BENEFIT PLANS

On December 19, 2011, the Executive Organization and Compensation Committee of the Board of Directors froze participant benefits (credited service and final average earnings) and entry into the Supplemental Executive Retirement Benefits Plan (SERP) effective December 31, 2011. This action constitutes a plan curtailment.

The plan liability was remeasured in conjunction with the curtailment using a 3.5% discount rate and participant final average earnings through the curtailment date. The plan was last remeasured at June 30, 2011, using a 4.5% discount rate. This latest remeasurement resulted in an actuarial loss (recorded in other comprehensive income) of $302 ($492 loss, net of income tax of $190).

The curtailment is reflected in the Company's condensed consolidated balance sheets as: 1) a reduction to the overall SERP liability (included in postemployment benefits) of $8,860, 2) a reduction to deferred tax assets of $3,411 and 3) an increase in accumulated other comprehensive income of $5,449. Prior service costs previously recorded through accumulated other comprehensive income were reclassified into the condensed statements of consolidated income ($3,117 gross expense, net of income tax of $1,200). The gross expense is recorded in selling, distribution and administrative expense in the second quarter of fiscal 2012.

The following table provides summary disclosures of the net periodic postemployment costs recognized for the Company’s postemployment benefit plans:



	Pension Benefits						Retiree Health Care Benefits
Three Months Ended December 31,	2011			2010			2011			2010
Components of net periodic cost:
Service cost	$	127		$	115		$	8		$	10
Interest cost	588			564			59			59
Expected return on plan assets	(99		)	(96		)
Recognized net actuarial loss (gain)	265			362			(18		)	(21		)
Amortization of prior service cost	185			178			35			35
Curtailment loss	3,117
Net periodic cost	$	4,183		$	1,123		$	84		$	83



	Pension Benefits						Retiree Health Care Benefits
Six Months Ended December 31,	2011			2010			2011			2010
Components of net periodic cost:
Service cost	$	254		$	230		$	15		$	20
Interest cost	1,176			1,129			118			118
Expected return on plan assets	(198		)	(192		)
Recognized net actuarial loss (gain)	529			724			(36		)	(42		)
Amortization of prior service cost	370			355			70			69
Curtailment loss	3,117
Net periodic cost	$	5,248		$	2,246		$	167		$	165

The Company contributed $370 to its pension benefit plans and $103 to its retiree health care plans in the six months ended December 31, 2011. Expected contributions for the remainder of fiscal 2012 are $3,850 for the pension benefit plans to fund scheduled retirement payments and $150 for retiree health care plans.