Benefit Plans (Tables)

12 Months Ended

Jan. 01, 2017

Changes in Projected Benefit Obligation

The following tables set forth pertinent information for the two Company-sponsored pension plans:

Changes in Projected Benefit Obligation

	Fiscal Year
(in thousands)	2016			2015
Projected benefit obligation at beginning of year	$	261,469		$	279,669
Service cost		461			116
Interest cost		12,182			11,875
Actuarial (gain)/loss		8,268			(21,883	)
Benefits paid		(9,232	)		(8,308	)
Projected benefit obligation at end of year	$	273,148		$	261,469

Change in Plan Assets

Change in Plan Assets

	Fiscal Year
(in thousands)	2016			2015
Fair value of plan assets at beginning of year	$	214,055		$	212,692
Actual return on plan assets		12,313			(829	)
Employer contributions		11,120			10,500
Benefits paid		(9,232	)		(8,308	)
Fair value of plan assets at end of year	$	228,256		$	214,055

Funded Status

Funded Status

(in thousands)	January 1, 2017			January 3, 2016
Projected benefit obligation	$	(273,148	)	$	(261,469	)
Plan assets at fair value		228,256			214,055
Net funded status	$	(44,892	)	$	(47,414	)

Amounts Recognized in the Consolidated Balance Sheet

Amounts Recognized in the Consolidated Balance Sheets

(in thousands)	January 1, 2017			January 3, 2016
Current liabilities	$	-		$	-
Noncurrent liabilities		(44,892	)		(47,414	)
Total liability - pension plans	$	(44,892	)	$	(47,414	)

Net Periodic Pension Cost (Benefit)

Net Periodic Pension Cost (Benefit)

	Fiscal Year
(in thousands)	2016			2015			2014
Service cost	$	461		$	116		$	109
Interest cost		12,182			11,875			11,603
Expected return on plan assets		(13,822	)		(13,541	)		(13,775	)
Amortization of prior service cost		28			35			36
Recognized net actuarial loss		3,031			3,230			1,743
Net periodic pension cost (benefit)	$	1,880		$	1,715		$	(284	)

Significant Assumptions

Significant Assumptions

	Fiscal Year
	2016			2015			2014
Projected benefit obligation at the measurement date:
Discount rate - Primary Plan		4.44	%		4.72	%		4.32	%
Discount rate - Bargaining Plan		4.49	%		4.72	%		4.31	%
Weighted average rate of compensation increase	N/A			N/A			N/A
Net periodic pension cost for the fiscal year:
Discount rate		4.72	%		4.32	%		5.21	%
Weighted average expected long-term rate of return on plan assets		6.50	%		6.50	%		7.00	%
Weighted average rate of compensation increase	N/A			N/A			N/A

Expected Weighted Average Long-Term Rate of Return

The Company’s pension plans target asset allocation for 2017, actual asset allocation at January 1, 2017 and January 3, 2016, and the expected weighted average long-term rate of return by asset category were as follows:

	Target			Percentage of Plan						Weighted Average Expected
	Allocation			Assets at Fiscal Year-End						Long-Term Rate of Return
	2017			2016			2015			2016
U.S. large capitalization equity securities		40	%		41	%		40	%		3.3	%
U.S. small/mid-capitalization equity securities		5	%		5	%		5	%		0.4	%
International equity securities		15	%		15	%		15	%		1.3	%
Debt securities		40	%		39	%		40	%		1.5	%
Total		100	%		100	%		100	%		6.5	%

Summary of Common/Collective Trust Fund Pension Plan Assets

The following table summarizes the Company’s common/collective trust fund pension plan assets. The underlying investments held in common/collective trust funds are actively managed equity securities and fixed income investment vehicles that are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.

(in thousands)	January 1, 2017		January 3, 2016
Common/collective trust funds - equity securities	$	139,735	$	128,220
Common/collective trust funds - fixed income		87,814		85,158
Total common/collective trust funds	$	227,549	$	213,378

Reconciliation of Activity in Postretirement Benefit Plan

Reconciliation of Activity

	Fiscal Year
(in thousands)	2016			2015
Benefit obligation at beginning of year	$	70,361		$	70,121
Service cost		1,567			1,118
Interest cost		3,094			2,878
Acquisition of benefits		3,458			-
Plan participants’ contributions		662			594
Actuarial (gain)/loss		9,152			(1,600	)
Benefits paid		(3,135	)		(2,886	)
Medicare Part D subsidy reimbursement		96			136
Benefit obligation at end of year	$	85,255		$	70,361

Reconciliation of Plan Assets Fair Value in Postretirement Benefit Plan

Reconciliation of Plan Assets Fair Value

	Fiscal Year
(in thousands)	2016			2015
Fair value of plan assets at beginning of year	$	-		$	-
Employer contributions		2,377			2,156
Plan participants’ contributions		662			594
Benefits paid		(3,135	)		(2,886	)
Medicare Part D subsidy reimbursement		96			136
Fair value of plan assets at end of year	$	-		$	-

Funded Status in Postretirement Benefit Plan

Funded Status

(in thousands)	January 1, 2017		January 3, 2016
Current liabilities	$	3,468	$	3,401
Noncurrent liabilities		81,787		66,960
Total liability - postretirement benefits	$	85,255	$	70,361

Components of Net Periodic Postretirement Benefit Cost

Net Periodic Postretirement Benefit Cost

	Fiscal Year
(in thousands)	2016			2015			2014
Service cost	$	1,567		$	1,118		$	1,445
Interest cost		3,094			2,878			3,255
Recognized net actuarial loss		2,186			3,164			2,293
Amortization of prior service cost		(3,360	)		(3,360	)		(1,513	)
Net periodic postretirement benefit cost	$	3,487		$	3,800		$	5,480

Significant Assumptions

Significant Assumptions

	Fiscal Year
	2016			2015			2014
Benefit obligation discount rate at measurement date		4.36	%		4.53	%		4.13	%
Net periodic postretirement benefit cost discount rate for fiscal year		4.53	%		4.13	%		4.96	%
Postretirement benefit expense - Pre-Medicare:
Weighted average health care cost trend rate		6.2	%		7.5	%		8.0	%
Trend rate graded down to ultimate rate		4.5	%		5.0	%		5.0	%
Ultimate rate year	2024			2021			2021
Postretirement benefit expense - Post-Medicare:
Weighted average health care cost trend rate		7.5	%		7.0	%		7.5	%
Trend rate graded down to ultimate rate		4.5	%		5.0	%		5.0	%
Ultimate rate year	2024			2021			2021

A 1% Increase or Decrease in Annual Health Care Cost

A 1% increase or decrease in the annual health care cost trend would have impacted the postretirement benefit obligation and service cost and interest cost of the Company’s postretirement benefit plan as follows:

(in thousands)	1% Increase		1% Decrease
Postretirement benefit obligation at January 1, 2017	$	10,441	$	(9,976	)
Service cost and interest cost in 2016		550		(521	)

Reconciliation of Amounts in Accumulated Other Comprehensive Loss That Have Not Yet Been Recognized as Components of Net Periodic Benefit Cost

A reconciliation of the amounts in accumulated other comprehensive loss not yet recognized as components of net periodic benefit cost is as follows:

(in thousands)	January 3, 2016			Actuarial Gain (Loss)			Reclassification Adjustments			January 1, 2017
Pension Plans:
Actuarial (loss)	$	(112,898	)	$	(9,777	)	$	3,031		$	(119,644	)
Prior service (cost) credit		(128	)		-			27			(101	)
Postretirement Medical:
Actuarial (loss)		(33,536	)		(9,152	)		2,186			(40,502	)
Prior service (cost) credit		9,483			-			(3,361	)		6,122
Total within accumulated other comprehensive loss	$	(137,079	)	$	(18,929	)	$	1,883		$	(154,125	)

Amounts in Accumulated Other Comprehensive Loss Expected to be Recognized as Components of Net Periodic Pension Costs or Postretirement Benefits Costs in 2016

The amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic cost during 2017 are as follows:

(in thousands)	Pension Plans		Postretirement Medical			Total
Actuarial loss	$	3,228	$	2,591		$	5,819
Prior service cost (credit)		28		(2,982	)		(2,954	)
Total expected to be recognized during 2017	$	3,256	$	(391	)	$	2,865

Multi-Employer Plans

The Company’s participation in the Teamsters Plan is outlined in the table below. A red zone represents less than 80% funding and requires a financial improvement plan (“FIP”) or rehabilitation plan (“RP”).

	Fiscal Year
(in thousands)	2016		2015		2014
Pension Protection Act Zone Status	Red		Red		Red
FIP or RP pending or implemented	Yes		Yes		Yes
Surcharge imposed	Yes		Yes		Yes
Contribution	$	728	$	692	$	655

Supplemental Savings Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	January 1, 2017		January 3, 2016
Current liabilities	$	7,339	$	6,425
Noncurrent liabilities		70,709		69,941
Total liability - Supplemental Savings Plan	$	78,048	$	76,366

Long-Term Retention Plan [Member]

Liability Under Executive Benefit Plans

. The liability under this plan was as follows:

(in thousands)	January 1, 2017		January 3, 2016
Current liabilities	$	2	$	1
Noncurrent liabilities		1,256		535
Total liability - LTRP	$	1,258	$	536

Retention Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	January 1, 2017		January 3, 2016
Current liabilities	$	3,359	$	2,395
Noncurrent liabilities		44,480		45,111
Total liability - Retention Plan	$	47,839	$	47,506

Performance Plan [Member]

Liability Under Executive Benefit Plans

The liability under this plan was as follows:

(in thousands)	January 1, 2017		January 3, 2016
Current liabilities	$	5,282	$	5,025
Noncurrent liabilities		5,651		5,571
Total liability - Performance Plan	$	10,933	$	10,596

Pension Plans [Member]

Anticipated Future Pension Benefit Payments

Cash Flows

(in thousands)	Anticipated Future Pension Benefit Payments for the Fiscal Years
2017	$	9,950
2018		10,605
2019		11,304
2020		11,980
2021		12,619
2022 – 2026		72,390

Postretirement Benefits [Member]

Anticipated Future Pension Benefit Payments

Cash Flows

(in thousands)	Anticipated Future Postretirement Benefit Payments Reflecting Expected Future Service
2017	$	3,468
2018		3,878
2019		4,252
2020		4,495
2021		4,708
2022 – 2026		26,507