Postretirement Plans (Tables)

12 Months Ended

Dec. 30, 2017

Summary of Company's Balance Sheet Related Pension and Other Postretirement Benefit Plan

The following summarizes the company’s balance sheet related pension and other postretirement benefit plan accounts at December 30, 2017 and December 31, 2016 (amounts in thousands):

	December 30, 2017		December 31, 2016
Current benefit liability	$	935	$	979
Noncurrent benefit liability	$	60,107	$	69,601
Accumulated other comprehensive loss, net of tax	$	78,076	$	82,222

Summary of Recognized Settlement Charges by Quarter

With no settlement charge recognized until the third quarter, the table below presents the recognized settlement charges by quarter for fiscal years 2017 and 2016 (amounts in thousands):

Settlement loss by fiscal quarter	Fiscal 2017		Fiscal 2016
Quarter 2	$	—	$	4,641
Quarter 3		3,030		1,832
Quarter 4		1,619		173
Total fiscal 2017	$	4,649	$	6,646

Fair Value of Plan Assets by Asset Class

The fair values of all of the company pension plan assets at December 31, 2017 and December 31, 2016, by asset class are as follows (amounts in thousands):

	Fair value of Pension Plan Assets as of December 31, 2017
Asset Class	Quoted prices in active markets for identical assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Short term investments and cash	$	—	$	19,771	$	—	$	19,771
Equity securities:
U.S. companies		65,414		—		—		65,414
International companies		665		—		—		665
Domestic equity funds(a)		19,879		—		—		19,879
International equity funds(b)		22,178		—		—		22,178
Fixed income securities:
U.S. government bonds		—		6,538		—		6,538
U.S. government agency bonds		—		10,531		—		10,531
U.S. mortgage backed securities		—		3,004		—		3,004
U.S. corporate bonds		—		9,993		—		9,993
Absolute return funds(c)		—		—		—		—
Other types of investments measured at net asset value (*):
Hedged equity funds(d)		—		—		—		35,054
Absolute return funds(c)		—		—		—		52,704
International equity funds(b)		—		—		—		22,878
Real estate funds(e)		—		—		—		—
Other types of investments measured at contract value (^):
Guaranteed insurance contracts(f)		—		—		—		10,457
Pending transactions(g)		—		—		—		62,000
Other assets and (liabilities)(g)		—		—		—		(133	)
Accrued (expenses) income(g)		—		—		—		(79	)
Total	$	108,136	$	49,837	$	—	$	340,854

	Fair value of Pension Plan Assets as of December 31, 2016
Asset Class	Quoted prices in active markets for identical assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Short term investments and cash	$	—	$	4,712	$	—	$	4,712
Equity securities:
U.S. companies		88,427		—		—		88,427
International companies		1,427		—		—		1,427
Domestic equity funds(a)		47,916		—		—		47,916
International equity funds(b)		22,914		—		—		22,914
Fixed income securities:
U.S. government bonds		—		8,796		—		8,796
U.S. government agency bonds		—		5,909		—		5,909
U.S. mortgage backed securities		—		5,512		—		5,512
U.S. corporate bonds		—		10,539		—		10,539
Absolute return funds(c)		—		—		—		—
Other types of investments measured at net asset value (*):
Hedged equity funds(d)		—		—		—		32,095
Absolute return funds(c)		—		—		—		50,036
International equity funds(b)		—		—		—		24,987
Real estate funds(e)		—		—		—		17,296
Other types of investments measured at contract value (^):
Guaranteed insurance contracts(f)		—		—		—		10,124
Pending transactions								5,000
Other assets and (liabilities)(g)		—		—		—		70
Accrued (expenses) income(g)		—		—		—		(97	)
Total	$	160,684	$	35,468	$	—	$	335,663

(a)	This class includes funds with the principal strategy to invest primarily in long positions in domestic equity securities.

(b)	This class includes funds with the principal strategy to invest primarily in long positions in international equity securities. This asset was reclassified from a Level 2 to a Level 1 type for all periods. This asset was incorrectly presented as a Level 2.

(c)	This class invests primarily in absolute return strategy funds and are reported at NAV.

(d)	This class invests primarily in hedged equity funds.

(e)	This class includes funds that invest primarily in U.S. commercial real estate.

(f)	This class invests primarily guaranteed insurance contracts through various U.S. insurance companies.

(g)	This class includes accrued interest, dividends, and amounts receivable from asset sales and amounts payable for asset purchases.

(*)	Certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

(^)	Certain investments, which are fully-benefit responsive investment contracts, are measured at contract value and have not been classified in the fair value hierarchy.

Plan Asset and Target Allocation

The plan asset allocation as of the measurement dates December 31, 2017 and December 31, 2016, and target asset allocations for fiscal year 2017 are as follows:

	Target Allocation		Percentage of Plan Assets at the Measurement Date (As percent)
Asset Category	2018		2017		2016
Equity securities	15-45%			38.6		51.1
Fixed income securities	25-45%			27.1		9.3
Real estate		—		—		5.2
Other diversifying strategies(1)	0-40%			28.8		33.5
Short term investments and cash	0-10%			5.5		0.9
Total				100.0		100.0

(1)	Includes absolute return funds, hedged equity funds, and guaranteed insurance contracts.

Summary of Effect of One Percent Change in Assumed Health Care Cost

A one-percentage-point change in assumed health care cost trend rates would have the following effects for fiscal years 2017, 2016, and 2015 (amounts in thousands):

	One-Percentage-Point Decrease									One-Percentage-Point Increase
	For the Year Ended									For the Year Ended
	Fiscal 2017			Fiscal 2016			Fiscal 2015			Fiscal 2017		Fiscal 2016		Fiscal 2015
Effect on total of service and interest cost	$	(47	)	$	(58	)	$	(65	)	$	55	$	67	$	76
Effect on postretirement benefit obligation	$	(473	)	$	(427	)	$	(554	)	$	533	$	480	$	626

Multi Employer Plans

				Pension Protection Act			Contributions (Amounts in
				Zone Status			thousands)							Expiration Date of
		Pension				FIP/RP Status	2017		2016		2015		Surcharge	Collective Bargaining
Pension Fund	EIN	Plan No.		2017	2016	Pending/Implemented	($)		($)		($)		Imposed	Agreement
IAM National Pension Fund	51-6031295		002	Green	Green	No		139		121		113	No	4/30/2021
Retail, Wholesale and Department Store International Union and Industry Pension Fund	63-0708442		001	Red	Red	Yes		157		156		130	No	8/14/2021
Western Conference of Teamsters Pension Trust	91-6145047		001	Green	Green	No		276		233		271	No	2/4/2022
BC&T International Pension Fund*	52-6118572		001	*	Red	Yes		965		1,194		1,121	Yes	10/25/2020

*	The union employees withdrew from the fund effective November 1, 2017. The collective bargaining agreement is still in effect.

Summary of Total Cost and Employer Contributions

During fiscal years 2017, 2016, and 2015, the total cost and employer contributions were as follows (amounts in thousands):

Contributions by fiscal year	Defined contribution plans expense
Fiscal 2017	$	28,346
Fiscal 2016	$	27,057
Fiscal 2015	$	25,473

Pension plans

Components of Net Periodic Benefit / (Income) Cost

The net periodic pension cost (income) for the company’s pension plans includes the following components for fiscal years 2017, 2016 and 2015 (amounts in thousands):

	Fiscal 2017			Fiscal 2016			Fiscal 2015
Service cost	$	755		$	830		$	873
Interest cost		12,852			13,682			18,003
Expected return on plan assets		(25,669	)		(26,644	)		(29,642	)
Settlement loss		4,649			6,646			—
Amortization:
Prior service cost		387			387			—
Actuarial loss		6,355			7,294			4,978
Net periodic pension cost (income)		(671	)		2,195			(5,788	)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial loss (gain)		4,119			8,879			(1,916	)
Current year prior service cost		—			—			6,199
Settlement loss		(4,649	)		(6,646	)		—
Amortization of prior service cost		(387	)		(387	)		—
Amortization of actuarial loss		(6,355	)		(7,294	)		(4,978	)
Total recognized in other comprehensive (loss) income		(7,272	)		(5,448	)		(695	)
Total recognized in net periodic benefit cost and other comprehensive loss	$	(7,943	)	$	(3,253	)	$	(6,483	)

Funded Status and Amounts Recognized in Consolidated Balance Sheets

The funded status and the amounts recognized in the Consolidated Balance Sheets for the company’s pension plans are as follows (amounts in thousands):

	December 30, 2017			December 31, 2016
Change in benefit obligation:
Benefit obligation at beginning of year	$	398,595		$	438,023
Service cost		755			830
Interest cost		12,852			13,682
Actuarial loss (gain)		20,526			(13,076	)
Benefits paid		(24,408	)		(25,130	)
Settlements		(14,368	)		(15,734	)
Benefit obligation at end of year	$	393,952		$	398,595
Change in plan assets:
Fair value of plan assets at beginning of year	$	335,663		$	370,497
Actual return on plan assets		42,076			4,689
Employer contribution		1,891			1,341
Benefits paid		(24,408	)		(25,130	)
Settlements		(14,368	)		(15,734	)
Fair value of plan assets at end of year	$	340,854		$	335,663
Funded status, end of year:
Fair value of plan assets	$	340,854		$	335,663
Benefit obligations		(393,952	)		(398,595	)
Unfunded status and amount recognized at end of year	$	(53,098	)	$	(62,932	)
Amounts recognized in the balance sheet:
Current liability		(260	)		(291	)
Noncurrent liability		(52,838	)		(62,641	)
Amount recognized at end of year	$	(53,098	)	$	(62,932	)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss before taxes	$	126,002		$	132,886
Prior service cost before taxes		5,426			5,813
Amount recognized at end of year	$	131,428		$	138,699

Accumulated benefit obligation at end of year	$	392,057		$	397,224

Weighted Average Assumptions Used

Assumptions used in accounting for the company’s pension plans at each of the respective fiscal years ending are as follows:

	Fiscal 2017			Fiscal 2016			Fiscal 2015
Weighted average assumptions used to determine benefit obligations:
Measurement date	12/31/2017			12/31/2016			12/31/2015
Discount rate		3.58	%		4.00	%		4.25	%
Rate of compensation increase		3.00	%		3.00	%		3.00	%
Weighted average assumptions used to determine net periodic benefit (income)/cost:
Measurement date	1/1/2017			1/1/2016			1/1/2015
Discount rate		4.00	%		4.25	%		4.00	%
Expected return on plan assets		8.00	%		8.00	%		8.00	%
Rate of compensation increase		3.00	%		3.00	%		4.00	%

Company Contributions

Company contributions to qualified and nonqualified plans are as follows (amounts in thousands):

Year	Required		Discretionary		Total
2017	$	286	$	1,605	$	1,891
2016	$	341	$	1,000	$	1,341
2015	$	436	$	10,000	$	10,436

Benefits Expected to be Paid from Plans Assets

The following are benefits paid under the plans (including settlements) during fiscal years 2017, 2016 and 2015 and expected to be paid from fiscal 2018 through fiscal 2027. Estimated future payments include qualified pension benefits that will be paid from the plans’ assets (including potential payments for the lump sum option discussed above) and nonqualified pension benefits that will be paid from corporate assets (amounts in thousands):

Year	Pension Benefits
2015	$	25,014
2016	$	40,864	*
2017	$	38,776	^
Estimated Future Payments:
2018	$	35,458
2019	$	34,025
2020	$	32,945
2021	$	32,023
2022	$	31,040
2023 – 2027	$	122,992

*	Includes $15.7 million and $1.6 million from Plan No. 1 and Plan No. 2, respectively paid as lump sums.

^	Includes $14.4 million and $1.6 million from Plan No. 1 and Plan No. 2, respectively, paid as lump sums.

Postretirement Benefit Plans

Components of Net Periodic Benefit / (Income) Cost

The net periodic benefit (income) cost for the company’s postretirement benefit plans includes the following components for fiscal years 2017, 2016 and 2015 (amounts in thousands):

	Fiscal 2017			Fiscal 2016			Fiscal 2015
Service cost	$	256		$	401		$	398
Interest cost		227			309			360
Amortization:
Prior service credit		(212	)		(212	)		(267	)
Actuarial gain		(497	)		(454	)		(583	)
Total net periodic benefit income		(226	)		44			(92	)
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial (gain) loss*		188			(2,354	)		(159	)
Amortization of actuarial gain		497			454			583
Amortization of prior service credit		212			212			267
Total recognized in other comprehensive loss		897			(1,688	)		691
Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	671		$	(1,644	)	$	599

*	In 2015, includes (gain) loss related to (higher) lower than expected Medicare Part D subsidy receipts.

Weighted Average Assumptions Used

Assumptions used in accounting for the company’s postretirement benefit plans at each of the respective fiscal years ending are as follows:

	Fiscal 2017			Fiscal 2016			Fiscal 2015
Weighted average assumptions used to determine benefit obligations:
Measurement date	12/31/2017			12/31/2016			12/31/2015
Discount rate		3.36	%		3.66	%		3.83	%
Health care cost trend rate used to determine benefit obligations:
Initial rate		6.00	%		6.50	%		8.00	%
Ultimate rate		5.00	%		5.00	%		5.00	%
Year trend reaches the ultimate rate	2022			2023			2022
Weighted average assumptions used to determine net periodic cost:
Measurement date	1/1/2017			1/1/2016			1/1/2015
Discount rate		3.66	%		3.83	%		3.50	%
Health care cost trend rate used to determine net periodic cost:
Initial rate		6.50	%		8.00	%		8.00	%
Ultimate rate		5.00	%		5.00	%		5.00	%
Year trend reaches the ultimate rate	2023			2022			2021

Company Contributions

Company contributions to postretirement plans are as follows (amounts in thousands):

Year	Employer Net Contribution
2015	$	674
2016	$	841
2017	$	376
2018 (Expected)	$	680

Benefits Expected to be Paid from Plans Assets

The following are benefits paid by the company during fiscal years 2017, 2016 and 2015 and expected to be paid from fiscal 2018 through fiscal 2027. All benefits are expected to be paid from the company’s assets (amounts in thousands):

	Postretirement benefits
Year	Employer gross contribution
2015	$	674
2016	$	841
2017	$	376
Estimated Future Payments:
2018	$	680
2019	$	735
2020	$	708
2021	$	699
2022	$	692
2023 – 2027	$	3,477

Changes in Projected Benefit Obligations

The unfunded status and the amounts recognized in the Consolidated Balance Sheets for the company’s postretirement benefit plans are as follows (amounts in thousands):

	December 30, 2017			December 31, 2016
Change in benefit obligation:
Benefit obligation at beginning of year	$	7,648		$	10,133
Service cost		256			401
Interest cost		227			309
Participant contributions		330			284
Actuarial loss (gain)		188			(2,354	)
Benefits paid		(706	)		(1,125	)
Benefit obligation at end of year	$	7,943		$	7,648
Change in plan assets:
Fair value of plan assets at beginning of year	$	—		$	—
Employer contributions		376			841
Participant contributions		330			284
Benefits paid		(706	)		(1,125	)
Fair value of plan assets at end of year	$	—		$	—
Funded status, end of year:
Fair value of plan assets	$	—		$	—
Benefit obligations		(7,943	)		(7,648	)
Unfunded status and amount recognized at end of year	$	(7,943	)	$	(7,648	)
Amounts recognized in the balance sheet:
Current liability	$	(674	)	$	(688	)
Noncurrent liability		(7,269	)		(6,960	)
Amount recognized at end of year	$	(7,943	)	$	(7,648	)
Amounts recognized in accumulated other comprehensive loss:
Net actuarial gain before taxes	$	(3,846	)	$	(4,531	)
Prior service credit before taxes		(262	)		(474	)
Amounts recognized in accumulated other comprehensive loss	$	(4,108	)	$	(5,005	)