Post-Retirement Plans

4 Months Ended

Apr. 22, 2017

Compensation And Retirement Disclosure [Abstract]

14. POST-RETIREMENT PLANS

The following summarizes the company’s balance sheet related pension and other post-retirement benefit plan accounts at April 22, 2017 as compared to accounts at December 31, 2016 (amounts in thousands):

	April 22, 2017		December 31, 2016
Current benefit liability	$	979	$	979
Noncurrent benefit liability	$	65,692	$	69,601
Accumulated other comprehensive loss, net of tax	$	81,079	$	82,222

Defined Benefit Plans and Nonqualified Plan

The company amended our qualified defined benefit plans in October 2015 to allow pension plan participants not yet receiving benefit payments the option to elect to receive their benefit as a single lump sum payment. This amendment was effective as of January 1, 2016. This change supports our long-term pension risk management strategy.

Settlement accounting, which accelerates recognition of a plan’s unrecognized net gain or loss, is triggered if the lump sums paid during a year exceeds the sum of the plan’s service and interest cost. We believe it is reasonably possible that we may have a settlement charge in future quarters during fiscal 2017. At this time, we have not met the settlement accounting threshold.

The company used a measurement date of December 31, 2016 for the defined benefit and post-retirement benefit plans described below.

The net periodic pension cost (income) for the company’s plans include the following components (amounts in thousands):

	For the Sixteen Weeks Ended
	April 22, 2017			April 23, 2016
Service cost	$	232		$	255
Interest cost		4,008			4,532
Expected return on plan assets		(7,860	)		(8,612	)
Amortization of prior service cost		119			119
Amortization of net loss		1,958			1,798
Total net periodic pension benefit (income) cost	$	(1,543	)	$	(1,908	)

Post-retirement Benefit Plan

The company provides certain medical and life insurance benefits for eligible retired employees covered under the active medical plans. The plan incorporates 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 post-retirement benefit (income) cost for the company includes the following components (amounts in thousands):

	For the Sixteen Weeks Ended
	April 22, 2017			April 23, 2016
Service cost	$	79		$	123
Interest cost		70			95
Amortization of prior service credit		(65	)		(65	)
Amortization of net gain		(153	)		(140	)
Total net periodic post-retirement benefit (income) cost	$	(69	)	$	13

401(k) Retirement Savings Plan

The Flowers Foods Inc. 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 22, 2017 and April 23, 2016, the total cost and employer contributions were $9.0 million and $8.3 million, respectively.

The company acquired Dave’s Killer Bread and Alpine Valley Bread Company during fiscal 2015, at the time of each acquisition we assumed sponsorship of a 401(k) savings plan. We merged these two plans into the Flowers Foods 401(k) Retirement Savings Plan on April 1, 2016.