Note G - Pension and Other Postretirement Benefit Plans

6 Months Ended

Dec. 30, 2022

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 30, 2022			December 31, 2021			December 30, 2022			December 31, 2021
Pension Benefits:
Service cost	$	102		$	130		$	203		$	269
Prior service cost		8			10			17			20
Interest cost		868			681			1,736			1,347
Expected return on plan assets		(1,060	)		(1,255	)		(2,120	)		(2,514	)
Amortization of transition obligation		9			9			18			18
Amortization of prior service cost		9			(4	)		18			(8	)
Amortization of actuarial net loss		617			562			1,235			1,124
Net periodic benefit cost	$	553		$	133		$	1,107		$	256
Postretirement Benefits:
Service cost	$	2		$	4		$	5		$	8
Interest cost		53			35			106			70
Amortization of prior service cost		(69	)		(69	)		(137	)		(138	)
Amortization of actuarial net loss		(10	)		-			(19	)		-
Net periodic benefit gain	$	(24	)	$	(30	)	$	(45	)	$	(60	)

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 $576 to its pension plans in fiscal 2023. For the two quarters ended December 30, 2022, the amount of $387 in contributions to the pension plans were made.

The Company had changes in benefit plan adjustments totaling ($515) (net of $1 in taxes) from accumulated other comprehensive loss during the quarter ended December 30, 2022, and $623 (net of ($115) in taxes) during the quarter ended December 31, 2021. These changes are included in the computation of net periodic benefit cost. The Company had changes in benefit plan adjustments totaling $3 (net of $3 in taxes) from accumulated other comprehensive loss during the two quarters ended December 30, 2022, and $1,007 (net of $2 in taxes) during the two quarters ended December 31, 2021. These changes are included in the computation of net periodic benefit cost. Included in changes in benefit plan adjustments, the Company had a plan merger remeasurement adjustment of ($1,115) during the quarter ended December 30, 2022.