Quarterly report pursuant to Section 13 or 15(d)

Pension and Other Postretirement Benefits

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Pension and Other Postretirement Benefits
 6 Months Ended
Jul. 04, 2015
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Pension and Other Postretirement Benefits
Note 13 – Pension and Other Postretirement Benefits

The Company has defined contribution plans, qualified and nonqualified defined benefit pension plans, and other postretirement benefit plans covering substantially all of its employees. The Company's contributions to its defined contribution plans include a match and an annual discretionary contribution and are based on various percentages of compensation, and in some instances are based on the amount of the employees' contributions to the plans. See Note 17 in the Notes to Consolidated Financial Statements in the 2014 Form 10-K for further details regarding these plans.
 
Pension and other postretirement benefit costs included the following components for the three months ended July 4, 2015 and June 28, 2014:
 
Pension Benefits
 
Other Postretirement Benefits
 
Three Months Ended
 
Three Months Ended
(in millions)
July 4,
2015
 
June 28,
2014
 
July 4,
2015
 
June 28,
2014
Service cost
$
—

 
$
—

 
$
—

 
$
—

Interest cost
12.1

 
14.6

 
0.4

 
0.5

Expected return on plan assets
(13.9
)
 
(14.7
)
 
—

 
—

Amortization of prior service credits
—

 
—

 
(0.1
)
 
(0.2
)
Amortization of net actuarial losses
4.8

 
3.8

 
0.3

 
—

Net pension and other benefit costs
$
3.0

 
$
3.7

 
$
0.6

 
$
0.3



Pension and other postretirement benefit costs included the following components for the six months ended July 4, 2015 and June 28, 2014:
 
Pension Benefits
 
Other Postretirement Benefits
 
Six Months Ended
 
Six Months Ended
(in millions)
July 4,
2015
 
June 28,
2014
 
July 4,
2015
 
June 28,
2014
Service cost
$
—

 
$
—

 
$
—

 
$
—

Interest cost
24.0

 
29.3

 
0.9

 
1.0

Expected return on plan assets
(27.8
)
 
(29.4
)
 
—

 
—

Amortization of prior service credits
—

 
—

 
(0.3
)
 
(0.4
)
Amortization of net actuarial losses
9.7

 
7.5

 
0.6

 
—

Net pension and other benefit costs
$
5.9

 
$
7.4

 
$
1.2

 
$
0.6



Portions of Net pension and other benefit costs are recorded in Selling, general and administrative expenses as well as capitalized into inventory. Costs capitalized into inventory are eventually realized through Cost of sales in the Condensed Consolidated Statements of Comprehensive Income.

During 2014, the Company initiated the process to offer lump sum payments to certain active pension plan participants, which is expected to be completed in November 2015. The Company expects to make approximately $70.0 million in payments from the plans in connection with this action and to incur an estimated settlement loss of $30.0 million to $35.0 million. However, since the final result of the offering is presently unknown, these amounts are subject to change.

Employer Contributions and Benefit Payments. During the six months ended July 4, 2015 and June 28, 2014, the Company contributed $1.8 million and $1.5 million, respectively, to fund benefit payments to its nonqualified pension plan. During the six months ended July 4, 2015 and June 28, 2014, the Company contributed $70.0 million and $17.3 million to its qualified pension plans, respectively. Company contributions are subject to change based on market conditions, pension funding regulations and Company discretion.