PENSION PLANS

3 Months Ended

Jan. 01, 2021

Retirement Benefits [Abstract]

PENSION PLANS

PENSION PLANS

The Company has two non-contributory defined benefit pension plans covering certain of its U.S. employees. Retirement benefits are generally provided based on the employees’ years of service and average earnings. Normal retirement age is 65, with provisions for earlier retirement.

The Company made contributions of $43 and $44 to its pension plans for the three months ended January 1, 2021 and December 27, 2019, respectively.

During the first quarter of fiscal 2021, Company management commenced actions to terminate both of the pension plans. As part of the termination of these plans, all plan participants will have the option of taking a lump sum payment or receiving payout pursuant to an annuity contract. When the termination and related payouts occur, they are estimated to unfavorably impact net income by approximately $4 to $5 million.

The components of net periodic benefit cost related to Company sponsored defined benefit plans for the three month periods ended January 1, 2021 and December 27, 2019 were as follows:

	Three Months Ended
	January 1, 2021		December 27, 2019
Components of net periodic benefit cost:
Service cost	$	—	$	—
Interest on projected benefit obligation	233		276
Less estimated return on plan assets	160		214
Amortization of unrecognized losses (gains)	134		82
Net periodic benefit cost	$	207	$	144