21. Postretirement Health Care Benefits
The Company provides health care benefits to certain retired employees from retirement age to when they become eligible for Medicare coverage. Employees become eligible for benefits after meeting certain age and service requirements. The cost of providing retiree health care benefits is actuarially determined and accrued over the service period of the active employee group.
    The components of the net periodic postretirement benefit cost are as follows:

(Amounts in thousands)		2000			1999			1998
Service cost–benefits earned during the year	$	492		$	500		$	114
Interest cost on projected benefit obligation		600			546			108
Recognized net actuarial gain or loss		394			394			—
Net periodic postretirement benefit cost	$	1,486		$	1,440		$	222

   The changes in the benefit obligation and plan assets and the funded status of the postretirement benefit plan are as follows:

(Amounts in thousands)				2000			1999
Change in projected postretirement benefit obligation:
	Projected benefit obligation at beginning of year		$	8,715		$	1,754
	Service cost			492			500
	Interest cost			600			546
	Actuarial loss			—			6,176
	Net benefits paid			(300)			(261)
		Projected benefit obligation at end of year	$	9,507		$	8,715
Funded status			$	9,507		$	8,715
Unrecognized net actuarial loss				(6,753)			(6,961)
	Accrued postretirement benefits		$	2,754		$	1,754

   At the end of both fiscal years 2000 and 1999, the discount rate was seven percent. The health care cost trend rate begins at eight percent and grades down to an ultimate level of five percent per year. A one percent increase in the assumed health care cost trend rate would increase the total service cost and interest cost by $192,000 and the accumulated postretirement benefit obligation (APBO) by $1,508,000. A one percent decrease in the assumed healthcare cost trend rate would decrease the total service cost and interest cost by $159,000 and the APBO by $1,257,000.