Pension and Postretirement Benefit Obligations

3 Months Ended

Apr. 01, 2022

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 that 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:

	First Quarter
(in thousands)	2022		2021
Service cost	$	1,860	$	1,863
Interest cost	2,659		2,453
Expected return on plan assets	(2,035)		(3,250)
Recognized net actuarial loss	989		1,219
Amortization of prior service cost	—		1
Net periodic pension cost	$	3,473	$	2,286

The Company did not make any contributions to the two Company-sponsored pension plans during the first quarter of 2022. Contributions to the two Company-sponsored pension plans in 2022 are expected to be in the range of $20 million to $30 million.

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 prefund 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:

	First Quarter
(in thousands)	2022		2021
Service cost	$	383	$	403
Interest cost	474		447
Recognized net actuarial loss	92		186
Net periodic postretirement benefit cost	$	949	$	1,036