PENSION AND POSTRETIREMENT BENEFITS

9 Months Ended

Feb. 28, 2021

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.

During the third quarter of fiscal 2020, we amended a certain hourly pension plan that froze future compensation and service periods. As a result, we remeasured the Company’s hourly pension plan liability as of January 31, 2020 and recorded a pension curtailment loss of $0.2 million previously within other comprehensive income (loss). In connection with the remeasurement, we updated the effective discount rate assumption for the impacted pension plan from 3.86% to 2.96%. The remeasurement increased the underfunded status of the pension plan by $4.3 million with a corresponding loss within other comprehensive income (loss).

During the second quarter of fiscal 2020, the Company provided a voluntary lump-sum settlement offer to certain terminated vested participants in the salaried pension plan in order to reduce a portion of the pension obligation. During the third quarter of fiscal 2020, lump-sum settlement payments totaling $154.6 million were distributed from pension plan assets to such participants. As a result of the settlement, we were required to remeasure our pension plan liability. In connection with the remeasurement, we updated the effective discount rate assumption for the impacted pension plan obligation from 3.89% to 3.37%, as of December 31, 2019. The settlement and related remeasurement resulted in the recognition of a settlement gain of $2.1 million, reflected in pension and postretirement non-service income, as well as a benefit to other comprehensive income (loss) totaling $79.8 million in the third quarter of fiscal 2020.

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 and other postretirement costs (benefits) are:

	Pension Plans
	Thirteen weeks ended						Thirty-nine weeks ended
	February 28, 2021			February 23, 2020			February 28, 2021			February 23, 2020
Service cost	$	2.7		$	2.8		$	9.0		$	8.4
Interest cost		21.7			27.8			65.1			89.8
Expected return on plan assets		(35.0	)		(42.0	)		(105.0	)		(124.7	)
Amortization of prior service cost		0.5			0.7			1.7			2.0
Curtailment loss		—			0.2			—			0.8
Settlement gain		—			(2.1	)		—			(2.1	)
Pension cost (benefit) — Company plans		(10.1	)		(12.6	)		(29.2	)		(25.8	)
Pension cost (benefit) — multi-employer plans		1.7			1.5			5.7			5.0
Total pension cost (benefit)	$	(8.4	)	$	(11.1	)	$	(23.5	)	$	(20.8	)

	Postretirement Plans
	Thirteen weeks ended						Thirty-nine weeks ended
	February 28, 2021			February 23, 2020			February 28, 2021			February 23, 2020
Service cost	$	—		$	—		$	0.1		$	0.1
Interest cost		0.4			0.6			1.1			1.9
Amortization of prior service cost (benefit)		(0.5	)		(0.5	)		(1.5	)		(1.5	)
Recognized net actuarial gain		(0.8	)		(1.1	)		(2.6	)		(3.4	)
Total postretirement cost (benefit)	$	(0.9	)	$	(1.0	)	$	(2.9	)	$	(2.9	)

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 2021 were 3.35% and 2.30%, respectively.

During the third quarter and first three quarters of fiscal 2021, we contributed $3.0 million and $23.7 million, respectively, to our pension plans and contributed $2.0 million and $6.1 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 $8.5 million to our pension plans for the remainder of fiscal 2021. We anticipate making further contributions of approximately $3.9 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.