Retirement Plans and Postretirement Costs (Tables)

12 Months Ended

Jun. 29, 2014

Amounts Included in Accumulated Other Comprehensive Loss, Net of Tax

Amounts included in accumulated other comprehensive loss, net of tax, at June 29, 2014, which have not yet been recognized in net periodic benefit cost are as follows (thousands of dollars):

	Pension and SERP		Postretirement
Prior service cost (credit)	$	28	$	(2,184	)
Net actuarial loss		15,232		3,711
	$	15,260	$	1,527

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 June 29, 2014 which are expected to be recognized in net periodic benefit cost in fiscal 2015, net of tax, for the pension, SERP and postretirement plans are as follows (thousands of dollars):

	Pension and SERP		Postretirement
Prior service cost (credit)	$	7	$	(481	)
Net actuarial loss		1,748		437
	$	1,755	$	(44	)

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
	June 29, 2014			June 30, 2013			July 1, 2012			June 29, 2014			June 30, 2013			July 1, 2012
COMPONENTS OF NET PERIODIC BENEFIT COST:
Service cost	$	217		$	216		$	150		$	15		$	15		$	11
Interest cost		4,407			4,447			4,784			157			181			227
Expected return on plan assets		(6,442	)		(6,126	)		(6,411	)		—			—			—
Amortization of prior service cost (credit)		12			12			12			(764	)		(764	)		(764	)
Amortization of unrecognized net loss		2,665			4,453			2,414			847			898			673
Settlement loss		—			2,144			—			—			—			—
Net periodic benefit cost	$	859		$	5,146		$	949		$	255		$	330		$	147

	Pension and SERP Benefits						Postretirement Benefits
	2014			2013			2014			2013
WEIGHTED-AVERAGE ASSUMPTIONS
Benefit Obligations:
Discount rate		4.39	%		5.02	%		4.39	%		5.02	%
Rate of compensation increases—SERP		3.0	%		3.0	%		n/a			n/a
Net Periodic Benefit Cost:
Discount rate		5.02	%		4.56	%		5.02	%		4.56	%
Expected return on plan assets		7.5	%		7.5	%		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	$	89,915		$	103,383		$	3,540		$	4,475
Service cost		217			216			15			15
Interest cost		4,407			4,447			157			181
Plan Amendments		(3	)		—			—			—
Actuarial (gain) loss		7,030			(8,381	)		(112	)		239
Benefits paid		(4,121	)		(9,750	)		(671	)		(1,370	)
Benefit obligation at end of year	$	97,445		$	89,915		$	2,929		$	3,540
CHANGE IN PLAN ASSETS:
Fair value of plan assets at beginning of year	$	90,434		$	79,517		$	—		$	—
Actual return on plan assets		14,021			11,914			—			—
Employer contribution		4,006			8,753			671			1,370
Benefits paid		(4,121	)		(9,750	)		(671	)		(1,370	)
Fair value of plan assets at end of year	$	104,340		$	90,434		$	—		$	—
Funded status – prepaid (accrued) benefit obligations	$	6,895		$	519		$	(2,929	)	$	(3,540	)
AMOUNTS RECOGNIZED IN CONSOLIDATED BALANCE SHEETS:
Other long-term assets	$	8,768		$	1,983		$	—		$	—
Accrued payroll and benefits (current liabilities)		(254	)		—			(706	)		(823	)
Accrued benefit obligations (long-term liabilities)		(1,619	)		(1,464	)		(2,223	)		(2,717	)
Net amount recognized	$	6,895		$	519		$	(2,929	)	$	(3,540	)
CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME:
Net periodic benefit cost	$	859		$	5,146		$	255		$	330
Net actuarial (gain) loss		(550	)		(14,170	)		(112	)		238
Prior service cost		(3	)		—			—			—
Amortization of prior service (cost) credits		(12	)		(12	)		764			764
Amortization of unrecognized net loss		(2,665	)		(6,597	)		(847	)		(898	)
Total recognized in other comprehensive income, before tax		(3,230	)		(20,779	)		(195	)		104
Total recognized in net periodic benefit cost and other comprehensive income	$	(2,371	)	$	(15,633	)	$	60		$	434

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) for 2014 and 2013:

	Pension				SERP
	June 29, 2014		June 30, 2013		June 29, 2014		June 30, 2013
Accumulated benefit obligation	$	95,573	$	88,451	$	1,422	$	1,020
Projected benefit obligation	$	95,573	$	88,451	$	1,872	$	1,464

Significant Effect of Health Care Trend on the Postretirement Benefit

The health care cost trend assumption has a significant effect on the 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 2014	$	2	$	(2	)
Effect on postretirement benefit obligation as of June 29, 2014	$	41	$	(40	)

Pension Plan Weighted-Average Asset Allocations by Asset Category

The pension plan weighted-average asset allocations by asset category were as follows for 2014 and 2013:

	Target Allocation			June 29, 2014			June 30, 2013
Equity investments		50	%		43	%		64	%
Fixed-income Investments		50			26			25
Cash		—			26			5
Other		—			5			6
Total		100	%		100	%		100	%

Summary, by Asset Category, of the Fair Value of Pension Plan Assets

The following is a summary, by asset category, of the fair value of pension plan assets at the June 30, 2014 and June 30, 2013 measurement dates (thousands of dollars):

	June 30, 2014								June 30, 2013
Asset Category	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	—	$	27,736	$	—	$	27,736	$	—	$	4,572	$	—	$	4,572
Equity Securities/Funds:
Small Cap		—		—		—		—		13,681		—		—		13,681
Mid Cap		10,866		—		—		10,866		9,048		—		—		9,048
Large Cap		21,920		—		—		21,920		18,039		—		—		18,039
International		11,728		—		—		11,728		17,600		—		—		17,600
Fixed Income Bond Funds/Bonds		4,884		21,771		—		26,655		1,024		21,383		—		22,407
Hedge Funds		—		—		5,435		5,435		—		—		5,087		5,087
Total	$	49,398	$	49,507	$	5,435	$	104,340	$	59,392	$	25,955	$	5,087	$	90,434

Changes in Level 3 Investments for the Pension Plan Assets

The following table summarizes the changes in Level 3 investments for the pension plan assets (thousands of dollars):

						Realized and
	Fair Value		Net Purchases			Unrealized		Fair Value
	June 30, 2013		and Sales			Gain, net		June 30, 2014
Hedge Funds	$	5,087	$	(111	)	$	459	$	5,435

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
2015	$	4,856	$	706
2016	$	5,119	$	586
2017	$	5,110	$	483
2018	$	5,342	$	391
2019	$	5,707	$	285
2020-2024	$	30,938	$	645

Schedule of 401(k) Plan Contribution

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

	2014		2013		2012
Company Contributions	$	1,605	$	1,464	$	1,370