Pension and Postretirement Benefit Obligations

6 Months Ended

Jun. 28, 2020

Retirement Benefits [Abstract]

Pension and Postretirement Benefit Obligations

Pension and Postretirement Benefit Obligations

Pension Plans

There are two Company-sponsored pension plans. The primary Company-sponsored pension plan was frozen as of June 30, 2006 and no benefits accrued to participants after this date. The second Company-sponsored pension plan (the “Bargaining Plan”) is for certain employees under collective bargaining agreements. Benefits under the Bargaining Plan are determined in accordance with negotiated formulas for the respective participants. Contributions to the plans are based on actuarially determined amounts and are limited to the amounts currently deductible for income tax purposes.

The components of net periodic pension cost were as follows:

	Second Quarter				First Half
(in thousands)	2020		2019		2020		2019
Service cost	$	1,658	$	1,206	$	3,317	$	2,413
Interest cost	2,760		3,062		5,520		6,125
Expected return on plan assets	(3,383)		(2,574)		(6,766)		(5,148)
Recognized net actuarial loss	1,190		900		2,379		1,801
Amortization of prior service cost	4		7		9		12
Net periodic pension cost	$	2,229	$	2,601	$	4,459	$	5,203

The Company did not make any contributions to the two Company-sponsored pension plans during the first half of 2020. Contributions to the two Company-sponsored pension plans are expected to be in the range of $8 million to $12 million for the remainder of 2020.

Postretirement Benefits

The Company provides postretirement benefits for employees meeting specified criteria. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Company does not pre-fund these benefits and has the right to modify or terminate certain of these benefits in the future.

The components of net periodic postretirement benefit cost were as follows:

	Second Quarter				First Half
(in thousands)	2020		2019		2020		2019
Service cost	$	376	$	389	$	752	$	778
Interest cost	504		693		1,007		1,386
Recognized net actuarial loss	87		195		175		391
Amortization of prior service cost	—		(322)		—		(646)
Net periodic postretirement benefit cost	$	967	$	955	$	1,934	$	1,909