10. PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company sponsors programs that provide retirement benefits to most of its employees. These programs include qualified defined benefit pension plans, nonqualified defined benefit retirement plans, a defined benefit postretirement life insurance plan and defined contribution retirement savings plans. Expenses recognized under all of these retirement plans in the thirteen weeks ended June 30, 2013 and June 24, 2012 totaled $1.9 million and $2.1 million, respectively. Expenses recognized under all of these retirement plans in the twenty-six weeks ended June 30, 2013 and June 24, 2012 totaled $3.8 million and $4.0 million, respectively.

Net defined benefit pension and other postretirement costs included the following components:

	Thirteen Weeks Ended											Twenty-Six Weeks Ended
	June 30, 2013					June 24, 2012						June 30, 2013					June 24, 2012
	Pension			Other		Pension			Other			Pension			Other		Pension			Other
	Benefits			Benefits		Benefits			Benefits			Benefits			Benefits		Benefits			Benefits
	(In thousands)
Service cost	$	10		$	-	$	13		$	-		$	20		$	-	$	25		$	-
Interest cost		1,989			19		2,028			23			3,977			39		4,057			47
Estimated return on
plan assets		(1,350	)		-		(1,436	)		-			(2,699	)		-		(2,871	)		-
Amortization of net
loss (gain)		251			-		416			(1	)		501			-		831			(1	)
Net costs	$	900		$	19	$	1,021		$	22		$	1,799		$	39	$	2,042		$	46

During the thirteen and twenty-six weeks ended June 30, 2013, the Company contributed $2.8 million and $3.1 million, respectively, to its defined benefit plans.

The Company remeasures both plan assets and obligations on a quarterly basis. The fair value of plan assets increased from $92.3 million at December 30, 2012 to $99.9 million at June 30, 2013 because of better than expected returns on the invested assets. Projected benefit obligation decreased from $196.4 million at December 30, 2012 to $167.0 million at June 30, 2013 because of an increase of 0.8 percentage points in the discount rate used to calculate the present value of the obligation.

The Company and certain retirement plans that it sponsors invest in a variety of financial instruments. Certain postretirement funds in which the Company participates hold significant amounts of mortgage-backed securities. However, none of the mortgages collateralizing these securities are considered subprime.