13. POST-RETIREMENT PLANS

The following summarizes the company’s balance sheet related pension and other post-retirement benefit plan accounts at July 18, 2015 as compared to accounts at January 3, 2015 (amounts in thousands):

	July 18, 2015		January 3, 2015
Current benefit liability	$	1,089	$	1,089
Noncurrent benefit liability	$	80,206	$	93,589
Accumulated other comprehensive loss, net of tax	$	85,312	$	86,612

Defined Benefit Plans and Nonqualified Plan

In September 2014, the company announced a one-time voluntary lump sum offer to approximately 2,500 former employees in Plan No. 1 and 2 who had not yet started monthly payment of their vested benefits. The offer supports the company’s pension risk management strategy and reduced plan obligations by 10%. Distributions of $48.4 million in lump sums from existing plan assets in December 2014 resulted in a settlement charge of $15.4 million for Plan No. 1 only in the fourth quarter of our fiscal 2014. No settlement charge was required for Plan No. 2 as distributions of $2.0 million were not in excess of service costs and interest costs for 2014.

The company used a measurement date of December 31, 2014 for the defined benefit and post-retirement benefit plans described below. We believe that the difference in the fair value of plan assets between the measurement date of December 31, 2014 and our fiscal year end date of January 3, 2015 was not material and that for practical purposes the measurement date of December 31, 2014 was used throughout for preparation of our financial statements.

During the twenty-eight weeks ended July 18, 2015 the company contributed $7.5 million to our qualified pension plans. We expect to contribute an additional $2.5 million during the remainder of fiscal 2015 to our qualified pension plans.

The net periodic pension cost (income) for the company’s plans include the following components (amounts in thousands):

	For the Twelve Weeks Ended						For the Twenty-Eight Weeks Ended
	July 18, 2015			July 12, 2014			July 18, 2015			July 12, 2014
Service cost	$	201		$	148		$	470		$	345
Interest cost		4,155			4,944			9,694			11,537
Expected return on plan assets		(6,840	)		(7,804	)		(15,961	)		(18,209	)
Amortization of net loss		1,149			444			2,681			1,036
Total net periodic benefit (income) cost	$	(1,335	)	$	(2,268	)	$	(3,116	)	$	(5,291	)

Post-retirement Benefit Plan

The company provides certain medical and life insurance benefits for eligible retired employees covered under the active medical plans. The plan incorporates an up-front deductible, coinsurance payments and retiree contributions at various premium levels. Eligibility and maximum period of coverage is based on age and length of service.

The net periodic post-retirement benefit (income) cost for the company includes the following components (amounts in thousands):

	For the Twelve Weeks Ended						For the Twenty-Eight Weeks Ended
	July 18, 2015			July 12, 2014			July 18, 2015			July 12, 2014
Service cost	$	93		$	87		$	215		$	203
Interest cost		82			103			194			240
Amortization of prior service (credit) cost		(108	)		(108	)		(252	)		(252	)
Amortization of net (gain) loss		(135	)		(133	)		(315	)		(311	)
Total net periodic benefit (income) cost	$	(68	)	$	(51	)	$	(158	)	$	(120	)

401(k) Retirement Savings Plan

The Flowers Foods 401(k) Retirement Savings Plan covers substantially all of the company’s employees who have completed certain service requirements. During the twenty-eight weeks ended July 18, 2015 and July 12, 2014, the total cost and employer contributions were $14.5 million and $14.4 million, respectively.