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Employee Retirement and Profit Sharing Plans (Tables)
 12 Months Ended
Dec. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Retirement and Profit Sharing Plan Expenses
During 2016, 2015 and 2014, our retirement and profit sharing plan expenses were as follows:
 
Year Ended December 31
 
2016
 
2015
 
2014
 
(In thousands)
Defined benefit plans
$
6,805

 
$
6,594

 
$
4,729

Defined contribution plans
19,078

 
16,498

 
16,503

Multiemployer pension and certain union plans
30,073

 
29,930

 
28,933

Total
$
55,956

 
$
53,022

 
$
50,165
Funded Status of Plans
The reconciliation of the beginning and ending balances of the projected benefit obligation and the fair value of plan assets for the years ended December 31, 2016 and 2015, and the funded status of the plans at December 31, 2016 and 2015 are as follows:
 
December 31
 
2016
 
2015
 
(In thousands)
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
333,975

 
$
345,766

Service cost
3,173

 
3,631

Interest cost
12,171

 
13,736

Plan participants’ contributions
—

 
10

Plan amendments
—

 
72

Actuarial (gain) loss
11,578

 
(10,351
)
Benefits paid
(21,407
)
 
(18,889
)
Plan settlements
(757
)
 
—

Benefit obligation at end of year
338,733

 
333,975

Change in plan assets:
 
 
 
Fair value of plan assets at beginning of year
282,753

 
289,526

Actual return on plan assets
16,105

 
(6,716
)
Employer contributions
5,489

 
18,822

Plan participants’ contributions
—

 
10

Benefits paid
(21,407
)
 
(18,889
)
Plan settlements
(757
)
 
—

Fair value of plan assets at end of year
282,183

 
282,753

Funded status at end of year
$
(56,550
)
 
$
(51,222
)
The following table sets forth the funded status of these plans:
 
December 31
 
2016
 
2015
 
(In thousands)
Change in benefit obligation:
 
 
 
Benefit obligation at beginning of year
$
32,132

 
$
39,126

Service cost
640

 
821

Interest cost
1,085

 
1,455

Employee contributions
338

 
389

Actuarial (gain) loss
(1,916
)
 
(8,048
)
Benefits paid
(2,157
)
 
(1,611
)
Benefit obligation at end of year
30,122

 
32,132

Fair value of plan assets at end of year
—

 
—

Funded status
$
(30,122
)
 
$
(32,132
)
Summary of Assumptions Used to Determine Benefit Obligations
A summary of our key actuarial assumptions used to determine benefit obligations as of December 31, 2016 and 2015 follows:
 
December 31
 
2016
 
2015
Weighted average discount rate
4.29
%
 
4.52
%
Rate of compensation increase
3.70
%
 
4.00
%
Summary of Assumptions Used to Determine Net Periodic Benefit Cost
A summary of our key actuarial assumptions used to determine net periodic benefit cost for 2016, 2015 and 2014 follows:
 
Year Ended December 31
 
2016
 
2015
 
2014
Effective discount rate for benefit obligations
4.53
%
 
4.08
%
 
4.90
%
Effective rate for interest on benefit obligations
3.76
%
 
4.08
%
 
4.90
%
Effective discount rate for service cost
4.67
%
 
4.08
%
 
4.90
%
Effective rate for interest on service cost
4.14
%
 
4.08
%
 
4.90
%
Expected return on assets
6.75
%
 
7.00
%
 
7.00
%
Rate of compensation increase
4.00
%
 
4.00
%
 
4.00
%
Net Periodic Benefit Cost
 
Year Ended December 31
 
2016
 
2015
 
2014
 
(In thousands)
Components of net periodic benefit cost:
 
 
 
 
 
Service cost
$
3,173

 
$
3,631

 
$
3,081

Interest cost
12,171

 
13,736

 
13,979

Expected return on plan assets
(18,531
)
 
(20,026
)
 
(18,761
)
Amortizations:
 
 
 
 
 
Prior service cost
857

 
856

 
787

Unrecognized net loss
8,822

 
8,544

 
5,105

Effect of settlement
313

 
—

 
538

Other
—

 
(147
)
 
—

Net periodic benefit cost
$
6,805

 
$
6,594

 
$
4,729

 
Year Ended December 31
 
2016
 
2015
 
2014
 
(In thousands)
Components of net periodic benefit cost:
 
 
 
 
 
Service and interest cost
$
1,725

 
$
2,276

 
$
2,487

Amortizations:
 
 
 
 
 
Prior service cost
92

 
92

 
65

Unrecognized net (gain) loss
(245
)
 
63

 
75

Other
—

 
—

 
98

Net periodic benefit cost
$
1,572

 
$
2,431

 
$
2,725
Pension Plans With an Accumulated Benefit Obligation in Excess of Plan Assets
Pension plans with an accumulated benefit obligation in excess of plan assets follows:
 
December 31
 
2016
 
2015
 
(In millions)
Projected benefit obligation
$
338.7

 
$
334.0

Accumulated benefit obligation
336.3

 
331.3

Fair value of plan assets
282.2

 
282.8
Estimated Pension Plan Benefit Payments to Participants for Next Ten Years
Estimated pension plan benefit payments to participants for the next ten years are as follows:
2017
$
20.6
 million
2018
20.4
 million
2019
20.1
 million
2020
20.4
 million
2021
21.0
 million
Next five years
107.2
 million
Estimated postretirement health care plan benefit payments for the next ten years are as follows:
2017
$
2.1
 million
2018
2.1
 million
2019
2.3
 million
2020
2.3
 million
2021
2.3
 million
Next five years
11.4
 million
Fair Values by Category of Inputs
The fair values by category of inputs as of December 31, 2016 were as follows (in thousands):
 
Fair Value as of
December 31, 2016
 
Level 1
 
Level 2
 
Level 3
Equity Securities:
 
 
 
 
 
 
 
Common Stock
$
275

 
$
275

 
$
—

 
$
—

Index Funds:
 
 
 
 
 
 
 
U.S. Equities(a)
112,329

 
—

 
112,329

 
—

International Equities
—

 
—

 
—

 
—

Equity Funds(b)
6,204

 
—

 
6,204

 
—

Total Equity Securities
118,808

 
275

 
118,533

 
—

Fixed Income:
 
 
 
 
 
 
 
Bond Funds(c)
157,361

 
—

 
157,361

 
—

Diversified Funds(d)
3,930

 
—

 
—

 
3,930

Total Fixed Income
161,291

 
—

 
157,361

 
3,930

Cash Equivalents:
 
 
 
 
 
 
 
Short-term Investment Funds(e)
1,921

 
—

 
1,921

 
—

Total Cash Equivalents
1,921

 
—

 
1,921

 
—

Other Investments:
 
 
 
 
 
 
 
Partnerships/Joint Ventures(f)
163

 
—

 
—

 
163

Total Other Investments
163

 
—

 
—

 
163

Total
$
282,183

 
$
275

 
$
277,815

 
$
4,093

(a)
Represents a pooled/separate account that tracks the Dow Jones U.S. Total Stock Market Index.
(b)
Represents a pooled/separate account comprised of approximately 90% U.S. large-cap stocks and 10% international stocks.
(c)
Represents investments primarily in U.S. dollar-denominated, investment grade bonds, including government securities, corporate bonds, and mortgage- and asset-backed securities.
(d)
Represents a pooled/separate account investment in the General Investment Account of an investment manager. The account primarily invests in fixed income debt securities, such as high grade corporate bonds, government bonds and asset-backed securities.
(e)
Investment is comprised of high grade money market instruments with short-term maturities and high liquidity.
(f)
The majority of the total partnership balance is a partnership comprised of a portfolio of two limited partnership funds that invest in public and private equity.
The fair values by category of inputs as of December 31, 2015 were as follows (in thousands):
 
Fair Value as of
December 31, 2015
 
Level 1
 
Level 2
 
Level 3
Equity Securities:
 
 
 
 
 
 
 
Common Stock
$
241

 
$
241

 
$
—

 
$
—

Index Funds:
 
 
 
 
 
 
 
U.S. Equities(a)
105,874

 
—

 
105,874

 
—

International Equities
—

 
—

 
—

 
—

Equity Funds(b)
6,204

 
—

 
6,204

 
—

Total Equity Securities
112,319

 
241

 
112,078

 
—

Fixed Income:
 
 
 
 
 
 
 
Bond Funds(c)
160,419

 
—

 
160,419

 
—

Diversified Funds(d)
3,929

 
—

 
—

 
3,929

Total Fixed Income
164,348

 
—

 
160,419

 
3,929

Cash Equivalents:
 
 
 
 
 
 
 
Short-term Investment Funds(e)
1,975

 
—

 
1,975

 
—

Total Cash Equivalents
1,975

 
—

 
1,975

 
—

Other Investments:
 
 
 
 
 
 
 
Partnerships/Joint Ventures(f)
273

 
—

 
—

 
273

Total Other Investments
273

 
—

 
—

 
273

Total
$
278,915

 
$
241

 
$
274,472

 
$
4,202

(a)
Represents a pooled/separate account that tracks the Dow Jones U.S. Total Stock Market Index.
(b)
Represents a pooled/separate account comprised of approximately 90% U.S. large-cap stocks and 10% international stocks.
(c)
Represents investments primarily in U.S. dollar-denominated, investment grade bonds, including government securities, corporate bonds, and mortgage- and asset-backed securities.
(d)
Represents a pooled/separate account investment in the General Investment Account of an investment manager. The account primarily invests in fixed income debt securities, such as high grade corporate bonds, government bonds and asset-backed securities.
(e)
Investment is comprised of high grade money market instruments with short-term maturities and high liquidity.
(f)
The majority of the total partnership balance is a partnership comprised of a portfolio of two limited partnership funds that invest in public and private equity.
Reconciliation of Change in Fair Value Measurement of Defined Benefit Plans
A reconciliation of the change in the fair value measurement of the defined benefit plans’ consolidated assets using significant unobservable inputs (Level 3) during the years ended December 31, 2016 and 2015 is as follows (in thousands):
 
Diversified
Funds
 
Partnerships/
Joint Ventures
 
Total
Balance at December 31, 2014
$
2,921

 
$
567

 
$
3,488

Actual return on plan assets:
 
 
 
 
 
Relating to instruments still held at reporting date
131

 
(182
)
 
(51
)
Purchases, sales and settlements (net)
(823
)
 
—

 
(823
)
Transfers in and/or out of Level 3
1,700

 
(112
)
 
1,588

Balance at December 31, 2015
$
3,929

 
$
273

 
$
4,202

Actual return on plan assets:
 
 
 
 
 
Relating to instruments still held at reporting date
115

 
(18
)
 
97

Purchases, sales and settlements (net)
(114
)
 
(92
)
 
(206
)
Balance at December 31, 2016
$
3,930

 
$
163

 
$
4,093
Schedule of Information Regarding Participation in Multiemployer Pension Plans
The last column in the table lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject.
Pension Fund
Employer
Identification
Number
 
Pension
Plan
Number
 
PPA Zone Status
 
FIP /
RP Status
Pending/
Implemented
 
Extended
Amortization
Provisions
 
Expiration
Date of
Associated
Collective-
Bargaining
Agreement(s)
2016
 
2015
 
Western Conference of Teamsters Pension Plan(1)
91-6145047
 
001
 
Green
 
Green
 
N/A
 
No
 
May 31, 2017 - August 31, 2020
Central States, Southeast and Southwest Areas Pension Plan(2)
36-6044243
 
001
 
Red
 
Red
 
Implemented
 
No
 
January 31, 2017 - May 31, 2020
Retail, Wholesale & Department Store International Union and Industry Pension Fund(3)
63-0708442
 
001
 
Green
 
Green
 
N/A
 
Yes
 
January 28, 2017 - July 18, 2020
Dairy Industry – Union Pension Plan for Philadelphia Vicinity(4)
23-6283288
 
001
 
Green(5)
 
Green
 
N/A
 
Yes
 
August 31, 2017 -
September 30, 2018
(1)
We are party to approximately twelve collective bargaining agreements that require contributions to this plan. These agreements cover a large number of employee participants and expire on various dates between 2017 and 2020. The agreement expiring in March 2019 is the most significant as 32% of our employee participants in this plan are covered by that agreement.
(2)
There are approximately 21 collective bargaining agreements that govern our participation in this plan. The agreements expire on various dates between 2017 and 2020. Approximately 22%, 30%, 39%, and 10% of our employee participants in this plan are covered by the agreements expiring in 2017, 2018, 2019, and 2020 respectively.
(3)
We are subject to approximately eight collective bargaining agreements with respect to this plan. Approximately 46%, 50%, 1%, and 3% of our employee participants in this plan are covered by the agreements expiring in 2017, 2018, 2019, and 2020 respectively.
(4)
We are party to five collective bargaining agreements with respect to this plan. The agreement expiring in September 2017 is the most significant as 60% of our employee participants in this plan are covered by that agreement.
(5)
The most recent PPA Zone Status available in 2016 is for the plan's year-end at December 31, 2015. As of December 31, 2015, the estimated funding ratio of the plan was 80.8%. As of January 1, 2016, the actuary reported that the estimated funding ratio of the plan was 79.56%, and that the plan was certified to be in endangered status. A notice of endangered status was provided to the plan’s participants and beneficiaries, bargaining parties, the Pension Benefit Guaranty Corporation, and the Department of Labor. At the date of filing of this Annual Report on Form 10-K, Forms 5500 were not available for the plan year ended in 2016.
Schedule of Information Regarding Contribution in Multiemployer Pension Plans
Information regarding our contributions to our multiemployer pension plans is shown in the table below. There are no changes that materially affected the comparability of our contributions to each of these plans during the years ended December 31, 2016, 2015 and 2014.
Pension Fund
Employer
Identification
Number
 
Pension
Plan
Number
 
Dean Foods Company Contributions
(in millions)
2016
 
2015
 
2014
 
Surcharge
Imposed(3)
Western Conference of Teamsters Pension Plan
91-6145047
 
001
 
$
13.8

 
$
12.8

 
$
12.9

 
No
Central States, Southeast and Southwest Areas Pension Plan
36-6044243
 
001
 
8.6

 
9.3

 
11.9

 
No
Retail, Wholesale & Department Store International Union and Industry Pension Fund(1)
63-0708442
 
001
 
1.8

 
1.3

 
1.3

 
No
Dairy Industry – Union Pension Plan for Philadelphia Vicinity(1)
23-6283288
 
001
 
1.9

 
2.1

 
2.0

 
No
Other Funds(2)
 
 
 
 
4.0

 
4.4

 
0.8

 
 
Total Contributions
 
 
 
 
$
30.1

 
$
29.9

 
$
28.9

 
 
(1)
During the 2015 and 2014 plan years, our contributions to these plans exceeded 5% of total plan contributions. At the date of filing of this Annual Report on Form 10-K, Forms 5500 were not available for the plan years ending in 2016.
(2)
Amounts shown represent our contributions to all other multiemployer pension and other postretirement benefit plans, which are immaterial both individually and in the aggregate to our Consolidated Financial Statements.
(3)
Federal law requires that contributing employers to a plan in Critical status pay to the plan a surcharge to help correct the plan’s financial situation. The amount of the surcharge is equal to a percentage of the amount we would otherwise be required to contribute to the plan and ceases once our related collective bargaining agreements are amended to comply with the provisions of the rehabilitation plan.