Pension and Savings Plans

6 Months Ended

Feb. 13, 2016

Compensation and Retirement Disclosure [Abstract]

Note G – Pension and Savings Plans

The components of net periodic pension expense related to the Company’s pension plans consisted of the following:


	Twelve Weeks Ended						Twenty-Four Weeks Ended
(in thousands)	February 13, 2016			February 14, 2015			February 13, 2016			February 14, 2015
Interest cost	$	2,601		$	2,847		$	5,202		$	5,694
Expected return on plan assets		(3,810	)		(3,757	)		(7,620	)		(7,514	)
Amortization of net loss		2,424			2,063			4,848			4,127

Net periodic pension expense	$	1,215		$	1,153		$	2,430		$	2,307

The Company makes contributions in amounts at least equal to the minimum funding requirements of the Employee Retirement Income Security Act of 1974, as amended by the Pension Protection Act of 2006. During the twenty-four week period ended February 13, 2016, the Company made contributions to its funded plan in the amount of $3.0 million. The Company expects to contribute approximately $13.0 million to the plan during the remainder of fiscal 2016; however, a change to the expected cash funding may be impacted by a change in interest rates or a change in the actual or expected return on plan assets.

During the twenty-four week period ended February 13, 2016, the Company changed the method used to estimate the interest cost component of Net periodic pension expense. Previously, the Company estimated interest cost using a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation. The Company has elected to utilize a spot rate approach by applying specific spot rates along the yield curve to calculate interest costs instead of a single weighted-average discount rate. This calculation is believed to be more refined under the applicable accounting standard. The impact of this change to Net periodic pension expense is a reduction of $823 thousand in the twenty-four week period ended February 13, 2016. Based on current economic conditions, the interest cost for pension plans will be reduced by approximately $1.8 million in fiscal 2016 as a result of the change. The Company has accounted for this change as a change in accounting estimate and therefore has accounted for it prospectively.