Benefits

12 Months Ended

Nov. 26, 2023

Retirement Benefits [Abstract]

BENEFITS

BENEFITS

Employee Savings and Investment Plan

The Company's Employee Savings and Investment Plan (“ESIP”) is a qualified plan that covers eligible U.S. payroll employees. The Company matches 125% of ESIP participant's contributions to all funds maintained under the qualified plan up to the first 6.0% of eligible compensation. Total amounts charged to expense for the Company's employee investment plans for the years ended November 26, 2023, November 27, 2022 and November 28, 2021, were $20.6 million, $18.8 million and $16.9 million, respectively.

Annual Incentive Plan

The Annual Incentive Plan (“AIP”) provides a cash bonus that is earned based upon the Company's business unit and consolidated financial results as measured against pre-established internal targets and upon the performance and job level of the individual. Total amounts charged to expense for this plan for the years ended November 26, 2023, November 27, 2022, and November 28, 2021 were $73.7 million, $104.2 million and $140.9 million, respectively. Total amounts accrued for this plan as of November 26, 2023, and November 27, 2022 were $65.8 million and $106.0 million, respectively.

Pension Plans

Deferred compensation plans. The Company has non-qualified deferred compensation plans for executives and outside directors. These plans, which the Company considers unfunded pension plans, allows for participants to defer a portion of their compensation and, at the Company’s sole discretion, to receive matching contributions for a portion of the deferred amounts. The deferred compensation plan obligations are payable in cash upon retirement, termination of employment and/or limited other times in a lump-sum distribution or in installments, as elected by the participant in accordance with the plan. The plan obligations are measured at an estimate of the benefits to which the employee is entitled if the employee separates immediately. Participants earn a return, or may incur losses, on their deferred compensation based on their selection of a hypothetical portfolio of publicly traded investments. The Company held marketable securities, which are general assets of the Company and are included in “Other non-current assets” on the Company's consolidated balance sheets, of $78.7 million and $71.5 million in an irrevocable grantor's Rabbi trust as of November 26, 2023 and November 27, 2022, respectively, related to the plans. Unrealized gains and losses on these marketable equity securities are reported as a component of Other (expense) income, net in the Company's consolidated statement of income.

For the year ended November 26, 2023, hypothetical returns earned by the participants in deferred compensation plans resulted in the Company recognizing expense as a result of the change in value of the deferred compensation plans in the amount of $9.2 million. During the years ended November 27, 2022 and November 28, 2021, changes in the value of the deferred compensation plans resulted in the Company recognizing gains in the amount of $14.1 million and expense in the amount of $15.5 million, respectively. Effective as of the beginning of the current fiscal year, the impact of changes in the value of the deferred compensation plans, which were incorrectly classified as Interest expense, have been classified as Other (expense) income, net. The Company evaluated the impact of the classification and concluded that the change in classification was not material to the prior year periods.

Deferred compensation plan liabilities were recognized in the Company’s consolidated balance sheets as follows:

	November 26, 2023		November 27, 2022		November 28, 2021
	(Dollars in millions)
Accrued salaries, wages and employee benefits	$	9.1	$	5.6	$	7.2
Long-term employee related benefits	$	94.8	$	94.0	$	99.5

Defined benefit pension plans.  The Company has several non-contributory defined benefit retirement plans covering eligible employees. Plan assets are invested in a diversified portfolio of securities including stocks, bonds, cash equivalents and other alternative investments including real estate investment trust funds. Benefits payable under the plans are based on years of service, final average compensation, or both. The Company retains the right to amend, curtail or discontinue any aspect of the plans, subject to local regulations.

Postretirement plans.  The Company maintains plans that provide postretirement benefits to eligible employees, principally health care to substantially all U.S. retirees and their qualified dependents. These plans were established with the intention that they would continue indefinitely. However, the Company retains the right to amend, curtail or discontinue any aspect of the plans at any time. The plans are contributory and contain certain cost-sharing features, such as deductibles and coinsurance. The Company's policy is to fund postretirement benefits as claims and premiums are paid.

The following tables summarize activity of the Company's defined benefit pension plans and postretirement benefit plans:

	Pension Benefits				Postretirement Benefits
	2023		2022		2023		2022
	(Dollars in millions)
Change in benefit obligation:
Benefit obligation at beginning of year	$	882.6	$	1,192.1	$	41.9	$	57.8
Service cost	2.8		3.9		—		—
Interest cost	39.9		22.5		2.0		0.9
Plan participants' contribution	0.6		0.5		3.5		3.6
Actuarial gain(1)	(38.2)		(251.5)		1.0		(10.2)
Impact of foreign currency changes	4.5		(16.1)		—		—
Plan settlements(2)	(59.1)		(1.1)		—		—
Net benefits paid	(63.7)		(67.7)		(9.2)		(10.2)
Benefit obligation at end of year	$	769.4	$	882.6	$	39.2	$	41.9
Change in plan assets:
Fair value of plan assets at beginning of year	838.5		1,129.2		—		—
Actual return on plan assets	7.3		(216.5)		—		—
Employer contribution	12.2		10.7		5.7		6.6
Plan participants' contributions	0.6		0.5		3.5		3.6
Plan settlements	(59.1)		(1.1)		—		—
Impact of foreign currency changes	3.6		(16.6)		—		—
Net benefits paid	(63.7)		(67.7)		(9.2)		(10.2)
Fair value of plan assets at end of year	739.4		838.5		—		—
Unfunded status at end of year	$	(30.0)	$	(44.1)	$	(39.2)	$	(41.9)

_____________

(1)The decrease in fiscal year 2023 actuarial gains compared to 2022 actuarial gains in the Company's pension benefit plans is primarily from changes in discount rate assumptions made in 2022.

(2)In 2023, the Company used pension plan assets to purchase nonparticipating annuity contracts in order to transfer certain liabilities associated with its U.S. pension plan to an insurance company. As a result, the Company remeasured the U.S. pension plan, which resulted in a noncash pension settlement charge of $19.0 million recognized within Other (expense) income, net in the Company’s consolidated statement of income and Other, net in the Company’s consolidated statement of cash flows. Approximately $21 million of unrealized losses was reclassified from AOCL on the Company’s consolidated balance sheets.

Amounts recognized in the Company's consolidated balance sheets as of November 26, 2023 and November 27, 2022, consist of the following:

	Pension Benefits				Postretirement Benefits
	2023		2022		2023		2022
	(Dollars in millions)
Unfunded status recognized on the balance sheet:
Prepaid benefit cost(1)	$	87.6	$	75.2	$	—	$	—
Accrued benefit liability – current portion(2)	(10.3)		(9.7)		(5.6)		(5.7)
Accrued benefit liability – long-term portion(2)	(107.3)		(109.6)		(33.6)		(36.2)
	$	(30.0)	$	(44.1)	$	(39.2)	$	(41.9)
Accumulated other comprehensive loss:
Net actuarial loss	$	(217.5)	$	(253.1)	$	0.6	$	1.6
Net prior service benefit	0.1		0.1		—		—
	$	(217.4)	$	(253.0)	$	0.6	$	1.6

_____________

(1)Included in “Other non-current assets” on the Company’s consolidated balance sheets.

(2)Included in “Accrued salaries, wages and employee benefits” or “Other long-term liabilities” on the Company’s consolidated balance sheets.

The accumulated benefit obligation for all defined benefit plans was $0.8 billion and $0.9 billion at November 26, 2023 and November 27, 2022, respectively. Information for the Company's defined benefit plans with an accumulated or projected benefit obligation in excess of plan assets is as follows:

	Pension Benefits
	2023		2022
	(Dollars in millions)
Accumulated benefit obligations in excess of plan assets:
Aggregate accumulated benefit obligation	$	115.2	$	117.3
Projected benefit obligations in excess of plan assets:
Aggregate projected benefit obligation	$	118.6	$	119.3
Aggregate fair value of plan assets	0.9		—

The components of the Company's net periodic benefit cost were as follows:

	Pension Benefits						Postretirement Benefits
	2023		2022		2021		2023		2022		2021
	(Dollars in millions)
Net periodic benefit cost (income):
Service cost	$	2.8	$	3.9	$	4.5	$	—	$	—	$	—
Interest cost	39.9		22.5		19.3		2.0		0.9		0.8
Expected return on plan assets	(37.7)		(31.8)		(36.6)		—		—		—
Amortization of prior service benefit	(0.1)		—		(0.1)		—		—		—
Amortization of actuarial loss	8.9		8.5		10.4		—		0.3		0.5
Net settlement loss (gain)	18.9		(0.2)		—		—		—		—
Net periodic benefit (income) cost	32.7		2.9		(2.5)		2.0		1.2		1.3
Changes in accumulated other comprehensive loss:
Actuarial (gain) loss	(7.9)		(3.3)		(21.2)		1.0		(10.2)		(3.0)
Amortization of prior service benefit	0.1		—		0.1		—		—		—
Amortization of actuarial loss	(8.9)		(8.5)		(10.4)		—		(0.3)		(0.5)
Net settlement (loss) gain	(18.9)		0.2		—		—		—		—
Total recognized in accumulated other comprehensive loss	(35.6)		(11.6)		(31.5)		1.0		(10.5)		(3.5)
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	(2.9)	$	(8.7)	$	(34.0)	$	3.0	$	(9.3)	$	(2.2)

Assumptions used in accounting for the Company's benefit plans were as follows:

	Pension Benefits			Postretirement Benefits
	2023	2022	2021	2023	2022	2021
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	5.0%	2.4%	2.1%	5.1%	2.4%	2.0%
Expected long-term rate of return on plan assets	4.8%	2.9%	3.3%
Rate of compensation increase	3.6%	3.5%	3.3%
Weighted-average assumptions used to determine benefit obligations:
Discount rate	5.5%	5.0%	2.4%	5.6%	5.1%	2.4%
Rate of compensation increase	3.5%	3.6%	3.5%
Assumed health care cost trend rates were as follows:
Health care trend rate assumed for next year				7.0%	6.1%	5.9%
Rate trend to which the cost trend is assumed to decline				3.9%	4.0%	3.9%
Year that rate reaches the ultimate trend rate				2048	2046	2044

For the Company's benefit plans, the discount rate used to determine the present value of the future pension and postretirement plan obligations was based on a yield curve constructed from a portfolio of high quality corporate bonds with various maturities. Each year's expected future benefit payments are discounted to their present value at the appropriate yield

curve rate, thereby generating the overall discount rate. The Company utilized a variety of country-specific third-party bond indices to determine the appropriate discount rates to use for the benefit plans of its foreign subsidiaries.

The Company bases the overall expected long-term rate of return on assets on anticipated long-term returns of individual asset classes and each pension plans' target asset allocation strategy based on current economic conditions. For the U.S. pension plan, the expected long-term returns for each asset class are determined through a mean-variance model to estimate 20-year returns for the plan. 

Health care cost trend rate assumptions are not a significant input in the calculation of the amounts reported for the Company's postretirement benefits plans. A one percentage-point change in assumed health care cost trend rates would have no significant effect on the total service and interest cost components or on the postretirement benefit obligation.

Consolidated pension plan assets relate primarily to the U.S. pension plan. The Company utilizes the services of independent third-party investment managers to oversee the management of U.S. pension plan assets.

 The Company's investment strategy is to invest plan assets in a diversified portfolio of domestic and international equity securities, fixed income securities and real estate and other alternative investments with the objective to provide a regular and reliable source of assets to meet the benefit obligation of the pension plans. Prohibited investments for the U.S. pension plan include certain privately placed or other non-marketable debt instruments, letter stock, commodities or commodity contracts and derivatives of mortgage-backed securities, such as interest-only, principal-only or inverse floaters. The current target allocation percentages for the Company's U.S. pension plan assets are 15% for equity securities and real estate with an allowable deviation of plus or minus 4% and 85% for fixed income securities with an allowable deviation of plus or minus 4%.

The fair value of the Company's pension plan assets by asset class are as follows:

	Year Ended November 26, 2023
Asset Class	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in millions)
Cash and cash equivalents	$	16.9	$	16.9	$	—	$	—
Equity securities(1)
U.S. large cap	42.3		—		42.3		—
U.S. small cap	5.3		—		5.3		—
International	62.8		—		62.8		—
Fixed income securities(2)	594.0		—		594.0		—
Other alternative investments
Real estate(3)	14.0		—		14.0		—
Other(5)	4.1		—		4.1		—
Total investments at fair value	$	739.4	$	16.9	$	722.5	$	—

	Year Ended November 27, 2022
Asset Class	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(Dollars in millions)
Cash and cash equivalents	$	5.7	$	5.7	$	—	$	—
Equity securities(1)
U.S. large cap	42.8		—		42.8		—
U.S. small cap	6.6		—		6.6		—
International	69.8		—		69.8		—
Fixed income securities(2)	687.7		—		687.7		—
Other alternative investments
Real estate(3)	14.5		—		14.5		—
Hedge fund(4)	7.4		—		7.4		—
Other(5)	4.0		—		4.0		—
Total investments at fair value	$	838.5	$	5.7	$	832.8	$	—

_____________

(1)Primarily consist of equity index funds that track various market indices.

(2)Predominantly includes bond index funds that invest in long-term U.S. government and investment grade corporate bonds.

(3)Primarily consist of investments in U.S. Real Estate Investment Trusts.

(4)Primarily invested in a diversified portfolio of equities, bonds, alternatives and cash with a low tolerance for capital loss.

(5)Primarily relates to accounts held and managed by a third-party insurance company for employee-participants in Belgium. Fair values are based on accumulated plan contributions plus a contractually-guaranteed return plus a share of any incremental investment fund profits.

The fair value of plan assets are composed of U.S. plan assets of $592.2 million and non-U.S. plan assets of $147.2 million. The fair values of the substantial majority of the equity, fixed income and real estate investments are based on the net asset value of commingled trust funds that passively track various market indices.

The Company's estimated future benefit payments to participants, which reflect expected future service, as appropriate are anticipated to be paid as follows:

	Pension Benefits		Postretirement Benefits		Deferred Compensation		Total
	(Dollars in millions)
2024	$	70.5	$	6.1	$	9.1	$	85.7
2025	65.7		5.6		5.1		76.4
2026	64.0		5.1		5.1		74.2
2027	64.4		4.6		3.6		72.6
2028	62.8		4.2		3.7		70.7
2029-2033	295.8		15.7		77.3		388.8

At November 26, 2023, the Company's contributions to its pension plans for fiscal year 2024 are estimated to be $15.6 million.