Postretirement Health Care

12 Months Ended

Jan. 02, 2016

Compensation and Retirement Disclosure [Abstract]

Postretirement Health Care

Postretirement Health Care

Guidance on employers’ accounting for other postretirement plans requires recognition of the overfunded or underfunded status on the balance sheet.  Under this guidance, gains and losses, prior services costs and credits and any remaining transition amounts under previous guidance not yet recognized through net periodic benefit cost are recognized in accumulated other comprehensive income (loss), net of tax effects, until they are amortized as a component of net periodic benefit cost.  Also, the measurement date – the date at which the benefit obligation and plan assets are measured – is required to be the Corporation’s fiscal year-end.

(In thousands)	2015			2014
Change in benefit obligation
Benefit obligation at beginning of year	$	21,972		$	16,448
Service cost	803			504
Interest cost	816			735
Benefits paid	(1,009		)	(1,280		)
Actuarial (gain)/loss	(1,698		)	5,565
Benefit obligation at end of year	$	20,884		$	21,972
Change in plan assets
Fair value at beginning of year	$	—		$	—
Actual return on assets	—			—
Employer contribution	1,009			1,280
Transferred out	—			—
Benefits paid	(1,009		)	(1,280		)
Fair value at end of year	$	—		$	—
Funded Status of Plan	$	(20,884	)	$	(21,972	)
Amounts recognized in the Statement of Financial Position consist of:
Current liabilities	$	1,014		$	1,004
Noncurrent liabilities	$	19,870		$	20,968
Amounts recognized in Accumulated Other Comprehensive Income (before tax) consist of:
Actuarial (gain)/loss	$	2,730		$	4,665
Transition (asset)/obligation	—			—
Prior service cost	—			—
	$	2,730		$	4,665
Change in Accumulated Other Comprehensive Income (before tax):
Amount disclosed at beginning of year	$	4,665		$	(900	)
Actuarial (gain)/loss	(1,698		)	5,565
Amortization of actuarial gain or loss				—
Amortization of transition amount	(237		)	—
Amortization of prior service cost				—
Amount disclosed at end of year	$	2,730		$	4,665

Estimated Future Benefit Payments (In thousands)
Fiscal 2016	$	1,014
Fiscal 2017	1,020
Fiscal 2018	1,018
Fiscal 2019	1,042
Fiscal 2020	1,076
Fiscal 2021 – 2025	6,375
Expected Contributions During Fiscal 2016
Total	$	1,014

The discount rates at fiscal year-end 2015, 2014 and 2013, were 4.2%, 3.8% and 4.6%, respectively.  The Corporation's payment for these benefits has reached the maximum amounts per the plan; therefore, healthcare trend rates have no impact on the Corporation’s cost.  There were no funds designated as plan assets.

Components of Net Periodic Postretirement Benefit Cost (in thousands)	2016
Service cost	$	735
Interest cost	846
Amortization of net (gain)/loss	62
Net periodic postretirement benefit cost/(income)	$	1,643

A discount rate of 4.2% was used to determine net periodic benefit cost for 2016.  The discount rate is set at the measurement date to reflect the yield of a portfolio of high quality, fixed income debt instruments.  There are no plan assets invested.