BENEFIT PLANS

9 Months Ended

Nov. 05, 2022

BENEFIT PLANS

BENEFIT PLANS

3. BENEFIT PLANS

The following table provides the components of net periodic benefit cost for the company-sponsored defined benefit pension plans and other postretirement benefit plans for the third quarters of 2022 and 2021:

	Third Quarter Ended
	Pension Benefits				Other Benefits
	November 5,		November 6,		November 5,		November 6,
	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	2	$	2	$	1	$	1
Interest cost		23		24		1		1
Expected return on plan assets		(35)		(36)		—		—
Amortization of:
Prior service cost		—		—		(3)		(3)
Actuarial loss (gain)		6		8		(3)		(4)
Settlement loss recognized		—		87		—		—
Net periodic benefit cost (benefit)	$	(4)	$	85	$	(4)	$	(5)

The following table provides the components of net periodic benefit cost for the company-sponsored defined benefit pension plans and other postretirement benefit plans for the first three quarters of 2022 and 2021:

	Three Quarters Ended
	Pension Benefits				Other Benefits
	November 5,		November 6,		November 5,		November 6,
	2022		2021		2022		2021
Components of net periodic benefit cost (benefit):
Service cost	$	7	$	9	$	3	$	3
Interest cost		77		78		4		3
Expected return on plan assets		(118)		(129)		—		—
Amortization of:
Prior service cost		—		—		(10)		(10)
Actuarial loss (gain)		20		29		(11)		(14)
Settlement loss recognized		—		87		—		—
Net periodic benefit cost (benefit)	$	(14)	$	74	$	(14)	$	(18)

The Company is not required to make any contributions to its company-sponsored pension plans in 2022, but may make contributions to the extent such contributions are beneficial to the Company. The Company did not make any significant contributions to its company-sponsored pension plans in the first three quarters of 2022 or 2021.

The Company contributed $244 and $221 to employee 401(k) retirement savings accounts in the first three quarters of 2022 and 2021, respectively.

The Company also contributes to various multi-employer pension plans based on obligations arising from most of its collective bargaining agreements. These plans provide retirement benefits to participants based on their service to contributing employers. The Company recognizes expense in connection with these plans as contributions are funded. In addition to the recurring multi-employer pension contributions the Company makes in the normal course of business, in the first three quarters of 2021, the Company contributed an incremental $106, $81 net of tax, to multi-employer pension plans, helping stabilize future associate benefits.

During the first quarter of 2021, associates within the Fred Meyer and QFC divisions ratified an agreement for the transfer of liabilities from the Sound Retirement Trust to the UFCW Consolidated Pension Plan. The Company transferred $449, $344 net of tax, in net accrued pension liabilities and prepaid escrow funds to fulfill obligations for past service for associates and retirees. The agreement will be satisfied by cash installment payments to the UFCW Consolidated Pension Plan and will be paid evenly over seven years.

During the third quarter of 2021, the Company settled certain company-sponsored pension plan obligations using existing assets of the plans. The Company recognized a non-cash settlement charge of $87, $68 net of tax, associated with the settlement of its obligations for the eligible participants’ pension balances that were distributed out of the plans via a lump sum distribution or the purchase of an annuity contract, based on each participant’s election. The settlement charge is included in “Non-service component of company-sponsored pension plan costs” in the Consolidated Statements of Operations.