MULTIEMPLOYER PENSION AND POSTRETIREMENT PLANS

The Company contributes to multiemployer defined contribution pension and postretirement benefit plans under the terms of collective-bargaining agreements that cover certain unionized employee groups in the United States. Contributions to these plans are included in total pension and postretirement benefit expense as reported in Note 10 and Note 11, respectively.

Pension benefits

The risks of participating in multiemployer pension plans are different from single-employer plans. Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan are borne by the remaining participating employers.

The Company’s participation in multiemployer pension plans for the year ended December 30, 2017, is outlined in the table below. The “EIN/PN” column provides the Employer Identification Number (EIN) and the three-digit plan number (PN). The most recent Pension Protection Act (PPA) zone status available for 2017 and 2016 is for the plan year-ends as indicated below. The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are between 65 percent and 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. In addition to regular plan contributions, the Company may be subject to a surcharge if the plan is in the red zone. The “Surcharge Imposed” column indicates whether a surcharge has been imposed on contributions to the plan. The last column lists the expiration date(s) of the collective-bargaining agreement(s) (CBA) to which the plans are subject.

PPA Zone Status

Contributions

(millions)

Pension trust fund

EIN/PN

2017

2016

FIP/RP Status

2017

2016

2015

Surcharge

Imposed

Expiration

Date of

CBA

Bakery and Confectionery Union and Industry International Pension Fund (a)

52-6118572 /
001

Red - 12/31/2017

Red -
12/31/2016

Implemented

6.6

4.8

5.1

Yes

12/17/2019 to
3/16/2021 (b)

Central States, Southeast and Southwest Areas Pension Fund

36-6044243 /
001

Red - 12/31/217

Red -
12/31/2016

Implemented

4.8

Yes

7/29/2018 (b)

Western Conference of Teamsters Pension Trust

91-6145047 /
001

Green - 12/31/2017

Green -
12/31/2016

1.4

1.0

1.6

3/24/2018 (c)

Hagerstown Motor Carriers and Teamsters Pension Fund

52-6045424 /
001

Red - 6/30/2018

Red -
6/30/2017

Implemented

0.4

0.6

0.5

(d)

Local 734 Pension Plan

51-6040136 /
001

Red - 4/30/2018

Red -
4/30/2017

Implemented

0.2

0.3

Yes

(d)

Twin Cities Bakery Drivers Pension Plan

41-6172265 /
001

Green - 12/31/2017

Green -
12/31/2016

0.2

Yes

(d)

Upstate New York Bakery Drivers and Industry Pension Fund

15-0612437 /
001

Green - 6/30/2017

Green -
6/30/2016

0.1

—

0.2

(d)

Other Plans

2.2

2.1

2.0

(e)

Total contributions:

15.9

13.7

14.7


(a)	The Company is party to multiple CBAs requiring contributions to this fund, each with its own expiration date. Over 80 percent of the Company’s participants in this fund are covered by a single CBA that expires on 3/16/2021.


(b)	During 2017, the Company terminated certain CBAs covered by these funds. Because of the Company's level of continuing involvement in each fund, the Company does not anticipate being subject to a withdrawal liability. The Company does not expect a material change in contributions for 2018.


(c)	During 2017, the Company terminated certain CBAs covered by this fund. As a result, the Company has partially withdrawn from the fund and recognized expense for its estimated withdrawal liability. The Company does not expect a material change in contributions for 2018.


(d)	During 2017, the Company terminated the CBAs, and withdrew from the funds. As a result, the Company recognized expense for the estimated withdrawal liability and will make no contributions in 2018.


(e)	During 2017, the Company terminated the CBAs covered by certain of these funds. As a result, for the impacted funds, the Company recognized expense for the estimated withdrawal liability and will make no contributions in 2018.

The Company was listed in the Forms 5500 of the following plans as of the following plan year ends as providing more than 5 percent of total contributions:



Pension trust fund		Contributions to the plan exceeded more than 5% of total contributions (as of the Plan’s year end)
Hagerstown Motor Carriers and Teamsters Pension Fund		6/30/2016, 6/30/2015 and 6/30/2014
Local 734 Pension Plan		4/30/2017, 4/30/2016 and 4/30/2015
Twin Cities Bakery Drivers Pension Plan		12/31/2016, 12/31/2015 and 12/31/2014
Upstate New York Bakery Drivers and Industry Pension Fund		6/30/2016, 6/30/2015 and 6/30/2014

At the date the Company’s financial statements were issued, certain Forms 5500 were not available for the plan years ending in 2017.

In addition to regular contributions, the Company could be obligated to pay additional amounts, known as a withdrawal liability, if a multiemployer pension plan has unfunded vested benefits and the Company decreases or ceases participation in that plan. In 2017, the Company recognized expense totaling $26 million related to the exit of several multiemployer plans associated with Project K restructuring activity. This amount represents management's best estimate, actual results could differ. The cash obligation is payable over a maximum 20-year period; management has not determined the actual period over which the payments will be made. Net estimated withdrawal expense related to curtailment and special termination benefits associated with the Company’s withdrawal from multiemployer plans was not material for the fiscal years ended 2016 and 2015.

Postretirement benefits

Multiemployer postretirement benefit plans provide health care and other welfare benefits to active and retired employees who have met certain age and service requirements. Contributions to multiemployer postretirement benefit plans were (in millions): 2017 – $16; 2016 – $17; 2015 – $14.