Employee Post-Employment Benefits (Tables)

12 Months Ended

Jun. 04, 2013

Employee Post-Employment Benefits [Abstract]

Allocation of Retirement Plan's assets held in trust

The Retirement Plan's assets are held in a trust and were allocated as follows on June 4, 2013 and June 5, 2012, the measurement dates:

	Target Allocation	2013 Allocation	2012 Allocation
Equity securities	60-80%	71%	67%
Fixed income securities	20-40%	27%	31%
Cash and cash equivalents	0%	2%	2%
Total	100%	100%	100%

Fair values of assets held by Retirement Plan by asset category

The fair values of assets held by the Retirement Plan by asset category are as follows (in thousands):

	Fair Value Measurements
	Total Fair Value		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	138	$	–	$	138	$	–
Equity securities
U.S.-based companies		4,216		4,216		–		–
International-based companies		431		431		–		–
Fixed income securities		1,721		1,721		–		–
Total	$	6,506	$	6,368	$	138	$	–

Components of net periodic benefit cost

The following tables detail the components of net periodic benefit cost and the amounts recognized in our Consolidated Financial Statements for the Retirement Plan, Management Retirement Plan, and the Executive Supplemental Pension Plan (collectively, the "Pension Plans") and the Postretirement Medical and Life Benefits plans (in thousands):

	Pension Benefits
	2013			2012			2011
Service cost	$	460		$	545		$	517
Interest cost		2,100			2,346			2,290
Expected return on plan assets		(409	)		(514	)		(392	)
Amortization of prior service cost (a)		106			262			327
Recognized actuarial loss		2,259			1,738			1,593
Curtailment expense		2,481			–			–
Net periodic benefit cost	$	6,997		$	4,377		$	4,335
	Postretirement Medical and Life Benefits
		2013			2012			2011
Service cost	$	11		$	10		$	9
Interest cost		60			71			75
Amortization of prior service cost (a)		(56	)		(55	)		(60	)
Recognized actuarial loss		214			136			112
Net periodic benefit cost	$	229		$	162		$	136

(a) Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.

Changes in amounts recognized in accumulated other comprehensive income/(loss)

The following table details changes in the amounts recognized in accumulated other comprehensive (loss)/income in our 2013 and 2012 Consolidated Financial Statements for the Pension Plans and the Postretirement Medical and Life Benefits plans (in thousands):

  Pension Benefits Postretirement Medical and Life Benefits

	2013			2012			2013			2012
Prior service cost	$	0		$	0		$	0		$	0
Net actuarial (gain)/loss		(915	)		3,767			426			313
Amortization of prior service cost		(106	)		(262	)		56			55
Amortization of actuarial gain		(4,740	)		(1,738	)		(214	)		(136	)
Total recognized in accumulated
other comprehensive income	$	(5,761	)	$	1,767		$	268		$	232
Total recognized in net periodic
benefit cost and accumulated
other comprehensive income	$	1,236		$	6,144		$	497		$	394

Change in benefit obligation and plan assets and reconciliation of funded status

The change in benefit obligation and plan assets and reconciliation of funded status is as follows (in thousands):

  Pension Benefits Postretirement Medical and Life Benefits

	2013			2012			2013			2012
Change in benefit obligation:
Beginning projected benefit obligation	$	48,592		$	45,636		$	1,614		$	1,406
Service cost		460			545			11			10
Interest cost		2,100			2,346			60			71
Plan participant contributions		–			–			90			102
Actuarial loss		(358	)		2,783			426			313
Benefits paid		(10,486	)		(2,718	)		(305	)		(288	)
Benefit obligation at end of year	$	40,308		$	48,592		$	1,896		$	1,614
Change in plan assets:
Beginning fair value of plan assets	$	5,758		$	6,677		$	–		$	–
Actual return on plan assets		966			(470	)		––			–
Employer contributions		10,268			2,269			215			186
Plan participant contributions		–			–			90			102
Benefits paid		(10,486	)		(2,718	)		(305	)		(288	)
Fair value of plan assets at
end of year	$	6,506		$	5,758		$	–		$	–

Funded status at end of year	$	(33,802	)*	$	(42,834	)*	$	(1,896	)	$	(1,614	)
Amounts recognized in the Consolidated Balance Sheets:
Accrued liabilities – payroll and related
costs	$	(3,206	)	$	(10,481	)	$	(163	)	$	(136	)
Other deferred liabilities		(30,596	)		(32,353	)		(1,733	)		(1,478	)
Net amount recognized at year-end	$	(33,802	)	$	(42,834	)	$	(1,896	)	$	(1,614	)
Amounts recognized in accumulated other comprehensive (loss)/income:
Prior service (cost) credit	$	(2	)	$	(108	)	$	46		$	102
Net actuarial loss		(16,416	)		(22,070	)		(1,776	)		(1,564	)
Total amount recognized	$	(16,418	)	$	(22,178	)	$	(1,730	)	$	(1,462	)

* The funded status reflected above includes the liabilities attributable to all of the Pension Plans but only the assets of the Retirement Plan as the other plans are not considered funded for ERISA purposes. To provide a source for the payment of benefits under the Executive Supplemental Pension Plan and the Management Retirement Plan, we own whole-life insurance contracts on some of the participants. The cash value of these policies was $29.2 million and $27.3 million at June 4, 2013 and June 5, 2012, respectively.  In addition, we held in trust $0.4 million and $0.5 million of cash and cash equivalents as of June 4, 2013 and June 5, 2012, respectively, relating to these policies.  We maintain a rabbi trust to hold the policies and death benefits as they are received.

Pension plans with benefit obligations in excess of plan assets

Additional measurement date information for the pension plans which have benefit obligations in excess of plan assets (in thousands):

	Pension Benefits				Postretirement Medical and Life Benefits
	June 4, 2013		June 5, 2012		June 4, 2013		June 5, 2012
Projected benefit obligation	$	40,308	$	48,592	$	1,896	$	1,614
Accumulated benefit
obligation		39,515		47,435		1,896		1,614
Fair value of plan assets		6,506		5,758		–		–

Weighted-average assumptions used to determine the net periodic benefit cost and benefit obligations

The weighted-average assumptions used to determine the net periodic benefit cost for fiscal years are set forth below:

	Pension Benefits
	2013	2012	2011
Discount rate	4.5%	5.3%	5.5%
Expected return on plan assets	7.3%	8.0%	7.0%
Rate of compensation increase	2.0%	2.0%	2.0%
	Postretirement Medical and Life Benefits
	2013	2012	2011
Discount rate	3.9%	5.3%	5.5%
Rate of compensation increase	2.0%	2.0%	2.0%

The weighted average assumptions used to determine benefit obligations at the measurement dates are set forth below:

	Pension Benefits
	2013	2012
Discount rate	4.5%	4.5%
Rate of compensation increase	2.0%	2.0%
	Postretirement Medical and Life Benefits
	2013	2012
Discount rate	3.7%	3.9%
Rate of compensation increase	2.0%	2.0%

Benefits expected to be paid in each of the next five years and in the aggregate for five years thereafter

The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below (in thousands):

	Pension Benefits		Postretirement Medical and Life Benefits
2014	$	4,045	$	163
2015		2,393		167
2016		2,339		184
2017		2,501		176
2018		2,423		197
2019-2023		19,298		763