XML 49 R20.htm IDEA: XBRL DOCUMENT v3.8.0.1
BENEFIT PLANS
12 Months Ended
Feb. 24, 2018
Retirement Benefits [Abstract]  
BENEFIT PLANS
Substantially all of our employees are covered by various contributory and non-contributory pension, profit sharing or 401(k) plans. Our primary defined benefit pension plan, the SUPERVALU Retirement Plan, and certain supplemental executive retirement plans were closed to new participants and service crediting ended for all participants as of December 31, 2007. Pay increases were reflected in the amount of benefits accrued in these plans until December 31, 2012. Most union employees participate in multiemployer retirement plans under collective bargaining agreements, unless the collective bargaining agreement provides for participation in plans sponsored by Supervalu. In addition to sponsoring both defined benefit and defined contribution pension plans, we provide healthcare and life insurance benefits for eligible retired employees under postretirement benefit plans. We also provide certain health and welfare benefits, including short-term and long-term disability benefits, to inactive disabled employees prior to retirement. The terms of the postretirement benefit plans vary based on employment history, age and date of retirement. For many retirees, we provide a fixed dollar contribution and retirees pay contributions to fund the remaining cost.
In fiscal 2016, we amended the Supervalu Retiree Benefit Plan which provides medical, prescription drug, dental and life benefits, to eliminate benefits provided by the plan for certain participants under a collective bargaining agreement. As a result of the plan amendment, certain Supervalu Retiree Benefit Plan obligations were re-measured using a discount rate of 4.25 percent and the MP-2015 mortality improvement scale. This re-measurement resulted in a $28 reduction in postretirement benefit obligations within Pension and other postretirement benefit obligations with a corresponding decrease to Accumulated other comprehensive loss.
The benefit obligation, fair value of plan assets and funded status of our defined benefit pension plans and other postretirement benefit plans consisted of the following:
 
Pension Benefits
 
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
Changes in Benefit Obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
2,480

 
$
2,664

 
$
44

 
$
54

Acquired benefit plan obligations
268

 

 
28

 

Plan amendment
(21
)
 

 
(1
)
 
(7
)
Service cost

 

 

 
1

Interest cost
83

 
84

 
2

 
2

Actuarial loss (gain)
2

 
37

 
(3
)
 
(3
)
Settlements paid

 
(200
)
 

 

Plan termination

 

 
(11
)
 

Benefits paid
(140
)
 
(105
)
 
(3
)
 
(3
)
Benefit obligation at end of year
2,672

 
2,480

 
56

 
44

Changes in Plan Assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
2,183

 
2,119

 
16

 
15

Acquired benefit plan assets
193

 

 

 

Actual return on plan assets
206

 
307

 

 

Employer contributions
2

 
62

 

 
4

Plan participants’ contributions

 

 
1

 
2

Settlements paid

 
(200
)
 

 

Benefits paid
(140
)
 
(105
)
 
(4
)
 
(5
)
Fair value of plan assets at end of year
2,444

 
2,183

 
13

 
16

Unfunded status at end of year
$
(228
)
 
$
(297
)
 
$
(43
)
 
$
(28
)

For the defined benefit pension plans, the accumulated benefit obligation is equal to the projected benefit obligation.
Amounts recognized in the Consolidated Balance Sheets consist of the following:
 
Pension Benefits
 
Other Postretirement Benefits
 
2018
 
2017
 
2018
 
2017
Accrued vacation, compensation and benefits
$
(2
)
 
$
(2
)
 
$
(4
)
 
$
(1
)
Pension and other postretirement benefit obligations
(226
)
 
(295
)
 
(39
)
 
(27
)
Total
$
(228
)
 
$
(297
)
 
$
(43
)
 
$
(28
)

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
 
2018
 
2017
 
2018
 
2017
Prior service benefit
$
21

 
$

 
$
21

 
$
42

Net actuarial loss
(401
)
 
(478
)
 
(8
)
 
(13
)
Total recognized in Accumulated other comprehensive loss
$
(380
)
 
$
(478
)
 
$
13

 
$
29

Total recognized in Accumulated other comprehensive loss, net of tax
$
(216
)
 
$
(293
)
 
$
6

 
$
17


Net periodic benefit (income) cost 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
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Net Periodic Benefit (Income) Cost
 
 
 
 
 
 
 
 
 
 
 
Service cost
$

 
$

 
$

 
$

 
$
1

 
$

Interest cost
83

 
84

 
106

 
2

 
2

 
3

Expected return on plan assets
(138
)
 
(141
)
 
(142
)
 

 

 

Amortization of prior service benefit

 

 

 
(16
)
 
(15
)
 
(15
)
Amortization of net actuarial loss
12

 
43

 
79

 
2

 
2

 
3

Plan termination

 

 

 
(8
)
 

 

Settlement

 
42

 

 

 

 

Net periodic benefit (income) cost
(43
)
 
28

 
43

 
(20
)
 
(10
)
 
(9
)
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
Prior service benefit
(22
)
 

 

 
5

 
(7
)
 
(21
)
Amortization of prior service benefit

 

 

 
16

 
15

 
15

Net actuarial (gain) loss
(66
)
 
(172
)
 
76

 
(3
)
 
(3
)
 
(7
)
Amortization of net actuarial loss
(11
)
 
(43
)
 
(79
)
 
(1
)
 
(2
)
 
(3
)
Total expense (benefit) recognized in Other comprehensive income (loss)
(99
)
 
(215
)
 
(3
)
 
17

 
3

 
(16
)
Total expense (benefit) recognized in net periodic benefit cost (income) and Other comprehensive income (loss)
$
(142
)
 
$
(187
)
 
$
40

 
$
(3
)
 
$
(7
)
 
$
(25
)

The estimated net actuarial loss that will be amortized from Accumulated other comprehensive loss into net periodic benefit cost for the defined benefit pension plans during fiscal 2019 is $11. The estimated net amount of prior service benefit and net actuarial loss for the postretirement benefit plans that will be amortized from Accumulated other comprehensive loss into net periodic benefit cost during fiscal 2019 is $13.
Assumptions
Weighted average assumptions used to determine benefit obligations and net periodic benefit cost consisted of the following:
 
2018
 
2017
 
2016
Benefit obligation assumptions:
 
 
 
 
 
Discount rate
4.04 – 3.37%

 
3.92 – 3.78%

 
4.16 – 3.95%

Rate of compensation increase
%
 
%
 
%
Net periodic benefit cost assumptions:(1)
 
 
 
 
 
Discount rate
3.92 – 2.75%

 
4.16
%
 
3.80
%
Rate of compensation increase
%
 
%
 
%
Expected return on plan assets(2)
6.25– 6.00%

 
6.50
%
 
6.50
%
(1)
For fiscal 2018 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. We also assess 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.
We review and select the discount rate to be used in connection with measuring our pension and other postretirement benefit obligations annually. In determining the discount rate, we use the yield on corporate bonds (rated AA or better) that coincides with the cash flows of the plans’ estimated benefit payouts. The model uses a yield curve approach to discount each cash flow of the liability stream at an interest rate specifically applicable to the timing of each respective cash flow. The model totals the present values of all cash flows and calculates the equivalent weighted average discount rate by imputing the singular interest rate that equates the total present value with the stream of future cash flows. This resulting weighted average discount rate is then used in evaluating the final discount rate to be used.
In fiscal 2018, we began recognizing the amortization of net actuarial loss on the SUPERVALU Retirement Plan over the remaining life expectancy of inactive participants based on our determination that almost all of the defined benefit pension plan participants are inactive and the plan is frozen to new participants. For the purposes of inactive participants, we utilized an over approximately 90 percent threshold established under our policy. This change did not affect the measurement of total benefit obligations in fiscal 2017, and instead impacted the recognition of certain components of net periodic pension expense prospectively. The impact of the change in estimate was a reduction of the interest and service cost components within net periodic benefit cost by $31 for the defined benefit pension plans.
Effective fiscal 2017, we adopted the “full yield curve” approach for determining the interest and service cost components of net periodic benefit cost for defined benefit pension and other postretirement benefit plans. Under this method, the discount rate assumption used in the interest and service cost components of net periodic benefit cost was built by applying the specific spot rates along the yield curve used in the determination of the benefit obligation described above, to the relevant projected future cash flows of our pension and other postretirement benefit plans. Prior to fiscal 2017, the interest and service cost components of pension expense were estimated using a single weighted-average discount rate derived from the yield curve used to measure the projected benefit obligation at the beginning of the period.
The alternative approach improves the correlation between projected benefit cash flows and the corresponding yield curve spot rates and provides a more precise measurement of interest and service costs. This change did not affect the measurement of total benefit obligations. We have concluded that the application of the full yield curve approach was a change in estimate and, accordingly, recognized the effect prospectively beginning in fiscal 2017. The impact of the change in estimate was an anticipated reduction of the interest and service cost components within net periodic benefit cost in fiscal 2017 by approximately $22 for the defined benefit pension plans and less than $1 for postretirement benefit plans compared to the fiscal 2016 approach.
For those retirees whose health plans provide for variable employer contributions, the assumed healthcare cost trend rate used in measuring the accumulated postretirement benefit obligation before age 65 was 7.80 percent as of February 24, 2018. The assumed healthcare cost trend rate for retirees before age 65 will decrease each year through fiscal 2026, until it reaches the ultimate trend rate of 4.50 percent. For those retirees whose health plans provide for variable employer contributions, the assumed healthcare cost trend rate used in measuring the accumulated postretirement benefit obligation after age 65 was 8.70 percent as of February 24, 2018. The assumed healthcare cost trend rate for retirees after age 65 will decrease through fiscal 2026, until it reaches the ultimate trend rate of 4.50 percent. For those retirees whose health plans provide for a fixed employer contribution rate, a healthcare cost trend is not applicable. The healthcare cost trend rate assumption would have had the following impact on the amounts reported: a 100 basis point increase in the trend rate would have impacted our service and interest cost by less than $1 for fiscal 2018; a 100 basis point decrease in the trend rate would have decreased our accumulated postretirement benefit obligation as of the end of fiscal 2018 by approximately $3; and a 100 basis point increase would have increased our accumulated postretirement benefit obligation by approximately $3.
Pension Plan Assets
Pension plan assets are held in a master trust and invested in separately managed accounts and other commingled investment vehicles holding domestic and international equity securities, domestic fixed income securities and other investment classes. We employ a total return approach whereby a diversified mix of asset class investments is used to maximize the long-term return of plan assets for an acceptable level of risk. Alternative investments are also used to enhance risk-adjusted long-term returns while improving portfolio diversification. Risk is managed through diversification across asset classes, multiple investment manager portfolios and both general and portfolio-specific investment guidelines. Risk tolerance is established through careful consideration of the plan liabilities, plan funded status and our financial condition. This asset allocation policy mix is reviewed annually and actual versus target allocations are monitored regularly and rebalanced on an as-needed basis. Plan assets are invested using a combination of active and passive investment strategies. Passive, or “indexed” strategies, attempt to mimic rather than exceed the investment performance of a market benchmark. The plan’s active investment strategies employ multiple investment management firms. Managers within each asset class cover a range of investment styles and approaches and are combined in a way that controls for capitalization, and style biases (equities) and interest rate exposures (fixed income) versus benchmark indices. Monitoring activities to evaluate performance against targets and measure investment risk take place on an ongoing basis through annual liability measurements, periodic asset/liability studies and quarterly investment portfolio reviews.
The asset allocation targets and the actual allocation of pension plan assets are as follows:
Asset Category
Target
 
2018
 
2017
Domestic equity
21.6
%
 
26.3
%
 
22.0
%
International equity
6.5
%
 
4.4
%
 
9.5
%
Private equity
4.9
%
 
4.7
%
 
5.9
%
Fixed income
62.3
%
 
57.3
%
 
54.1
%
Real estate
4.7
%
 
7.3
%
 
8.5
%
Total
100.0
%
 
100.0
%
 
100.0
%

The following is a description of the valuation methodologies used for investments measured at fair value:
Common stock—Valued at the closing price reported in the active market in which the individual securities are traded.
Common collective trusts—Investments in common/collective trust funds are stated at net asset value (“NAV”) as determined by the issuer of the common/collective trust funds and is based on the fair value of the underlying investments held by the fund less its liabilities. The majority of the common/collective trust funds have a readily determinable fair value and classified as level 2.  Other investments in common/collective trust funds determine NAV on a less frequent basis and/or have redemption restrictions.  For these investments, NAV is used as a practical expedient to estimate fair value.
Corporate bonds—Valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar bonds, the fair value is based upon an industry valuation model, which maximizes observable inputs.
Government securities—Certain government securities are valued at the closing price reported in the active market in which the security is traded. Other government securities are valued based on yields currently available on comparable securities of issuers with similar credit ratings.
Mortgage backed securities—Valued based on yields currently available on comparable securities of issuers with similar credit ratings. When quoted prices are not available for identical or similar securities, the fair value is based upon an industry valuation model, which maximizes observable inputs.
Mutual funds—Mutual funds are valued at the closing price reported in the active market in which the individual securities are traded.
Private equity and real estate partnerships—Valued based on NAV provided by the investment manager, updated for any subsequent partnership interests’ cash flows or expected changes in fair value. The NAV is used as a practical expedient to estimate fair value.
Other—Valued under an approach that maximizes observable inputs, such as gathering consensus data from the market participant’s best estimate of mid-market pricing for actual trades or positions held.
The valuation methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement.
The fair value of assets of our defined benefit pension plans held in a master trust as of February 24, 2018, by asset category, consisted of the following:
 
Level 1
 
Level 2
 
Level 3
 
Measured at NAV
 
Total
Common stock
$
188

 
$

 
$

 
$

 
$
188

Common collective trusts

 
728

 

 
75

 
803

Corporate bonds

 
418

 

 

 
418

Government securities
68

 
168

 

 

 
236

Mutual funds
46

 
440

 

 

 
486

Mortgage-backed securities

 


 

 

 

Other
10

 
21

 

 

 
31

Private equity and real estate partnerships

 

 

 
282

 
282

Total plan assets at fair value
$
312

 
$
1,775

 
$

 
$
357

 
$
2,444

The fair value of assets of our 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


Contributions
In August 2014, the Highway and Transportation Funding Act of 2014, which included an extension of pension funding interest rate relief, was signed into law. The Highway and Transportation Funding Act includes a provision for interest rate stabilization for defined benefit employee pension plans. As a result of this stabilization provision, our required pension contributions to the SUPERVALU Retirement Plan decreased significantly in fiscal 2016 compared to fiscal 2015, and we expect that to continue for the next several years. In fiscal 2019, $4 of minimum pension contributions are required to be made under the Unified Grocers, Inc. Cash Balance Plan under Employee Retirement Income Security Act of 1974, as amended (“ERISA”). No minimum pension contributions are required to be made to the SUPERVALU Retirement Plan under ERISA in fiscal 2019. We expect to contribute approximately $5 to $10 to our defined benefit pension plans and postretirement benefit plans in fiscal 2019.
We fund our defined benefit pension plans based on the minimum contribution required under the Employee Retirement Income Security Act of 1974, as amended, the Pension Protection Act of 2006 and other applicable laws, as determined by our external actuarial consultant, and additional contributions made at our discretion. In connection with the sale of Save-A-Lot, we agreed with the Pension Benefit Guaranty Corporation (the “PBGC”) to make $60 in aggregate contributions to the SUPERVALU Retirement Plan in excess of required minimum contributions. We made those contributions in the fourth quarter of fiscal 2017 and have fully fulfilled our obligations under our agreement with the PBGC. We will recognize contributions in accordance with applicable regulations, with consideration given to recognition for the earliest plan year permitted.
At our discretion, additional funds may be contributed to the pension plan. We may accelerate contributions or undertake contributions in excess of the minimum requirements from time to time subject to the availability of cash in excess of operating and financing needs or other factors as may be applicable. We assess the relative attractiveness of the use of cash including such factors as expected return on assets, discount rates, cost of debt, reducing or eliminating required PBGC variable rate premiums or the ability to achieve exemption from participant notices of underfunding.
Lump Sum Pension Settlement
During fiscal 2017, the SUPERVALU Retirement Plan made lump sum settlement payments to certain deferred vested pension plan participants under a lump sum payment option window. The payments were equal to the present value of the participant’s pension benefits, and were made to certain former employees who were deferred vested participants in the SUPERVALU Retirement Plan, who had not yet begun receiving monthly pension benefit payments and who elected to participate in the lump sum payment option window. In fiscal 2017, the SUPERVALU Retirement Plan made lump sum settlement payments of approximately $200. The lump sum settlement payments resulted in a non-cash pension settlement charge of $42 from the acceleration of a portion of the accumulated unrecognized actuarial loss. As a result of the lump sum settlements, the SUPERVALU Retirement Plan assets and liabilities were re-measured at December 3, 2016 using a discount rate of 4.1 percent, an expected rate of return on plan assets of 6.5 percent and the RP-2014 Aggregate Mortality Table adjusted back to 2006 using projection scale MP-2014, and then projected forward using MP-2016. The settlement and subsequent re-measurement resulted in a decrease to accumulated other comprehensive loss of $172 pre-tax ($105 after-tax) and a corresponding increase to the SUPERVALU Retirement Plan’s funded status.
Estimated Future Benefit Payments
The estimated future benefit payments to be made from our defined benefit pension and other postretirement benefit plans, which reflect expected future service, are as follows:
Fiscal Year
Pension Benefits
 
Other Postretirement
Benefits
2019
$
176

 
$
5

2020
155

 
5

2021
160

 
5

2022
166

 
5

2023
173

 
4

Years 2024-2028
860

 
19

Defined Contribution Plans
We sponsor defined contribution and profit sharing plans pursuant to Section 401(k) of the Internal Revenue Code. Employees may contribute a portion of their eligible compensation to the plans on a pre-tax basis. We match a portion of certain employee contributions by contributing cash into the investment options selected by the employees. The total amount contributed by us to the plans is determined by plan provisions or at our discretion. Total employer contribution expenses for these plans were $11, $8 and $4 for fiscal 2018, 2017 and 2016, respectively. Matching contributions were reduced or eliminated in January 2013 for most employees. We made a discretionary match for each of fiscal 2018 and fiscal 2017 for eligible employees. There were no discretionary matches made in fiscal 2016. Since June 2014, plan investment options do not include shares of our common stock.
Post-Employment Benefits
We recognize an obligation for benefits provided to former or inactive employees. We are self-insured for certain disability plan programs, which comprise the primary benefits paid to inactive employees prior to retirement.
Amounts recognized in the Consolidated Balance Sheets consisted of the following:
 
 
Post-Employment Benefits
 
 
2018
 
2017
Accrued vacation, compensation and benefits
 
$
4

 
$
3

Other long-term liabilities
 
6

 
7

Total
 
$
10

 
$
10

Multiemployer Plans
We contribute to various multiemployer pension plans under collective bargaining agreements, primarily defined benefit pension plans. These multiemployer plans generally provide retirement benefits to participants based on their service to contributing employers. The benefits are paid from assets held in trust for that purpose. Plan trustees typically are responsible for determining the level of benefits to be provided to participants as well as the investment of the assets and plan administration. Trustees are appointed in equal number by employers and the unions that are parties to the collective bargaining agreement.
Expense is recognized in connection with these plans as contributions are funded, in accordance with GAAP. We contributed $44, $36 and $36 to these plans for fiscal years 2018, 2017 and 2016, respectively. The risks of participating in these multiemployer plans are different from the risks associated with single-employer plans in the following respects:
a.
Assets contributed to the multiemployer plan by one employer are held in trust and may be used to provide benefits to employees of other participating employers.
b.
If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.
c.
If we choose to stop participating in some multiemployer plans, or make market exits or closures or otherwise have participation in the plan drop below certain levels, we may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.
Our participation in these plans is outlined in the table below. The EIN-Pension Plan Number column provides the Employer Identification Number (“EIN”) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (“PPA”) zone status available in 2018 and 2017 relates to the plans’ two most recent fiscal year-ends. The zone status is based on information that we received from the plan and is certified by each plan’s actuary. Among other factors, red zone status plans are generally less than 65 percent funded and are considered in critical status, plans in yellow zone status are less than 80 percent funded and are considered in endangered or seriously endangered status, and green zone plans are at least 80 percent funded. The Multiemployer Protection Act of 2014 (“MPRA”) created a new zone status called “critical and declining” or “Deep Red”. Plans are generally considered Deep Red if they are projected to become insolvent within 15 years. The FIP/RP Status Pending/Implemented column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented by the trustees of each plan.
Certain plans have been aggregated in the All Other Multiemployer Pension Plans line in the following table, as the contributions to each of these plans are not individually material. None of our collective bargaining agreements require that a minimum contribution be made to these plans. Multiemployer pension plan contributions and participants were generally comparable for fiscal 2018, 2017 and 2016.
At the date the financial statements were issued, Forms 5500 were generally not available for the plan years ending in 2017.
The following table contains information about our 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
2018
 
2017
 
2018
 
2017
 
2016
 
Minneapolis Food Distributing Industry Pension Plan
416047047-001
 
12/31
 
Green
 
Green
 
Implemented
 
$
10

 
$
10

 
$
10

 
No
 
No
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund
410905139-001
 
2/28
 
Yellow
 
Green
 
Implemented
 
9

 
9

 
9

 
No
 
No
Central States, Southeast and Southwest Areas Pension Fund
366044243-001
 
12/31
 
Deep Red
 
Deep Red
 
Implemented
 
5

 
4

 
4

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

 
6

 
5

 
No
 
Yes
Western Conference of Teamsters Pension Plan
916145047-001
 
12/31
 
Green
 
Green
 
No
 
11

 
4

 
4

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

 
2

 
2

 
No
 
Yes
All Other Multiemployer Pension Plans(2)
 
 
 
 
 
 
 
 
 
 
1

 
1

 
2

 
 
 
 
Total
 
 
 
 
 
 
 
 
 
 
$
44

 
$
36

 
$
36

 
 
 
 
(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 7 plans, none of which is individually significant when considering our contributions to the plan, severity of the underfunded status or other factors.
The following table describes the expiration of our collective bargaining agreements associated with the significant multiemployer plans in which we participate:
 
 
 
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 2018
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
3/30/2019 - 9/20/2019
 
4

 
9/14/2019
 
40.1
%
 
No
UFCW Unions and Participating Employers Pension Plan
7/11/2020
 
2

 
7/11/2020
 
73.0
%
 
Yes
Western Conference of Teamsters Pension Plan
4/21/2018 – 9/26/2020
 
22

 
4/20/2019
 
15.8
%
 
No
UFCW Unions and Employers Pension Plan
4/6/2019
 
1

 
4/6/2019
 
100.0
%
 
Yes
(1)
Company participating employees in the most significant collective bargaining agreement as a percent of all Company employees participating in the respective fund.
Multiemployer Postretirement Benefit Plans Other than Pensions
We also make contributions to multiemployer health and welfare plans in amounts set forth in the related collective bargaining agreements. These plans provide medical, dental, pharmacy, vision and other ancillary benefits to active employees and retirees as determined by the trustees of each plan. The vast majority of our contributions benefit active employees and as such, may not constitute contributions to a postretirement benefit plan. However, we are unable to separate contribution amounts to postretirement benefit plans from contribution amounts paid to benefit active employees.
We contributed $92, $78 and $70 for fiscal 2018, 2017 and 2016, respectively, to multiemployer health and welfare plans. If healthcare provisions within these plans cannot be renegotiated in a manner that reduces the prospective healthcare cost as we intend, our Selling and administrative expenses could increase in the future.
Collective Bargaining Agreements
As of February 24, 2018, we had approximately 23,000 employees. Approximately 14,000 employees are covered by 52 collective bargaining agreements. During fiscal 2018, 21 collective bargaining agreements covering approximately 5,100 employees were renegotiated. No collective bargaining agreements expired without their terms being renegotiated. Negotiations are expected to continue with the bargaining units representing the employees subject to those agreements. During fiscal 2019, 15 collective bargaining agreements covering approximately 5,000 employees are scheduled to expire.