Pension and retirement plan

9 Months Ended

Apr. 02, 2016

Pension and retirement plan

Pension and retirement plans

8. Pension plan

The Company has a noncontributory defined benefit pension plan (the “Plan”) for which the components of net periodic pension costs were as follows:

	Third Quarters Ended				Nine Months Ended
	April 2,		March 28,		April 2,		March 28,
	2016		2015		2016		2015
	(Thousands)
Service cost	$	9,935	$	9,873	$	30,356	$	29,619
Interest cost		5,328		4,449		15,984		13,347
Expected return on plan assets		(10,071)		(9,055)		(30,213)		(27,165)
Recognized net actuarial loss		3,183		3,251		9,549		9,753
Amortization of prior service credits		(393)		(393)		(1,179)		(1,179)
Net periodic pension cost	$	7,982	$	8,125	$	24,497	$	24,375

The Company made contributions to the Plan of $30.0 million during the first nine months of fiscal 2016. The Company expects to make an additional contribution to the Plan of $10.0 million in the fourth quarter of fiscal 2016.

The Plan meets the definition of a defined benefit plan and as a result, the Company must apply ASC 715 pension accounting to the Plan. The Plan itself, however, is a cash balance plan that is similar in nature to a defined contribution plan in that a participant's benefit is defined in terms of a stated account balance. A cash balance plan provides the Company with the benefit of applying any earnings on the Plan’s investments beyond the fixed return provided to participants, toward the Company’s future cash funding obligations.

Amounts reclassified out of accumulated other comprehensive income (loss), net of tax, to operating expenses during the third quarters and first nine months of fiscal 2016 and fiscal 2015 were not material and substantially all related to net periodic pension costs including recognition of actuarial losses and amortization of prior service credits.