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Postretirement Plans | 4 Months Ended
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Apr. 18, 2020
Compensation And Retirement Disclosure [Abstract] |
Postretirement Plans | 17. POSTRETIREMENT PLANS The following summarizes the company’s balance sheet related pension and other postretirement benefit plan accounts at April 18, 2020 compared to accounts at December 28, 2019 (amounts in thousands):
|  | April 18, 2020 |  |  | December 28, 2019 |
Current liability |  | $ | 926 |  |  | $ | 29,380 |
Noncurrent liability |  | $ | 14,344 |  |  | $ | 14,328 |
Accumulated other comprehensive loss, net of tax |  | $ | 4,112 |  |  | $ | 107,678 |
Defined Benefit Plans and Nonqualified Plan On September 28, 2018, the Board of Directors approved a resolution to terminate the Flowers Foods, Inc. Retirement Plan No. 1 (“Plan No. 1”), effective December 31, 2018. During the third quarter of fiscal 2019, the company offered Plan No. 1 participants the option to receive an annuity purchased from an insurance carrier or a lump sum cash payment. During the first quarter of fiscal 2020, the company transferred $6.4 million in cash to Plan No. 1 to ensure that sufficient assets were available for the lump sum payments and annuity purchases. This was made up of a $1.4 million cash contribution and an unsecured, short-term, interest-free loan to Plan No. 1 of $5.0 million which has been fully reserved for and is expected to be unwound, at which time it will be converted to a contribution, by the end of the third quarter of fiscal 2020. Additionally, the company completed the transfer of all lump sum payments and transferred all remaining benefit obligations related to Plan No. 1 to a highly rated insurance company on March 4, 2020 in order to purchase a group annuity contract which began paying plan benefits on May 1, 2020. The company recognized $116.2 million of non-cash pension termination charges, made up of a settlement charge of $111.9 million and a curtailment loss of $4.3 million, in our Condensed Consolidated Statements of Income (Loss) during the first quarter of fiscal 2020. The company recognizes settlement accounting charges in years when lump sums paid during that year exceed the sum of the plan’s service and interest costs. Settlement accounting accelerates recognition of a plan’s unrecognized net gain or loss. There were no settlement charges recorded during the first quarter of fiscal 2019. The company continues to sponsor two remaining pension plans, the Flowers Foods, Inc. Retirement Plan No. 2 (“Plan No. 2), and the Tasty Baking Company Supplemental Executive Retirement Plan (“Tasty SERP”). The Tasty SERP is frozen and has only retirees and beneficiaries remaining in the plan. The company used a measurement date of December 31, 2019 for the defined benefit and postretirement benefit plans described below. The company contributed $1.4 million during our first quarter of fiscal 2020 to Plan No. 1 in connection with the termination of Plan No. 1, as described above. There were no contributions made by the company to any plan during the first quarter of fiscal 2019. We expect to contribute $2.5 million during the third quarter of fiscal 2020 to Plan No. 2. Additionally, in March 2020, the company provided a short-term, interest-free loan to Plan No. 1 of $5.0 million. The loan has been fully reserved for and is expected to be unwound, at which time it will be converted to a contribution, by the end of the third quarter of fiscal 2020. There was no net impact to either the Condensed Consolidated Balance Sheet or Condensed Consolidated Statements of Income (Loss) on April 18, 2020 as a result of the interest-free loan. This loan provides Plan No. 1 with incremental liquidity to pay ongoing benefits and administrative costs. The entire principal amount of this loan is due by December 31, 2020. The loan is unsecured, and the company has no recourse against Plan No. 1 to demand prepayment. The net periodic pension cost for the company’s plans include the following components (amounts in thousands):
|  | For the Sixteen Weeks Ended |
|  | April 18, 2020 |  |  | April 20, 2019 |
Service cost |  | $ | 265 |  |  | $ | 216 |
Interest cost |  |  | 1,423 |  |  |  | 3,671 |
Expected return on plan assets |  |  | (2,689 | ) |  |  | (5,276 | )
Settlement and curtailment loss |  |  | 116,207 |  |  |  | — |
Amortization of prior service cost |  |  | 75 |  |  |  | 119 |
Amortization of net loss |  |  | 1,367 |  |  |  | 2,184 |
Total net periodic pension cost |  | $ | 116,648 |  |  | $ | 914 |
The components of net periodic benefit cost other than the service cost are included in the other components of net periodic pension and postretirement benefits expense line item on our Condensed Consolidated Statements of Income (Loss). Postretirement 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 postretirement expense for the company includes the following components (amounts in thousands):
|  | For the Sixteen Weeks Ended |
|  | April 18, 2020 |  |  | April 20, 2019 |
Service cost |  | $ | 87 |  |  | $ | 87 |
Interest cost |  |  | 60 |  |  |  | 91 |
Amortization of prior service credit |  |  | (1 | ) |  |  | (13 | )
Amortization of net gain |  |  | (92 | ) |  |  | (85 | )
Total net periodic postretirement cost |  | $ | 54 |  |  | $ | 80 |
The components of net periodic postretirement benefits cost other than the service cost are included in the other components of net periodic pension and postretirement benefits expense line item on our Condensed Consolidated Statements of Income (Loss). 401(k) Retirement Savings Plan The Flowers Foods, Inc. 401(k) Retirement Savings Plan (“401(k) plan”) covers substantially all the company’s employees who have completed certain service requirements. During sixteen weeks ended April 18, 2020 and April 20, 2019 the total cost and employer contributions were $8.6 million and $8.5 million, respectively.

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