Pension and Postretirement Benefits

6 Months Ended

Nov. 27, 2011

Pension and Postretirement Benefits [Abstract]

PENSION AND POSTRETIREMENT BENEFITS

13. PENSION AND POSTRETIREMENT BENEFITS

We have defined benefit retirement plans (“plans”) for eligible salaried and hourly employees. Benefits are based on years of credited service and average compensation or stated amounts for each year of service. We also sponsor postretirement plans which provide certain medical and dental benefits (“other postretirement benefits”) to qualifying U.S. employees.

During the second quarter of fiscal 2012, we made design changes to some of our other postretirement benefit plans. These changes resulted in plan amendments. The plan amendments also resulted in a plan remeasurement at September 8, 2011. The discount rate used to measure the other postretirement benefits obligation at September 8, 2011 was 4.3% compared to the May 29, 2011 discount rate of 4.9%. All other significant assumptions remained unchanged from the May 29, 2011 measurement date. Calculated gains as a result of the remeasurement of $27.6 million, primarily due to favorable plan amendments, were recognized as a credit to other comprehensive income.

As a result of these plan amendment changes, our net expense related to these plans will be reduced by approximately $5.2 million during fiscal 2012.

Components of pension benefit and other postretirement benefit costs included:

		(44.9)			(44.9)			(44.9)			(44.9)
	Pension Benefits
	Thirteen weeks ended						Twenty-six weeks ended
	November 27, 2011			November 28, 2010			November 27, 2011			November 28, 2010
Service cost	$	17.1		$	14.9		$	34.2		$	29.8
Interest cost		37.2			36.9			74.4			73.8
Expected return on plan assets		(44.9	)		(43.3	)		(89.8	)		(86.6	)
Amortization of prior service cost		0.7			0.8			1.5			1.6
Curtailment loss		—			—			—			1.3
Recognized net actuarial loss		9.7			4.1			19.3			8.2
Benefit cost — Company plans		19.8			13.4			39.6			28.1
Pension benefit cost — multi-employer plans		2.8			2.6			4.9			5.1
Total benefit cost	$	22.6		$	16.0		$	44.5		$	33.2

		(44.9)			(44.9)			(44.9)			(44.9)
	Postretirement Benefits
	Thirteen weeks ended						Twenty-six weeks ended
	November 27, 2011			November 28, 2010			November 27, 2011			November 28, 2010
Service cost	$	0.1		$	0.2		$	0.3		$	0.3
Interest cost		3.2			4.0			6.9			8.1
Expected return on plan assets		—			—			—			(0.1	)
Amortization of prior service cost		(3.6	)		(2.3	)		(5.8	)		(4.7	)
Recognized net actuarial loss		2.0			1.1			3.5			2.3
Total cost	$	1.7		$	3.0		$	4.9		$	5.9

During the second quarter and first half of fiscal 2012, we contributed $68.5 million and $71.5 million, respectively, to our pension plans and contributed $10.0 million and $17.5 million, respectively, to our other postretirement plans. Based upon the current funded status of the plans and the current interest rate environment, we anticipate making further contributions of approximately $15.7 million to our pension plans for the remainder of fiscal 2012. We anticipate making further contributions of $11.0 million to our other postretirement plans during the remainder of fiscal 2012. These estimates are based on current tax laws, plan asset performance, and liability assumptions, all of which are subject to change.