Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans

3 Months Ended

Dec. 26, 2021

Other Postretirement Benefits Plan [Member]

Notes to Financial Statements

Retirement Benefits [Text Block]

6 PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS

We have several defined benefit pension plans that together cover selected employees, including plans established under collective bargaining agreements. At the end of September two of seven plans had future benefits under the plan frozen and no new participants are permitted. Additionally, we provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. Through December 26, 2021, our liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations.

During the quarter ended December 26, 2021 we notified certain participants in our defined benefit plans of changes to be made to the plans. The Company froze future benefits for an additional four of the defined benefit plans. The freeze of future benefits resulted in a non-cash curtailment gain of $1,027,000 related to the four plans. In connection with the freeze the Company provided certain plan enhancements that resulted in an increase to our net pension liability and a decrease to Accumulated Other Comprehensive income of $6,507,000. Additionally, the Company merged the six frozen plans into one defined benefit plan effective in the second quarter of fiscal 2022.

During the quarter ended December 27, 2020 we notified certain participants in one of our post-employment benefit plans of changes to be made to the plans, including elimination of coverage for certain participants. The changes resulted in a non-cash curtailment gain of $23,830,000 and a reduction in our benefit obligation by $23,830,000. This is recorded within Curtailment gain and Postretirement and postemployment benefit obligations. 

The net periodic pension and postretirement cost (benefit) components for our plans are as follows:

PENSION PLANS
	December 26,			December 27,
(Thousands of Dollars)	2021			2020
Service cost for benefits earned during the period		456			633
Interest cost on projected benefit obligation		1,936			1,787
Expected return on plan assets		(4,536	)		(4,672	)
Amortization of net (gain) loss		(1,259	)		1,004
Curtailment gain		(1,027	)		—
Pension benefit		(4,430	)		(1,248	)

POSTRETIREMENT MEDICAL PLANS
	December 26,			December 27,
(Thousands of Dollars)	2021			2020
Service cost for benefits earned during the period		27			210
Interest cost on projected benefit obligation		85			123
Expected return on plan assets		(263	)		(252	)
Amortization of net gain		(249	)		(172	)
Amortization of prior service benefit		(162	)		(161	)
Curtailment gain		—			(23,830	)
Postretirement medical benefit		(562	)		(24,082	)

In the quarter ended December 26, 2021 we had no required contributions to our pension plans. In the quarter ended December 27, 2020 we contributed $400,000 to our pension plans. We have no required contributions to our pension plans for 2022 and therefore do not expect to make contributions to our pension trust during the remainder of fiscal 2022. 

Multiemployer Pension Plans

During the quarter ended December 27, 2020, we withdrew from a multiemployer pension plan and recorded a $12,310,000 charge. The withdrawal liability is recorded in Warrants and other and will be paid over 20 years. The first payment was made March 1, 2021.