RETIREMENT AND POSTEMPLOYMENT BENEFITS

3 Months Ended

Aug. 27, 2017

Retirement and Postemployment Benefits [Abstract]

Retirement and Postemployment Benefits

(14) Retirement and Postemployment Benefits

In fiscal 2017, we changed the method used to estimate the service and interest cost components of the net periodic benefit expense for our United States and most of our international defined benefit pension, other postretirement benefit, and postemployment benefit plans. We adopted a full yield curve approach to estimate service cost and interest cost by applying the specific spot rates along the yield curve used to determine the benefit obligation to the relevant projected cash flows. This method provides a more precise measurement of service and interest costs by correlating the timing of the plans’ liability cash flows to the corresponding rate on the yield curve.

Components of net periodic benefit expense are as follows:

		Defined Benefit Pension Plans				Other Postretirement Benefit Plans				Postemployment Benefit Plans
		Quarter Ended				Quarter Ended				Quarter Ended
In Millions		Aug. 27, 2017		Aug. 28, 2016		Aug. 27, 2017		Aug. 28, 2016		Aug. 27, 2017		Aug. 28, 2016
Service cost	$	25.7	$	30.0	$	2.9	$	3.1	$	2.1	$	2.2
Interest cost		54.4		54.2		7.6		8.1		0.6		0.7
Expected return on plan assets		(119.9)		(121.8)		(13.0)		(12.1)		-		-
Amortization of losses		44.1		47.4		0.2		0.6		0.2		0.4
Amortization of prior service costs (credits)		0.5		0.6		(1.4)		(1.3)		0.2		0.2
Other adjustments		-		-		-		-		3.4		3.4
Settlement or curtailment losses		-		1.5		-		-		-		-
Net expense (income)	$	4.8	$	11.9	$	(3.7)	$	(1.6)	$	6.5	$	6.9