Post-Retirement Plans

4 Months Ended

Apr. 20, 2013

Post-Retirement Plans

13. POST-RETIREMENT PLANS

The following summarizes the company’s balance sheet related pension and other postretirement benefit plan accounts at April 20, 2013 as compared to accounts at December 29, 2012 (amounts in thousands):

	April 20, 2013		December 29, 2012
Current benefit liability	$	1,288	$	1,288
Noncurrent benefit liability	$	156,095	$	159,158
Accumulated other comprehensive loss, net of tax	$	109,598	$	110,567

Defined Benefit Plans and Nonqualified Plan

The company has noncontributory defined benefit pension plans operated by trustees that cover certain employees. The benefits are based on years of service and the employees’ career earnings. The plans are funded at amounts deductible for income tax purposes but not less than the minimum funding required by the Employee Retirement Income Security Act of 1974 (“ERISA”). As of April 20, 2013, the assets of the plans included certificates of deposit, marketable equity securities, mutual funds, corporate and government debt securities, private and public real estate partnerships, other diversifying strategies and annuity contracts. Effective January 1, 2006, the company curtailed the defined benefit plan that covers the majority of its workforce. Benefits under this plan were frozen, and no future benefits will accrue under this plan. The company continues to maintain a plan that covers a small number of certain union employees. During the sixteen weeks ended April 20, 2013 the company contributed $0.5 million to company pension plans. We expect to contribute an additional $15.2 million during the remainder of fiscal 2013.

The net periodic pension (benefit) cost, recognized in selling, distribution and administrative expenses, for the company’s plans include the following components (amounts in thousands):

	For the Sixteen Weeks Ended
	April 20, 2013			April 21, 2012
Service cost	$	218		$	188
Interest cost		6,181			6,668
Expected return on plan assets		(8,825	)		(8,094	)
Amortization of net loss		1,901			1,565
Total net periodic (benefit) cost	$	(525	)	$	327

The company also has several smaller defined benefit plans associated with recent acquisitions that will be merged into the company’s defined benefit plans after receipt of final determination letters.

Post-Retirement Benefit Plan

The company provides certain medical and life insurance benefits for eligible retired employees. The plans incorporate an up-front deductible, coinsurance payments and retiree contributions at various premium levels. Eligibility and maximum period of coverage is based on age and length of service.

The net periodic postretirement benefit (income) cost, recognized in selling, distribution and administrative expenses, for the company includes the following components (amounts in thousands):

	For the Sixteen Weeks Ended
	April 20, 2013			April 21, 2012
Service cost	$	105		$	141
Interest cost		117			186
Amortization of net (gain) loss		(246	)		(92	)
Amortization of prior service (credit) cost		(79	)		(79	)
Total net periodic benefit (income) cost	$	(103	)	$	156

401(k) Retirement Savings Plan

The Flowers Foods 401(k) Retirement Savings Plan covers substantially all of the company’s employees who have completed certain service requirements. During the sixteen weeks ended April 20, 2013 and April 21, 2012, the total cost and employer contributions were $7.5 million and $6.5 million, respectively.

The company acquired Lepage in fiscal 2012, at which time we assumed sponsorship of the Lepage 401(k) Plan. This plan will be merged into the Flowers Foods 401(k) Retirement Savings Plan upon completion of a detailed review of prior plan operations and administration.