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Post-Retirement Plans | 9 Months Ended
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Oct. 07, 2017
Compensation And Retirement Disclosure [Abstract] |
Post-Retirement Plans | 15. POST-RETIREMENT PLANS The following summarizes the company’s balance sheet related pension and other post-retirement benefit plan accounts at October 7, 2017 as compared to accounts at December 31, 2016 (amounts in thousands):
|  | October 7, 2017 |  |  | December 31, 2016 |
Current liability |  | $ | 979 |  |  | $ | 979 |
Noncurrent liability |  | $ | 63,532 |  |  | $ | 69,601 |
Accumulated other comprehensive loss, net of tax |  | $ | 80,275 |  |  | $ | 82,222 |
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 2017 exceed that threshold, the company recognized a settlement charge of $3.0 million in the third quarter of fiscal 2017. An additional settlement charge will be recognized in the fourth quarter of fiscal 2017. The amount of those charges will depend on the amount settled and the plan’s unrecognized net gain or loss at the end of each quarter. The lump sum settlement charge during the third quarter of fiscal 2017 related to the VSIP was immaterial; however, there will be a lump sum settlement charge related to the VSIP during the fourth quarter of fiscal 2017. The company used a measurement date of December 31, 2016 for the defined benefit and post-retirement benefit plans described below (excluding Plan No. 1, which has a measurement date of September 30, 2017 due to the settlement). The decrease in the actuarial loss from December 31, 2016 to October 7, 2017 is primarily due to better than expected asset returns during fiscal 2017 offset slightly by a decrease in the discount rate reflected in the re-measurement. This resulted in the decrease to the noncurrent liability in the table above. The company voluntarily contributed $1.6 million to one of 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 2017. 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 7, 2017 |  |  | October 8, 2016 |  |  | October 7, 2017 |  |  | October 8, 2016 |
Service cost |  | $ | 174 |  |  | $ | 192 |  |  | $ | 581 |  |  | $ | 639 |
Interest cost |  |  | 2,779 |  |  |  | 3,140 |  |  |  | 9,792 |  |  |  | 10,557 |
Expected return on plan assets |  |  | (5,437 | ) |  |  | (6,325 | ) |  |  | (19,191 | ) |  |  | (20,394 | )
Settlement loss |  |  | 3,030 |  |  |  | 1,832 |  |  |  | 3,030 |  |  |  | 6,473 |
Amortization of prior service cost |  |  | 83 |  |  |  | 96 |  |  |  | 291 |  |  |  | 291 |
Amortization of net loss |  |  | 1,365 |  |  |  | 2,175 |  |  |  | 4,792 |  |  |  | 5,128 |
Total net periodic pension cost (income) |  | $ | 1,994 |  |  | $ | 1,110 |  |  | $ | (705 | ) |  | $ | 2,694 |
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 7, 2017 |  |  | October 8, 2016 |  |  | October 7, 2017 |  |  | October 8, 2016 |
Service cost |  | $ | 59 |  |  | $ | 93 |  |  | $ | 197 |  |  | $ | 308 |
Interest cost |  |  | 52 |  |  |  | 71 |  |  |  | 174 |  |  |  | 237 |
Amortization of prior service credit |  |  | (49 | ) |  |  | (49 | ) |  |  | (163 | ) |  |  | (163 | )
Amortization of net gain |  |  | (114 | ) |  |  | (105 | ) |  |  | (383 | ) |  |  | (349 | )
Total net periodic post-retirement (income) cost |  | $ | (52 | ) |  | $ | 10 |  |  | $ | (175 | ) |  | $ | 33 |
401(k) Retirement Savings Plan The Flowers Foods, Inc. 401(k) Retirement Savings Plan (“401(k) plan”) covers substantially all of the company’s employees who have completed certain service requirements. During the twelve weeks ended October 7, 2017 and October 8, 2016, the total cost and employer contributions were $6.5 million and $6.4 million, respectively. During the forty weeks ended October 7, 2017 and October 8, 2016, the total cost and employer contributions were $22.0 million and $21.2 million, respectively. The company acquired Dave’s Killer Bread and Alpine Valley Bread Company 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 401(k) plan on April 1, 2016. Multi-employer Pension Plan On August 18, 2017, the union participants of the Bakery and Confectionary Union and Industry International Pension Fund (the “Fund”) at our Lakeland, Florida plant voted to withdraw from the Fund in the most recent collective bargaining agreement. The withdrawal will be effective, and the union participants will be eligible to participate in the 401(k) plan, on November 1, 2017. During the twelve weeks ended October 7, 2017, the company recorded a liability of $15.2 million related to the withdrawal from the Fund. The withdrawal liability was computed as the net present value of 20 years of monthly payments derived from the company’s share of unfunded vested benefits. While this is our best estimate of the ultimate cost of the withdrawal from this Fund, additional withdrawal liability may be incurred based on the final fund assessment or in the event of a mass withdrawal, as defined by statute, occurring anytime within the next three years following our complete withdrawal. Transition payments, including related tax payments, were made on November 3, 2017 to, and for the benefit of, union participants as part of the collective bargaining agreement. An additional $3.1 million was recorded for these transition payments. The withdrawal liability charge and the transition payments are recorded in the multi-employer pension plan withdrawal costs line item on our Condensed Consolidated Statements of Operations and are in the DSD Segment. The liability is recorded in other accrued current liabilities on the Condensed Consolidated Balance Sheets.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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