Quarterly report pursuant to Section 13 or 15(d)

Pension and Other Postretirement Benefits

v2.4.0.8
Pension and Other Postretirement Benefits
 6 Months Ended
Jun. 28, 2014
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Postretirement Benefits
Note 16 – 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 are largely discretionary 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 16 to the consolidated financial statements in the Company's 2013 Form 10-K for further details regarding these plans.
 
Pension and other postretirement benefit costs included the following components for the three months ended June 28, 2014 and June 29, 2013:
 
Pension Benefits
 
Other Postretirement Benefits
 
Three Months Ended
 
Three Months Ended
(in millions)
June 28,
2014
 
June 29,
2013
 
June 28,
2014
 
June 29,
2013
Service cost
$
—

 
$
0.1

 
$
—

 
$
—

Interest cost
14.6

 
13.5

 
0.5

 
0.5

Expected return on plan assets
(14.7
)
 
(14.2
)
 
—

 
—

Amortization of prior service credits
—

 
—

 
(0.2
)
 
(1.5
)
Amortization of net actuarial losses
3.8

 
5.3

 
—

 
0.3

Net pension and other benefit costs
$
3.7

 
$
4.7

 
$
0.3

 
$
(0.7
)

Pension and other postretirement benefit costs included the following components for the six months ended June 28, 2014 and June 29, 2013:
 
Pension Benefits
 
Other Postretirement Benefits
 
Six Months Ended
 
Six Months Ended
(in millions)
June 28,
2014
 
June 29,
2013
 
June 28,
2014
 
June 29,
2013
Service cost
$
—

 
$
0.1

 
$
—

 
$
—

Interest cost
29.3

 
27.0

 
1.0

 
1.0

Expected return on plan assets
(29.4
)
 
(28.5
)
 
—

 
—

Amortization of prior service credits
—

 
—

 
(0.4
)
 
(2.9
)
Amortization of net actuarial losses
7.5

 
10.7

 
—

 
0.6

Net pension and other benefit costs
$
7.4

 
$
9.3

 
$
0.6

 
$
(1.3
)


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.

Employer Contributions and Benefit Payments. During both the six months ended June 28, 2014 and June 29, 2013, the Company contributed $1.5 million to fund benefit payments to its nonqualified pension plan.  During the six months ended June 28, 2014 and June 29, 2013, the Company contributed $17.3 million and $10.8 million to its qualified pension plans, respectively. Company contributions are subject to change based on market conditions, pension funding regulations and Company discretion.