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Pension and Other Post-retirement Benefits (Tables)
 12 Months Ended
Oct. 30, 2016
Pension and Other Post-retirement Benefits  
Schedule of net periodic cost of defined benefit plans

 

 

 

Pension Benefits

 

 

Post-retirement Benefits

 

(in thousands)

 

 

2016

 

 

2015

 

 

2014

 

 

2016

 

 

2015

 

 

2014

 

Service cost

 

 

$ 26,951

 

 

$ 28,795

 

 

$ 25,935

 

 

$  1,297

 

 

$  1,795

 

 

$  1,963

 

Interest cost

 

 
55,728

 

 
52,522

 

 
53,030

 

 
13,346

 

 
13,479

 

 
15,279

 

Expected return on plan assets

 

 
(88,681

)

 
(88,792

)

 
(83,702

)

 

–

 

 

–

 

 

–

 

Amortization of prior service cost

 

 
(4,120

)

 
(4,878

)

 
(4,971

)

 
(4,282

)

 
(1,337

)

 
(1,337

)

Recognized actuarial loss (gain)

 

 
20,318

 

 
18,476

 

 
12,697

 

 
1,617

 

 
(2

)

 
(2

)

Curtailment (gain) charge

 

 
(4,438

)

 

–

 

 

–

 

 

–

 

 

–

 

 

–

 

Net periodic cost

 

 

$   5,758

 

 

$   6,123

 

 

$   2,989

 

 
$
11,978

 

 
$
13,935

 

 
$
15,903

 

 

Schedule of amounts that have not been recognized in net periodic pension cost and are included in accumulated other comprehensive loss

 

 

 

Pension Benefits

 

 

Post-retirement Benefits

 

(in thousands)

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Unrecognized prior service credit

 

 

$   17,049

 

 

$   32,490

 

 

$ 13,845

 

 

$   2,844

 

Unrecognized actuarial losses

 

 
(464,091

)

 
(360,949

)

 
(44,258

)

 
(40,590

)

 

 

Schedule of amounts that are expected to be recognized in net periodic benefit expense in fiscal year 2016

The following amounts are expected to be recognized in net periodic benefit expense in fiscal year 2017:

 

 

 

Post-

 

 

Pension

 

retirement

 

(in thousands)

Benefits

 

Benefits

 

Amortized prior service credit
$
(3,000)

 
$
(4,274)

 

Recognized actuarial losses
26,166 

 
2,424 

 

 

 

Schedule of reconciliation of the beginning and ending balances of the benefit obligation, the fair value of plan assets, and the funded status of the plans

 

 

 

Pension Benefits

 

 

Post-retirement Benefits

 

(in thousands)

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Change in benefit obligation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

 
$
1,248,209

 

 
$
1,235,769

 

 
$
334,544

 

 
$
330,841

 

Service cost

 

 
26,951

 

 
28,795

 

 
1,297

 

 
1,795

 

Interest cost

 

 
55,728

 

 
52,522

 

 
13,346

 

 
13,479

 

Actuarial loss (gain)

 

 
112,208

 

 
(16,872

)

 
5,285

 

 
10,339

 

Plan amendments

 

 
6,884

 

 

–

 

 
(15,283

)

 

– 

 

Curtailment (gain) loss

 

 
(674

)

 

–

 

 

–

 

 

– 

 

Participant contributions

 

 

–

 

 

–

 

 
2,959

 

 
2,798

 

Medicare Part D subsidy

 

 

–

 

 

–

 

 
2,090

 

 
1,313

 

Benefits paid

 

 
(54,436

)

 
(52,005

)

 
(26,766

)

 
(26,021)

 

Benefit obligation at end of year

 

 
$
1,394,870

 

 
$
1,248,209

 

 
$
317,472

 

 
$
334,544

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

 

Post-retirement Benefits

 

(in thousands)

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Change in plan assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

 
$
1,179,777

 

 
$
1,168,765

 

 

$            –

 

 

$             – 

 

Actual return on plan assets

 

 
76,756

 

 
35,870

 

 

–

 

 

– 

 

Participant contributions

 

 

–

 

 

–

 

 
2,959

 

 
2,798

 

Employer contributions

 

 
30,529

 

 
27,147

 

 
23,807

 

 
23,223

 

Benefits paid

 

 
(54,436

)

 
(52,005

)

 
(26,766

)

 
(26,021)

 

Fair value of plan assets at end of year

 

 
$
1,232,626

 

 
$
1,179,777

 

 

$            –

 

 

$             – 

 

Funded status at end of year

 

 

$  (162,244

)

 

$    (68,432

)

 
$
(317,472

)

 
$
(334,544)

 

 

Schedule of amounts recognized in the Consolidated Statements of Financial Position

 

 

 

Pension Benefits

 

 

Post-retirement Benefits

 

(in thousands)

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Pension assets

 

 

$   68,901

 

 

$ 132,861

 

 

$            –

 

 

$            – 

 

Employee related expenses

 

 
(5,425

)

 
(4,931

)

 
(20,836

)

 
(21,645)

 

Pension and post-retirement benefits

 

 
(225,720

)

 
(196,362

)

 
(296,636

)

 
(312,899)

 

Net amount recognized

 

 
$
(162,244

)

 

$  (68,432

)

 
$
(317,472

)

 
$
(334,544)

 

 

Schedule of information for pension plans with accumulated benefit obligations in excess of plan assets

(in thousands)

  2016

 

 

   2015

 

Projected benefit obligation
$
231,145 

 

 
$
201,293 

 

Accumulated benefit obligation
225,364 

 

 
193,913 

 

Fair value of plan assets

–

 

 

–

 

 

Schedule of weighted-average assumptions used to determine benefit obligations and net periodic benefit costs

Weighted-average assumptions used to determine benefit obligations are as follows:

 

 

 

  2016

 

 

   2015

 

Discount rate

 
3.94% 

 

 
4.50% 

 

Rate of future compensation increase (for plans that base benefits on final compensation level)

 
3.96% 

 

 
3.92% 

 

 

Weighted-average assumptions used to determine net periodic benefit costs are as follows:

 

 

 

2016

 

 

2015

 

 

2014

 

Discount rate

 

 
4.50% 

 

 
4.31% 

 

 
4.89% 

 

Rate of future compensation increase (for plans that base benefits on final compensation level)

 

 
3.92% 

 

 
3.94% 

 

 
3.91% 

 

Expected long-term return on plan assets

 

 
7.60% 

 

 
7.70% 

 

 
7.80% 

 

 

Schedule of effects of one-percentage-point change in assumed discount rate, expected long-term rate of return on plan assets, rate of future compensation increase, and health care cost trend rate

 

1-Percentage-Point

 

Expense

Benefit Obligation

(in thousands)

Increase

Decrease

Increase

Decrease

Pension Benefits:

 

 

 

 

Discount rate
$
(14,259)
$
16,745
$
(181,910)
$
230,150

Expected long-term rate of return on plan assets
(12,125)
12,125

–

–

Rate of future compensation increase
2,577
(2,263)
1,421
(1,332)

Post-retirement Benefits:

 

 

 

 

Discount rate

$  (1,011)

$  4,710

$  (31,075)

$  37,551

Health care cost trend rate
1,575
(1,347)
33,249
(28,432)

 

Schedule of benefits expected to be paid over the next ten fiscal years

 

 

Post-

 

Pension

retirement

(in thousands)

Benefits

Benefits

2017

$ 56,099

$ 21,227

2018
58,466
21,393

2019
61,024
21,519

2020
63,940
21,461

2021
66,871
21,384

2022-2026
378,191
101,662

 

Schedule of actual and target weighted-average asset allocations for pension plan assets

 

 

2016

2015

Asset Category

Actual

Target Range

Actual

Target Range

Large Capitalization Equity
21.7%

12-22%
38.8%

15-35%

Small Capitalization Equity
5.2%

3-13%
5.4%

5-15%

International Equity
13.7%

10-20%
14.0%

15-25%

Global Equity
10.5%

5-20%

–

–

Private Equity
5.5%

0-15%
6.1%

0-15%

Total Equity Securities
56.6%

50-75%
64.3%

50-75%

Fixed Income
36.4%

25-45%
34.3%

25-45%

Real Estate
5.0%

0-10%

–

0-10%

Cash and Cash Equivalents
2.0%

–
1.4%

–

 

Schedule of fair values of the defined benefit pension plan investments

 

Fair Value Measurements at October 30, 2016

 

 

Quoted Prices

 

 

 

 

in Active

Significant Other

Significant

 

 

Markets for

Observable

Unobservable

 

Total

Identical Assets

Inputs

Inputs

(in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

Investments at Fair Value:

 

 

 

 

Cash Equivalents(1)
$
24,412
$
24,412

$           –

$           –

Large Capitalization Equity(2)

 

 

 

 

Domestic
$
234,633
$
156,495
$
78,138

$           –

Foreign
32,795
32,795

–

–

Total Large Capitalization Equity
$
267,428
$
189,290
$
78,138

$           –

Small Capitalization Equity(3)

 

 

 

 

Domestic
$
52,599
$
52,599

$           –

$           –

Foreign
11,173
11,173

–

–

Total Small Capitalization Equity

$     63,772
$
63,772

$           –

$           –

International Equity(4)

 

 

 

 

Mutual fund
$
99,635

$           –
$
99,635

$           –

Collective trust
69,184

–
69,184

–

Total International Equity
$
168,819

$           –
$
168,819

$           –

Global Equity – Mutual Fund(5)

$   129,014

$           –
$
129,014

$           –

Private Equity(6)

 

 

 

 

Domestic
$
54,613

$           –

$           –
$
54,613

International
13,489

–

–
13,489

Total Private Equity
$
68,102

$           –

$           –
$
68,102

Total Equity
$
697,135
$
253,062
$
375,971

$  68,102

Fixed Income(7)

 

 

 

 

US government issues
$
153,333
$
126,673
$
26,660

$           –

Municipal issues
21,451

–
21,451

–

Corporate issues – domestic
224,963

–
224,963

–

Corporate issues – foreign
48,328

–
48,328

–

Total Fixed Income
$
448,075
$
126,673
$
321,402

$           –

Real Estate – Domestic(8)
$
63,004

$           –

$           –

$  63,004

Total Investments at Fair Value
$
1,232,626
$
404,147
$
697,373
$
131,106

 

 

 

Fair Value Measurements at October 25, 2015

 

 

Quoted Prices

 

 

 

 

in Active

Significant Other

Significant

 

 

Markets for

Observable

Unobservable

 

Total

Identical Assets

Inputs

Inputs)

(in thousands)

Fair Value

(Level 1)

(Level 2)

(Level 3)

Investments at Fair Value:

 

 

 

 

Cash Equivalents(1)
$
16,551
$
16,551

$           –

$         –

Large Capitalization Equity(2)

 

 

 

 

Domestic
$
300,735
$
175,206
$
125,529

$         –

Foreign
36,637
36,637

–

–

World
120,206

–
120,206

–

Total Large Capitalization Equity
$
457,578
$
211,843
$
245,735

$         –

Small Capitalization Equity(3)

 

 

 

 

Domestic
$
55,513
$
55,513

$           –

$         –

Foreign
8,246
8,246

–

–

Total Small Capitalization Equity
$
63,759
$
63,759

$           –

$         –

International Equity(4)

 

 

 

 

Mutual fund
$
101,062

$           –
$
101,062

$         –

Collective trust
63,861

–
63,861

–

Total International Equity
$
164,923

$           –
$
164,923

$         –

Private Equity(6)

 

 

 

 

Domestic
$
54,748

$           –

$           –
$
54,748

International
17,027

–

–
17,027

Total Private Equity

$     71,775

$           –

$           –
$
71,775

Total Equity
$
758,035
$
275,602
$
410,658
$
71,775

Fixed Income(7)

 

 

 

 

US government issues
$
130,456
$
104,460
$
25,996

$         –

Municipal issues
20,211

–
20,211

–

Corporate issues – domestic
210,035

–
210,035

–

Corporate issues – foreign
44,489

–
44,489

–

Total Fixed Income

$   405,191
$
104,460
$
300,731

$         –

Total Investments at Fair Value
$
1,179,777
$
396,613
$
711,389
$
71,775

 

The following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy:

 

(1)

Cash Equivalents: These Level 1 investments consist primarily of money market mutual funds that are highly liquid and traded in active markets.

 

(2)

Large Capitalization Equity: The Level 1 investments include a mix of predominately U.S. common stocks and foreign common stocks, which are valued at the closing price reported on the active market in which the individual securities are traded. The Level 2 investment includes mutual funds consisting of a mix of U.S. and foreign common stocks that are valued at the publicly NAV of shares held by the pension plans at year end.

 

(3)

Small Capitalization Equity: The Level 1 investments include a mix of predominately U.S. common stocks and foreign common stocks, which are valued at the closing price reported on the active market in which the individual securities are traded.

 

(4)

International Equity: These Level 2 investments include a mix of collective investment funds and mutual funds. The mutual funds are valued at the publicly available NAV of shares held by the pension plans at year end. The value of the collective investment funds is based on the fair value of the underlying investments and the NAV can be calculated for these funds.

 

(5)

Global Equity: The Level 2 investment includes an open-ended mutual fund consisting of a mix of U.S. common stocks and foreign common stocks, which is valued at the publicly available NAV of shares held by the pension plans at year end.

 

(6)

Private Equity: These Level 3 investments consist of various collective investment funds, which are managed by a third party, that invest in a well-diversified portfolio of equity investments from top performing, high quality firms that focus on U.S. and foreign small to mid-markets, venture capitalists, and entrepreneurs with a concentration in areas of innovation. Investment strategies include buyouts, growth capital, buildups, and distressed, as well as early stages of company development mainly in the U.S. The fair value of the units for these investments is based on the fair value of the underlying investments, and the NAV can be calculated for these funds.

 

(7)

Fixed Income: The Level 1 investments include U.S. Treasury bonds and notes, which are valued at the closing price reported on the active market in which the individual securities are traded. The Level 2 investments consist principally of U.S. government securities, which are valued daily using institutional bond quote sources and mortgage-backed securities pricing sources; municipal, domestic, and foreign securities, which are valued daily using institutional bond quote sources; and mutual funds invested in long-duration corporate bonds that are valued at the publicly available NAV of shares held by the pension plans at year-end.

 

(8)

Real Estate: These Level 3 investments include ownership in open-ended real estate funds, which manage diversified portfolios of commercial properties within the office, residential, retail, and industrial property sectors. Investment strategies aim to acquire, own, hold, or dispose of investments with the goal of achieving current income and/or capital appreciation. The real estate investments are valued at the NAV of shares held by the pension plans. Requests to redeem shares are granted on a quarterly basis with either 45 or 90 days advance notice, subject to availability of cash.

 

Schedule of reconciliation of the beginning and ending balance of the investments measured at fair value using significant unobservable inputs (Level 3)

(in thousands)

2016

2015

Beginning Balance

$  71,775
$
58,723

Purchases, issuances, and settlements (net)
52,891
(3,574)

Unrealized (losses) gains
(5,177)
7,741

Realized gains
4,276
7,623

Interest and dividend income
7,341
1,262

Ending Balance
$
131,106
$
71,775

 

Schedule of unfunded private equity commitment balance for each investment category

 

(in thousands)

2016

2015

Domestic equity

$  4,696

$  9,264

International equity
7,873
9,514

Unfunded commitment balance
$
12,569
$
18,778