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Employee Post-Employment Benefits (Tables)
 12 Months Ended
Jun. 05, 2012
Employee Post-Employment Benefits [Abstract]  
Allocation of Retirement Plan's assets held in trust
The Retirement Plan's assets are held in trust and were allocated as follows on June 5, 2012 and May 31, 2011, the measurement dates:
Target Allocation
2012  Allocation
2011 Allocation
Equity securities
60-80%
  67%
  71%
Fixed income securities
20-40%
  31%
  28%
Cash and cash equivalents
0%
  2%
  1%
Total
100%
100%
100%
Fair values of assets held by Retirement Plan by asset category
The fair values of assets held by the Retirement Plan by asset category are as follows (in thousands):

 
Fair Value Measurements
 
 
Total Fair Value
 
 
Quoted Prices in
Active Markets for
Identical Assets (Level 1)
 
 
Significant
Other Observable
Inputs (Level 2)
 
 
Significant
Unobservable Inputs
(Level 3)
 
Cash and cash equivalents
 
$
136
 
 
$
-
 
 
$
136
 
 
$
-
 
Equity securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   U.S.-based companies
 
 
3,525
 
 
 
3,525
 
 
 
-
 
 
 
-
 
   International-based companies
 
 
346
 
 
 
346
 
 
 
-
 
 
 
-
 
Fixed income securities
 
 
1,751
 
 
 
1,751
 
 
 
 
 
 
 
 
 
   Total
 
$
5,758
 
 
$
5,622
 
 
$
136
 
 
$
-
 
Components of net periodic benefit cost
The following tables detail the components of net periodic benefit cost and the amounts recognized in our Consolidated Financial Statements for the Retirement Plan, Management Retirement Plan, and the Executive Supplemental Pension Plan (collectively, the "Pension Plans") and the Postretirement Medical and Life Benefits plans (in thousands):
 
 
Pension Benefits
 
 
2012
 
 
2011
 
 
2010
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
545
 
 
$
517
 
 
$
450
 
Interest cost
 
 
2,346
 
 
 
2,290
 
 
 
2,490
 
Expected return on plan assets
 
 
(514
)
 
 
(392
)
 
 
(422
)
Amortization of prior service cost (a)
 
 
262
 
 
 
327
 
 
 
327
 
Recognized actuarial loss
 
 
1,738
 
 
 
1,593
 
 
 
1,385
 
Net periodic benefit cost
 
$
4,377
 
 
$
4,335
 
 
$
4,230
 
 
 
 
 
Postretirement Medical and Life Benefits
 
 
 
2012
 
 
 
2011
 
 
 
2010
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
10
 
 
$
9
 
 
$
10
 
Interest cost
 
 
71
 
 
 
75
 
 
 
85
 
Amortization of prior service cost (a)
 
 
(55
)
 
 
(60
)
 
 
(64
)
Recognized actuarial loss
 
 
136
 
 
 
112
 
 
 
102
 
Net periodic benefit cost
 
$
162
 
 
$
136
 
 
$
133
 
(a) Prior service costs are amortized on a straight-line basis over the average remaining service period of employees expected to receive benefits.
Changes in amounts recognized in accumulated other comprehensive income/(loss)
The following table details changes in the amounts recognized in accumulated other comprehensive (loss)/income in our 2012 and 2011 Consolidated Financial Statements for the Pension Plans and the Postretirement Medical and Life Benefits plans (in thousands):
 
 
Pension Benefits
 
 
Postretirement Medical
and Life Benefits
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
Prior service cost
 
$
0
 
 
$
0
 
 
$
0
 
 
$
0
 
Net actuarial loss
 
 
3,767
 
 
 
1,502
 
 
 
313
 
 
 
264
 
Amortization of prior service cost
 
 
(262
)
 
 
(327
)
 
 
55
 
 
 
60
 
Amortization of actuarial gain
 
 
(1,738
)
 
 
(1,593
)
 
 
(136
)
 
 
(112
)
Total recognized in accumulated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   other comprehensive income
 
$
1,767
 
 
$
(418
)
 
$
232
 
 
$
212
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total recognized in net periodic
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   benefit cost and accumulated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   other comprehensive income
 
$
6,144
 
 
$
3,917
 
 
$
394
 
 
$
348
 
 
Change in benefit obligation and plan assets and reconciliation of funded status
The change in benefit obligation and plan assets and reconciliation of funded status is as follows (in thousands):
 
 
Pension Benefits
 
 
Postretirement Medical
and Life Benefits
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
Change in benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning projected benefit obligation
 
$
45,636
 
 
$
42,602
 
 
$
1,406
 
 
$
1,423
 
Service cost
 
 
545
 
 
 
517
 
 
 
10
 
 
 
9
 
Interest cost
 
 
2,346
 
 
 
2,290
 
 
 
71
 
 
 
75
 
Plan participant contributions
 
 
 
 
 
 
 
 
 
 
102
 
 
 
 
 
Actuarial loss
 
 
2,783
 
 
 
2,577
 
 
 
313
 
 
 
264
 
Benefits paid
 
 
(2,718
)
 
 
(2,350
)
 
 
(288
)
 
 
(365
)
Benefit obligation at end of year
 
$
48,592
 
 
$
45,636
 
 
$
1,614
 
 
$
1,406
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning fair value of plan assets
 
$
6,677
 
 
$
5,929
 
 
$
0
 
 
$
0
 
Actual return on plan assets
 
 
(470
)
 
 
1,467
 
 
 
 
 
 
 
 
 
Employer contributions
 
 
2,269
 
 
 
1,438
 
 
 
186
 
 
 
365
 
Plan participant contributions
 
 
 
 
 
 
 
 
 
 
102
 
 
 
 
 
Benefits paid
 
 
(2,718
)
 
 
(2,350
)
 
 
(288
)
 
 
(365
)
Other
 
 
 
 
 
 
193
 
 
 
 
 
 
 
 
 
Fair value of plan assets at
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   end of year
 
$
5,758
 
 
$
6,677
 
 
$
0
 
 
$
0
 
Funded status at end of year
 
$
(42,834
)*
 
$
(38,959
)*
 
$
(1,614
)
 
$
(1,406
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in the Consolidated Balance Sheets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accrued liabilities - payroll and related
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   costs
 
$
(10,481
)
 
$
(9,844
)
 
$
(136
)
 
$
(123
)
Other deferred liabilities
 
 
(32,353
)
 
 
(29,115
)
 
 
(1,478
)
 
 
(1,283
)
Net amount recognized at year-end
 
$
(42,834
)
 
$
(38,959
)
 
$
(1,614
)
 
$
(1,406
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amounts recognized in accumulated other comprehensive (loss)/income:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Prior service (cost) credit
 
$
(108
)
 
$
(370
)
 
$
102
 
 
$
157
 
Net actuarial loss
 
 
(22,070
)
 
 
(20,042
)
 
 
(1,564
)
 
 
(1,387
)
Total amount recognized
 
$
(22,178
)
 
$
(20,412
)
 
$
(1,462
)
 
$
(1,230
)
 
*  The funded status reflected above includes the liabilities attributable to all of the Pension Plans but only the assets of the Retirement Plan as the other plans are not considered funded for ERISA purposes. To provide a source for the payment of benefits under the Executive Supplemental Pension Plan and the Management Retirement Plan, we own   whole-life insurance contracts on some of the participants. The cash value of these policies was $27.3 million and $27.2 million at June 5, 2012 and May 31, 2011, respectively.  In addition, we held in trust $0.5 million and $0.9 million of cash and cash equivalents as of June 5, 2012 and May 31, 2011, respectively, relating to these policies.  We maintain a rabbi trust to hold the policies and death benefits as they are received.
Pension plans with benefit obligations in excess of plan assets
Additional measurement date information for the pension plans which have benefit obligations in excess of plan assets (in thousands):
 
 
Pension Benefits
 
 
Postretirement Medical
and Life Benefits
 
 
June 5, 2012
 
 
May 31, 2011
 
 
June 5, 2012
 
 
May 31, 2011
 
Projected benefit obligation
 
$
48,592
 
 
$
45,636
 
 
$
1,614
 
 
$
1,406
 
Accumulated benefit
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   obligation
 
 
47,435
 
 
 
44,064
 
 
 
1,614
 
 
 
1,406
 
Fair value of plan assets
 
 
5,758
 
 
 
6,677
 
 
 
0
 
 
 
0
 
 
Weighted-average assumptions used to determine the net periodic benefit cost and benefit obligations
The weighted-average assumptions used to determine the net periodic benefit cost for fiscal years are set forth below:

Pension Benefits
2012
2011
2010
Discount rate
5.3%
5.5%
6.5%
Expected return on plan assets
8.0%
7.0%
8.0%
Rate of compensation increase
2.0%
2.0%
3.1%
Postretirement Medical and Life Benefits
2012
2011
2010
Discount rate
5.3%
5.5%
6.5%
Rate of compensation increase
2.0%
2.0%
3.0%

The weighted average assumptions used to determine benefit obligations at the measurement dates are set forth below:

Pension Benefits
2012
2011
Discount rate
4.5%
5.3%
Rate of compensation increase
2.0%
2.0%
Postretirement Medical and Life Benefits
2012
2011
Discount rate
3.9%
5.3%
Rate of compensation increase
2.0%
2.0%
Benefits expected to be paid in each of the next five years and in the aggregate for five years thereafter
The benefits expected to be paid in each of the next five years and in the aggregate for the five years thereafter are set forth below (in thousands):
 
 
Pension Benefits
 
 
Postretirement Medical
and Life Benefits
 
2013
 
$
11,333
(1)
 
$
135
 
2014
 
 
3,114
 
 
 
134
 
2015
 
 
2,351
 
 
 
130
 
2016
 
 
4,733
 
 
 
138
 
2017
 
 
4,074
 
 
 
135
 
2018-2022
 
 
14,712
 
 
 
664
 
 
(1) Estimated benefit payments for 2013 include an $8.1 million lump-sum payment to our CEO, who, as previously discussed, has announced his intention to step down in fiscal 2013 once his successor is named.