Winnebago Industries (WGO) to Terminate Remaining Postretirement Health Care Benefits
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Winnebago Industries (NYSE: WGO) disclosed the following in a U.S. SEC filing on Friday:
Item 7.01 Regulation FD Disclosure
On October 26, 2016, the Company announced the termination of its remaining postretirement health care benefits to all participants. Beginning January 1, 2017, postretirement health care benefits will be discontinued for retirees under age 65.
As a result of this plan termination, our remaining long-term liabilities for postretirement health care benefits of approximately $6.0 million will be eliminated as well as the corresponding deferred tax asset of $2.3 million with a corresponding increase to prior service credit included within accumulated other comprehensive income, net of tax.
Effective in the first quarter of Fiscal 2017, this plan termination will result in a significant acceleration of amortization of postretirement prior service benefits, net of actuarial losses reducing operating expenses in the first two quarters of Fiscal 2017, as all benefits will be fully amortized by January 1, 2017. When considering the impact of the plan termination, postretirement health care benefit income (amortization of prior service benefit net of actuarial loss) for Fiscal 2017 is estimated to be $24.4 million compared to $6.1 million in Fiscal 2016. The following table illustrates the estimated current year quarterly impact as compared to the prior year:
Total postretirement health care benefit income
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