Note G - Pension and Other Postretirement Benefit Plans

6 Months Ended

Dec. 31, 2021

Notes to Financial Statements

Retirement Benefits [Text Block]

G. Pension and Other Postretirement Benefit Plans

The Company has non-contributory, qualified defined benefit plans covering substantially all domestic employees hired prior to October 1, 2003 and certain foreign employees. Additionally, the Company provides healthcare and life insurance benefits for certain domestic retirees. The components of the net periodic benefit cost for the defined benefit pension plans and the other postretirement benefit plan are as follows:

	For the Quarter Ended						For the Two Quarters Ended
	December 31, 2021			December 25, 2020			December 31, 2021			December 25, 2020
Pension Benefits:
Service cost	$	130		$	146		$	269		$	289
Prior service cost		10			16			20			32
Interest cost		681			690			1,347			1,357
Expected return on plan assets		(1,255	)		(1,133	)		(2,514	)		(2,266	)
Amortization of transition obligation		9			9			18			18
Amortization of prior service cost		(4	)		(4	)		(8	)		(8	)
Amortization of actuarial net loss		562			811			1,124			1,623
Net periodic benefit cost	$	133		$	535		$	256		$	1,045
Postretirement Benefits:
Service cost	$	4		$	4		$	8		$	8
Interest cost		35			39			70			77
Amortization of prior service cost		(69	)		(69	)		(138	)		(137	)
Net periodic benefit gain	$	(30	)	$	(26	)	$	(60	)	$	(52	)

The service cost component is included in cost of goods sold and marketing, engineering and administrative expenses. All other components of net periodic benefit cost are included in other expense (income), net.

The Company expects to contribute approximately $733 to its pension plans in fiscal 2022. For the two quarters ended December 31, 2021, the amount of $419 in contributions to the pension plans were made.

The Company has reclassified $623 (net of ($115) in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended December 31, 2021, and $555 (net of $177 in taxes) during the quarter ended December 25, 2020. These reclassifications are included in the computation of net periodic benefit cost. The Company has reclassified $1,007 (net of $2 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the two quarters ended December 31, 2021, and $1,108 (net of $353 in taxes) during the two quarters ended December 25, 2020. These reclassifications are included in the computation of net periodic benefit cost.