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Benefit Plans (Tables)
12 Months Ended
Feb. 25, 2012
Benefit Plans [Abstract]  
The benefit obligation, fair value of plan assets and funded status of the defined benefit pension plans and other postretirement benefit plans
                                 
    Pension Benefits     Other  Postretirement
Benefits
 
        2012             2011           2012         2011    

Change in Benefit Obligation

                               

Benefit obligation at beginning of year

  $ 2,515     $ 2,320     $ 148     $ 131  

Plan Amendment

                (52      

Service cost

    9       8       2       2  

Interest cost

    138       137       7       8  

Transfers

    (3     (1            

Actuarial loss

    461       146       17       13  

Benefits paid

    (85     (95     (6     (6
   

 

 

   

 

 

   

 

 

   

 

 

 

Benefit obligation at end of year

    3,035       2,515       116       148  
   

 

 

   

 

 

   

 

 

   

 

 

 

Changes in Plan Assets

                               

Fair value of plan assets at beginning of year

    1,896       1,557              

Actual return on plan assets

    121       272              

Employer contributions

    87       163       6       6  

Plan participants’ contributions

                8       8  

Benefits paid

    (88     (96     (14     (14
   

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets at end of year

    2,016       1,896              
   

 

 

   

 

 

   

 

 

   

 

 

 

Funded status at end of year

  $ (1,019   $ (619   $ (116   $ (148
   

 

 

   

 

 

   

 

 

   

 

 

 
Amounts recognized in the Consolidated Balance Sheets
                                 
    Pension Benefits     Other Postretirement
Benefits
 
        2012             2011             2012             2011      

Accrued vacation, compensation and benefits

  $ (2   $ (3   $ (7   $ (8

Pension and other postretirement benefit obligations

    (1,017     (616     (109     (140
   

 

 

   

 

 

   

 

 

   

 

 

 
    $ (1,019   $ (619   $ (116   $ (148
   

 

 

   

 

 

   

 

 

   

 

 

 
Amounts recognized in accumulated other comprehensive losses for the defined benefit pension plans and other postretirement benefit plans
                                 
    Pension Benefits     Other  Postretirement
Benefits
 
        2012             2011           2012         2011    

Prior service benefit

  $     $     $ 70     $ 27  

Net actuarial loss

    (1,073     (702     (60     (48
   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in accumulated other comprehensive loss

  $ (1,073   $ (702   $ 10     $ (21
   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in accumulated other comprehensive loss, net of tax

  $ (663   $ (430   $ 6     $ (16
   

 

 

   

 

 

   

 

 

   

 

 

 
Net periodic benefit expense (income) for defined benefit pension plans and other postretirement benefit plans
                                                 
    Pension Benefits     Other Postretirement
Benefits
 
Net Periodic Benefit Cost     2012         2011         2010         2012         2011         2010    

Service cost

  $ 9     $ 8     $ 6     $ 2     $ 2     $ 2  

Interest cost

    138       137       138       7       8       8  

Expected return on plan assets

    (125     (123     (129                  

Amortization of prior service benefit

                      (9     (6     (6

Amortization of net actuarial loss

    93       65       10       4       2       2  

Settlement

    1       9       2                    
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic benefit cost

    116       96       27       4       6       6  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)

                                               

Prior service benefit

                      (52            

Amortization of prior service benefit

                      9       6       6  

Net actuarial loss (gain)

    464       (12     (42     16       13       10  

Amortization of net actuarial loss

    (93     (65     (10     (4     (2     (2
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in other comprehensive income (loss)

    371       (77     (52     (31     17       14  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in net periodic benefit expense and other comprehensive income (loss)

  $ 487     $ 19     $ (25   $ (27   $ 23     $ 20  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Weighted average assumptions used to determine benefit obligations and net periodic benefit cost
                         
    2012     2011     2010  

Benefit obligation assumptions:

                       

Discount rate (2)

    4.55     5.60     6.00

Rate of compensation increase

    2.00     2.00     3.00

Net periodic benefit cost assumptions: (1)

                       

Discount rate (2)

    5.60     6.00     7.35

Rate of compensation increase

    2.00     3.00     3.25

Expected return on plan assets (3)

    7.50     7.75     8.00

 

 

(1) Net periodic benefit cost is measured using weighted average assumptions as of the beginning of each year.

 

(2) The Company reviews and selects the discount rate to be used in connection with its pension and other postretirement obligations annually. In determining the discount rate, the Company uses 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 by the Company.

 

(3) Expected long-term return on plan assets is estimated by utilizing forward-looking, long-term return, risk and correlation assumptions developed and updated annually by the Company. These assumptions are weighted by the actual or target allocation to each underlying asset class represented in the pension plan asset portfolio. The Company 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.
The asset allocation targets and the actual allocation of pension plan assets
                         

Asset Category

  Target     2012     2011  

Domestic equity

    31.8     33.9     35.5

International equity

    15.7     17.8     18.0

Private equity

    7.5     4.8     3.5

Fixed income

    35.0     35.0     35.6

Real estate

    10.0     8.5     7.3

Cash and other

            0.1
   

 

 

   

 

 

   

 

 

 

Total

    100.0     100.0     100.0
   

 

 

   

 

 

   

 

 

 
Fair value of assets of the Company's benefit plans held in a master trust
                                 
    Level 1     Level 2     Level 3     Total  

Common stock

  $ 606     $     $     $ 606  

Common collective trusts—fixed income

          285             285  

Common collective trusts—equity

          332             332  

Government securities

    119       91             210  

Mutual funds

          198             198  

Corporate bonds

          113             113  

Real estate partnerships

                125       125  

Private equity

                97       97  

Mortgage-backed securities

          43             43  

Other

          7             7  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total plan assets at fair value

  $ 725     $ 1,069     $ 222     $ 2,016  
   

 

 

   

 

 

   

 

 

   

 

 

 
                                 
    Level 1     Level 2     Level 3     Total  

Common stock

  $ 718     $ 33     $     $ 751  

Common collective trusts—fixed income

          276             276  

Common collective trusts—equity

          199             199  

Government securities

    68       93             161  

Mutual funds

          149             149  

Corporate bonds

    15       128             143  

Real estate partnerships

                95       95  

Private equity

                66       66  

Mortgage-backed securities

          50             50  

Other

    1       5             6  
   

 

 

   

 

 

   

 

 

   

 

 

 

Total plan assets at fair value

  $ 802     $ 933     $ 161     $ 1,896  
   

 

 

   

 

 

   

 

 

   

 

 

 
Summary of changes in the fair value for level 3 investments
                 
    Real Estate
Partnerships
    Private Equity  

Beginning balance, February 28, 2010

  $     $ 35  

Purchases

    87       28  

Sales

          (3

Unrealized gains

    8       6  

Realized gains and losses

           
   

 

 

   

 

 

 

Ending balance, February 26, 2011

    95       66  

Purchases

    20       30  

Sales

    (2     (7

Unrealized gains

    12       8  

Realized gains and losses

           
   

 

 

   

 

 

 

Ending balance, February 25, 2012

  $ 125     $ 97  
   

 

 

   

 

 

 
The estimated future benefit payments to be paid from the Company's defined benefit pension plans and other postretirement benefit plans
                 

Fiscal Year

  Pension Benefits     Other Postretirement
Benefits
 

2013

  $ 106     $ 7  

2014

    116       7  

2015

    122       7  

2016

    130       8  

2017

    139       8  

Years 2018-2022

    840       42  
Schedule of pension funds contributions
                                                         
     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

      2012   2011     2012     2011     2010      

Southern California UFCW Unions and Food Employers Joint Pension Trust Fund

    951939092-001     3/31   Red   Red   Implemented   $ 35     $ 37     $ 41     No   Yes

UFCW Union and Participating Food Industry Employers Tri-State Pension Fund

    236396097-001     12/31   Red   Red   Implemented     15       17       15     Yes   Yes

Western Conference of Teamsters Pension Plan

    916145047-001     12/31   Green   Green   No     13       14       15     No   Yes

Central States, Southeast and Southwest Areas Pension Fund

    366044243-001     12/31   Red   Red   Implemented     9       9       9     No   No

Minneapolis Food Distributing Industry Pension Plan

    416047047-001     12/31   Yellow   Yellow   Implemented     9       9       8     No   Yes

United Food and Commercial Workers Union Local 152 Retail Meat Pension Plan

    236209656-001     6/30   Red   Red   Implemented     7       7       7     Yes   Yes

Minneapolis Retail Meat Cutters and Food Handlers Pension Fund

    410905139-001     2/28   Yellow   Yellow   Implemented     7       6       6     No   No

United Food and Commercial Workers International Union-Industry Pension Fund

    516055922-001     6/30   Green   Green   No     5       6       6     No   Yes

Retail Food Employers and UFCW Local 711 Pension

    516031512-001     12/31   Red   Red   Implemented     5       4       5     Yes   No

UFCW Unions and Participating Employers Pension Plan

    526117495-002     12/31   Red   Red   Implemented     4       3       3     Yes   Yes

Sound Retirement Trust (formerly Retail Clerks Pension Plan)

    916069306-001     9/30   Red   Green   Implemented     3       3       4     Yes   Yes

All Other Multiemployer Pension Plans (2)

                            18       20       24          
                           

 

 

   

 

 

   

 

 

         

Total

                          $ 130     $ 135     $ 143          
                           

 

 

   

 

 

   

 

 

         

 

 

(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 24 plans, none of which are individually significant when considering employer’s contributions to the plan, severity of the underfunded status or other factors.
Schedule of Collective Bargaining Agreement Dates and Contributions to Each Plant
                                     

Pension Fund

  Range of
Collective
Bargaining
Agreement
Dates
    Total
Collective
Bargaining
Agreements
    Expiration
Date
    % of Associates under
Collective Bargaining
Agreement (1)
    Over 5%
Contribution

2012

Southern California UFCW Unions and Food Employers Joint Pension Trust Fund

    10/9/11 – 3/2/14       4       3/2/14       96.8   Yes

UFCW Union and Participating Food Industry Employers Tri-State Pension Fund

    2/2/12 – 1/25/14       4       2/2/12       42.0   Yes

Western Conference of Teamsters Pension Plan

    6/4/11 – 9/10/16       8       9/20/15       55.3   No

Central States, Southeast and Southwest Areas Pension Fund

    9/10/11 – 5/31/16       13       9/15/13       26.9   No

Minneapolis Food Distributing Industry Pension Plan

    5/31/13       1       5/31/13       100.0   Yes

United Food and Commercial Workers Union Local 152 Retail Meat Pension Plan

    5/4/13       1       5/4/13       100.0   Yes

Minneapolis Retail Meat Cutters and Food Handlers Pension Fund

    3/2/13       1       3/2/13       100.0   Yes

United Food and Commercial Workers International Union-Industry Pension Fund

    3/5/11 – 9/5/15       6       3/10/12       85.3   No

Retail Food Employers and UFCW Local 711 Pension

    2/26/12 – 12/7/13       3       2/26/12       99.6   Yes

UFCW Unions and Participating Employers Pension Plan

    7/7/12       2       7/7/12       70.6   Yes

Sound Retirement Fund

    9/18/10 – 6/7/14       13       5/4/13       45.6   Yes

 

 

(1) Employees on which the Company contributes under these most significant collective bargaining agreements as a percent of all employees on which the Company contributes to the respective fund.