Note G - Pension and Other Postretirement Benefit Plans

6 Months Ended

Dec. 29, 2023

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.

As discussed in Note A, during the fourth quarter of fiscal year 2023, the Company changed its accounting method related to the recognition of actuarial gains and losses for its pension and postretirement benefit plans. Under the new method, actuarial gains and losses are recognized in net periodic benefit costs upon annual remeasurement in the fourth quarter, or on an interim basis as triggering events warrant remeasurement. These changes have been applied retrospectively to prior years presented below. See Notes A, K, M, and P for further information regarding the impact of the change in accounting principle on the Company’s consolidated financial statements.

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 29, 2023			December 30, 2022			December 29, 2023			December 30, 2022
Pension Benefits:
Service cost	$	94		$	102		$	188		$	203
Prior service cost		-			8			-			17
Interest cost		896			868			1,792			1,736
Expected return on plan assets		(1,048	)		(1,060	)		(2,096	)		(2,120	)
Amortization of transition obligation		10			9			19			18
Amortization of prior service cost		9			9			17			18
Amortization of actuarial net loss		16			617			31			1,235
Net periodic benefit (gain) cost	$	(23	)	$	553		$	(49	)	$	1,107
Postretirement Benefits:
Service cost	$	2		$	2		$	4		$	5
Interest cost		48			53			95			106
Amortization of prior service cost		(22	)		(69	)		(44	)		(137	)
Amortization of actuarial net loss		(155	)		(10	)		(310	)		(19	)
Net periodic benefit gain	$	(127	)	$	(24	)	$	(255	)	$	(45	)

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 $675 to its pension plans in fiscal 2024. As of December 29, 2023, $403 in contributions to the pension plans have been made.

The Company has reclassified ($108) (net of $13 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the quarter ended December 29, 2023, and ($1,122) (net of $13 in taxes) during the quarter ended December 30, 2022. These reclassifications are included in the computation of net periodic benefit (gain) cost. The Company has reclassified ($279) (net of $8 in taxes) of benefit plan adjustments from accumulated other comprehensive loss during the two quarters ended December 29, 2023, and ($1,211) (net of $4 in taxes) during the two quarters ended December 30, 2022. These reclassifications are included in the computation of net periodic benefit (gain) cost.