Postretirement Plans (Tables)

12 Months Ended

Dec. 29, 2018

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 29, 2018 and December 30, 2017 (amounts in thousands):

	December 29, 2018		December 30, 2017
Current benefit liability	$	1,283	$	935
Noncurrent benefit liability	$	39,149	$	60,107
Accumulated other comprehensive loss, net of tax	$	105,036	$	78,076

Summary of Recognized Settlement Charges by Quarter

The table below presents the recognized settlement charges by quarter for fiscal years 2018, 2017, and 2016 (amounts in thousands):

Settlement loss by fiscal quarter	Fiscal 2018		Fiscal 2017		Fiscal 2016
Quarter 1	$	4,668	$	—	$	—
Quarter 2		1,035		—		4,641
Quarter 3		930		3,030		1,832
Quarter 4		1,148		1,619		173
Total	$	7,781	$	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, 2018 and December 31, 2017, by asset class are as follows (amounts in thousands):

	Fair value of Pension Plan Assets as of December 31, 2018
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	$	—	$	34,118	$	—	$	34,118
Fixed income securities:
U.S. government bonds		—		4,581		—		4,581
U.S. government agency bonds		—		3,561		—		3,561
U.S. corporate bonds		—		166,670		—		166,670
International corporate bonds		—		53,709		—		53,709
Other types of investments measured at contract value (^):
Guaranteed insurance contracts(a)		—		—		—		10,853
Pending transactions(b)		—		—		—		59,452
Other assets and (liabilities)(b)		—		—		—		2,636
Accrued (expenses) income(b)		—		—		—		(40	)
Total	$	—	$	262,639	$	—	$	335,540

	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(c)		19,879		—		—		19,879
International equity funds(d)		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
Other types of investments measured at net asset value (*):
Hedged equity funds(e)		—		—		—		35,054
Absolute return funds(f)		—		—		—		52,704
International equity funds(d)		—		—		—		22,878
Other types of investments measured at contract value (^):
Guaranteed insurance contracts(a)		—		—		—		10,457
Pending transactions(b)		—		—		—		62,000
Other assets and (liabilities)(b)		—		—		—		(133	)
Accrued (expenses) income(b)		—		—		—		(79	)
Total	$	108,136	$	49,837	$	—	$	340,854

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

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

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

(d) 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.

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

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

(*) 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, 2018 and December 31, 2017, and target asset allocations for fiscal year 2019 are as follows for Plan No. 1:

	Target Allocation			Percentage of Plan Assets at the Measurement Date (As percent)
Asset Category	2019			2018		2017
Equity securities		0	%		2.5		38.6
Fixed income securities	90-100%				73.7		27.1
Other diversifying strategies(1)		0	%		15.0		28.8
Short term investments and cash	0-10%				8.8		5.5
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 2018, 2017, and 2016 (amounts in thousands):

	One-Percentage-Point Decrease									One-Percentage-Point Increase
	For the Year Ended									For the Year Ended
	Fiscal 2018			Fiscal 2017			Fiscal 2016			Fiscal 2018		Fiscal 2017		Fiscal 2016
Effect on total of service and interest cost	$	(52	)	$	(47	)	$	(58	)	$	61	$	55	$	67
Effect on postretirement benefit obligation	$	(467	)	$	(473	)	$	(427	)	$	524	$	533	$	480

Multi Employer Plans

				Pension Protection Act			Contributions (Amounts in
				Zone Status			thousands)							Expiration Date of
		Pension				FIP/RP Status	2018		2017		2016		Surcharge	Collective Bargaining
Pension Fund	EIN	Plan No.		2018	2017	Pending/Implemented	($)		($)		($)		Imposed	Agreement
IAM National Pension Fund	51-6031295		002	Green	Green	No		108		139		121	No	4/30/2021
Retail, Wholesale and Department    Store International Union and    Industry Pension Fund	63-0708442		001	Red	Red	Yes		159		157		156	No	8/14/2021
Western Conference of Teamsters    Pension Trust	91-6145047		001	Green	Green	No		293		276		233	No	2/4/2022
BC&T International Pension Fund*	52-6118572		001	*	*	Yes		220		965		1,194	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 2018, 2017, and 2016, the total cost and employer contributions were as follows (amounts in thousands):

Contributions by fiscal year	Defined contribution plans expense
Fiscal 2018	$	25,523
Fiscal 2017	$	28,346
Fiscal 2016	$	27,057

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 2018, 2017 and 2016 (amounts in thousands):

	Fiscal 2018			Fiscal 2017			Fiscal 2016
Service cost	$	937		$	755		$	830
Interest cost		12,513			12,852			13,682
Expected return on plan assets		(18,831	)		(25,669	)		(26,644	)
Settlement loss		7,781			4,649			6,646
Amortization:
Prior service cost		387			387			387
Actuarial loss		5,811			6,355			7,294
Net periodic pension cost (income)		8,598			(671	)		2,195
Other changes in plan assets and benefit obligations recognized in other    comprehensive income:
Current year actuarial loss (gain)		25,492			4,119			8,879
Settlement loss		(7,781	)		(4,649	)		(6,646	)
Amortization of prior service cost		(387	)		(387	)		(387	)
Amortization of actuarial loss		(5,811	)		(6,355	)		(7,294	)
Total recognized in other comprehensive (loss) income		11,513			(7,272	)		(5,448	)
Total recognized in net periodic benefit cost and other comprehensive loss	$	20,111		$	(7,943	)	$	(3,253	)

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 29, 2018			December 30, 2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	393,952		$	398,595
Service cost		937			755
Interest cost		12,513			12,852
Actuarial loss		9,098			20,526
Benefits paid		(23,843	)		(24,408	)
Settlements		(24,879	)		(14,368	)
Benefit obligation at end of year	$	367,778		$	393,952
Change in plan assets:
Fair value of plan assets at beginning of year	$	340,854		$	335,663
Actual return on plan assets		2,437			42,076
Employer contribution		40,971			1,891
Benefits paid		(23,843	)		(24,408	)
Settlements		(24,879	)		(14,368	)
Fair value of plan assets at end of year	$	335,540		$	340,854
Funded status, end of year:
Fair value of plan assets	$	335,540		$	340,854
Benefit obligations		(367,778	)		(393,952	)
Unfunded status and amount recognized at end of year	$	(32,238	)	$	(53,098	)
Amounts recognized in the balance sheet:
Current liability		(258	)		(260	)
Noncurrent liability		(31,980	)		(52,838	)
Amount recognized at end of year	$	(32,238	)	$	(53,098	)
Amounts recognized in accumulated other comprehensive income:
Net actuarial loss before taxes	$	137,903		$	126,002
Prior service cost before taxes		5,039			5,426
Amount recognized at end of year	$	142,942		$	131,428
Accumulated benefit obligation at end of year	$	366,709		$	392,057

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 2018			Fiscal 2017			Fiscal 2016
Weighted average assumptions used to determine benefit obligations:
Measurement date	12/31/2018			12/31/2017			12/31/2016
Discount rate		3.41	%		3.58	%		4.00	%
Rate of compensation increase		3.00	%		3.00	%		3.00	%
Weighted average assumptions used to determine net periodic benefit    cost/(income):
Measurement date	1/1/2018			1/1/2017			1/1/2016
Discount rate		3.58	%		4.00	%		4.25	%
Expected return on plan assets		5.34	%		8.00	%		8.00	%
Rate of compensation increase		3.00	%		3.00	%		3.00	%

Company Contributions

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

Year	Required		Discretionary		Total
2018	$	271	$	40,700	$	40,971
2017	$	286	$	1,605	$	1,891
2016	$	341	$	1,000	$	1,341

Benefits Expected to be Paid from Plans Assets

The following are benefits paid under the plans (including settlements) during fiscal years 2018, 2017 and 2016 and expected to be paid from fiscal 2019 through fiscal 2028. Estimated future payments include qualified pension benefits that will be paid from the plans’ assets (including potential payments related to the termination of Plan No. 1 discussed above) and nonqualified pension benefits that will be paid from corporate assets (amounts in thousands):

Year	Pension Benefits
2016	$	40,864	*
2017	$	38,776	^
2018	$	48,722	+
Estimated Future Payments:
2019	$	31,431
2020	$	327,280
2021	$	2,630
2022	$	2,715
2023	$	2,585
2024 – 2028	$	11,135

* 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 2018, 2017 and 2016 (amounts in thousands):

	Fiscal 2018			Fiscal 2017			Fiscal 2016
Service cost	$	288		$	256		$	401
Interest cost		234			227			309
Amortization:
Prior service credit		(212	)		(212	)		(212	)
Actuarial gain		(431	)		(497	)		(454	)
Total net periodic benefit income		(121	)		(226	)		44
Other changes in plan assets and benefit obligations recognized in other    comprehensive income:
Current year actuarial loss (gain)		1,036			188			(2,354	)
Amortization of actuarial gain		431			497			454
Amortization of prior service credit		212			212			212
Total recognized in other comprehensive loss (income)		1,679			897			(1,688	)
Total recognized in net periodic benefit cost and other comprehensive    loss (income)	$	1,558		$	671		$	(1,644	)

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 2018			Fiscal 2017			Fiscal 2016
Weighted average assumptions used to determine benefit obligations:
Measurement date	12/31/2018			12/31/2017			12/31/2016
Discount rate		4.07	%		3.36	%		3.66	%
Health care cost trend rate used to determine benefit obligations:
Initial rate		6.50	%		6.00	%		6.50	%
Ultimate rate		5.00	%		5.00	%		5.00	%
Year trend reaches the ultimate rate	2025			2022			2023
Weighted average assumptions used to determine net periodic cost:
Measurement date	1/1/2018			1/1/2017			1/1/2016
Discount rate		3.36	%		3.66	%		3.83	%
Health care cost trend rate used to determine net periodic cost:
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

Company Contributions

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

Year	Employer Net Contribution
2016	$	841
2017	$	376
2018	$	1,308
2019 (Expected)	$	1,041

Benefits Expected to be Paid from Plans Assets

The following are benefits paid by the company during fiscal years 2018, 2017 and 2016 and expected to be paid from fiscal 2019 through fiscal 2028. All benefits are expected to be paid from the company’s assets (amounts in thousands):

	Postretirement benefits
Year	Employer gross contribution
2016	$	841
2017	$	376
2018	$	1,308
Estimated Future Payments:
2019	$	1,041
2020	$	867
2021	$	812
2022	$	732
2023	$	696
2024 – 2028	$	3,608

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 29, 2018			December 30, 2017
Change in benefit obligation:
Benefit obligation at beginning of year	$	7,943		$	7,648
Service cost		288			256
Interest cost		234			227
Participant contributions		823			330
Actuarial loss (gain)		1,037			188
Benefits paid		(2,131	)		(706	)
Benefit obligation at end of year	$	8,194		$	7,943
Change in plan assets:
Fair value of plan assets at beginning of year	$	—		$	—
Employer contributions		1,308			376
Participant contributions		823			330
Benefits paid		(2,131	)		(706	)
Fair value of plan assets at end of year	$	—		$	—
Funded status, end of year:
Fair value of plan assets	$	—		$	—
Benefit obligations		(8,194	)		(7,943	)
Unfunded status and amount recognized at end of year	$	(8,194	)	$	(7,943	)
Amounts recognized in the balance sheet:
Current liability	$	(1,025	)	$	(674	)
Noncurrent liability		(7,169	)		(7,269	)
Amount recognized at end of year	$	(8,194	)	$	(7,943	)
Amounts recognized in accumulated other comprehensive loss:
Net actuarial gain before taxes	$	(2,379	)	$	(3,846	)
Prior service credit before taxes		(50	)		(262	)
Amounts recognized in accumulated other comprehensive loss	$	(2,429	)	$	(4,108	)