Note 11 - Pension and Postretirement Benefits

6 Months Ended

Nov. 27, 2022

Notes to Financial Statements

Retirement Benefits [Text Block]

11. PENSION AND POSTRETIREMENT BENEFITS

We have defined benefit retirement plans ("pension 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 to qualifying U.S. employees.

Components of pension and postretirement plan costs (benefits) are:

	Pension Plans
	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	November 27, 2022			November 28, 2021			November 27, 2022			November 28, 2021
Service cost	$	1.7		$	2.0		$	3.3		$	4.7
Interest cost		31.0			20.8			62.0			41.6
Expected return on plan assets		(36.4	)		(36.3	)		(72.9	)		(72.7	)
Amortization of prior service cost		0.3			0.4			0.7			0.9
Pension cost (benefit) — Company plans		(3.4	)		(13.1	)		(6.9	)		(25.5	)
Pension cost (benefit) — multi-employer plans		2.8			2.4			5.0			4.3
Total pension cost (benefit)	$	(0.6	)	$	(10.7	)	$	(1.9	)	$	(21.2	)

	Postretirement Plans
	Thirteen Weeks Ended						Twenty-Six Weeks Ended
	November 27, 2022			November 28, 2021			November 27, 2022			November 28, 2021
Service cost	$	0.1		$	0.1		$	0.1		$	0.1
Interest cost		0.6			0.4			1.1			0.7
Amortization of prior service cost (benefit)		(0.5	)		(0.4	)		(0.9	)		(0.9	)
Recognized net actuarial gain		(1.1	)		(1.0	)		(2.2	)		(1.8	)
Total postretirement cost (benefit)	$	(0.9	)	$	(0.9	)	$	(1.9	)	$	(1.9	)

The Company uses a split discount rate (spot-rate approach) for the U.S. plans and certain foreign plans. The spot-rate approach applies separate discount rates for each projected benefit payment in the calculation of pension service and interest cost.

The weighted-average discount rates for service and interest costs under the spot-rate approach used for pension cost in fiscal 2023 were 4.74% and 4.09%, respectively.

During the second quarter and first half of fiscal 2023, we contributed $2.9 million and $5.9 million, respectively, to our pension plans and contributed $1.7 million and $3.6 million, respectively, to our postretirement plans. Based upon the current funded status of the plans and the current interest rate environment, we anticipate making further contributions of approximately $6.5 million to our pension plans during the remainder of fiscal 2023. We anticipate making further contributions of approximately $4.5 million to our postretirement plans during the remainder of fiscal 2023. These estimates are based on ERISA guidelines, current tax laws, plan asset performance, and liability assumptions, which are subject to change.