XML 73 R45.htm IDEA: XBRL DOCUMENT v2.4.0.8
PENSION AND POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
May 25, 2014
Compensation and Retirement Disclosure [Abstract]  
Change in benefit obligations and plan assets
The changes in benefit obligations and plan assets at May 25, 2014 and May 26, 2013 are presented in the following table.
 
Pension Benefits
 
Other Benefits
 
2014
 
2013
 
2014
 
2013
Change in Benefit Obligation
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
3,817.5

 
$
3,328.3

 
$
302.8

 
$
282.7

Service cost
89.0

 
81.8

 
0.7

 
0.6

Interest cost
151.1

 
150.1

 
9.7

 
10.5

Plan participants’ contributions
—

 
—

 
6.1

 
5.3

Amendments
2.2

 
6.8

 
(5.7
)
 
—

Actuarial loss
79.5

 
114.3

 
(4.6
)
 
(7.6
)
Special termination benefits
0.4

 
—

 
—

 
—

Curtailments
—

 
(0.4
)
 
—

 
—

Benefits paid
(159.5
)
 
(147.8
)
 
(25.1
)
 
(27.2
)
Currency
(1.2
)
 
—

 
(0.4
)
 
—

Business combinations
—

 
284.4

 
—

 
38.5

Benefit obligation at end of year
$
3,979.0

 
$
3,817.5

 
$
283.5

 
$
302.8

Change in Plan Assets
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
3,343.3

 
$
2,766.6

 
$
0.1

 
$
0.1

Actual return on plan assets
358.8

 
457.1

 
0.2

 
—

Employer contributions
18.3

 
19.8

 
19.0

 
21.9

Plan participants’ contributions
—

 
—

 
6.1

 
5.3

Investment and administrative expenses
(13.8
)
 
(16.5
)
 
—

 
—

Benefits paid
(159.5
)
 
(147.8
)
 
(25.1
)
 
(27.2
)
Currency
(1.1
)
 
—

 
—

 
—

Business combinations
—

 
264.1

 
—

 
—

Fair value of plan assets at end of year
$
3,546.0

 
$
3,343.3

 
$
0.3

 
$
0.1
Funded status and Amounts recognized in Balance Sheets
The funded status and amounts recognized in our Consolidated Balance Sheets at May 25, 2014 and May 26, 2013 were:
 
 
Pension Benefits
 
Other Benefits
 
 
2014
 
2013
 
2014
 
2013
Funded Status
 
$
(433.0
)
 
$
(474.2
)
 
$
(283.2
)
 
$
(302.7
)
Amounts Recognized in Consolidated Balance Sheets
 
 
 
 
 
 
 
 
Other assets
 
$
18.8

 
$
6.6

 
$
—

 
$
—

Other accrued liabilities
 
(10.0
)
 
(9.6
)
 
(25.0
)
 
(25.6
)
Other noncurrent liabilities
 
(441.8
)
 
(471.2
)
 
(258.2
)
 
(277.1
)
Net Amount Recognized
 
$
(433.0
)
 
$
(474.2
)
 
$
(283.2
)
 
$
(302.7
)
Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Pre-tax)
 
 
 
 
 
 
 
 
Actuarial net loss
 
$
202.8

 
$
218.2

 
$
55.3

 
$
66.9

Net prior service cost (benefit)
 
18.7

 
20.3

 
(29.6
)
 
(31.1
)
Total
 
$
221.5

 
$
238.5

 
$
25.7

 
$
35.8

Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations at May 25, 2014 and May 26, 2013
 
 
 
 
 
 
 
 
Discount rate
 
4.15
%
 
4.05
%
 
3.65
%
 
3.35
%
Long-term rate of compensation increase
 
4.25
%
 
4.25
%
 
N/A

 
N/A
Projected benefit obligation, Accumulated benefit obligation, and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan Assets.
The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets at May 25, 2014 and May 26, 2013 were:
 
 
2014
 
2013
Projected benefit obligation
 
$
3,390.9

 
$
3,338.8

Accumulated benefit obligation
 
3,289.3

 
3,260.7

Fair value of plan assets
 
2,942.5

 
2,863.3
Components of pension benefit and other postretirement benefit costs
Components of pension benefit and other postretirement benefit costs included:
 
Pension Benefits
 
Other Benefits
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Service cost
$
89.0

 
$
81.8

 
$
68.7

 
$
0.7

 
$
0.6

 
$
0.6

Interest cost
151.1

 
150.1

 
149.2

 
9.7

 
10.5

 
13.2

Expected return on plan assets
(252.9
)
 
(216.4
)
 
(196.0
)
 
—

 
—

 
—

Amortization of prior service cost (benefit)
3.8

 
3.6

 
3.0

 
(7.2
)
 
(8.2
)
 
(13.6
)
Special termination benefits
0.4

 
—

 
—

 
—

 
—

 
—

Recognized net actuarial loss
2.7

 
3.6

 
396.9

 
6.7

 
5.9

 
7.6

Curtailment loss
—

 
0.8

 
—

 
—

 
—

 
—

Benefit cost — Company plans
(5.9
)
 
23.5

 
421.8

 
9.9

 
8.8

 
7.8

Pension benefit cost — multi-employer plans
12.6

 
23.6

 
8.5

 
—

 
—

 
—

Total benefit cost
$
6.7

 
$
47.1

 
$
430.3

 
$
9.9

 
$
8.8

 
$
7.8
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss
Other changes in plan assets and benefit obligations recognized in other comprehensive (income) loss were:
 
 
Pension Benefits
 
Other Benefits
 
 
2014
 
2013
 
2014
 
2013
Net actuarial (gain) loss
 
$
(12.7
)
 
$
(110.2
)
 
$
(4.9
)
 
$
(7.7
)
Amendments
 
2.2

 
6.8

 
(5.7
)
 
—

Amortization of prior service (cost) benefit
 
(3.8
)
 
(4.4
)
 
7.2

 
8.2

Recognized net actuarial loss
 
(2.7
)
 
(3.6
)
 
(6.7
)
 
(5.9
)
Net amount recognized
 
$
(17.0
)
 
$
(111.4
)
 
$
(10.1
)
 
$
(5.4
)
Weighted Average Actuarial Assumption Used to Determine Net Expense
 
 
Pension Benefits
 
Other Benefits
 
 
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Discount rate
 
4.05
%
 
4.50
%
 
5.30
%
 
3.35
%
 
3.90
%
 
4.30
%
Long-term rate of return on plan assets
 
7.75
%
 
7.75
%
 
7.75
%
 
N/A

 
N/A

 
N/A

Long-term rate of compensation increase
 
4.25
%
 
4.25
%
 
4.25
%
 
N/A

 
N/A

 
N/A
Accumulated other comprehensive income (loss)
The amounts in accumulated other comprehensive income (loss) expected to be recognized as components of net expense during the next year are as follows:
 
 
Pension Benefits
 
Other Benefits
Prior service cost (benefit)
 
$
3.6

 
$
(7.9
)
Net actuarial loss
 
NA

 
3.4
Fair value of plan assets
The fair value of plan assets, summarized by level within the fair value hierarchy described in Note 19, as of May 25, 2014, were as follows:
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
 
$
2.4

 
$
150.2

 
$
—

 
$
152.6

Equity securities:
 
 
 
 
 
 
 
 
U.S. equity securities
 
535.4

 
93.2

 
—

 
628.6

International equity securities
 
589.7

 
232.3

 
—

 
822.0

Fixed income securities:
 
 
 
 
 
 
 
 
Government bonds
 
114.0

 
266.3

 
—

 
380.3

Corporate bonds
 
63.8

 
344.6

 
—

 
408.4

Mortgage-backed bonds
 
50.2

 
77.7

 
—

 
127.9

Real estate funds
 
2.8

 
24.0

 
170.6

 
197.4

Multi-strategy hedge funds
 
—

 
—

 
462.3

 
462.3

Private equity funds
 
—

 
—

 
81.3

 
81.3

Master limited partnerships
 
263.3

 
—

 
—

 
263.3

Private natural resources fund
 
—

 
—

 
16.6

 
16.6

Net receivables for unsettled transactions
 
5.3

 
—

 
—

 
5.3

Total assets
 
$
1,626.9

 
$
1,188.3

 
$
730.8

 
$
3,546.0

The fair value of plan assets, summarized by level within the fair value hierarchy described in Note 19, as of May 26, 2013, were as follows:
 
 
Level 1
 
Level 2
 
Level 3
 
Total
Cash and cash equivalents
 
$
1.0

 
$
194.8

 
$
—

 
$
195.8

Equity securities:
 
 
 
 
 
 
 
 
U.S. equity securities
 
766.9

 
90.0

 
—

 
856.9

International equity securities
 
513.3

 
213.4

 
—

 
726.7

Fixed income securities:
 
 
 
 
 
 
 
 
Government bonds
 
108.7

 
180.8

 
—

 
289.5

Corporate bonds
 
35.3

 
293.1

 
—

 
328.4

Mortgage-backed bonds
 
57.1

 
83.1

 
—

 
140.2

Real estate funds
 
8.9

 
13.7

 
91.5

 
114.1

Multi-strategy hedge funds
 
—

 
—

 
413.9

 
413.9

Private equity funds
 
—

 
—

 
79.1

 
79.1

Master limited partnerships
 
180.6

 
—

 
—

 
180.6

Private natural resources funds
 
—

 
—

 
7.8

 
7.8

Net receivables for unsettled transactions
 
10.3

 
—

 
—

 
10.3

Total assets
 
$
1,682.1

 
$
1,068.9

 
$
592.3

 
$
3,343.3
Weighted average asset allocation and target asset allocation
Our pension plan weighted-average asset allocations and our target asset allocations, by asset category were as follows:
 
 
May 25, 2014
 
May 26, 2013
 
Target
Allocation
Equity securities
 
41
%
 
47
%
 
38
%
Debt securities
 
26
%
 
23
%
 
21
%
Real estate funds
 
6
%
 
3
%
 
6
%
Multi-strategy hedge funds
 
13
%
 
13
%
 
15
%
Private equity
 
2
%
 
2
%
 
8
%
Other
 
12
%
 
12
%
 
12
%
Total
 
100
%
 
100
%
 
100
%
Change in the fair value of the Plan Assets
The change in the fair value of the plan’s Level 3 assets is summarized as follows:
 
 
Fair Value
May 26, 2013
 
Realized Gains (Losses)
 
Unrealized
Gains (Losses)
 
Net, Purchases and Sales
 
Fair Value
May 25, 2014
Real estate funds
 
$
91.5

 
$
0.4

 
$
11.8

 
$
66.9

 
$
170.6

Multi-strategy hedge funds
 
413.9

 
0.2

 
21.2

 
27.0

 
462.3

Private equity
 
79.1

 
3.2

 
8.0

 
(9.0
)
 
81.3

Private natural resources
 
7.8

 
—

 
1.5

 
7.3

 
16.6

Total
 
$
592.3

 
$
3.8

 
$
42.5

 
$
92.2

 
$
730.8

 
 
Fair Value
May 27, 2012
 
Business Combination
 
Realized Gains (Losses)
 
Unrealized
Gains (Losses)
 
Net, Purchases and Sales
 
Fair Value
May 26, 2013
Real estate funds
 
$
83.3

 
$
—

 
$
(23.9
)
 
$
26.6

 
$
5.5

 
$
91.5

Multi-strategy hedge funds
 
379.1

 
—

 
0.4

 
36.6

 
(2.2
)
 
413.9

Private equity
 
64.2

 
5.8

 
1.6

 
8.2

 
(0.7
)
 
79.1

Private natural resources
 
1.5

 
—

 
—

 
0.5

 
5.8

 
7.8

Total
 
$
528.1

 
$
5.8

 
$
(21.9
)
 
$
71.9

 
$
8.4

 
$
592.3
Assumed Health Care Cost Trend Rates
Assumed Health Care Cost Trend Rates at:
 
May 25, 2014
 
May 26, 2013
Initial health care cost trend rate
 
10.0
%
 
9.0
%
Ultimate health care cost trend rate
 
5.0
%
 
5.0
%
Year that the rate reaches the ultimate trend rate
 
2022

 
2022
Percentage point change in assumed health care cost trend rates
A one percentage point change in assumed health care cost rates would have the following effect:
 
 
One  Percent
Increase
 
One  Percent
Decrease
Effect on total service and interest cost
 
$
0.8

 
$
(0.7
)
Effect on postretirement benefit obligation
 
18.9

 
(16.8
)
Estimated future gross benefit payments and Medicare Part D subsidy receipts
The following table presents estimated future gross benefit payments for our plans:
 
 
Pension Benefits
 
Health Care and Life Insurance
Benefits
2015
 
$
183.0

 
$
25.5

2016
 
183.1

 
25.0

2017
 
189.2

 
24.4

2018
 
197.1

 
23.7

2019
 
205.0

 
23.1

Succeeding 5 years
 
1,127.8

 
100.1
Plans not individually significant
For plans that are not individually significant to ConAgra Foods the total amount of contributions is presented in the aggregate.
  
  
Pension Protection Act
Zone Status
FIP /
RP Status
Pending /
Implemented
Contributions by
the Company
(millions)
  
Expiration
Dates of
Collective
Bargaining
Agreements
Pension Fund
EIN / PN
2013
2012
FY14
FY13
FY12
Surcharge
Imposed
Bakery and Confectionary Union and Industry International Pension Plan
52-6118572
/ 001
Red
Red
RP Implemented
$
3.5

$2.1
$1.3
No
12/08/2012 to 7/23/2016
Central States, Southeast and Southwest Areas Pension Fund
36-6044243
/ 001
Red
Red
RP Implemented
2.1

1.2
1.2
No
06/02/2014 to 06/04/2017
National Conference of Fireman & Oilers National Pension Fund
52-6085445 / 003
Yellow
Yellow
FIP Implemented
0.7

0.3
—
No
11/19/2015
Western Conference of Teamsters Pension Plan
91-6145047
/ 001
Green
Green
N/A
4.9

4.9
5.2
No
06/30/2015 to 03/31/2018
Other Plans
1.2

0.9
0.8
 
 
Total Contributions
$
12.4

$9.4
$8.5