiscal year 2013 was driven by a decrease in the discount rate and demographic changes, partially offset by better than expected claims experience.

The liability and net periodic benefit cost reflected in the Consolidated Balance Sheets and Consolidated Statements of Income and Comprehensive Income were as follows:



	For the years ended January 31,
	2015			2014			2013
Beginning liability balance	$	8,254		$	8,307		$	7,560
Net periodic benefit cost	713			733			755
Other comprehensive loss (income)	3,391			(523		)	200
Total recognized in net and other comprehensive income	4,104			210			955
Retiree benefits paid	(233		)	(263		)	(208		)
Ending liability balance	$	12,125		$	8,254		$	8,307

Current portion in accrued liabilities	$	313		$	255		$	235
Long-term portion in other liabilities	$	11,812		$	7,999		$	8,072

Assumptions used to calculate benefit obligation:
Discount rate	3.50		%	4.50		%	4.25		%
Wage inflation rate	4.00		%	4.00		%	4.00		%
Health care cost trend rates:
Health care cost trend rate assumed for next year	7.20		%	7.70		%	8.10		%
Ultimate health care cost trend rate	5.00		%	5.00		%	5.00		%
Year that the rate reaches the ultimate trend rate	2025			2025			2025

The discount rate is based on matching rates of return on high-quality fixed-income investments with the timing and amount of expected benefit payments. No material fluctuations in retiree benefit payments are expected in future years. The total estimated cost to be recognized from AOCI into net periodic benefit cost over the next fiscal year is $337.

The assumed health care cost trend rate has a significant effect on the amounts reported. The impact of a one-percentage point change in assumed health care rates would have the following effects:



	January 31, 2015
	One-percentage-point increase		One-percentage-point decrease
Effect on total of service and interest cost components	$	291	$	(203	)
Effect on accumulated postretirement benefit obligation	$	2,865	$	(2,138	)

The Company expects to contribute $313 in postretirement medical and other benefit payments in fiscal 2016. The following postretirement other than pension benefit payments, which reflect expected future service as appropriate, are expected to be paid:



Fiscal	2017	$	331
Fiscal	2018	355
Fiscal	2019	370
Fiscal	2020	382
Fiscal	2021 - 2025	2,170