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BENEFIT PLANS (Tables)
12 Months Ended
Feb. 25, 2017
Compensation and Retirement Disclosure [Abstract]  
Benefit Obligation, Fair Value of Plan Assets and Funded Status of Defined Benefit Pension Plans and Other Postretirement Benefit Plans
The benefit obligation, fair value of plan assets and funded status of Supervalu’s defined benefit pension plans and other postretirement benefit plans consisted of the following:
 
Pension Benefits
 
Other Postretirement Benefits
 
2017
 
2016
 
2017
 
2016
Changes in Benefit Obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
2,664

 
$
2,849

 
$
54

 
$
82

Plan amendment

 

 
(7
)
 
(21
)
Service cost

 

 
1

 

Interest cost
84

 
106

 
2

 
3

Actuarial loss (gain)
37

 
(175
)
 
(3
)
 
(6
)
Settlements paid
(200
)
 
(1
)
 

 

Benefits paid
(105
)
 
(115
)
 
(3
)
 
(4
)
Benefit obligation at end of year
2,480

 
2,664

 
44

 
54

Changes in Plan Assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
2,119

 
2,317

 
15

 
4

Actual return (loss) on plan assets
307

 
(109
)
 

 

Employer contributions
62

 
27

 
4

 
15

Plan participants’ contributions

 

 
2

 
2

Settlements paid
(200
)
 
(1
)
 

 

Benefits paid
(105
)
 
(115
)
 
(5
)
 
(6
)
Other

 

 

 

Fair value of plan assets at end of year
2,183

 
2,119

 
16

 
15

Unfunded status at end of year
$
(297
)
 
$
(545
)
 
$
(28
)
 
$
(39
)
Amounts Recognized in Consolidated Balance Sheets
t.
Amounts recognized in the Consolidated Balance Sheets consisted of the followin
Amounts recognized in the Consolidated Balance Sheets consist of the following:
 
Pension Benefits
 
Other Postretirement Benefits
 
2017
 
2016
 
2017
 
2016
Accrued vacation, compensation and benefits
$
(2
)
 
$
(2
)
 
$
(1
)
 
$
(4
)
Pension and other postretirement benefit obligations
(295
)
 
(543
)
 
(27
)
 
(35
)
Total
$
(297
)
 
$
(545
)
 
$
(28
)
 
$
(39
)
Amounts Recognized in Accumulated Other Comprehensive Losses for Defined Benefit Pension Plans and Other Postretirement Benefit Plans
Amounts recognized in Accumulated other comprehensive loss for the defined benefit pension and other postretirement benefit plans consist of the following:
 
Pension Benefits
 
Other Postretirement Benefits
 
2017
 
2016
 
2017
 
2016
Prior service benefit
$

 
$

 
$
42

 
$
50

Net actuarial loss
(478
)
 
(693
)
 
(13
)
 
(17
)
Total recognized in Accumulated other comprehensive loss
$
(478
)
 
$
(693
)
 
$
29

 
$
33

Total recognized in Accumulated other comprehensive loss, net of tax
$
(293
)
 
$
(438
)
 
$
17

 
$
20

Net Periodic Benefit Cost (Income) and Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) for Defined Benefit Pension and Other Postretirement Benefit Plans
Net periodic benefit cost (income) and other changes in plan assets and benefit obligations recognized in Other comprehensive income (loss) for defined benefit pension and other postretirement benefit plans consist of the following:
 
Pension Benefits
 
Other Postretirement Benefits
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Net Periodic Benefit Cost (Income)
 
 
 
 
 
 
 
 
 
 
 
Service cost
$

 
$

 
$

 
$
1

 
$

 
$
1

Interest cost
84

 
106

 
121

 
2

 
3

 
4

Expected return on plan assets
(141
)
 
(142
)
 
(149
)
 

 

 

Amortization of prior service benefit

 

 

 
(15
)
 
(15
)
 
(16
)
Amortization of net actuarial loss
43

 
79

 
68

 
2

 
3

 
3

Settlement
42

 

 
64

 

 

 

Net periodic benefit cost (income)
28

 
43

 
104

 
(10
)
 
(9
)
 
(8
)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Prior service benefit

 

 

 
(7
)
 
(21
)
 
(5
)
Amortization of prior service benefit

 

 

 
15

 
15

 
16

Net actuarial (gain) loss
(172
)
 
76

 
195

 
(3
)
 
(7
)
 
6

Amortization of net actuarial loss
(43
)
 
(79
)
 
(66
)
 
(2
)
 
(3
)
 
(3
)
Total expense (benefit) recognized in Other comprehensive income (loss)
(215
)
 
(3
)
 
129

 
3

 
(16
)
 
14

Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive income (loss)
$
(187
)
 
$
40

 
$
233

 
$
(7
)
 
$
(25
)
 
$
6

Weighted Average Assumptions Used to Determine Benefit Obligations and Net Periodic Benefit Cost
Weighted average assumptions used to determine benefit obligations and net periodic benefit cost consisted of the following:
 
2017
 
2016
 
2015
Benefit obligation assumptions:
 
 
 
 
 
Discount rate
3.92 – 3.78%

 
4.16 – 3.95%

 
3.80
%
Rate of compensation increase
%
 
%
 
%
Net periodic benefit cost assumptions:(1)
 
 
 
 
 
Discount rate
4.16
%
 
3.80
%
 
4.65 – 4.10%

Rate of compensation increase
%
 
%
 
%
Expected return on plan assets(2)
6.50
%
 
6.50
%
 
7.00 – 6.50%

(1)
For fiscal 2017 and prior, net periodic benefit cost is measured using weighted average assumptions as of the beginning of each year.
(2)
Expected return on plan assets is estimated by utilizing forward-looking, long-term return, risk and correlation assumptions developed and updated annually by Supervalu. These assumptions are weighted by the actual or target allocation to each underlying asset class represented in the pension plan asset portfolio. Supervalu also assesses the expected long-term return on plan assets assumption by comparison to long-term historical performance on an asset class to ensure the assumption is reasonable. Long-term trends are also evaluated relative to market factors such as inflation, interest rates, and fiscal and monetary policies in order to assess the capital market assumptions.
Fair Value of Assets of Company's Benefit Plans Held in Master Trust
The fair value of assets of Supervalu’s defined benefit pension plans held in a master trust as of February 25, 2017, by asset category, consisted of the following:
 
Level 1
 
Level 2
 
Level 3
 
Measured at NAV
 
Total
Common stock
$
366

 
$

 
$

 
$

 
$
366

Common collective trusts

 
735

 

 
102

 
837

Corporate bonds

 
248

 

 

 
248

Government securities
27

 
133

 

 

 
160

Mutual funds
54

 
205

 

 

 
259

Mortgage-backed securities

 
18

 

 

 
18

Other
4

 
5

 

 

 
9

Private equity and real estate partnerships

 

 

 
286

 
286

Total plan assets at fair value
$
451

 
$
1,344

 
$

 
$
388

 
$
2,183

The fair value of assets of Supervalu’s defined benefit pension plans held in a master trust as of February 27, 2016, by asset category, consisted of the following:
 
Level 1
 
Level 2
 
Level 3
 
Measured at NAV
 
Total
Common stock
$
432

 
$

 
$

 
$

 
$
432

Common collective trusts

 
555

 

 
211

 
766

Corporate bonds

 
201

 

 

 
201

Government securities
49

 
114

 

 

 
163

Mutual funds
56

 
179

 

 

 
235

Mortgage-backed securities

 
14

 

 

 
14

Other

 
3

 

 

 
3

Private equity and real estate partnerships

 

 

 
305

 
305

Total plan assets at fair value
$
537

 
$
1,066

 
$

 
$
516

 
$
2,119

The asset allocation targets and the actual allocation of pension plan assets are as follows:
Asset Category
Target
 
2017
 
2016
Domestic equity
22.1
%
 
22.0
%
 
22.4
%
International equity
9.2
%
 
9.5
%
 
11.1
%
Private equity
5.9
%
 
5.9
%
 
6.6
%
Fixed income
53.9
%
 
54.1
%
 
47.3
%
Real estate
8.9
%
 
8.5
%
 
12.6
%
Total
100.0
%
 
100.0
%
 
100.0
%
Estimated Future Benefit Payments to be Paid from Company's Defined Benefit Pension Plans and Other Postretirement Benefit Plans
nts
The estimated future benefit payments to be made from Supervalu’s defined benefit pension and other postretirement benefit plans, which reflect expected future service, are as follo
Schedule of Pension Funds Contributions
2016.
The following table contains information about Supervalu’s multiemployer plans:
 
EIN—Pension
Plan Number
 
Plan
Month/Day
End Date
 
Pension Protection Act Zone Status
 
FIP/RP Status
Pending/ Implemented
 
Contributions
 
Surcharges
Imposed(1)
 
Amortization
Provisions
Pension Fund
2017
 
2016
 
2017
 
2016
 
2015
 
Minneapolis Food Distributing Industry Pension Plan
416047047-001
 
12/31
 
Green
 
Green
 
Implemented
 
$
10

 
$
10

 
$
10

 
No
 
Yes
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund
410905139-001
 
2/29
 
Green
 
Yellow
 
No
 
9

 
9

 
7

 
No
 
No
Central States, Southeast and Southwest Areas Pension Fund
366044243-001
 
12/31
 
Deep Red
 
Red
 
Implemented
 
8

 
8

 
8

 
No
 
No
UFCW Unions and Participating Employers Pension Fund
526117495-002
 
12/31
 
Red
 
Red
 
Implemented
 
6

 
5

 
4

 
Yes
 
No
Western Conference of Teamsters Pension Plan
916145047-001
 
12/31
 
Green
 
Green
 
No
 
4

 
4

 
4

 
No
 
No
UFCW Union Local 655 Food Employers Joint Pension Plan
436058365-001
 
12/31
 
Green
 
Green
 
No
 
2

 
2

 
2

 
No
 
No
UFCW Unions and Employers Pension Plan
396069053-001
 
10/31
 
Red
 
Red
 
Implemented
 
2

 
2

 
1

 
Yes
 
Yes
All Other Multiemployer Pension Plans(2)
 
 
 
 
 
 
 
 
 
 
2

 
3

 
3

 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
$
43

 
$
43

 
$
39

 
 
 
 
(1)
PPA surcharges are 5 percent or 10 percent of eligible contributions and may not apply to all collective bargaining agreements or total contributions to each plan.
(2)
All Other Multiemployer Pension Plans includes 9 plans, none of which is individually significant when considering Supervalu’s contributions to the plan, severity of the underfunded status or other fact
Schedule of Collective Bargaining Agreements Dates and Contributions to Each Plan
rs.
The following table describes the expiration of Supervalu’s collective bargaining agreements associated with the significant multiemployer plans in which Supervalu participates:
 
 
 
Most Significant Collective Bargaining Agreement
 
 
Pension Fund
Range of Collective Bargaining Agreement Expiration Dates
 
Total Collective Bargaining Agreements
 
Expiration Date
 
% of Associates under Collective Bargaining Agreement (1)
 
Over 5% Contribution 2017
Minneapolis Food Distributing Industry Pension Plan
5/31/2018
 
1

 
5/31/2018
 
100.0
%
 
Yes
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund
3/3/2018
 
1

 
3/3/2018
 
100.0
%
 
Yes
Central States, Southeast and Southwest Areas Pension Fund
6/1/2017 – 7/13/2019
 
10

 
5/31/2019
 
28.1
%
 
No
UFCW Unions and Participating Employers Pension Plan
7/8/2017
 
2

 
7/8/2017
 
68.3
%
 
Yes
Western Conference of Teamsters Pension Plan
7/15/2017 – 9/26/2020
 
8

 
9/26/2020
 
42.3
%
 
No
UFCW Union Local 655 Food Employers Joint Pension Plan
5/11/2019
 
1

 
5/11/2019
 
100.0
%
 
Yes
UFCW Unions and Employers Pension Plan
4/6/2019
 
2

 
4/6/2019
 
75.5
%
 
Yes
(1)
Company participating employees in the most significant collective bargaining agreement as a percent of all Company employees participating in the respective f