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EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Dec. 31, 2018
EMPLOYEE BENEFIT PLANS |
EMPLOYEE BENEFIT PLANS | NOTE 7—EMPLOYEE BENEFIT PLANS: Pension plans: The Company sponsors defined contribution pension plans covering certain non-union employees with over one year of credited service. The Company’s policy is to fund pension costs accrued based on compensation levels. Total pension expense for 2018, 2017 and 2016 approximated $2,988, $3,087 and $3,126, respectively. The Company also maintains certain profit sharing and retirement savings-investment plans. Company contributions in 2018, 2017 and 2016 to these plans were $2,734, $2,512 and $2,493 respectively. The Company also contributes to a multi-employer defined benefit pension plan for certain of its union employees under a collective bargaining agreement which is as follows: Plan name: Bakery and Confectionery Union and Industry International Pension Fund Employer Identification Number and plan number: 52-6118572, plan number 001 Funded Status as of the most recent year available: 54.70% funded as of January 1, 2017 The Company’s contributions to such plan: $2,836, $2,603 and $2,515 in 2018, 2017 and 2016, respectively Plan status: Critical and declining as of December 31, 2017 Beginning in 2012, the Company received periodic notices from the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union Pension Plan (Plan), a multi-employer defined benefit pension plan for certain Company union employees, that the Plan’s actuary certified the Plan to be in “critical status”, the “Red Zone”, as defined by the Pension Protection Act (PPA) and the Pension Benefit Guaranty Corporation (PBGC); and that a plan of rehabilitation was adopted by the trustees of the Plan in fourth quarter 2012. During second quarter 2015, the Company received new notices that the Plan is now in “critical and declining status”, as defined by the PPA and PBGC, for the plan year beginning January 1, 2015. A designation of “critical and declining status” implies that the Plan is expected to become insolvent in the next 20 years. In second quarter 2016, the Company received new notices that the Plan’s trustees adopted an updated Rehabilitation Plan effective January 1, 2016, and that the Plan remains in “critical and declining status” and is projected to become insolvent the year 2030. The Rehabilitation Plan was reviewed by the Trustees each year 2013 through 2017 and has been updated most recently effective November 30, 2017. The Company has been advised that its withdrawal liability would have been $81,600, $82,200 and $72,700 if it had withdrawn from the Plan during 2018, 2017 and 2016, respectively. Should the Company actually withdraw from the Plan at a future date, a withdrawal liability, which could be higher than the above discussed amounts, could be payable to the Plan. The amended rehabilitation plan, which continues, requires that employer contributions include 5% compounded annual surcharge increases each year for an unspecified period of time beginning January 2013 (in addition to the 5% interim surcharge initiated in June 2012) as well as certain plan benefit reductions. The Company’s pension expense for this Plan for 2018 and 2017 was $2,836 and $2,617, respectively. The aforementioned expense includes surcharges of $811 and $656 in 2018 and 2017, respectively, as required under the plan of rehabilitation as amended. The Company is currently unable to determine the ultimate outcome of the above discussed matter and therefore is unable to determine the effects on its consolidated financial statements, but the ultimate outcome or the effects of any modifications to the current rehabilitation plan could be material to its consolidated results of operations or cash flows in one or more future periods. Deferred compensation: The Company sponsors three deferred compensation plans for selected executives and other employees: (i) the Excess Benefit Plan, which restores retirement benefits lost due to IRS limitations on contributions to tax-qualified plans, (ii) the Supplemental Plan, which allows eligible employees to defer the receipt of eligible compensation until designated future dates and (iii) the Career Achievement Plan, which provides a deferred annual incentive award to selected executives. Participants in these plans earn a return on amounts due them based on several investment options, which mirror returns on underlying investments (primarily mutual funds). The Company economically hedges its obligations under the plans by investing in the actual underlying investments. These investments are classified as trading securities and are carried at fair value. At December 31, 2018 and 2017, these investments totaled $62,260 and $60,520, respectively. All gains and losses and related investment income from these investments, which are recorded in other income, net, are equally offset by corresponding increases and decreases in the Company’s deferred compensation liabilities. Postretirement health care benefit plans: The Company maintains a post-retirement health benefits plan for a group of “grandfathered” corporate employees. The plan as amended in 2013, generally limited future annual cost increases in health benefits to 3%, restricted this benefit to current employees and retirees with long-term service with the Company, and eliminated all post-retirement benefits for future employees effective April 1, 2014. Post-retirement benefits liabilities (as amended) were $12,451 and $13,497 at December 31, 2018 and 2017, respectively. Amounts recognized in accumulated other comprehensive loss (pre-tax) at December 31, 2018 are as follows:
Prior service credit |  | $ | (4,293)
Net actuarial gain |  |  | (2,025)
Net amount recognized in accumulated other comprehensive loss |  | $ | (6,318)
The estimated actuarial gain and prior service credit to be amortized from accumulated other comprehensive loss into net periodic benefit income during 2019 are $295 and $1,227, respectively. The changes in the accumulated postretirement benefit obligation at December 31, 2018 and 2017 consist of the following:
|  | December 31, |
|  | 2018 |  | 2017 |
Benefit obligation, beginning of year |  | $ | 13,497 |  | $ | 12,128 |
Service cost |  |  | 337 |  |  | 323 |
Interest cost |  |  | 455 |  |  | 468 |
Actuarial (gain)/loss |  |  | (1,409) |  |  | 897 |
Benefits paid |  |  | (429) |  |  | (319) |
Benefit obligation, end of year |  | $ | 12,451 |  | $ | 13,497 |
Net periodic postretirement benefit cost (income) included the following components:
|  | 2018 |  | 2017 |  | 2016 |
Service cost—benefits attributed to service during the period |  | $ | 337 |  | $ | 323 |  | $ | 331 |
Interest cost on the accumulated postretirement benefit obligation |  |  | 455 |  |  | 468 |  |  | 462 |
Net amortization |  |  | (1,324) |  |  | (1,462) |  |  | (1,642) |
Net periodic postretirement benefit cost (income) |  | $ | (532) |  | $ | (671) |  | $ | (849) |
The Company estimates future benefit payments will be $580, $598, $628, $659 and $693 in 2019 through 2023, respectively, and a total of $3,730 in 2024 through 2028.

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