Retirement Plans and Postretirement Costs (Tables)

12 Months Ended

Jul. 01, 2018

Compensation And Retirement Disclosure [Abstract]

Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax

Amounts included in accumulated other comprehensive loss, net of tax, at July 1, 2018, which have not yet been recognized in net periodic benefit cost were as follows (thousands of dollars):

	Pension and SERP		Postretirement
Prior service credit	$	—	$	(294	)
Net actuarial loss		16,515		1,927
	$	16,515	$	1,633

Amounts Included in Accumulated Other Comprehensive Loss Expected to be Recognized, Net of Tax

Prior service cost (credit) and unrecognized net actuarial losses included in accumulated other comprehensive loss at July 1, 2018 which are expected to be recognized in net periodic benefit cost (credit) in fiscal 2019, net of tax, for the pension, SERP and postretirement plans are as follows (thousands of dollars):

	Pension and SERP		Postretirement
Prior service credit	$	—	$	(336	)
Net actuarial loss		1,272		329
	$	1,272	$	(7	)

Summary of Pension Supplemental Executive Retirement Plan and Postretirement Plans Income and Expense

The following tables summarize the pension, SERP and postretirement plans’ income and expense, funded status and actuarial assumptions for the years indicated (thousands of dollars). We use a June 30 measurement date for our pension and postretirement plans.

	Pension and SERP Benefits									Postretirement Benefits
	Years Ended									Years Ended
	July 1, 2018			July 2, 2017			July 3, 2016			July 1, 2018			July 2, 2017			July 3, 2016
COMPONENTS OF NET PERIODIC BENEFIT COST (CREDIT):
Service cost	$	66		$	54		$	50		$	13		$	13		$	12
Interest cost		3,857			3,926			4,387			45			55			87
Expected return on plan assets		(6,111	)		(5,854	)		(5,509	)		—			—			—
Amortization of prior service cost (credit)		12			11			11			(764	)		(764	)		(764	)
Amortization of unrecognized net loss		2,035			3,228			2,443			479			538			616
Net periodic benefit cost (credit)	$	(141	)	$	1,365		$	1,382		$	(227	)	$	(158	)	$	(49	)

	Pension and SERP Benefits						Postretirement Benefits
	2018			2017			2018			2017
WEIGHTED-AVERAGE ASSUMPTIONS:
Benefit Obligations:
Discount rate		4.30	%		3.91	%		4.30	%		3.91	%
Rate of compensation increases - SERP		3.0	%		3.0	%	n/a			n/a
Net Periodic Benefit Cost:
Discount rate		3.91	%		3.79	%		3.91	%		3.79	%
Expected return on plan assets		5.45	%		5.45	%	n/a			n/a
Rate of compensation increases - SERP		3.0	%		3.0	%	n/a			n/a
CHANGE IN PROJECTED BENEFIT OBLIGATION:
Benefit obligation at beginning of year	$	101,266		$	106,152		$	1,268		$	1,602
Service cost		66			54			13			13
Interest cost		3,857			3,926			45			55
Actuarial gain		(1,392	)		(4,342	)		(8	)		(80	)
Benefits paid		(4,962	)		(4,524	)		(277	)		(322	)
Benefit obligation at end of year	$	98,835		$	101,266		$	1,041		$	1,268
CHANGE IN PLAN ASSETS:
Fair value of plan assets at beginning of year	$	112,524		$	104,460		$	—		$	—
Actual return on plan assets		3,890			7,574			—			—
Employer contribution		14			5,014			277			322
Benefits paid		(4,962	)		(4,524	)		(277	)		(322	)
Fair value of plan assets at end of year	$	111,466		$	112,524		$	—		$	—
Funded status – prepaid (accrued) benefit obligations	$	12,631		$	11,258		$	(1,041	)	$	(1,268	)
AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS:
Other long-term assets	$	14,547		$	13,082		$	—		$	—
Accrued payroll and benefits (current liabilities)		(363	)		(332	)		(215	)		(265	)
Accrued benefit obligations (long-term liabilities)		(1,553	)		(1,492	)		(826	)		(1,003	)
Net amount recognized	$	12,631		$	11,258		$	(1,041	)	$	(1,268	)
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME:
Net periodic benefit (credit) cost	$	(141	)	$	1,365		$	(227	)	$	(158	)
Net actuarial loss (gain)		828			(6,063	)		(8	)		(80	)
Amortization of prior service (cost) credits		(12	)		(11	)		764			764
Amortization of unrecognized net loss		(2,035	)		(3,228	)		(479	)		(538	)
Total recognized in other comprehensive (income) loss, before tax		(1,219	)		(9,302	)		277			146
Total recognized in net periodic benefit cost and other comprehensive (income) loss, before tax	$	(1,360	)	$	(7,937	)	$	50		$	(12	)

The Accumulated Benefit Obligations and Projected Benefit Obligations for the Pension and SERP

The following table summarizes the accumulated benefit obligations and projected benefit obligations for the pension and SERP (thousands of dollars):

	Pension				SERP
	July 1, 2018		July 2, 2017		July 1, 2018		July 2, 2017
Accumulated benefit obligation	$	96,919	$	99,442	$	1,749	$	1,591
Projected benefit obligation	$	96,919	$	99,442	$	1,916	$	1,824

Minimal Effect of Health Care Trend on our Postretirement Benefit

The health care cost trend assumption has a minimal effect on our postretirement benefit amounts reported. A 1% change in the health care cost trend rates would have the following effects (thousands of dollars):

1% Increase

1% Decrease

Effect on total of service and interest cost components

in fiscal 2018

—

Effect on postretirement benefit obligation as of

July 1, 2018

)

Schedule of Asset Allocations of Pension Plan

The pension plan weighted-average asset allocations by asset category were as follows for 2018 and 2017:

	Target Allocation			July 1, 2018			July 2, 2017
Equity investments	0-50%				13	%		38	%
Fixed-income investments / cash	50-100				87			62
Total		100	%		100	%		100	%

The following is a summary, by asset category, of the fair value of pension plan assets at the June 30, 2018 and June 30, 2017 measurement dates (thousands of dollars):

	June 30, 2018								June 30, 2017
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	—	$	7,617	$	—	$	7,617	$	—	$	7,233	$	—	$	7,233
Equity securities/funds:
Small cap		—		—		—		—		1,008		—		—		1,008
Mid cap		4,953		—		—		4,953		12,414		—		—		12,414
Large cap		4,945		—		—		4,945		19,961		—		—		19,961
International		4,443		—		—		4,443		8,941		—		—		8,941
Fixed income: Bond funds/bonds		—		89,508		—		89,508		5,718		57,249		—		62,967
Total	$	14,341	$	97,125	$	—	$	111,466	$	48,042	$	64,482	$	—	$	112,524

Expected Future Benefit Payments

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid during the fiscal years noted below (thousands of dollars):

	Pension and SERP Benefits		Postretirement Benefits
2019	$	5,719	$	215
2020	$	5,760	$	163
2021	$	6,360	$	146
2022	$	6,411	$	135
2023	$	6,136	$	108
2024-2028	$	31,401	$	254

Schedule of 401(k) Plan Contribution

Our contributions to the 401(k) Plan were as follows (thousands of dollars):

	Years Ended
	July 1, 2018		July 2, 2017		July 3, 2016
Company contributions	$	1,793	$	1,805	$	1,783