Pension and Other Postretirement Benefits
 6 Months Ended
Jan. 31, 2015
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]  
Pension and Other Postretirement Benefits Disclosure
PENSION AND OTHER POSTRETIREMENT BENEFITS

The components of net periodic pension and postretirement health benefit costs were as follows:
 
Pension Benefits
 
(in thousands)
 
For the Three Months Ended January 31,
 
For the Six Months Ended January 31,
 
2015
 
2014
 
2015
 
2014
Service cost
$
371

 
$
361

 
$
803

 
$
721

Interest cost
457

 
435

 
925

 
871

Expected return on plan assets
(469
)
 
(429
)
 
(939
)
 
(858
)
Amortization of:
 
 
 
 
 
 
 
  Prior service costs
3

 
4

 
5

 
7

  Other actuarial loss
139

 
78

 
289

 
156

Net periodic benefit cost
$
501

 
$
449

 
$
1,083

 
$
897

 
 
 
 
 
 
 
 
 
Postretirement Health Benefits
 
(in thousands)
 
For the Three Months Ended January 31,
 
For the Six Months Ended January 31,
 
2015
 
2014
 
2015
 
2014
Service cost
$
34

 
$
30

 
$
67

 
$
60

Interest cost
26

 
29

 
53

 
58

Amortization of:
 
 
 
 
 
 
 
  Net transition obligation
—

 
4

 
—

 
8

  Prior service costs
(1
)
 
(2
)
 
(3
)
 
(3
)
  Other actuarial loss
9

 
8

 
18

 
15

Net periodic benefit cost
$
68

 
$
69

 
$
135

 
$
138



The postretirement health plan is an unfunded plan. We pay insurance premiums and claims from our assets.

The pension plan is funded based upon actuarially determined contributions that take into account the amount deductible for income tax purposes, the normal cost and the minimum contribution required and the maximum contribution allowed under applicable regulations. We contributed $350,000 and $581,000 to our pension plan during the second quarter and first six months of fiscal 2015, respectively. We estimate contributions will be $1,276,000 for the remainder of fiscal 2015. See Item 3. "Quantitative and Qualitative Disclosures About Market Risk" for a discussion of the potential impact of financial market fluctuations on pension plan assets and future funding contributions.

Assumptions used in the previous calculations were as follows:
 
Pension Benefits
 
Postretirement Health Benefits
 
For the Three and Six Months Ended January 31,
 
2015
 
2014
 
2015
 
2014
Discount rate for net periodic benefit cost
4.28
%
 
4.80
%
 
3.87
%
 
4.80
%
Rate of increase in compensation levels
3.50
%
 
3.50
%
 
—

 
—

Long-term expected rate of return on assets
7.50
%
 
7.50
%
 
—

 
—



The medical cost trend assumption for postretirement health benefits was 7.5%. The graded trend rate is expected to decrease to an ultimate rate of 5.0% in fiscal 2024.