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EMPLOYEE BENEFITS (Tables)
 12 Months Ended
Dec. 29, 2019
EMPLOYEE BENEFITS  
Schedule of reconciliations of the pension and post-retirement benefit plans' benefit obligations, fair value of assets and funded status

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Post-retirement Benefits

 

(in thousands)

 

2019

 

2018

 

2019

 

2018

 

Change in Benefit Obligation

    

 

    

    

 

    

    

 

    

    

 

    

 

Benefit obligation, beginning of year

 

$

1,920,987

 

$

2,080,013

 

$

6,827

 

$

7,625

 

Interest cost

 

 

79,309

 

 

79,154

 

 

262

 

 

256

 

Plan participants’ contributions

 

 

 —

 

 

 —

 

 

 7

 

 

10

 

Actuarial (gain)/loss

 

 

181,506

 

 

(126,540)

 

 

(1,020)

 

 

(417)

 

Gross benefits paid

 

 

(149,859)

 

 

(111,640)

 

 

(584)

 

 

(647)

 

Special termination benefits

 

 

6,835

 

 

 —

 

 

 —

 

 

 —

 

Benefit obligation, end of year

 

$

2,038,778

 

$

1,920,987

 

$

5,492

 

$

6,827

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Post-retirement Benefits

 

(in thousands)

 

2019

 

2018

 

2019

 

2018

 

Change in Plan Assets

    

 

    

    

 

    

    

 

    

    

 

    

 

Fair value of plan assets, beginning of year

 

$

1,259,979

 

$

1,477,926

 

$

 —

 

$

 —

 

Actual return on plan assets

 

 

271,332

 

 

(115,192)

 

 

 —

 

 

 —

 

Employer contribution

 

 

11,815

 

 

8,885

 

 

577

 

 

637

 

Plan participants’ contributions

 

 

 —

 

 

 —

 

 

 7

 

 

10

 

Gross benefits paid

 

 

(149,859)

 

 

(111,640)

 

 

(584)

 

 

(647)

 

Fair value of plan assets, end of year

 

$

1,393,267

 

$

1,259,979

 

$

 —

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Post-retirement Benefits

 

(in thousands)

 

2019

 

2018

 

2019

 

2018

 

Funded Status

    

 

    

    

 

    

    

 

    

    

 

    

 

Fair value of plan assets

 

$

1,393,267

 

$

1,259,979

 

$

 —

 

$

 —

 

Benefit obligations

 

 

(2,038,778)

 

 

(1,920,987)

 

 

(5,492)

 

 

(6,827)

 

Funded status and amount recognized, end of year

 

$

(645,511)

 

$

(661,008)

 

$

(5,492)

 

$

(6,827)

 

 

Schedule of amounts recognized in the consolidated balance sheet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Post-retirement Benefits

 

(in thousands)

 

2019

 

2018

 

2019

 

2018

 

Current liability

    

$

(124,200)

 

$

(11,510)

    

$

(793)

 

$

(1,015)

 

Noncurrent liability

 

 

(521,311)

 

 

(649,498)

 

 

(4,699)

 

 

(5,812)

 

 

 

$

(645,511)

 

$

(661,008)

 

$

(5,492)

 

$

(6,827)

 

 

Schedule of amounts recognized in accumulated other comprehensive income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits

 

Post-retirement Benefits

 

(in thousands)

 

2019

 

2018

 

2019

 

2018

 

Net actuarial loss/(gain)

    

$

781,063

    

$

811,063

    

$

(7,464)

    

$

(7,334)

 

Prior service cost/(credit)

 

 

 —

 

 

 —

 

 

(2,482)

 

 

(4,456)

 

 

 

$

781,063

 

$

811,063

 

$

(9,946)

 

$

(11,790)

 

 

Schedule of elements of retirement and post-retirement costs

 

 

 

 

 

 

 

 

 

 

Years Ended

 

 

 

December 29,

 

December 30,

 

(in thousands)

 

2019

 

2018

 

Pension plans:

    

 

    

    

 

    

 

Interest Cost

 

$

79,309

 

$

79,154

 

Expected return on plan assets

 

 

(83,820)

 

 

(90,495)

 

Prior service cost amortization

 

 

6,834

 

 

 —

 

Actuarial loss

 

 

23,995

 

 

25,181

 

Net pension expense

 

 

26,318

 

 

13,840

 

Net post-retirement benefit credit

 

 

(2,603)

 

 

(2,726)

 

Net retirement expenses

 

$

23,715

 

$

11,114

 

 

Schedule of assumptions used

Weighted average assumptions used for valuing benefit obligations were:

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefit

 

Post-retirement

 

 

 

Obligations

 

Obligations

 

 

    

2019

    

2018

    

2019

    

2018

 

Discount rate

 

3.48

%   

4.42

%   

3.15

%   

4.15

% 

Weighted average assumptions used in calculating expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefit Expense

 

Post-retirement Expense

 

 

    

December 29,

    

December 30,

    

 

December 29,

    

December 30,

 

 

 

 

2019 (1)

 

2018

 

 

2019

 

2018

 

 

Expected long-term return on plan assets

 

7.75

%  

7.75

%  

 

N/A

 

N/A

 

 

Discount rate

 

4.42

%  

3.91

%  

 

4.15

%  

3.60

%  

 

_____________________

As discussed below, we performed an interim remeasurement of the Pension Plan on March 22, 2019, and used the assumptions described below. The expected long-term return on plan assets of 7.75% and discount rate of 4.42% presented in the table were used for the year end 2019 assumptions.

Summary of expected benefit payments to retirees under the Company's retirement and post-retirement plans

 

 

 

 

 

 

 

 

 

    

Retirement

    

Post-retirement

 

(in thousands)

 

Plans (1)

 

Plans

 

2020

 

$

105,047

 

$

806

 

2021

 

 

126,706

 

 

712

 

2022

 

 

118,914

 

 

629

 

2023

 

 

119,193

 

 

556

 

2024

 

 

120,023

 

 

488

 

2025-2029

 

 

612,922

 

 

1,663

 

Total

 

$

1,202,805

 

$

4,854

 

(1)

Largely to be paid from the qualified defined benefit pension plan.
Summary of pension plan's financial instruments that are carried at fair value on a recurring basis by the fair value hierarchy levels

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

Plan Assets

 

(in thousands)

 

Level 1

 

Level 2

 

Level 3

 

NAV

 

Total

 

Cash and cash equivalents

    

$

9,355

    

$

 —

    

$

 —

    

$

 —

    

$

9,355

 

Mutual funds

 

 

139,021

 

 

 —

 

 

 —

 

 

 —

 

 

139,021

 

Common collective trusts

 

 

 —

 

 

 —

 

 

 —

 

 

1,178,230

 

 

1,178,230

 

Real estate

 

 

 —

 

 

 —

 

 

55,874

 

 

 —

 

 

55,874

 

Private equity funds

 

 

 —

 

 

 —

 

 

10,787

 

 

 —

 

 

10,787

 

Total

 

$

148,376

 

$

 —

 

$

66,661

 

$

1,178,230

 

$

1,393,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

Plan Assets

 

(in thousands)

 

Level 1

 

Level 2

 

Level 3

 

NAV

 

Total

 

Cash and cash equivalents

    

$

9,366

    

$

 —

    

$

 —

    

$

 —

    

$

9,366

 

Mutual funds

 

 

139,978

 

 

 —

 

 

 —

 

 

 —

 

 

139,978

 

Common collective trusts

 

 

 —

 

 

 —

 

 

 —

 

 

1,045,628

 

 

1,045,628

 

Real estate

 

 

 —

 

 

 —

 

 

55,398

 

 

 —

 

 

55,398

 

Private equity funds

 

 

 —

 

 

 —

 

 

9,609

 

 

 —

 

 

9,609

 

Total

 

$

149,344

 

$

 —

 

$

65,007

 

$

1,045,628

 

$

1,259,979

 

 

Summary of changes in the fair value of the pension plan's Level 3 investment assets

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

    

Real Estate

    

Private Equity

    

Total

 

Beginning Balance, December 30, 2018

 

$

55,398

 

$

9,609

 

$

65,007

 

Realized gains (losses), net

 

 

2,738

 

 

 3

 

 

2,741

 

Transfer in or out of level 3

 

 

(4,953)

 

 

 —

 

 

(4,953)

 

Unrealized gains (losses), net

 

 

2,691

 

 

1,175

 

 

3,866

 

Ending Balance, December 29, 2019

 

$

55,874

 

$

10,787

 

$

66,661

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

    

Real Estate

    

Private Equity

    

Total

 

Beginning Balance, December 31, 2017

 

$

58,050

 

$

9,509

 

$

67,559

 

Realized gains (losses), net

 

 

4,528

 

 

 3

 

 

4,531

 

Transfer in or out of level 3

 

 

(8,601)

 

 

 —

 

 

(8,601)

 

Unrealized gains (losses), net

 

 

1,421

 

 

97

 

 

1,518

 

Ending Balance, December 30, 2018

 

$

55,398

 

$

9,609

 

$

65,007

 

 

Schedule of common collective trusts

 

 

 

 

 

 

 

 

 

 

 

 

(in thousands)

2019

 

2018

 

Unfunded Commitments

 

Redemption Frequency (if Currently Eligible)

 

Redemption Notice Period

Common collective trust funds:

 

 

 

 

 

 

 

 

 

 

 

U.S equity funds (1)

$

358,088

    

$

296,135

 

N/A

    

Daily

 

None

International equity funds (2)

 

373,764

    

 

311,119

 

N/A

    

Daily - Monthly

 

None

Emerging markets equity funds (3)

 

179,707

    

 

153,927

 

N/A

    

Daily

 

None - 5-Day

Fixed income funds (4)

 

126,900

 

 

146,197

 

N/A

 

Daily

 

2-Day

Total common collective trust

$

1,038,459

 

$

907,378

 

 

 

 

 

 

Fixed income credit fund (4)

 

139,771

 

 

138,250

 

N/A

 

Weekly

 

2-Day

Total investments measured at NAV

$

1,178,230

 

$

1,045,628

 

 

 

 

 

 

________________

(1)

U.S. equity fund strategies - Investments in U.S. equities are defined as commitments to U.S. dollar-denominated, publicly traded common stocks of U.S. domiciled companies and securities convertible into common stock. The aggregate U.S. equity portfolio is expected to exhibit characteristics comparable to, but not necessarily equal to, that of the Russell 3000 Index.

 

(2)

International equity funds strategies - Investments in international developed markets equities are defined as commitments to publicly traded common stocks and securities convertible into common stock issued by companies primarily domiciled in countries outside of the U.S.

 

(3)

Emerging markets equity fund strategies - Investments in emerging equities may include commitments to publicly traded common stocks and securities convertible into common stock issued by companies domiciled in countries considered emerging by one or more benchmark providers.

 

(4)

Fixed income fund strategies - Fixed income investments may include debt instruments issued by both U.S. and non-U.S. governments, agencies, “quasi Government” agencies, corporations, and any other public or private regulated debt security.