Retirement Plans

9 Months Ended

Sep. 26, 2020

RETIREMENT PLANS

The Company sponsors a defined benefit pension plan and a 401(k) plan for eligible employees, and provides certain postretirement health and welfare benefits to eligible retirees and their dependents. In connection with the Smart Foodservice acquisition, the Company assumed a defined benefit pension plan with net liabilities of approximately $20 million.

The components of net periodic pension benefit costs (credits) for Company sponsored defined benefit plans were as follows:


	13 Weeks Ended				39 Weeks Ended
	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Components of net periodic pension benefit costs (credits)
Service cost	$	1	$	1	$	2	$	2
Interest cost	8		10		23		28
Expected return on plan assets	(14)		(13)		(40)		(37)
Amortization of net loss	—		1		1		3
Settlements	—		3		—		3
Net periodic pension benefit costs (credits)	$	(5)	$	2	$	(14)	$	(1)

Other postretirement benefit costs were de minimis for both the 13 weeks and 39 weeks ended September 26, 2020 and September 28, 2019.

The service cost component of net periodic benefit credits is included in distribution, selling and administrative costs, while the other components of net periodic benefit credits are included in other income (expense)—net, respectively, in the Company's Consolidated Statements of Comprehensive Income.

In the third quarter of 2019, the Company amended its defined benefit plan to offer certain terminated plan participants with vested benefits the opportunity to elect to receive an immediate lump sum payment. The Company incurred non-cash settlement charges of $3 million during the third quarter of 2019 related to ordinary course lump sum payment elections as provided under the continuing plan. The voluntary lump sum payment, along with a spin-off of certain participants into a new plan which was subsequently terminated, was completed in the fourth quarter of fiscal year 2019. The 2019 non-cash settlement charges were included in other expense (income)—net in the Company's Consolidated Statements of Comprehensive Income. No non-cash settlement charges were incurred in fiscal year 2020.

The Company does not expect to make significant contributions to its defined benefit pension plan in fiscal year 2020.

Certain employees are eligible to participate in the Company's 401(k) plan. The Company made employer matching contributions to the 401(k) plan of $11 million and $13 million for the 13 weeks ended September 26, 2020 and September 28, 2019, respectively, and $34 million and $38 million for the 39 weeks ended September 26, 2020 and September 28, 2019, respectively.

The Company is also required to contribute to various multiemployer pension plans under the terms of collective bargaining agreements that cover certain of its union-represented employees. The Company’s contributions to these plans were $11 million and $10 million for the 13 weeks ended September 26, 2020 and September 28, 2019, respectively, and $33 million and $28 million for the 39 weeks ended September 26, 2020 and September 28, 2019, respectively.