XML 58 R44.htm IDEA: XBRL DOCUMENT v3.21.2
PENSION AND POSTRETIREMENT BENEFITS (Tables)
 12 Months Ended
May 30, 2021
Compensation And Retirement Disclosure [Abstract]  
Schedule of Changes in Benefit Obligations and Plan Assets

The changes in benefit obligations and plan assets at May 30, 2021 and May 31, 2020 are presented in the following table.

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Change in Benefit Obligation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Benefit obligation at beginning of year

 

$

3,872.5

 

 

$

3,733.2

 

 

$

89.8

 

 

$

91.2

 

Service cost

 

 

11.6

 

 

 

11.5

 

 

 

0.2

 

 

 

0.1

 

Interest cost

 

 

86.8

 

 

 

118.4

 

 

 

1.5

 

 

 

2.6

 

Actuarial loss (gain)

 

 

(37.4

)

 

 

411.6

 

 

 

(2.3

)

 

 

3.0

 

Plan settlements

 

 

—

 

 

 

(201.7

)

 

 

(0.3

)

 

 

(0.1

)

Curtailments

 

 

—

 

 

 

(0.8

)

 

 

—

 

 

 

—

 

Benefits paid

 

 

(196.8

)

 

 

(199.3

)

 

 

(8.5

)

 

 

(6.9

)

Currency

 

 

2.5

 

 

 

(0.4

)

 

 

1.1

 

 

 

(0.1

)

Benefit obligation at end of year

 

$

3,739.2

 

 

$

3,872.5

 

 

$

81.5

 

 

$

89.8

 

Change in Plan Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair value of plan assets at beginning of year

 

$

3,820.4

 

 

$

3,601.5

 

 

$

3.4

 

 

$

3.4

 

Actual return on plan assets

 

 

194.6

 

 

 

557.5

 

 

 

0.2

 

 

 

0.1

 

Employer contributions

 

 

27.6

 

 

 

17.5

 

 

 

8.5

 

 

 

6.9

 

Plan settlements

 

 

—

 

 

 

(156.3

)

 

 

(0.3

)

 

 

(0.1

)

Benefits paid

 

 

(196.8

)

 

 

(199.3

)

 

 

(8.5

)

 

 

(6.9

)

Currency

 

 

3.0

 

 

 

(0.5

)

 

 

—

 

 

 

—

 

Fair value of plan assets at end of year

 

$

3,848.8

 

 

$

3,820.4

 

 

$

3.3

 

 

$

3.4

 
Schedule of Funded Status and Amounts Recognized

 

The funded status and amounts recognized in our Consolidated Balance Sheets at May 30, 2021 and May 31, 2020 were:

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Funded Status

 

$

109.6

 

 

$

(52.1

)

 

$

(78.2

)

 

$

(86.4

)

Amounts Recognized in Consolidated Balance Sheets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other assets

 

$

245.0

 

 

$

202.4

 

 

$

3.0

 

 

$

2.9

 

Other accrued liabilities

 

 

(10.3

)

 

 

(8.9

)

 

 

(9.0

)

 

 

(10.0

)

Other noncurrent liabilities

 

 

(125.1

)

 

 

(245.6

)

 

 

(72.2

)

 

 

(79.3

)

Net Amount Recognized

 

$

109.6

 

 

$

(52.1

)

 

$

(78.2

)

 

$

(86.4

)

Amounts Recognized in Accumulated Other Comprehensive (Income) Loss (Pre-tax)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actuarial net loss (gain)

 

$

(41.5

)

 

$

51.2

 

 

$

(12.9

)

 

$

(15.0

)

Net prior service cost (benefit)

 

 

6.2

 

 

 

8.6

 

 

 

(38.4

)

 

 

(40.1

)

Total

 

$

(35.3

)

 

$

59.8

 

 

$

(51.3

)

 

$

(55.1

)

Weighted-Average Actuarial Assumptions Used to Determine Benefit Obligations at May 30, 2021 and May 31, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discount rate

 

 

3.04

%

 

 

2.98

%

 

 

2.51

%

 

 

2.39

%

Long-term rate of compensation increase

 

N/A

 

 

N/A

 

 

N/A

 

 

N/A

 

 
Schedule of Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value 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 30, 2021 and May 31, 2020 were:

 

 

 

 

 

 

 

2021

 

 

2020

 

Projected benefit obligation

 

 

 

 

 

$

135.4

 

 

$

1,062.8

 

Accumulated benefit obligation

 

 

 

 

 

 

135.4

 

 

 

1,062.8

 

Fair value of plan assets

 

 

 

 

 

 

—

 

 

 

808.2

 
Components of Pension and Postretirement Plan Costs

Components of pension and postretirement plan costs included:

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Service cost

 

$

11.6

 

 

$

11.5

 

 

$

10.9

 

 

$

0.2

 

 

$

0.1

 

 

$

0.1

 

Interest cost

 

 

86.8

 

 

 

118.4

 

 

 

132.6

 

 

 

1.5

 

 

 

2.6

 

 

 

3.8

 

Expected return on plan assets

 

 

(140.0

)

 

 

(170.2

)

 

 

(174.4

)

 

 

—

 

 

 

—

 

 

 

—

 

Amortization of prior service cost (benefit)

 

 

2.3

 

 

 

2.7

 

 

 

3.1

 

 

 

(2.1

)

 

 

(2.1

)

 

 

(2.2

)

Recognized net actuarial loss (gain)

 

 

0.8

 

 

 

44.8

 

 

 

5.1

 

 

 

(3.5

)

 

 

(4.6

)

 

 

(1.4

)

Settlement gain

 

 

—

 

 

 

(2.1

)

 

 

—

 

 

 

(0.5

)

 

 

(0.2

)

 

 

(1.0

)

Curtailment loss (gain)

 

 

0.2

 

 

 

0.8

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(0.6

)

Pension and postretirement cost (benefit) — Company plans

 

 

(38.3

)

 

 

5.9

 

 

 

(22.7

)

 

 

(4.4

)

 

 

(4.2

)

 

 

(1.3

)

Pension cost (benefit) — multi-employer plans

 

 

7.4

 

 

 

6.5

 

 

 

6.3

 

 

 

—

 

 

 

—

 

 

 

—

 

Total pension and postretirement cost (benefit)

 

$

(30.9

)

 

$

12.4

 

 

$

(16.4

)

 

$

(4.4

)

 

$

(4.2

)

 

$

(1.3

)
Schedule of Other Changes in Plan Assets and Benefit Obligations

Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss) were:

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

Net actuarial gain (loss)

 

$

92.0

 

 

$

21.9

 

 

$

2.5

 

 

$

(2.9

)

Amortization of prior service cost (benefit)

 

 

2.3

 

 

 

2.7

 

 

 

(2.1

)

 

 

(2.1

)

Settlement and curtailment loss (gain)

 

 

0.2

 

 

 

(1.3

)

 

 

(0.5

)

 

 

(0.2

)

Recognized net actuarial loss (gain)

 

 

0.8

 

 

 

44.8

 

 

 

(3.5

)

 

 

(4.6

)

Currency

 

 

(0.2

)

 

 

—

 

 

 

(0.2

)

 

 

—

 

Net amount recognized

 

$

95.1

 

 

$

68.1

 

 

$

(3.8

)

 

$

(9.8

)
Weighted Average Actuarial Assumption Used to Determine Net Expense

Weighted-Average Actuarial Assumptions Used to Determine Net Expense

 

 

 

Pension Plans

 

 

Postretirement Plans

 

 

 

2021

 

 

2020

 

 

2019

 

 

2021

 

 

2020

 

 

2019

 

Discount rate

 

 

2.98

%

 

 

3.88

%

 

 

4.15

%

 

 

2.39

%

 

 

3.48

%

 

 

3.81

%

Long-term rate of return on plan assets

 

 

3.74

%

 

 

4.77

%

 

 

5.17

%

 

N/A

 

 

N/A

 

 

N/A

 

Long-term rate of compensation increase

 

N/A

 

 

N/A

 

 

 

3.63

%

 

N/A

 

 

N/A

 

 

N/A

 
Schedule of Pension Plan Weighted-Average Asset Allocations and Target Asset Allocations

The fair value of plan assets, summarized by level within the fair value hierarchy described in Note 19, as of May 30, 2021, was as follows:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash and cash equivalents

 

$

7.5

 

 

$

85.0

 

 

$

—

 

 

$

92.5

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. equity securities

 

 

78.0

 

 

 

94.6

 

 

 

—

 

 

 

172.6

 

International equity securities

 

 

121.9

 

 

 

0.5

 

 

 

—

 

 

 

122.4

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government bonds

 

 

—

 

 

 

772.6

 

 

 

—

 

 

 

772.6

 

Corporate bonds

 

 

—

 

 

 

2,407.2

 

 

 

—

 

 

 

2,407.2

 

Mortgage-backed bonds

 

 

—

 

 

 

12.4

 

 

 

—

 

 

 

12.4

 

Real estate funds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net receivables for unsettled transactions

 

 

5.7

 

 

 

—

 

 

 

—

 

 

 

5.7

 

Fair value measurement of pension plan assets in the

   fair value hierarchy

 

$

213.1

 

 

$

3,372.3

 

 

$

—

 

 

$

3,585.4

 

Investments measured at net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

263.4

 

Total pension plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,848.8

 

 

 

The fair value of plan assets, summarized by level within the fair value hierarchy described in Note 19, as of May 31, 2020, was as follows:

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash and cash equivalents

 

$

10.1

 

 

$

71.9

 

 

$

—

 

 

$

82.0

 

Equity securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. equity securities

 

 

63.9

 

 

 

82.2

 

 

 

—

 

 

 

146.1

 

International equity securities

 

 

92.4

 

 

 

0.7

 

 

 

—

 

 

 

93.1

 

Fixed income securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Government bonds

 

 

—

 

 

 

743.9

 

 

 

—

 

 

 

743.9

 

Corporate bonds

 

 

—

 

 

 

2,461.7

 

 

 

—

 

 

 

2,461.7

 

Mortgage-backed bonds

 

 

—

 

 

 

22.4

 

 

 

—

 

 

 

22.4

 

Real estate funds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net receivables for unsettled transactions

 

 

30.2

 

 

 

—

 

 

 

—

 

 

 

30.2

 

Fair value measurement of pension plan assets in the

   fair value hierarchy

 

$

196.6

 

 

$

3,382.8

 

 

$

—

 

 

$

3,579.4

 

Investments measured at net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

241.0

 

Total pension plan assets

 

 

 

 

 

 

 

 

 

 

 

 

 

$

3,820.4

 

Our pension plan weighted-average asset allocations by asset category were as follows:

 

 

 

 

 

 

 

May 30, 2021

 

 

May 31, 2020

 

Equity securities

 

 

 

 

 

 

8

%

 

 

6

%

Debt securities

 

 

 

 

 

 

83

%

 

 

85

%

Real estate funds

 

 

 

 

 

 

1

%

 

 

1

%

Private equity

 

 

 

 

 

 

3

%

 

 

3

%

Other

 

 

 

 

 

 

5

%

 

 

5

%

Total

 

 

 

 

 

 

100

%

 

 

100

%
Schedule of Assumed Health Care Cost Trend Rates

Assumed health care cost trend rates have a significant effect on the benefit obligation of the postretirement plans.

 

Assumed Health Care Cost Trend Rates at:

 

 

 

 

 

May 30, 2021

 

 

May 31, 2020

 

Initial health care cost trend rate

 

 

 

 

 

 

6.53

%

 

 

6.22

%

Ultimate health care cost trend rate

 

 

 

 

 

 

4.44

%

 

 

4.43

%

Year that the rate reaches the ultimate trend rate

 

 

 

 

 

2029

 

 

2024

 
Schedule of Estimated Future Gross Benefit Payments

The following table presents estimated future gross benefit payments for our plans:

 

 

 

 

 

 

Pension

Plans

 

 

Postretirement

Plans

 

2022

 

 

 

 

 

$

201.6

 

 

$

9.1

 

2023

 

 

 

 

 

 

203.0

 

 

 

8.4

 

2024

 

 

 

 

 

 

204.7

 

 

 

7.7

 

2025

 

 

 

 

 

 

206.1

 

 

 

7.1

 

2026

 

 

 

 

 

 

207.3

 

 

 

6.5

 

Succeeding 5 years

 

 

 

 

 

 

1,031.1

 

 

 

25.2

 
Schedule of Contributions for Plans That Are Not Individually Significant

For plans that are not individually significant to Conagra Brands the total amount of contributions is presented in the aggregate.

 

 

 

 

 

 

 

Pension Protection

Act Zone Status

 

 

FIP /

RP Status

 

 

Contributions by the

Company (millions)

 

 

 

 

 

 

Expiration

Dates of

Collective

Pension Fund

 

 

EIN / PN

 

 

2020

 

 

2019

 

 

Pending /

Implemented

 

 

FY21

 

 

 

FY20

 

 

 

FY19

 

 

 

Surcharge

Imposed

 

 

Bargaining

Agreements

Bakery and Confectionary

   Union and Industry

   International

   Pension Plan

 

 

52-6118572

/ 001

 

 

Red,

Critical and

Declining

 

 

Red,

Critical and

Declining

 

 

RP

Implemented

 

 

$

0.0

 

 

 

$

0.0

 

 

 

$

0.1

 

 

 

No

 

 

N/A

Central States,

   Southeast and

   Southwest Areas

   Pension Fund

 

 

36-6044243

/ 001

 

 

Red,

Critical and

Declining

 

 

Red,

Critical and

Declining

 

 

RP

Implemented

 

 

 

2.2

 

 

 

 

2.0

 

 

 

 

1.8

 

 

 

No

 

 

5/31/2021

Western Conference of

   Teamsters Pension Plan

 

 

91-6145047

/ 001

 

 

Green

 

 

Green

 

 

N/A

 

 

 

3.8

 

 

 

 

3.2

 

 

 

 

3.2

 

 

 

No

 

 

6/30/2022

Other Plans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1.4

 

 

 

 

1.3

 

 

 

 

0.9

 

 

 

 

 

 

 

Total Contributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

7.4

 

 

 

$

6.5

 

 

 

$

6.0