Employee and Retiree Benefits

9 Months Ended

May. 30, 2015

Compensation and Retirement Disclosure [Abstract]

Postretirement health care and deferred compensation benefits are as follows:



(In thousands)	May 30, 2015			August 30, 2014
Postretirement health care benefit cost	$	36,052		$	36,930
Non-qualified deferred compensation	19,920			21,014
Executive share option plan liability	5,139			5,628
SERP benefit liability	2,806			2,974
Executive deferred compensation	305			213
Officer stock-based compensation	411			627
Total postretirement health care and deferred compensation benefits	64,633			67,386
Less current portion ⁽¹⁾	(5,422		)	(4,575		)
Long-term postretirement health care and deferred compensation benefits	$	59,211		$	62,811

⁽¹⁾ The current portions of these benefits are presented on the consolidated balance sheets in accrued compensation with the exception of postretirement health care which is included in other accrued expenses.

Postretirement Health Care Benefits

We provide certain health care and other benefits for retired employees hired before April 1, 2001, who have fulfilled eligibility requirements at age 55 with 15 years of continuous service. We use a September 1 measurement date for this plan and our postretirement health care plan currently is not funded.

We established dollar caps on the amount that we will pay for postretirement health care benefits per retiree on an annual basis to reduce our exposure to medical inflation. Retirees are required to pay a monthly premium in excess of the employer dollar caps for medical coverage based on years of service and age at retirement. Changes in the postretirement benefit plan include:



Date	Event	Dollar Cap Reduction	Liability Reduction (In thousands)		Amortization Period⁽¹⁾
Fiscal 2005	Established employer dollar caps
January 2012	Reduced employer dollar caps	10%	$	4,598	7.8	years
January 2013	Reduced employer dollar caps	10%	$	4,289	7.5	years
January 2014	Reduced employer dollar caps	10%	$	3,580	7.3	years
January 2015	Reduced employer dollar caps	10%	$	1,524	7.1	years

⁽¹⁾Actuarial gains and losses are amortized on a straight-line basis over the expected remaining service period of active plan participants.

Net periodic postretirement benefit income consisted of the following components:



	Three Months Ended						Nine Months Ended
(In thousands)	May 30, 2015			May 31, 2014			May 30, 2015			May 31, 2014
Interest cost	$	348		$	380		$	1,034		$	1,160
Service cost	107			96			320			296
Amortization of prior service benefit	(1,459		)	(1,482		)	(4,079		)	(4,168		)
Amortization of net actuarial loss	399			274			1,066			803
Net periodic postretirement benefit income	$	(605	)	$	(732	)	$	(1,659	)	$	(1,909	)

Payments for postretirement health care	$	231		$	247		$	707		$	779