9. Employee Benefit Plans

We maintain three retirement plans for the benefit of certain former and current employees, including a supplemental retirement income plan (“SRIP”) for certain former and current employees of Hooker Furniture Corporation, as well as two plans for the benefit of certain and former employees of Pulaski Furniture Corporation, one of two entities combined to form Home Meridian International. These legacy pension plan obligations include:

§	the Pulaski Furniture Corporation Supplemental Executive Retirement Plan (“SERP”) for certain former executives. The SERP is an unfunded plan and all benefits are paid solely out of our general assets; and

§	the Pulaski Furniture Corporation Pension Plan (the “Pension Plan”) for former Pulaski Furniture Corporation employees.

The SRIP, SERP and Pension Plan are all “frozen” and we do not expect to add additional participants to any of these plans in the future. Pension Plan assets include a range of mutual fund asset classes and are measured at fair value using Level 1 inputs, which are quoted prices in active markets.

	Thirteen Weeks Ended
	April 29,			April 30,
	2018			2017
Net periodic benefit costs
Service cost		82			76
Interest cost		207			280
Actuarial loss		43			15
Expected return on pension plan assets		(144	)		(234	)
Expected administrative expenses		70			70

Consolidated net periodic benefit costs	$	257		$	207

We adopted ASU 2017-07 as of the beginning of our 2019 fiscal year on January 29, 2018. Components of net periodic benefit cost other than the Service cost for the SRIP, SERP and the Pension Plan are included in the line item “Other income, net” in our condensed consolidated statements of income. Service cost is included in our condensed consolidated statements of income under selling and administrative expenses. The adoption resulted in the reclassification of $131,000 in expense from Selling and administrative expenses to Other income, net in our fiscal 2018 first quarter condensed consolidated statements of income.

The expected long-term rate of return on Pension Plan assets is 6.9% as of the Pension Plan’s most recent valuation date of January 28, 2018.

We contributed $110,000 in required contributions to the Pension Plan in the fiscal 2019 first quarter and expect to contribute an additional total of $584,000 in required contributions to the Pension Plan during fiscal 2019. The SRIP and SERP plans are unfunded plans. Consequently, we expect to pay a total of approximately $524,000 in benefit payments from our general assets during the remainder of fiscal 2019 to fund SRIP and SERP payments.