9. Pension plan

The Company has a noncontributory defined benefit pension plan (the “Plan”) that covers substantially all U.S. employees as of January 1, 2018, and an acquired closed noncontributory defined benefit pension plan in the U.S. covering certain PF employees (collectively, the “Plans”). Components of net period pension cost for the Plans were as follows:


	Second Quarters Ended				Six Months Ended
	December 30,		December 31,		December 30,		December 31,
	2017		2016 (1)		2017		2016 (1)
	(Thousands)
Service cost	$	3,867	$	10,848	$	7,735	$	21,696
Interest cost		5,783		3,774		11,566		7,548
Expected return on plan assets		(13,757)		(10,588)		(27,514)		(21,176)
Amortization of prior service credits		(393)		(393)		(786)		(786)
Recognized net actuarial loss		3,746		3,851		7,492		7,702
Pension settlement charge		13,984		—		13,984		—
Net periodic pension cost	$	13,230	$	7,492	$	12,477	$	14,984

⁽¹⁾

Includes discontinued operations

The Company contributed $8.0 million to the Plans during the first six months of fiscal 2018 and expects to make an additional contribution to the Plans of $8.0 million in the remainder of fiscal 2018.

The Plans meet the definition of defined benefit plans and as a result, the Company applies ASC 715 pension accounting to the Plans. The Plans, however, are cash balance plans that are similar in nature to defined contribution plans in that a participant’s benefit is defined in terms of stated account balances. The cash balance plans provides the Company with the benefit of applying any earnings on the Plan’s investments beyond the fixed return provided to participants, toward the Company’s future cash funding obligations.

Amounts reclassified out of accumulated other comprehensive income (loss), net of tax, to operating expenses during the second quarters and the first six months of fiscal 2018 and fiscal 2017 were not material and substantially all related to net periodic pension costs including recognition of actuarial losses and amortization of prior service credits.

In connection with the sale of the TS business, a significant number of former employees became terminated vested employees under the Plan. During the second quarter of fiscal 2018, the aggregate amount of former employee withdrawals from the Plan exceeded the pension accounting threshold for fiscal 2018, which required a settlement charge under ASC 715 pension accounting. As a result, the Company recognized a $14.0 million pension settlement charge before taxes in the second quarter of fiscal 2018 classified within loss from discontinued operations.