Benefit Plans (Tables)

12 Months Ended

Dec. 29, 2019

Changes in Projected Benefit Obligation

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

	Fiscal Year
(in thousands)	2019			2018
Projected benefit obligation at beginning of year	$	278,957		$	303,918
Service cost		4,853			5,484
Interest cost		12,299			11,350
Actuarial (gain) / loss		47,651			(29,692	)
Benefits paid		(11,456	)		(12,103	)
Projected benefit obligation at end of year	$	332,304		$	278,957

Change in Plan Assets

Change in Plan Assets

	Fiscal Year
(in thousands)	2019			2018
Fair value of plan assets at beginning of year	$	256,168		$	258,513
Actual return on plan assets		29,549			(10,242	)
Employer contributions		4,900			20,000
Benefits paid		(13,918	)		(12,103	)
Fair value of plan assets at end of year	$	276,699		$	256,168

Funded Status

Funded Status

(in thousands)	December 29, 2019			December 30, 2018
Projected benefit obligation	$	(332,304	)	$	(278,957	)
Plan assets at fair value		276,699			256,168
Net funded status	$	(55,605	)	$	(22,789	)

Amounts Recognized in the Consolidated Balance Sheet

Amounts Recognized in the Consolidated Balance Sheets

(in thousands)	December 29, 2019			December 30, 2018
Current liabilities	$	-		$	-
Noncurrent liabilities		(55,605	)		(22,789	)
Total liability - pension plans	$	(55,605	)	$	(22,789	)

Net Periodic Pension Cost (Benefit)

Net Periodic Pension Cost (Benefit)

	Fiscal Year
(in thousands)	2019			2018			2017
Service cost	$	4,853		$	5,484		$	2,553
Interest cost		12,299			11,350			11,938
Expected return on plan assets		(10,290	)		(15,415	)		(13,597	)
Recognized net actuarial loss		3,688			3,830			3,402
Amortization of prior service cost		22			25			28
Net periodic pension cost	$	10,572		$	5,274		$	4,324

Significant Assumptions

Significant Assumptions

	Fiscal Year
	2019			2018			2017
Projected benefit obligation at the measurement date:
Discount rate - Primary Plan		3.36	%		4.47	%		3.80	%
Discount rate - Bargaining Plan		3.61	%		4.63	%		3.90	%
Weighted average rate of compensation increase	N/A			N/A			N/A
Net periodic pension cost for the fiscal year:
Discount rate - Primary Plan		4.47	%		3.80	%		4.44	%
Discount rate - Bargaining Plan		4.63	%		3.90	%		4.49	%
Weighted average expected long-term rate of return of plan assets - Primary Plan(1)		5.00	%		6.00	%		6.00	%
Weighted average expected long-term rate of return of plan assets - Bargaining Plan(1)		5.25	%		6.00	%		6.00	%
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.

Weighted Average Expected Long-Term Rate of Return

The Company’s pension plans target asset allocation for 2020, actual asset allocation at December 29, 2019 and December 30, 2018, and the weighted average expected 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
	2020			2019			2018			2020(1)
U.S. debt securities		65	%		57	%		64	%		3.3	%
U.S. equity securities		26	%		24	%		25	%		1.6	%
International debt securities		0	%		8	%		0	%		0.0	%
International equity securities		7	%		9	%		9	%		0.5	%
Cash and cash equivalents		2	%		2	%		2	%		0.1	%
Total		100	%		100	%		100	%		5.5	%

⁽¹⁾ The weighted average expected long-term rate of return of plan assets is 5.50% for the Primary Plan and 6.25% for the Bargaining Plan.

Summary of Pension Plan Assets Held in Trust Funds

The following table summarizes the Company’s pension plan assets held in trust funds. The underlying investments held in 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 29, 2019		December 30, 2018
Pension plan assets held in trust funds - fixed income	$	179,153	$	164,307
Pension plan assets held in trust funds - equity securities		89,861		86,107
Pension plan assets held in trust funds - cash equivalents		7,071		4,975
Total pension plan assets held in trust funds	$	276,085	$	255,389

Reconciliation of Activity in Postretirement Benefit Plan

Reconciliation of Activity

	Fiscal Year
(in thousands)	2019			2018
Benefit obligation at beginning of year	$	64,461		$	76,665
Service cost		1,496			1,854
Interest cost		2,750			2,694
Plan participants’ contributions		750			776
Actuarial gain		(4,191	)		(14,552	)
Benefits paid		(3,296	)		(3,042	)
Medicare Part D subsidy reimbursement		86			66
Benefit obligation at end of year	$	62,056		$	64,461

Reconciliation of Plan Assets Fair Value in Postretirement Benefit Plan

Reconciliation of Plan Assets Fair Value

	Fiscal Year
(in thousands)	2019			2018
Fair value of plan assets at beginning of year	$	-		$	-
Employer contributions		2,460			2,200
Plan participants’ contributions		750			776
Benefits paid		(3,296	)		(3,042	)
Medicare Part D subsidy reimbursement		86			66
Fair value of plan assets at end of year	$	-		$	-

Funded Status in Postretirement Benefit Plan

Funded Status

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	2,831	$	3,219
Noncurrent liabilities		59,225		61,242
Total liability - postretirement benefits	$	62,056	$	64,461

Components of Net Periodic Postretirement Benefit Cost

Net Periodic Postretirement Benefit Cost

	Fiscal Year
(in thousands)	2019			2018			2017
Service cost	$	1,496		$	1,854		$	2,232
Interest cost		2,750			2,694			3,636
Recognized net actuarial loss		730			1,889			2,942
Amortization of prior service cost		(1,293	)		(1,847	)		(2,982	)
Net periodic postretirement benefit cost	$	3,683		$	4,590		$	5,828

Significant Assumptions

Significant Assumptions

	Fiscal Year
	2019			2018			2017
Benefit obligation discount rate at measurement date		3.32	%		4.41	%		3.72	%
Net periodic postretirement benefit cost discount rate for fiscal year		4.41	%		3.72	%		4.36	%
Postretirement benefit expense - Pre-Medicare:
Weighted average healthcare cost trend rate		7.13	%		7.82	%		6.94	%
Trend rate graded down to ultimate rate		4.50	%		4.50	%		4.50	%
Ultimate rate year	2026			2025			2025
Postretirement benefit expense - Post-Medicare:
Weighted average healthcare cost trend rate		7.11	%		7.74	%		8.07	%
Trend rate graded down to ultimate rate		4.50	%		4.50	%		4.50	%
Ultimate rate year	2026			2025			2025

A 1% Increase or Decrease in Annual Healthcare Cost

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)	1% Increase		1% Decrease
Postretirement benefit obligation at December 29, 2019	$	8,128	$	(7,123	)
Service cost and interest cost in 2019		548		(489	)

Reconciliation of Amounts in Accumulated Other Comprehensive Loss That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost

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 30, 2018			Actuarial Gain (Loss)			Reclassification Adjustments			December 29, 2019
Pension Plans:
Actuarial loss	$	(119,595	)	$	(30,855	)	$	3,688		$	(146,762	)
Prior service costs		(48	)		-			22			(26	)
Postretirement Medical:
Actuarial loss		(14,658	)		4,192			730			(9,736	)
Prior service credits		1,293			-			(1,293	)		-
Total within accumulated other comprehensive loss	$	(133,008	)	$	(26,663	)	$	3,147		$	(156,524	)

Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Pension Costs or Postretirement Benefits Costs in 2020

The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic cost during 2020 are as follows:

(in thousands)	Pension Plans		Postretirement Medical		Total
Actuarial loss	$	4,758	$	350	$	5,108
Prior service cost		19		-		19
Total expected to be recognized during 2020	$	4,777	$	350	$	5,127

Multiemployer Plans

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)	2019		2018		2017
Pension Protection Act Zone Status	Red		Red		Red
FIP or RP pending or implemented	Yes		Yes		Yes
Surcharge imposed	Yes		Yes		Yes
Contribution	$	987	$	763	$	800

Supplemental Savings Incentive Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	8,893	$	8,255
Noncurrent liabilities		79,921		73,524
Total liability - Supplemental Savings Incentive Plan	$	88,814	$	81,779

Long-Term Retention Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	102	$	42
Noncurrent liabilities		3,199		2,140
Total liability - Long-Term Retention Plan	$	3,301	$	2,182

Officer Retention Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	3,267	$	3,014
Noncurrent liabilities		41,062		42,179
Total liability - Officer Retention Plan	$	44,329	$	45,193

Long-Term Performance Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	December 29, 2019		December 30, 2018
Current liabilities	$	7,252	$	5,234
Noncurrent liabilities		8,416		5,244
Total liability - Long-Term Performance Plan	$	15,668	$	10,478

Pension Plans [Member]

Anticipated Future Pension Benefit Payments

Cash Flows

(in thousands)	Anticipated Future Pension Benefit Payments for the Fiscal Years
2020	$	12,107
2021		12,824
2022		13,553
2023		14,358
2024		15,061
2025 – 2029		84,464

Postretirement Benefits [Member]

Anticipated Future Pension Benefit Payments

Cash Flows

(in thousands)	Anticipated Future Postretirement Benefit Payments Reflecting Expected Future Service
2020	$	2,831
2021		3,003
2022		3,122
2023		3,169
2024		3,439
2025 – 2029		19,138