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Postretirement Plans
 4 Months Ended
Apr. 20, 2024
Retirement Benefits [Abstract]  
Postretirement Plans

18. POSTRETIREMENT PLANS

The following summarizes the company’s Condensed Consolidated Balance Sheets related pension and other postretirement benefit plan accounts at April 20, 2024 compared to accounts at December 30, 2023 (amounts in thousands):

 

 

 

April 20, 2024

 

 

December 30, 2023

 

Noncurrent benefit asset

 

$

6,428

 

 

$

6,494

 

Current benefit liability

 

$

699

 

 

$

699

 

Noncurrent benefit liability

 

$

5,700

 

 

$

5,798

 

AOCI, net of tax

 

$

(415

)

 

$

(342

)

 

Defined Benefit Plans and Nonqualified Plan

The company sponsors two pension plans, the Flowers Foods, Inc. Retirement 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, 2023 for the defined benefit and postretirement benefit plans described below.

There were no contributions made by the company to any plan during the sixteen weeks ended April 20, 2024 and April 22, 2023.

The net periodic pension cost for the company’s plans include the following components (amounts in thousands):

 

 

 

For the Sixteen Weeks Ended

 

 

 

April 20, 2024

 

 

April 22, 2023

 

Service cost

 

$

224

 

 

$

210

 

Interest cost

 

 

362

 

 

 

401

 

Expected return on plan assets

 

 

(494

)

 

 

(480

)

Amortization of prior service cost

 

 

18

 

 

 

18

 

Amortization of net loss

 

 

13

 

 

 

53

 

Total net periodic pension cost

 

$

123

 

 

$

202

 

 

The components of total net periodic benefit cost other than the service cost are included in the other components of net periodic pension and postretirement benefit plans credit line item on our Condensed Consolidated Statements of Income.

Postretirement Benefit Plan

The company provides certain health care 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 20, 2024

 

 

April 22, 2023

 

Service cost

 

$

56

 

 

$

55

 

Interest cost

 

 

70

 

 

 

73

 

Amortization of prior service credit

 

 

(72

)

 

 

(72

)

Amortization of net gain

 

 

(55

)

 

 

(76

)

Total net periodic postretirement credit

 

$

(1

)

 

$

(20

)

 

The components of total net periodic postretirement benefits credit other than the service cost are included in the other components of net periodic pension and postretirement benefit plans credit line item on our Condensed Consolidated Statements of Income.

401(k) Retirement Savings Plan

The Flowers Foods, Inc. 401(k) Retirement Savings Plan covers substantially all the company’s employees who have completed certain service requirements. The total cost and employer contributions were as follows (amounts in thousands):

 

 

 

For the Sixteen Weeks Ended

 

 

 

April 20, 2024

 

 

April 22, 2023

 

Total cost and employer contributions

 

$

10,520

 

 

$

9,974

 

 

Multi-employer Pension Plan

On July 19, 2022, the company announced the closure of the Holsum Bakery in Phoenix, Arizona. The bakery produced bread and bun products and ceased production on October 31, 2022. As a result, the union participants of the IAM National Pension Fund (the “IAM Fund”) at the Phoenix bakery will withdraw from the IAM Fund. During the third quarter of Fiscal 2022, the company recorded a liability of $1.3 million for the withdrawal from the IAM Fund. During the first quarter of Fiscal 2024, the company paid $1.4 million for the withdrawal and recorded additional expense of $0.1 million which is included in the selling, distribution and administrative expenses line item of our Condensed Consolidated Statements of Income. While this is our best estimate of the ultimate cost of the withdrawal from this plan, additional withdrawal liability may be incurred in the event of a mass withdrawal, as defined by statute, occurring anytime within the next three years following our complete withdrawal.