Note 13 - Pension and Postretirement Benefits

6 Months Ended

Nov. 26, 2023

Notes to Financial Statements

Retirement Benefits [Text Block]

13. PENSION AND POSTRETIREMENT BENEFITS

We have defined benefit retirement plans ("pension plans") for eligible salaried and hourly employees. Benefits are based on years of credited service and average compensation or stated amounts for each year of service. We also sponsor postretirement plans which provide certain medical and dental benefits to qualifying U.S. employees.

Components of pension and postretirement plan costs (benefits) are:

	Pension Plans
	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	November 26, 2023			November 27, 2022			November 26, 2023			November 27, 2022
Service cost	$	1.4		$	1.7		$	2.9		$	3.3
Interest cost		36.7			31.0			73.4			62.0
Expected return on plan assets		(35.8	)		(36.4	)		(71.6	)		(72.9	)
Amortization of prior service cost		0.4			0.3			0.8			0.7
Pension cost (benefit) — Company plans		2.7			(3.4	)		5.5			(6.9	)
Pension cost (benefit) — multi-employer plans		2.7			2.8			4.8			5.0
Total pension cost (benefit)	$	5.4		$	(0.6	)	$	10.3		$	(1.9	)

	Postretirement Plans
	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	November 26, 2023			November 27, 2022			November 26, 2023			November 27, 2022
Service cost	$	0.1		$	0.1		$	0.1		$	0.1
Interest cost		0.7			0.6			1.3			1.1
Amortization of prior service cost (benefit)		(0.4	)		(0.5	)		(0.8	)		(0.9	)
Recognized net actuarial gain		(1.2	)		(1.1	)		(2.4	)		(2.2	)
Total postretirement cost (benefit)	$	(0.8	)	$	(0.9	)	$	(1.8	)	$	(1.9	)

The Company uses a split discount rate (spot-rate approach) for the U.S. plans and certain foreign plans. The spot-rate approach applies separate discount rates for each projected benefit payment in the calculation of pension service and interest cost.

The weighted-average discount rates for service and interest costs under the spot-rate approach used for pension cost in fiscal 2024 were 5.64% and 5.44%, respectively.

During the second quarter and first half of fiscal 2024, we contributed $2.9 million and $6.0 million, respectively, to our pension plans and contributed $1.4 million and $3.0 million, respectively, to our postretirement plans. Based upon the current funded status of the plans and the current interest rate environment, we anticipate making further contributions of approximately $6.1 million to our pension plans during the remainder of fiscal 2024. We anticipate making further contributions of approximately $4.2 million to our postretirement plans during the remainder of fiscal 2024. These estimates are based on ERISA guidelines, current tax laws, plan asset performance, and liability assumptions, which are subject to change.

During the second quarter of fiscal 2024, the Company provided a voluntary lump-sum settlement offer to certain vested participants in the salaried and hourly pension plans in order to reduce a portion of the pension obligation. Subsequent to the end of the second quarter of fiscal 2024, approximately $135 million was distributed from the pension plan assets in connection with this offer. The lump-sum settlement did exceed our service and interest cost for our hourly pension plans, which will require a remeasurement in the third quarter of fiscal 2024.