PENSION AND POSTRETIREMENT BENEFITS

6 Months Ended

Nov. 29, 2020

Compensation And Retirement Disclosure [Abstract]

PENSION AND POSTRETIREMENT BENEFITS

12. 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.

As a result of the anticipated exit of certain facilities, during the first quarter of fiscal 2020, we remeasured the Company's hourly pension plan as of August 25, 2019 and recorded a pension curtailment loss of $0.6 million previously within other comprehensive income (loss). In connection with the remeasurement, we updated the effective discount rate assumption for the impacted pension plan obligation from 3.90% to 3.13%. The curtailment loss and related remeasurement increased the underfunded status of the pension plan by $12.3 million with a corresponding loss within other comprehensive income (loss).

Components of pension benefit and other postretirement benefit costs are:

	Pension Benefits
	Thirteen weeks ended						Twenty-six weeks ended
	November 29, 2020			November 24, 2019			November 29, 2020			November 24, 2019
Service cost	$	3.2		$	2.8		$	6.3		$	5.6
Interest cost		21.7			30.7			43.4			62.0
Expected return on plan assets		(35.0	)		(41.6	)		(70.0	)		(82.7	)
Amortization of prior service cost		0.6			0.6			1.2			1.3
Curtailment loss		—			—			—			0.6
Benefit cost (benefit) — Company plans		(9.5	)		(7.5	)		(19.1	)		(13.2	)
Pension benefit cost — multi-employer plans		2.2			2.0			4.0			3.5
Total benefit cost (benefit)	$	(7.3	)	$	(5.5	)	$	(15.1	)	$	(9.7	)

	Postretirement Benefits
	Thirteen weeks ended						Twenty-six weeks ended
	November 29, 2020			November 24, 2019			November 29, 2020			November 24, 2019
Service cost	$	—		$	0.1		$	0.1		$	0.1
Interest cost		0.4			0.6			0.7			1.3
Amortization of prior service benefit		(0.5	)		(0.5	)		(1.0	)		(1.0	)
Recognized net actuarial gain		(0.9	)		(1.1	)		(1.8	)		(2.3	)
Total cost (benefit)	$	(1.0	)	$	(0.9	)	$	(2.0	)	$	(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 benefit cost in fiscal 2021 were 3.35% and 2.30%, respectively.

During the second quarter and first half of fiscal 2021, we contributed $14.8 million and $20.7 million, respectively, to our pension plans and contributed $1.8 million and $4.1 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 $11.5 million to our pension plans for the remainder of fiscal 2021. We anticipate making further contributions of approximately $5.9 million to our other postretirement plans during the remainder of fiscal 2021. These estimates are based on ERISA guidelines, current tax laws, plan asset performance, and liability assumptions, which are subject to change.