Note 6 - Pension, Postretirement and Postemployment Defined Benefit Plans

6 Months Ended

Mar. 27, 2022

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 certain employees, including plans established under collective bargaining agreements. At the end of September 2021 two of seven plans had 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 March 27, 2022, 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 participants in four of 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	Three months ended						Six months ended
	March 27,			March 28,			March 27,			March 28,
(Thousands of Dollars)	2022			2021			2022			2021
Service cost for benefits earned during the period		287			633			743			1,266
Interest cost on projected benefit obligation		2,001			1,787			3,938			3,574
Expected return on plan assets		(4,535	)		(4,672	)		(9,071	)		(9,344	)
Amortization of net loss		(687	)		1,005			(1,946	)		2,009
Amortization of prior service benefit		212			(1	)		212			(1	)
Curtailment gain		—			—			(1,027	)		—
Pension benefit		(2,722	)		(1,248	)		(7,151	)		(2,496	)

POSTRETIREMENT MEDICAL PLANS	Three months ended						Six months ended
	March 27,			March 28,			March 27,			March 28,
(Thousands of Dollars)	2022			2021			2022			2021
Service cost for benefits earned during the period		27			240			54			450
Interest cost on projected benefit obligation		85			239			170			362
Expected return on plan assets		(263	)		(252	)		(526	)		(504	)
Amortization of net gain		(249	)		(172	)		(498	)		(344	)
Amortization of prior service benefit		(162	)		(162	)		(324	)		(323	)
Curtailment gain		—			—			—			(23,830	)
Postretirement medical benefit		(562	)		(107	)		(1,124	)		(24,189	)

In the six months ended March 27, 2022, we had no required contributions to our pension plans. In the six months ended March 28, 2021 we contributed $965,000 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

The Company has effecuated withdrawals from several multiemployer plans. We record estimates of withdrawal liabilities as of the time the contracts agreeing to withdraw from those plans are ratified. As of March 27, 2022 and September 26, 2021, we had $25,253,000 and $23,471,000 withdrawal liabilities recorded in Other Liabilities in our Consolidated Balance Sheets. The liabilities reflect the estimated value of payments to the fund, payable over 20-years.