XML 83 R21.htm IDEA: XBRL DOCUMENT v3.20.1
BENEFIT PLANS
 6 Months Ended
Feb. 01, 2020
Retirement Benefits [Abstract]  
BENEFIT PLANS
NOTE 13—BENEFIT PLANS

Net periodic benefit (income) cost and contributions to defined benefit pension and other post-retirement benefit plans consisted of the following:
 
13-Week Period Ended
 
Pension Benefits
 
Other Postretirement Benefits
(in thousands)
February 1, 2020
 
January 26, 2019
 
February 1, 2020
 
January 26, 2019
Net Periodic Benefit (Income) Cost
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
14

 
$
55

Interest cost
13,602

 
24,004

 
236

 
477

Expected return on plan assets
(26,587
)
 
(35,415
)
 
(54
)
 
(58
)
Amortization of net actuarial loss (gain)
3

 
—

 
(780
)
 
—

Pension settlement charge
10,303

 
—

 
—

 
—

Net periodic benefit (income) cost
$
(2,679
)
 
$
(11,411
)
 
$
(584
)
 
$
474

 
 
 
 
 
 
 
 
Contributions to benefit plans
$
(1,150
)
 
$
(151
)
 
$
(60
)
 
$
(117
)

 
26-Week Period Ended
 
Pension Benefits
 
Other Postretirement Benefits
(in thousands)
February 1, 2020
 
January 26, 2019
 
February 1, 2020
 
January 26, 2019
Net Periodic Benefit (Income) Cost
 
 
 
 
 
 
 
Service cost
$
—

 
$
—

 
$
28

 
$
59

Interest cost
30,292

 
25,851

 
472

 
515

Expected return on plan assets
(54,069
)
 
(38,139
)
 
(108
)
 
(63
)
Amortization of net actuarial loss (gain)
6

 
—

 
(1,557
)
 
—

Pension settlement charge
10,303

 
—

 
—

 
—

Net periodic benefit (income) cost
$
(13,468
)
 
$
(12,288
)
 
$
(1,165
)
 
$
511

 
 
 
 
 
 
 
 
Contributions to benefit plans
$
(5,250
)
 
$
(188
)
 
$
(160
)
 
$
(126
)


Pension Contributions

No minimum pension contributions are required to be made to the SUPERVALU Retirement Plan in fiscal 2020. Minimum pension contributions of $8.25 million are required to be made under the Unified Grocers, Inc. Cash Balance Plan under the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”) in fiscal 2020. The Company expects to contribute approximately $0.0 million and $6.0 million to its other defined benefit pension plans and postretirement benefit plans, respectively, in fiscal 2020.

Multiemployer Pension Plans

The Company contributed $12.6 million and $7.6 million in the second quarters of fiscal 2020 and 2019, respectively, and $26.1 million and $7.7 million in fiscal 2020 and 2019 year-to-date, respectively, to continuing and discontinued operations multiemployer pension plans.

In connection with the Company’s consolidation of distribution centers in the Pacific Northwest, during the second quarter of fiscal 2020, the Company recorded a $10.6 million multiemployer pension plan withdrawal liability, under which payments will be made over a one-year period beginning in fiscal 2022. The withdrawal liability is included in Other long-term liabilities and the withdrawal charge was recorded within Restructuring, acquisition and integration related expenses.

Lump Sum Pension Settlement

On August 1, 2019, the Company amended the SUPERVALU Retirement Plan to provide for a lump sum settlement window. On August 2, 2019, the Company sent plan participants lump sum settlement election offerings that committed the plan to pay certain deferred vested pension plan participants and retirees, who make such an election, a lump sum payment in exchange for their rights to receive ongoing payments from the plan. The lump sum payment amounts are equal to the present value of the participant’s pension benefits, and were made to certain former (i) retired associates and beneficiaries who are receiving their monthly pension benefit payment and (ii) terminated associates who are deferred vested in the plan, had not yet begun receiving monthly pension benefit payments and who are not eligible for any prior lump sum offerings under the plan. Benefit obligations associated with the lump sum offering have been incorporated into the funded status utilizing the actuarially determined lump sum payments based on estimated offer acceptances. The plan made aggregate lump sum settlement payments of $664.0 million to plan participants during the second quarter of fiscal 2020. The lump sum settlement payments resulted in a non-cash pension settlement charge of $10.3 million in the second quarter of fiscal 2020 from the acceleration of a portion of the accumulated unrecognized actuarial loss, which was based on the fair value of SUPERVALU Retirement Plan assets and remeasured liabilities. As a result of the settlement payments, the SUPERVALU Retirement Plan obligations were remeasured using a discount rate of 3.1 percent and the MP-2019 mortality improvement scale. This remeasurement resulted in a $1.5 million decrease to Accumulated other comprehensive loss.