14. POST-RETIREMENT PLANS

The following summarizes the company’s balance sheet related pension and other post-retirement benefit plan accounts at October 8, 2016 as compared to accounts at January 2, 2016 (amounts in thousands):

	October 8, 2016		January 2, 2016
Current benefit liability	$	1,118	$	1,118
Noncurrent benefit liability	$	127,878	$	76,541
Accumulated other comprehensive loss, net of tax	$	117,732	$	86,610

Defined Benefit Plans and Nonqualified Plan

The company amended our qualified defined benefit plans in October 2015 to allow pension plan participants not yet receiving benefit payments the option to elect to receive their benefit as a single lump sum payment. This amendment was effective as of January 1, 2016. This change supports our long-term pension risk management strategy.

Settlement accounting, which accelerates recognition of a plan’s unrecognized net gain or loss, is triggered if the lump sums paid during a year exceeds the sum of the plan’s service and interest cost. Since the lump sums paid or expected to be paid in 2016 exceed that threshold, the company recognized a settlement charge of $4.6 million in the second quarter. The company recognized a settlement charge of $1.8 million in the third quarter. An additional settlement charge may be recognized in the fourth quarter. The amount of the charge will depend on the amount settled and the plan’s unrecognized net gain or loss at the end of the fourth quarter.

The company used a measurement date of December 31, 2015 for the defined benefit and post-retirement benefit plans described below (excluding Plan No. 1 which has a measurement date of September 30, 2016 due to the settlement). We believe that the difference in the fair value of plan assets between the measurement date of December 31, 2015 and our fiscal year end date of January 2, 2016 was not material and that for practical purposes the measurement date of December 31, 2015 was used throughout for preparation of our financial statements. The increase in the actuarial loss from January 2, 2016 to October 8, 2016 is primarily due to a decrease in the discount rate used to measure the obligation at the time of re-measurement, which resulted in an increase to the noncurrent benefit liability above.

The company voluntarily contributed $1.0 million to our qualified pension plans during our third quarter. We do not anticipate making additional contributions to our qualified pension plans during the remainder of fiscal 2016.

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 Forty Weeks Ended
	October 8, 2016			October 10, 2015			October 8, 2016			October 10, 2015
Service cost	$	192		$	201		$	639		$	671
Interest cost		3,140			4,155			10,557			13,849
Expected return on plan assets		(6,325	)		(6,840	)		(20,394	)		(22,801	)
Settlement loss		1,832			—			6,473			—
Amortization of prior service cost		96			—			291			—
Amortization of net loss		2,175			1,149			5,128			3,830
Total net periodic benefit (income) cost	$	1,110		$	(1,335	)	$	2,694		$	(4,451	)

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 Forty Weeks Ended
	October 8, 2016			October 10, 2015			October 8, 2016			October 10, 2015
Service cost	$	93		$	92		$	308		$	307
Interest cost		71			83			237			277
Amortization of prior service credit		(49	)		(108	)		(163	)		(361	)
Amortization of net gain		(105	)		(135	)		(349	)		(449	)
Total net periodic benefit (income) cost	$	10		$	(68	)	$	33		$	(226	)

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 forty weeks ended October 8, 2016 and October 10, 2015, the total cost and employer contributions were $22.3 million and $20.5 million, respectively. During the twelve weeks ended October 8, 2016 and October 10, 2015, the total cost and employer contributions were $6.5 million and $6.0 million, respectively.

The company acquired DKB and Alpine during fiscal 2015, at the time of each acquisition we assumed sponsorship of a 401(k) savings plan. We merged these two plans into the Flowers Foods 401(k) Retirement Savings Plan during the forty weeks ended October 8, 2016.