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BENEFIT PLANS (Tables)
12 Months Ended
Feb. 22, 2014
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 the defined benefit pension plans and other postretirement benefit plans consisted of the following:

 

     Pension Benefits     Other  Postretirement
Benefits
 
         2014             2013           2014         2013    

Change in Benefit Obligation

        

Benefit obligation at beginning of year

   $ 2,893      $ 2,745      $ 109      $ 116   

Plan Amendment

                   (11       

Service cost

                   2        2   

Interest cost

     121        123        4        5   

Actuarial loss (gain)

     (141     119        (12     (9

Benefits paid

     (147     (94     (6     (5

Other

                   (5       
  

 

 

   

 

 

   

 

 

   

 

 

 

Benefit obligation at end of year

     2,726        2,893        81        109   
  

 

 

   

 

 

   

 

 

   

 

 

 

Changes in Plan Assets

        

Fair value of plan assets at beginning of year

     2,031        1,827                 

Actual return on plan assets

     259        205                 

Employer contributions

     118        93        6        5   

Plan participants’ contributions

                   3        4   

Benefits paid

     (147     (94     (9     (9
  

 

 

   

 

 

   

 

 

   

 

 

 

Fair value of plan assets at end of year

     2,261        2,031                 
  

 

 

   

 

 

   

 

 

   

 

 

 

Funded status at end of year

   $ (465   $ (862   $ (81   $ (109
Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the Consolidated Balance Sheets consisted of the following:

 

     Pension Benefits     Other  Postretirement
Benefits
 
         2014             2013             2014             2013      

Accrued vacation, compensation and benefits

   $ (3   $ (2   $ (6   $ (7

Pension and other postretirement benefit obligations

     (462     (860     (75     (102
  

 

 

   

 

 

   

 

 

   

 

 

 
   $ (465   $ (862   $ (81   $ (109 )
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 consists of the following:

 

     Pension Benefits     Other Postretirement
Benefits
 
     2014     2013     2014     2013  

Prior service benefit

   $ —        $ —        $ 55      $ 57   

Net actuarial loss

     (567     (928     (25     (46
  

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in Accumulated other comprehensive loss

   $ (567   $ (928   $ 30      $ 11   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in Accumulated other comprehensive loss, net of tax

   $ (324   $ (570   $ 17      $ 7   
  

 

 

   

 

 

   

 

 

   

 

 

 

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 consisted of the following:

 

    Pension Benefits     Other Postretirement
Benefits
 
      2014         2013         2012         2014         2013         2012    

Net Periodic Benefit Cost

           

Service cost

  $      $      $      $ 2      $ 2      $ 2   

Interest cost

    121        123        126        4        5        7   

Expected return on plan assets

    (141     (133     (114                     

Amortization of prior service benefit

                         (13     (12     (9

Amortization of net actuarial loss

    101        111        88        5        6        4   

Settlement

                  2                        
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic benefit cost (income)

    81        101        102        (2     1        4   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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

           

Prior service benefit

                         (11            (52

Amortization of prior service benefit

                         12        13        9   

Net actuarial (gain) loss

    (259     46        417        (16     (7     16   

Amortization of net actuarial loss

    (101     (110     (88     (5     (6     (4
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in Other comprehensive (income) loss

    (360     (64     329        (20            (31
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total recognized in net periodic benefit cost (income) and Other comprehensive (income) loss

  $ (279   $ 37      $ 431      $ (22 )   $ 1      $ (27
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:

 

     2014     2013     2012  

Benefit obligation assumptions:

      

Discount rate (1)

     4.65     4.25     4.55

Rate of compensation increase

         2.00     2.00

Net periodic benefit cost assumptions: (2)

      

Discount rate (1)

     4.25     4.55     5.60

Rate of compensation increase

     2.00     2.00     2.00

Expected return on plan assets (3)

     7.00     7.25     7.50

 

 

(1) 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.

 

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

 

(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.
Asset Allocation Targets and Actual Allocation of Pension Plan Assets

The asset allocation targets and the actual allocation of pension plan assets are as follows:

 

Asset Category

   Target     2014     2013  

Domestic equity

     29.6     30.2     32.9

International equity

     13.7     14.1     15.3

Private equity

     5.6     5.5     5.4

Fixed income

     42.3     41.3     37.3

Real estate

     8.8     8.9     9.1
  

 

 

   

 

 

   

 

 

 

Total

     100.0     100.0     100.0 %
Fair Value of Assets of Company's Benefit Plans Held in Master Trust

The fair value of assets of the Company’s defined benefit pension plans held in a master trust as of February 22, 2014, by asset category, consisted of the following:

 

     Level 1      Level 2      Level 3      Total  

Common stock

   $ 579       $       $       $ 579   

Common collective trusts—fixed income

             253                 253   

Common collective trusts—equity

             344                 344   

Government securities

     92         89                 181   

Mutual funds

     52         243                 295   

Corporate bonds

             290                 290   

Real estate partnerships

                     149         149   

Private equity

                     125         125   

Mortgage-backed securities

             37                 37   

Other

             8                 8   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total plan assets at fair value

   $ 723       $ 1,264       $ 274       $ 2,261   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The fair value of assets of the Company’s defined benefit pension plans held in a master trust as of February 23, 2013, by asset category, consisted of the following:

 

     Level 1      Level 2      Level 3      Total  

Common stock

   $ 554       $       $       $ 554   

Common collective trusts—fixed income

             247                 247   

Common collective trusts—equity

             335                 335   

Government securities

     60         92                 152   

Mutual funds

     51         221                 272   

Corporate bonds

             183                 183   

Real estate partnerships

                     136         136   

Private equity

                     110         110   

Mortgage-backed securities

             35                 35   

Other

     3         4                 7   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total plan assets at fair value

   $ 668       $ 1,117       $ 246       $ 2,031
Summary of Changes in Fair Value for Level 3 Investments

The following is a summary of changes in the fair value for Level 3 investments for 2014 and 2013:

 

     Real Estate
Partnerships
    Private Equity  

Ending balance, February 25, 2012

   $ 113      $ 88   

Purchases

     15        20   

Sales

            (7

Unrealized gains

     8        9   
  

 

 

   

 

 

 

Ending balance, February 23, 2013

     136        110   

Purchases

     22        34   

Sales

     (26     (24

Unrealized gains

     10        5   

Realized gains and losses

     7          
  

 

 

   

 

 

 

Ending balance, February 22, 2014

   $ 149      $ 125
Estimated Future Benefit Payments to be Paid from Company's Defined Benefit Pension Plans and Other Postretirement Benefit Plans

The estimated future benefit payments to be paid from the Company’s defined benefit pension plans and other postretirement benefit plans, which reflect expected future service, are as follows:

 

Fiscal Year

   Pension Benefits      Other Postretirement
Benefits
 

2015

   $ 115       $ 6   

2016

     122         7   

2017

     128         6   

2018

     137         6   

2019

     147         6   

Years 2020-2024

     851         31   
Schedule of Pension Funds Contributions

The following table contains information about the Company’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

      2014   2013     2014     2013     2012      

Minneapolis Food Distributing Industry Pension Plan

    416047047-001      12/31   Green   Green   Implemented   $ 9      $ 9      $ 9      No   Yes

Central States, Southeast and Southwest Areas Pension Fund

    366044243-001      12/31   Red   Red   Implemented     8        9        9      No   Yes

Minneapolis Retail Meat Cutters and Food Handlers Pension Fund

    410905139-001      2/28   Yellow   Yellow   Implemented     8        8        7      No   No

UFCW Unions and Participating Employers Pension Plan

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

Western Conference of Teamsters Pension Plan

    916145047-001      12/31   Green   Green   No     3        2        3      No   Yes

UFCW Union Local 655 Food Employers Joint Pension Plan

    436058365-001      12/31   Green   Red   Implemented     2        2        2      Yes   Yes

UFCW Unions and Employers Pension Plan

    396069053-001      10/31   Red   Red   Implemented     2        2        2      Yes   Yes

All Other Multiemployer Pension Plans (2)

              3        3        2       
           

 

 

   

 

 

   

 

 

     

Total

            $ 39      $ 38      $ 38       
           

 

 

   

 

 

   

 

 

     

 

 

(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 11 plans, none of which are individually significant when considering employer’s contributions to the plan, severity of the underfunded status or other factors. The following table describes the expiration of the Company’s collective bargaining agreements associated with the significant multiemployer plans in which the Company participates:
Schedule of Collective Bargaining Agreements Dates and Contributions to Each Plan
The following table describes the expiration of the Company’s collective bargaining agreements associated with the significant multiemployer plans in which the Company 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
2014

Minneapolis Food Distributing Industry Pension Plan

     06/01/2013 – 05/31/2015         1         05/31/2015         100.0   Yes

Central States, Southeast and Southwest Areas Pension Fund

     06/13/2009 – 07/16/2016         10         05/31/2016         28.3   No

Minneapolis Retail Meat Cutters and Food Handlers Pension Fund

     03/02/2013 – 03/01/2014         2         03/01/2014         96.5   Yes

UFCW Unions and Participating Employers Pension Plan

     07/08/2012 – 07/12/2014         2         07/12/2014         68.2   Yes

Western Conference of Teamsters Pension Plan

     04/17/2011 – 09/22/2016         8         07/12/2014         42.0   No

UFCW Union Local 655 Food Employers Joint Pension Plan

     05/17/2010 – 03/30/2014         1         03/30/2014         100.0   Yes

UFCW Unions and Employers Pension Plan

     04/07/2013 – 04/05/2014         1         04/05/2014         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.