BENEFIT PLANS (Tables)

9 Months Ended

Apr. 27, 2019

Net Periodic Benefit Cost (Income) Recognized in Other Comprehensive Income (Loss)

Net periodic benefit (income) cost and other changes in plan assets and benefit obligations recognized in Net periodic benefit income, excluding service cost for defined benefit pension and other postretirement benefit plans consist of the following (in thousands):



	13-Week Period Ended April 27, 2019						39-Week Period Ended April 27, 2019
	Pension Benefits			Other Postretirement Benefits			Pension Benefits			Other Postretirement Benefits
Service cost	$	—		$	55		$	—		$	114
Interest cost	24,004			478			49,855			993
Expected return on plan assets	(35,416		)	(58		)	(73,555		)	(121		)
Net periodic benefit (income) cost	$	(11,412	)	$	475		$	(23,700	)	$	986
Contributions to benefit plans	$	(2,386	)	$	(92	)	$	(2,574	)	$	(218	)

Benefit Obligation, Fair Value of Plan Assets and Funded Status

The benefit obligation, fair value of plan assets and funded status of our defined benefit pension plans and other postretirement benefit plans assumed with the Supervalu acquisition consisted of the following as of the acquisition date (in thousands):



	October 22, 2018
	Pension Benefits			Other Postretirement Benefits
Benefit obligation as of October 22, 2018	$	2,499,954		$	52,276
Fair value of plan assets at October 22, 2018	2,305,020			11,586
Unfunded status at October 22, 2018	$	(194,934	)	$	(40,690	)

Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in the Condensed Consolidated Balance Sheets as of the acquisition date consist of the following (in thousands):



	October 22, 2018
	Pension Benefits		Other Postretirement Benefits
Accrued compensation and benefits	$	1,300	$	—
Pension and other postretirement benefit obligations	193,634		40,690
Total	$	194,934	$	40,690

Amounts recognized in the Condensed Consolidated Balance Sheets consisted of the following (in thousands):



	Post-Employment Benefits
	April 27, 2019
Accrued compensation and benefits	$	2,730
Other long-term liabilities	5,084
Total	$	7,814

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:



	October 22, 2018
Benefit obligation assumptions:
Discount rate	4.30% - 4.42%

Asset Allocation Targets and Fair Value of Assets

The fair value of assets of our defined benefit pension plans and other postretirement benefits plans held in master trusts as of October 22, 2018 assumed with the Supervalu acquisition, by asset category, consisted of the following as of the acquisition date (in thousands):



	Level 1		Level 2		Level 3		Measured at NAV		Total
Common stock	$	299,234	$	—	$	—	$	—	$	299,234
Common collective trusts	—		739,822		—		78,230		818,052
Corporate bonds	—		368,145		—		—		368,145
Government securities	51,030		155,279		—		—		206,309
Mutual funds	887		309,582		—		—		310,469
Mortgage-backed securities	—		14,920		—		—		14,920
Other	52,952		2,193		—		—		55,145
Private equity and real estate partnerships	—		—		—		244,332		244,332
Total plan assets at fair value	$	404,103	$	1,589,941	$	—	$	322,562	$	2,316,606

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



Asset Category	Target		October 22, 2018
Domestic equity	20.8	%	19.8	%
International equity	6.0	%	5.4	%
Private equity	5.0	%	5.0	%
Fixed income	64.8	%	64.2	%
Real estate	3.4	%	5.6	%
Total	100.0	%	100.0	%

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 (in thousands):



Fiscal Year	Pension Benefits		Other Postretirement Benefits
Remaining fiscal 2019	$	41,128	$	1,321
2020	158,500		4,800
2021	163,100		4,700
2022	169,900		4,600
2023	174,600		4,500
Years 2024-2027	849,500		19,400

Schedule of Multiemployer Plans

The following table contains information about the Company’s significant multiemployer plans (in millions):

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

2019

39-Week Period Ended April 27, 2019

Minneapolis Food Distributing Industry Pension Plan⁽²⁾

416047047-001

12/31

Green

Minneapolis Retail Meat Cutters and Food Handlers Pension Fund⁽³⁾

410905139-001

2/28

Red

Implemented

Minneapolis Retail Meat Cutters and Food Handlers Variable Annuity Pension Fund⁽³⁾

83-2598425

12/31

N/A

Central States, Southeast and Southwest Areas Pension Fund⁽²⁾

366044243-001

12/31

Deep Red

Implemented

Yes

UFCW Unions and Participating Employer Pension Fund⁽³⁾

526117495-001

12/31

Red

Implemented

Western Conference of Teamsters Pension Plan Trust⁽²⁾

916145047-001

12/31

Green

UFCW Unions and Employers Pension Plan⁽³⁾

396069053-001

10/31

Deep Red

Implemented

Yes

All Other Multiemployer Pension Plans⁽⁴⁾

Total


(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)	These multiemployer pension plans are associated with continuing operations.


(3)	These multiemployer pension plans are associated with discontinued operations.


(4)	All Other Multiemployer Pension Plans include 6 plans, none of which is individually significant when considering contributions to the plan, severity of the underfunded status or other factors.

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 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⁽²⁾	5/31/2022	1	5/31/2022	100.0	%	Yes
Minneapolis Retail Meat Cutters and Food Handlers Pension Fund⁽³⁾	3/4/2023	1	3/4/2023	100.0	%	Yes
Minneapolis Retail Meat Cutters and Food Handlers Variable Annuity Pension Fund (‘VAP”)⁽³⁾	3/4/2023	1	3/4/2023	100.0	%	N/A (contrib. began 1/1/2019)
Central States, Southeast and Southwest Areas Pension Fund⁽²⁾	5/31/2019 - 9/14/2019	4	9/14/2019	42.0	%	No
UFCW Unions and Participating Employer Pension Fund⁽³⁾	7/11/2020	2	7/11/2020	71.7	%	Yes
Western Conference of Teamsters Pension Trust⁽²⁾	4/20/2019 - 4/22/2023	21	7/17/2021	15.8	%	No
UFCW Unions and Employers Pension Plan⁽³⁾	4/9/2022	1	4/9/2022	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.


(2)	These multiemployer pension plans are associated with continuing operations.


(3)	These multiemployer pension plans are associated with discontinued operations.