PENSION AND POSTRETIREMENT BENEFITS (Tables)
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12 Months Ended |
May 26, 2013
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Compensation and Retirement Disclosure [Abstract] |
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Change in benefit obligations and plan assets |
The changes in benefit obligations and plan assets at May 26, 2013 and May 27, 2012 are presented in the following table. | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | 2013 | | 2012 | | 2013 | | 2012 | Change in Benefit Obligation | | | | | | | | Benefit obligation at beginning of year | $ | 3,328.3 |
| | $ | 2,881.4 |
| | $ | 282.7 |
| | $ | 322.6 |
| Service cost | 81.8 |
| | 68.7 |
| | 0.6 |
| | 0.6 |
| Interest cost | 150.1 |
| | 149.2 |
| | 10.5 |
| | 13.2 |
| Plan participants’ contributions | — |
| | — |
| | 5.3 |
| | 6.7 |
| Amendments | 6.8 |
| | 5.3 |
| | — |
| | (40.6 | ) | Actuarial loss | 114.3 |
| | 337.5 |
| | (7.6 | ) | | 11.6 |
| Curtailments | (0.4 | ) | | — |
| | — |
| | — |
| Benefits paid | (147.8 | ) | | (138.8 | ) | | (27.2 | ) | | (36.0 | ) | Business combinations | 284.4 |
| | 25.0 |
| | 38.5 |
| | 4.6 |
| Benefit obligation at end of year | $ | 3,817.5 |
| | $ | 3,328.3 |
| | $ | 302.8 |
| | $ | 282.7 |
| Change in Plan Assets | | | | | | | | Fair value of plan assets at beginning of year | $ | 2,766.6 |
| | $ | 2,543.9 |
| | $ | 0.1 |
| | $ | 0.1 |
| Actual return on plan assets | 457.1 |
| | 24.8 |
| | — |
| | — |
| Employer contributions | 19.8 |
| | 326.4 |
| | 21.9 |
| | 29.3 |
| Plan participants’ contributions | — |
| | — |
| | 5.3 |
| | 6.7 |
| Investment and administrative expenses | (16.5 | ) | | (14.2 | ) | | — |
| | — |
| Benefits paid | (147.8 | ) | | (138.8 | ) | | (27.2 | ) | | (36.0 | ) | Business combinations | 264.1 |
| | 24.5 |
| | — |
| | — |
| Fair value of plan assets at end of year | $ | 3,343.3 |
| | $ | 2,766.6 |
| | $ | 0.1 |
| | $ | 0.1 |
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Funded status and Amounts recognized in Balance Sheets |
The funded status and amounts recognized in our consolidated balance sheets at May 26, 2013 and May 27, 2012 were: | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | | 2013 | | 2012 | | 2013 | | 2012 | Funded status | | $ | (474.2 | ) | | $ | (561.7 | ) | | $ | (302.7 | ) | | $ | (282.6 | ) | Amounts Recognized in Consolidated Balance Sheets | | | | | | | | | Other assets | | $ | 6.6 |
| | $ | 3.9 |
| | $ | — |
| | $ | — |
| Other accrued liabilities | | (9.6 | ) | | (8.8 | ) | | (25.6 | ) | | (26.8 | ) | Other noncurrent liabilities | | (471.2 | ) | | (556.8 | ) | | (277.1 | ) | | (255.8 | ) | Net amount recognized | | $ | (474.2 | ) | | $ | (561.7 | ) | | $ | (302.7 | ) | | $ | (282.6 | ) | Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Pre-tax) | | | | | | | | | Actuarial net loss | | $ | 218.2 |
| | $ | 332.0 |
| | $ | 66.9 |
| | $ | 80.5 |
| Net prior service cost (benefit) | | 20.3 |
| | 17.9 |
| | (31.1 | ) | | (39.3 | ) | Total | | $ | 238.5 |
| | $ | 349.9 |
| | $ | 35.8 |
| | $ | 41.2 |
| Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations at May 26, 2013 and May 27, 2012 | | | | | | | | | Discount rate | | 4.05 | % | | 4.50 | % | | 3.35 | % | | 3.90 | % | Long-term rate of compensation increase | | 4.25 | % | | 4.25 | % | | N/A |
| | N/A |
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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 26, 2013 and May 27, 2012 were: | | | | | | | | | | | | 2013 | | 2012 | Projected benefit obligation | | $ | 3,338.8 |
| | $ | 3,159.7 |
| Accumulated benefit obligation | | 3,260.7 |
| | 3,057.2 |
| Fair value of plan assets | | 2,863.3 |
| | 2,594.1 |
|
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Components of pension benefit and other postretirement benefit costs |
Components of pension benefit and other postretirement benefit costs included: | | | | | | | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 | Service cost | $ | 81.8 |
| | $ | 68.7 |
| | $ | 59.7 |
| | $ | 0.6 |
| | $ | 0.6 |
| | $ | 0.6 |
| Interest cost | 150.1 |
| | 149.2 |
| | 147.5 |
| | 10.5 |
| | 13.2 |
| | 16.3 |
| Expected return on plan assets | (216.4 | ) | | (196.0 | ) | | (168.0 | ) | | — |
| | — |
| | (0.1 | ) | Amortization of prior service cost (benefit) | 3.6 |
| | 3.0 |
| | 3.2 |
| | (8.2 | ) | | (13.6 | ) | | (9.6 | ) | Special termination benefits | — |
| | — |
| | 1.3 |
| | — |
| | — |
| | — |
| Recognized net actuarial loss | 3.6 |
| | 396.9 |
| | 10.3 |
| | 5.9 |
| | 7.6 |
| | 4.6 |
| Curtailment loss | 0.8 |
| | — |
| | — |
| | — |
| | — |
| | — |
| Benefit cost — Company plans | 23.5 |
| | 421.8 |
| | 54.0 |
| | 8.8 |
| | 7.8 |
| | 11.8 |
| Pension benefit cost — multi-employer plans | 23.6 |
| | 8.5 |
| | 9.2 |
| | — |
| | — |
| | — |
| Total benefit cost | $ | 47.1 |
| | $ | 430.3 |
| | $ | 63.2 |
| | $ | 8.8 |
| | $ | 7.8 |
| | $ | 11.8 |
|
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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 | | | 2013 | | 2012 | | 2013 | | 2012 | Net actuarial (gain) loss | | $ | (110.2 | ) | | $ | 521.4 |
| | $ | (7.7 | ) | | $ | 12.4 |
| Prior service cost (benefit) | | 6.8 |
| | 5.3 |
| | — |
| | (40.6 | ) | Amortization of prior service (cost) benefit | | (4.4 | ) | | (3.0 | ) | | 8.2 |
| | 13.6 |
| Recognized net actuarial loss | | (3.6 | ) | | (396.9 | ) | | (5.9 | ) | | (7.6 | ) | Net amount recognized | | $ | (111.4 | ) | | $ | 126.8 |
| | $ | (5.4 | ) | | $ | (22.2 | ) |
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Weighted Average Actuarial Assumption Used to Determine Net Expense |
| | | | | | | | | | | | | | | | | | | | | | Pension Benefits | | Other Benefits | | | 2013 | | 2012 | | 2011 | | 2013 | | 2012 | | 2011 | Discount rate | | 4.50 | % | | 5.30 | % | | 5.80 | % | | 3.90 | % | | 4.30 | % | | 5.40 | % | Long-term rate of return on plan assets | | 7.75 | % | | 7.75 | % | | 7.75 | % | | N/A |
| | N/A |
| | 3.50 | % | Long-term rate of compensation increase | | 4.25 | % | | 4.25 | % | | 4.25 | % | | N/A |
| | N/A |
| | N/A |
|
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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) | | $ | 3.8 |
| | $ | (7.2 | ) | Net actuarial loss | | NA |
| | 6.6 |
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Fair value of plan assets |
The fair value of plan assets, summarized by level within the fair value hierarchy described in Note 21, 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 energy 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 |
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The fair value of plan assets, summarized by level within the fair value hierarchy described in Note 21, as of May 27, 2012, were as follows: | | | | | | | | | | | | | | | | | | | | Level 1 | | Level 2 | | Level 3 | | Total | Cash and cash equivalents | | $ | 1.8 |
| | $ | 319.8 |
| | $ | — |
| | $ | 321.6 |
| Equity securities: | | | | | | | | | U.S. equity securities | | 616.2 |
| | 7.3 |
| | — |
| | 623.5 |
| International equity securities | | 395.1 |
| | 126.7 |
| | — |
| | 521.8 |
| Fixed income securities: | | | | | | | | | Government bonds | | 99.9 |
| | 160.6 |
| | — |
| | 260.5 |
| Corporate bonds | | 9.5 |
| | 199.1 |
| | — |
| | 208.6 |
| Mortgage-backed bonds | | 82.4 |
| | 70.3 |
| | — |
| | 152.7 |
| Real estate funds | | 5.7 |
| | — |
| | 83.2 |
| | 88.9 |
| Multi-strategy hedge funds | | — |
| | — |
| | 379.1 |
| | 379.1 |
| Private equity funds | | — |
| | — |
| | 64.2 |
| | 64.2 |
| Master limited partnerships | | 137.5 |
| | — |
| | — |
| | 137.5 |
| Private energy funds | | — |
| | — |
| | 1.6 |
| | 1.6 |
| Net receivables for unsettled transactions | | 6.6 |
| | — |
| | — |
| | 6.6 |
| Total assets | | $ | 1,354.7 |
| | $ | 883.8 |
| | $ | 528.1 |
| | $ | 2,766.6 |
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Weighted average asset allocation and target asset allocation |
Our pension plan weighted-average asset allocations and our target asset allocations at May 26, 2013 and May 27, 2012, by asset category were as follows: | | | | | | | | | | | | | May 26, 2013 | | May 27, 2012 | | Target Allocation | Equity securities | | 47 | % | | 41 | % | | 38 | % | Debt securities | | 23 | % | | 23 | % | | 22 | % | Real estate funds | | 3 | % | | 3 | % | | 6 | % | Multi-strategy hedge funds | | 13 | % | | 14 | % | | 15 | % | Private equity | | 2 | % | | 2 | % | | 7 | % | Other | | 12 | % | | 17 | % | | 12 | % | Total | | 100 | % | | 100 | % | | 100 | % |
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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 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 energy | | 1.5 |
| | — |
| | — |
| | 0.5 |
| | 5.8 |
| | 7.8 |
| Total | | $ | 528.1 |
| | $ | 5.8 |
| | $ | (21.9 | ) | | $ | 71.9 |
| | $ | 8.4 |
| | $ | 592.3 |
|
| | | | | | | | | | | | | | | | | | | | | | | | Fair Value May 29, 2011 | | Realized Gains (Losses) | | Unrealized Gains (Losses) | | Net, Purchases and Sales | | Fair Value May 27, 2012 | Real estate funds | | $ | 70.3 |
| | $ | 0.3 |
| | $ | 2.1 |
| | $ | 10.6 |
| | $ | 83.3 |
| Multi-strategy hedge funds | | 346.0 |
| | 0.6 |
| | 37.6 |
| | (5.1 | ) | | 379.1 |
| Private equity | | 56.0 |
| | (6.7 | ) | | 9.2 |
| | 5.7 |
| | 64.2 |
| Contracts with insurance companies | | — |
| | — |
| | (0.5 | ) | | 2.0 |
| | 1.5 |
| Total | | $ | 472.3 |
| | $ | (5.8 | ) | | $ | 48.4 |
| | $ | 13.2 |
| | $ | 528.1 |
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Assumed Health Care Cost Trend Rates |
| | | | | | | | Assumed Health Care Cost Trend Rates at: | | May 26, 2013 | | May 27, 2012 | Initial health care cost trend rate | | 9.0 | % | | 7.5 | % | Ultimate health care cost trend rate | | 5.0 | % | | 5.0 | % | Year that the rate reaches the ultimate trend rate | | 2022 |
| | 2016 |
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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 | | $ | 0.7 |
| | $ | (0.6 | ) | Effect on postretirement benefit obligation | | 20.2 |
| | (18.0 | ) |
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Estimated future gross benefit payments and Medicare Part D subsidy receipts |
The following table presents estimated future gross benefit payments and Medicare Part D subsidy receipts for our plans: | | | | | | | | | | | | | | | | Pension Benefits | | Health Care and Life Insurance | Benefit Payments | | Subsidy Receipts | 2014 | | $ | 173.6 |
| | $ | 26.2 |
| | $ | (0.2 | ) | 2015 | | 177.9 |
| | 25.8 |
| | (0.2 | ) | 2016 | | 182.9 |
| | 25.3 |
| | (0.2 | ) | 2017 | | 188.6 |
| | 24.6 |
| | (0.2 | ) | 2018 | | 196.1 |
| | 23.9 |
| | (0.2 | ) | Succeeding 5 years | | 1,077.2 |
| | 105.2 |
| | (1.2 | ) |
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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 | 2012 | 2011 | FY13 | FY12 | FY11 | Surcharge Imposed | Bakery and Confectionary Union and Industry International Pension Plan | 52-6118572 / 001 | Red | Green | RP Pending | $ | 2.1 |
| $1.3 | $1.1 | No | 12/08/2012 to 7/23/2016 | Central States, Southeast and Southwest Areas Pension Fund | 36-6044243 / 001 | Red | Red | RP Implemented | 1.2 |
| 1.2 | 1.8 | No | 03/23/2013 to 06/01/2014 | National Conference of Fireman & Oilers National Pension Fund | 52-6085445 / 003 | Yellow | Yellow | FIP Implemented | 0.3 |
| — | — | No | 11/19/2015 | Western Conference of Teamsters Pension Plan | 91-6145047 / 001 | Green | Green | N/A | 4.9 |
| 5.2 | 5.4 | No | 06/30/2015 to 03/31/2018 | Other Plans | 0.9 |
| 0.8 | 0.9 | | | Total Contributions | $ | 9.4 |
| $8.5 | $9.2 | | |
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