The Company has four executive benefit plans: the Supplemental Savings Incentive Plan, the Long-Term Retention Plan, the Officer Retention Plan and the Long-Term Performance Plan.

Pursuant to the Supplemental Savings Incentive Plan, as amended and restated effective November 1, 2011, eligible participants may elect to defer a portion of their annual salary and bonus. Participants are immediately vested in all deferred contributions they make and become fully vested in Company contributions upon completion of five years of service, termination of employment due to death or retirement or a change in control. Participant deferrals and Company contributions made in years prior to 2006 are invested in either a fixed benefit option or certain investment funds specified by the Company. Beginning in 2010, the Company may elect at its discretion to match up to 50% of the first 6% of salary, excluding bonuses, deferred by the participant. During 2018, 2017 and 2016, the Company matched 50% of the first 6% of salary, excluding bonus, deferred by the participant. The Company may also make discretionary contributions to participants’ accounts. The liability under this plan was as follows:

(in thousands)	December 30, 2018		December 31, 2017
Current liabilities	$	8,255	$	8,205
Noncurrent liabilities		73,524		74,958
Total liability - Supplemental Savings Incentive Plan	$	81,779	$	83,163

Under the Long-Term Retention Plan, effective March 5, 2014, the Company accrues a defined amount each year for an eligible participant based upon an award schedule. Amounts awarded may earn an investment return based on certain investment funds specified by the Company. Benefits under the Long-Term Retention Plan are 50% vested until age 51. Beginning at age 51, the vesting percentage increases by 5% each year until the benefits are fully vested at age 60. Participants receive payments from the plan upon retirement or in certain instances upon termination of employment. Payments are made in the form of monthly installments over a period of 10, 15 or 20 years. The liability under this plan was as follows:

(in thousands)	December 30, 2018		December 31, 2017
Current liabilities	$	42	$	3
Noncurrent liabilities		2,140		2,563
Total liability - Long-Term Retention Plan	$	2,182	$	2,566

Under the Officer Retention Plan, as amended and restated effective January 1, 2007, eligible participants may elect to receive an annuity payable in equal monthly installments over a 10, 15 or 20-year period commencing at retirement or, in certain instances, upon termination of employment. The benefits under the Officer Retention Plan increase with each year of participation as set forth in an agreement between the participant and the Company. Benefits under the Officer Retention Plan are 50% vested until age 51. Beginning at age 51, the vesting percentage increases by 5% each year until the benefits are fully vested at age 60. The liability under this plan was as follows:

(in thousands)	December 30, 2018		December 31, 2017
Current liabilities	$	3,014	$	2,949
Noncurrent liabilities		42,179		42,694
Total liability - Officer Retention Plan	$	45,193	$	45,643

Under the Long-Term Performance Plan, as amended and restated effective January 1, 2017, the Compensation Committee of the Company’s Board of Directors establishes dollar amounts to which a participant shall be entitled upon attainment of the applicable performance measures. Bonus awards under the Long-Term Performance Plan are made based on the relative achievement of performance measures in terms of the Company-sponsored objectives or objectives related to the performance of the individual participants or of the subsidiary, division, department, region or function in which the participant is employed. The liability under this plan was as follows:

(in thousands)	December 30, 2018		December 31, 2017
Current liabilities	$	5,234	$	5,561
Noncurrent liabilities		5,244		4,527
Total liability - Long-Term Performance Plan	$	10,478	$	10,088

There are two Company-sponsored pension plans. The Primary Plan was frozen as of June 30, 2006 and no benefits accrued to participants after this date. The Bargaining Plan is for certain employees under collective bargaining agreements. Benefits under the Bargaining Plan are determined in accordance with negotiated formulas for the respective participants. Contributions to the plans are based on actuarially determined amounts and are limited to the amounts currently deductible for income tax purposes.

Each year, the Company updates its mortality assumptions used in the calculation of its pension liability using The Society of Actuaries’ latest mortality tables. In 2018, 2017 and 2016, the mortality table reflected a lower increase in longevity.

The following tables set forth pertinent information for the two Company-sponsored pension plans:

	Fiscal Year
(in thousands)	2018			2017
Projected benefit obligation at beginning of year	$	303,918		$	273,148
Service cost		5,484			2,553
Interest cost		11,350			11,938
Actuarial (gain) / loss		(29,692	)		27,388
Benefits paid		(12,103	)		(11,109	)
Projected benefit obligation at end of year	$	278,957		$	303,918

The projected benefit obligations and the accumulated benefit obligations for both Company-sponsored pension plans were in excess of plan assets as of December 30, 2018 and December 31, 2017. The accumulated benefit obligation was $279.0 million on December 30, 2018 and $303.9 million on December 31, 2017.

	Fiscal Year
(in thousands)	2018			2017
Fair value of plan assets at beginning of year	$	258,513		$	228,256
Actual return on plan assets		(10,242	)		29,766
Employer contributions		20,000			11,600
Benefits paid		(12,103	)		(11,109	)
Fair value of plan assets at end of year	$	256,168		$	258,513

(in thousands)	December 30, 2018			December 31, 2017
Projected benefit obligation	$	(278,957	)	$	(303,918	)
Plan assets at fair value		256,168			258,513
Net funded status	$	(22,789	)	$	(45,405	)

(in thousands)	December 30, 2018			December 31, 2017
Current liabilities	$	-		$	-
Noncurrent liabilities		(22,789	)		(45,405	)
Total liability - pension plans	$	(22,789	)	$	(45,405	)

	Fiscal Year
(in thousands)	2018			2017			2016
Service cost	$	5,484		$	2,553		$	461
Interest cost		11,350			11,938			12,182
Expected return on plan assets		(15,415	)		(13,597	)		(13,822	)
Recognized net actuarial loss		3,830			3,402			3,031
Amortization of prior service cost		25			28			28
Net periodic pension cost (benefit)	$	5,274		$	4,324		$	1,880

	Fiscal Year
	2018			2017			2016
Projected benefit obligation at the measurement date:
Discount rate - Primary Plan		4.47	%		3.80	%		4.44	%
Discount rate - Bargaining Plan		4.63	%		3.90	%		4.49	%
Weighted average rate of compensation increase	N/A			N/A			N/A
Net periodic pension cost for the fiscal year:
Discount rate - Primary Plan		3.80	%		4.44	%		4.72	%
Discount rate - Bargaining Plan		3.90	%		4.49	%		4.72	%
Weighted average expected long-term rate of return on plan assets⁽¹⁾		6.00	%		6.00	%		6.50	%
Weighted average rate of compensation increase	N/A			N/A			N/A

⁽¹⁾

The weighted average expected long-term rate of return, which is used in computing net periodic pension cost, reflects an estimate of long-term future returns for the pension plan assets net of expenses. The estimate is primarily a function of the asset classes, equities versus fixed income, in which the pension plan assets are invested and the analysis of past performance of these asset classes over a long period of time. The analysis includes expected long-term inflation and the risk premiums associated with equity investments and fixed income investments.

The increase in the discount rates in 2018, as compared to 2017, was the primary driver of actuarial gains in 2018. The decrease in the discount rates in 2017, as compared to 2016, was the primary driver of actuarial losses in 2017. The actuarial gains and losses, net of tax, were recorded in other comprehensive loss.

(in thousands)	Anticipated Future Pension Benefit Payments for the Fiscal Years
2019	$	11,249
2020		11,976
2021		12,737
2022		13,518
2023		14,335
2024 – 2028		81,499

Contributions to the two Company-sponsored pension plans are expected to be in the range of $1 million to $2 million in 2019.

All assets in the Company’s pension plans are invested in institutional investment funds managed by professional investment advisors which hold U.S. equities, international equities and debt securities. The objective of the Company’s investment philosophy is to earn the plans’ targeted rate of return over longer periods without assuming excess investment risk. The expected long-term rate of return assumption for the pension plan assets, which will be used to compute 2019 net periodic pension costs, is based upon target asset allocation and is determined using forward-looking assumptions in the context of historical returns and volatilities for each asset class. The Company evaluates the rate of return assumption on an annual basis. The Company’s pension plans target asset allocation for 2019, actual asset allocation at December 30, 2018 and December 31, 2017, and the expected weighted average long-term rate of return by asset category were as follows:

	Target			Percentage of Plan						Weighted Average Expected
	Allocation			Assets at Fiscal Year-End						Long-Term Rate of Return
	2019			2018			2017			2018⁽¹⁾
Debt securities		65	%		64	%		39	%		2.5	%
U.S. equity securities		25	%		25	%		46	%		1.8	%
International equity securities		10	%		9	%		15	%		0.7	%
Cash and cash equivalents		0	%		2	%		0	%		0.0	%
Total		100	%		100	%		100	%		5.0	%

Debt securities as of December 30, 2018 are comprised of investments in two institutional bond funds with a weighted average duration of approximately three years. U.S. equity securities include: (i) large capitalization domestic based companies that are generally included in common market indices such as the S&P 500™ and the Russell 1000™ and (ii) small and mid-capitalization domestic equities as represented by the Russell 2000™ index. International equity securities include companies from developed markets outside the United States. Cash and cash equivalents have a weighted average duration of less than three months.

The following table summarizes the Company’s common/collective trust fund pension plan assets. The underlying investments held in common/collective trust funds are actively managed equity securities and fixed income investment vehicles that are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.

(in thousands)	December 30, 2018		December 31, 2017
Common/collective trust funds - fixed income	$	164,307	$	100,500
Common/collective trust funds - equity securities		86,107		157,290
Common/collective trust funds - cash equivalents		4,975		-
Total common/collective trust funds	$	255,389	$	257,790

In addition, the Company had other level 1 pension plan assets related to its equity securities of $0.8 million in 2018 and $0.7 million in 2017. The level 1 assets had quoted market prices in active markets for identical assets available for fair value measurement.

The Company does not have any unobservable inputs (Level 3) pension plan assets.

The Company provides a 401(k) Savings Plan for substantially all its employees who are not part of collective bargaining agreements and for certain employees under collective bargaining agreements. The Company’s matching contribution for employees who are not part of collective bargaining agreements is discretionary, with the option to match contributions for eligible participants up to 5% based on the Company’s financial results. For all years presented, the Company matched the maximum 5% of participants’ contributions. The Company’s matching contributions for employees who are part of collective bargaining agreements are determined in accordance with negotiated formulas for the respective employees. The total expense for the Company’s matching contributions to the 401(k) Savings Plan was $21.2 million in 2018, $18.4 million in 2017 and $14.9 million in 2016.

The Company provides postretirement benefits for employees meeting specified criteria. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Company does not pre-fund these benefits and has the right to modify or terminate certain of these benefits in the future.

The following tables set forth pertinent information for the Company’s postretirement benefit plan:

	Fiscal Year
(in thousands)	2018			2017
Benefit obligation at beginning of year	$	76,665		$	85,255
Service cost		1,854			2,232
Interest cost		2,694			3,636
Plan participants’ contributions		776			752
Actuarial (gain) / loss		(14,552	)		1,796
Benefits paid		(3,042	)		(2,994	)
Medicare Part D subsidy reimbursement		66			37
Acquisition of benefits		-			3,291
Divestiture of benefits related to the October 2017 Divestitures		-			(17,340	)
Benefit obligation at end of year	$	64,461		$	76,665

	Fiscal Year
(in thousands)	2018			2017
Fair value of plan assets at beginning of year	$	-		$	-
Employer contributions		2,200			2,205
Plan participants’ contributions		776			752
Benefits paid		(3,042	)		(2,994	)
Medicare Part D subsidy reimbursement		66			37
Fair value of plan assets at end of year	$	-		$	-

(in thousands)	December 30, 2018		December 31, 2017
Current liabilities	$	3,219	$	3,678
Noncurrent liabilities		61,242		72,987
Total liability - postretirement benefits	$	64,461	$	76,665

	Fiscal Year
(in thousands)	2018			2017			2016
Service cost	$	1,854		$	2,232		$	1,567
Interest cost		2,694			3,636			3,094
Recognized net actuarial loss		1,889			2,942			2,186
Amortization of prior service cost		(1,847	)		(2,982	)		(3,360	)
Net periodic postretirement benefit cost	$	4,590		$	5,828		$	3,487

	Fiscal Year
	2018			2017			2016
Benefit obligation discount rate at measurement date		4.41	%		3.72	%		4.36	%
Net periodic postretirement benefit cost discount rate for fiscal year		3.72	%		4.36	%		4.53	%

Postretirement benefit expense - Pre-Medicare:
Weighted average healthcare cost trend rate		7.82	%		6.94	%		6.20	%
Trend rate graded down to ultimate rate		4.50	%		4.50	%		4.50	%
Ultimate rate year	2025			2025			2024

Postretirement benefit expense - Post-Medicare:
Weighted average healthcare cost trend rate		7.74	%		8.07	%		7.50	%
Trend rate graded down to ultimate rate		4.50	%		4.50	%		4.50	%
Ultimate rate year	2025			2025			2024

A 1% increase or decrease in the annual healthcare cost trend would have impacted the postretirement benefit obligation and service cost and interest cost of the Company’s postretirement benefit plan as follows:

(in thousands)	Anticipated Future Postretirement Benefit Payments Reflecting Expected Future Service
2019	$	3,219
2020		3,334
2021		3,568
2022		3,807
2023		3,849
2024 – 2028		22,222

Anticipated future postretirement benefit payments are shown net of Medicare Part D subsidy reimbursements, which are not material.

A reconciliation of the amounts in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost is as follows:

(in thousands)	December 31, 2017			Actuarial Gain (Loss)		Reclassification Adjustments			December 30, 2018
Pension Plans:
Actuarial gain (loss)	$	(127,461	)	$	4,036	$	3,830		$	(119,595	)
Prior service (cost) credit		(73	)		-		25			(48	)
Postretirement Medical:
Actuarial gain (loss)		(39,356	)		14,552		1,889			(22,915	)
Prior service (cost) credit		3,140			-		(1,847	)		1,293
Recognized loss due to the October 2017 Divestitures		8,257			-		-			8,257
Total within accumulated other comprehensive loss	$	(155,493	)	$	18,588	$	3,897		$	(133,008	)

The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic cost during 2019 are as follows:

(in thousands)	Pension Plans		Postretirement Medical			Total
Actuarial loss	$	3,603	$	783		$	4,386
Prior service cost (credit)		23		(1,293	)		(1,270	)
Total expected to be recognized during 2019	$	3,626	$	(510	)	$	3,116

Certain employees of the Company whose employment is covered under collective bargaining agreements participate in a multiemployer pension plan, the Employers-Teamsters Local Union Nos. 175 and 505 Pension Fund (the “Teamsters Plan”). The Company makes monthly contributions to the Teamsters Plan on behalf of such employees. The collective bargaining agreements covering the Teamsters Plan expire at various times by July 2021. The Company expects these agreements will be re-negotiated.

The risks of participating in the Teamsters Plan are different from single employer plans as contributed assets are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the Teamsters Plan, the unfunded obligations of the Teamsters Plan may be borne by the remaining participating employers. If the Company chooses to stop participating in the Teamsters Plan, the Company could be required to pay the Teamsters Plan a withdrawal liability based on the underfunded status of the Teamsters Plan. The Company does not anticipate withdrawing from the Teamsters Plan.

In 2015, the Company increased its contribution rates to the Teamsters Plan, with additional increases occurring annually, as part of a rehabilitation plan, which was incorporated into the renewal of collective bargaining agreements with the unions effective April 28, 2014 and adopted by the Company as a rehabilitation plan effective January 1, 2015. This is a result of the Teamsters Plan being certified by its actuary as being in “critical” status for the plan year beginning January 1, 2013.

The Company’s participation in the Teamsters Plan is outlined in the table below. A red zone represents less than 80% funding and requires a financial improvement plan (“FIP”) or rehabilitation plan (“RP”).

Fiscal Year

(in thousands)

2018

2017

2016

Pension Protection Act Zone Status

Red

FIP or RP pending or implemented

Yes

Surcharge imposed

Yes

Contribution

763

800

728

According to the Teamsters Plan’s Forms 5500, the Company was not listed as providing more than 5% of the total contributions for the plan years ending December 31, 2017 or January 1, 2017. At the date these financial statements were issued, Forms 5500 were not available for the plan year ending December 30, 2018.

The Company has a liability recorded for withdrawing from a multiemployer pension plan in 2008 and is required to make payments of approximately $1 million to this multiemployer pension plan each year through 2028. As of December 30, 2018 the Company has $6.9 million remaining on this liability.