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Retirement Plans
9 Months Ended
Sep. 30, 2017
Compensation And Retirement Disclosure [Abstract]  
Retirement Plans

13.

RETIREMENT PLANS

The Company has defined benefit and defined contribution retirement plans for its employees, and provides certain health care benefits to eligible retirees and their dependents. The components of net periodic benefit costs (credits) for pension and other postretirement benefits, for Company sponsored plans, are provided below (in thousands):

 

 

 

13-Weeks Ended

 

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

 

September 30,

2017

 

 

October 1,

2016

 

 

September 30,

2017

 

 

October 1,

2016

 

Components of Net periodic benefit costs (credits)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

755

 

 

$

962

 

 

$

7

 

 

$

9

 

Interest cost

 

 

9,329

 

 

 

10,114

 

 

 

68

 

 

 

73

 

Expected return on plan assets

 

 

(11,943

)

 

 

(12,072

)

 

 

 

 

 

 

Amortization of prior service cost

 

 

35

 

 

 

39

 

 

 

2

 

 

 

2

 

Amortization of net loss (gain)

 

 

785

 

 

 

2,063

 

 

 

(86

)

 

 

(17

)

Settlements

 

 

1,000

 

 

 

750

 

 

 

 

 

 

 

Net periodic benefit costs (credits)

 

$

(39

)

 

$

1,856

 

 

$

(9

)

 

$

67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

39-Weeks Ended

 

 

 

Pension Benefits

 

 

Other Postretirement Benefits

 

 

 

September 30,

2017

 

 

October 1,

2016

 

 

September 30,

2017

 

 

October 1,

2016

 

Components of Net periodic benefit costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service cost

 

$

1,767

 

 

$

2,887

 

 

$

26

 

 

$

28

 

Interest cost

 

 

29,606

 

 

 

30,344

 

 

 

212

 

 

 

221

 

Expected return on plan assets

 

 

(35,871

)

 

 

(36,220

)

 

 

 

 

 

 

Amortization of prior service cost

 

 

104

 

 

 

118

 

 

 

5

 

 

 

5

 

Amortization of net loss (gain)

 

 

2,886

 

 

 

6,191

 

 

 

(112

)

 

 

(53

)

Settlements

 

 

3,000

 

 

 

2,250

 

 

 

 

 

 

 

Net periodic benefit costs

 

$

1,492

 

 

$

5,570

 

 

$

131

 

 

$

201

 

 

In the second quarter of 2017, the Company approved a plan amendment to offer voluntary lump sum settlement payments to certain former employees participating in the Company sponsored defined benefit plan.  The plan amendment was finalized and communicated to relevant participants in the third quarter of 2017. Lump sum settlement payments are estimated at approximately $100 million, based on the expected participation rate, and will be paid from pension plan assets.  As a result of the plan amendment, the Company expects to incur non-cash settlement charges of approximately $30 million in fiscal year

2017, including approximately $25 million in the fourth quarter, when the lump sum settlements are expected to be paid. Settlement charges are included in Distribution, selling and administrative costs in the Consolidated Statements of Comprehensive Income.

 

 

The Company contributed $36 million to its defined benefit and other postretirement plans during both 39-week periods ended September 30, 2017 and October 1, 2016. The Company has funded all required contributions to the Company-sponsored pension plans for fiscal year 2017.  

The Company’s employees are eligible to participate in a Company sponsored defined contribution 401(k) plan that provides for Company matching on the participant’s contributions of up to 100% of the first 3% of participant’s compensation and 50% of the next 2% of a participant’s compensation, for a maximum Company matching contribution of 4%. The Company’s contributions to this plan were $11 million and $10 million for the 13-weeks ended September 30, 2017 and October 1, 2016, respectively, and $34 million and $32 million for the 39-weeks ended September 30, 2017 and October 1, 2016, respectively.

The Company also contributes to numerous multiemployer pension plans under the terms of certain of its collective bargaining agreements that cover its union-represented employees. The Company does not administer these multiemployer pension plans. The Company’s contributions to these plans were $9 million and $8 million for the 13-week periods ended September 30, 2017 and October 1, 2016, respectively, and $26 million and $24 million for the 39-week periods ended September 30, 2017 and October 1, 2016, respectively.