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Employee Benefit Plans
 12 Months Ended
Nov. 26, 2017
Retirement Benefits [Abstract]  
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS
Pension plans.  The Company has several non-contributory defined benefit retirement plans covering eligible employees. Plan assets are invested in a diversified portfolio of securities including stocks, bonds, cash equivalents and other alternative investments including real estate investment trust funds. Benefits payable under the plans are based on years of service, final average compensation, or both. The Company retains the right to amend, curtail or discontinue any aspect of the plans, subject to local regulations.
Postretirement plans.  The Company maintains plans that provide postretirement benefits to eligible employees, principally health care, to substantially all U.S. retirees and their qualified dependents. These plans were established with the intention that they would continue indefinitely. However, the Company retains the right to amend, curtail or discontinue any aspect of the plans at any time. The plans are contributory and contain certain cost-sharing features, such as deductibles and coinsurance. The Company's policy is to fund postretirement benefits as claims and premiums are paid.
The following tables summarize activity of the Company's defined benefit pension plans and postretirement benefit plans:
 
Pension Benefits
 
Postretirement Benefits
 
2017
 
2016
 
2017
 
2016
 
(Dollars in thousands)
Change in benefit obligation:
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
1,191,934

 
$
1,194,365

 
$
112,451

 
$
117,740

Service cost
9,975

 
8,234

 
172

 
200

Interest cost
36,853

 
37,819

 
3,148

 
3,223

Plan participants' contribution
570

 
484

 
4,376

 
4,172

Actuarial loss (gain)(1)
59,121

 
33,948

 
(5,516
)
 
5,556

Net curtailment loss
132

 
119

 
—

 
—

Impact of foreign currency changes
15,545

 
(15,435
)
 
—

 
—

Plan settlements
(410
)
 
(417
)
 
—

 
—

Net benefits paid
(69,868
)
 
(67,183
)
 
(15,956
)
 
(18,440
)
Benefit obligation at end of year
$
1,243,852

 
$
1,191,934

 
$
98,675

 
$
112,451

 
 
 
 
 
 
 
 
Change in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
837,322

 
838,551

 
—

 
—

Actual return on plan assets(2)
117,188

 
49,986

 
—

 
—

Employer contribution
52,386

 
31,147

 
11,580

 
14,268

Plan participants' contributions
570

 
484

 
4,376

 
4,172

Plan settlements
(410
)
 
(417
)
 
—

 
—

Impact of foreign currency changes
11,518

 
(15,246
)
 
—

 
—

Net benefits paid
(69,868
)
 
(67,183
)
 
(15,956
)
 
(18,440
)
Fair value of plan assets at end of year
948,706

 
837,322

 
—

 
—

Unfunded status at end of year
$
(295,146
)
 
$
(354,612
)
 
$
(98,675
)
 
$
(112,451
)
_____________
(1)
2017 and 2016 actuarial losses in the Company's pension benefit plans resulted from changes in discount rate assumptions. Changes in financial markets during 2017 and 2016, including a decrease in corporate bond yield indices, resulted in an increase in benefit obligations.
(2)
The increase in return on plan assets in 2017 was primarily due to better-than-expected asset performance of U.S. and international equity securities.
Amounts recognized in the Company's consolidated balance sheets as of November 26, 2017 and November 27, 2016, consist of the following:
 
Pension Benefits
 
Postretirement Benefits
 
2017
 
2016
 
2017
 
2016
 
(Dollars in thousands)
Unfunded status recognized on the balance sheet:
 
 
 
 
 
 
 
Prepaid benefit cost
$
24,644

 
$
5,555

 
$
—

 
$
—

Accrued benefit liability – current portion
(9,316
)
 
(9,142
)
 
(9,427
)
 
(11,485
)
Accrued benefit liability – long-term portion
(310,474
)
 
(351,025
)
 
(89,248
)
 
(100,966
)
 
$
(295,146
)
 
$
(354,612
)
 
$
(98,675
)
 
$
(112,451
)
 
 
 
 
 
 
 
 
Accumulated other comprehensive loss:
 
 
 
 
 
 
 
Net actuarial loss
$
(362,602
)
 
$
(385,942
)
 
$
(21,878
)
 
$
(28,665
)
Net prior service benefit
419

 
420

 
—

 
—

 
$
(362,183
)
 
$
(385,522
)
 
$
(21,878
)
 
$
(28,665
)

The accumulated benefit obligation for all defined benefit plans was $1.2 billion at both November 26, 2017 and November 27, 2016. Information for the Company's defined benefit plans with an accumulated or projected benefit obligation in excess of plan assets is as follows:
 
Pension Benefits
 
2017
 
2016
 
(Dollars in thousands)
Accumulated benefit obligations in excess of plan assets:
 
 
 
Aggregate accumulated benefit obligation
$
1,091,856

 
$
1,079,316

Aggregate fair value of plan assets
775,859

 
725,830

 
 
 
 
Projected benefit obligations in excess of plan assets:
 
 
 
Aggregate projected benefit obligation
$
1,131,873

 
$
1,086,842

Aggregate fair value of plan assets
812,082

 
726,675


The components of the Company's net periodic benefit cost were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
 
(Dollars in thousands)
Net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
9,975

 
$
8,234

 
$
8,352

 
$
172

 
$
200

 
$
251

Interest cost(1)
36,853

 
37,819

 
47,179

 
3,148

 
3,223

 
4,588

Expected return on plan assets
(48,581
)
 
(48,422
)
 
(50,825
)
 


 
—

 
—

Amortization of prior service benefit
(62
)
 
(61
)
 
(61
)
 
—

 
—

 
—

Amortization of actuarial loss
13,489

 
12,036

 
12,578

 
1,271

 
2,967

 
4,511

Curtailment (gain) loss
106

 
(140
)
 
656

 
—

 
—

 
—

Special termination benefit
—

 
—

 
—

 


 
—

 
—

Net settlement loss (gain)
126

 
49

 
(45
)
 


 
—

 
—

Net periodic benefit cost
11,906

 
9,515

 
17,834

 
4,591

 
6,390

 
9,350

Changes in accumulated other comprehensive loss:
 
 
 
 
 
 
 
 
 
 
 
Actuarial loss (gain)
(9,785
)
 
32,187

 
(15,228
)
 
(5,516
)
 
5,556

 
(5,918
)
Amortization of prior service benefit
62

 
61

 
61

 
—

 
—

 
—

Amortization of actuarial loss
(13,489
)
 
(12,036
)
 
(12,578
)
 
(1,271
)
 
(2,967
)
 
(4,511
)
Curtailment gain (loss)
—

 
173

 
(656
)
 
—

 
—

 
—

Net settlement (loss) gain
(126
)
 
(49
)
 
45

 
—

 
—

 
—

Total recognized in accumulated other comprehensive loss
(23,338
)
 
20,336

 
(28,356
)
 
(6,787
)
 
2,589

 
(10,429
)
Total recognized in net periodic benefit cost and accumulated other comprehensive loss
$
(11,432
)
 
$
29,851

 
$
(10,522
)
 
$
(2,196
)
 
$
8,979

 
$
(1,079
)
_____________
(1)
The decrease in interest cost in 2017 and 2016 compared to 2015 is primarily due to the election made at the end of 2015 to adopt the spot-rate approach to determine the interest cost component of pension and postretirement expense.
The amounts that will be amortized from "Accumulated other comprehensive loss" into net periodic benefit cost in 2018 for the Company's defined benefit pension and postretirement benefit plans are expected to be $12.5 million and $0.9 million, respectively.
Assumptions used in accounting for the Company's benefit plans were as follows:
 
Pension Benefits
 
Postretirement Benefits
 
2017
 
2016
 
2015
 
2017
 
2016
 
2015
Weighted-average assumptions used to determine net periodic benefit cost:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.8%
 
4.0%
 
3.8%
 
3.7%
 
3.8%
 
3.6%
Expected long-term rate of return on plan assets
5.8%
 
5.9%
 
5.9%
 
 
 
 
 
 
Rate of compensation increase
3.4%
 
3.4%
 
3.4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average assumptions used to determine benefit obligations:
 
 
 
 
 
 
 
 
 
 
 
Discount rate
3.4%
 
3.8%
 
4.0%
 
3.4%
 
3.7%
 
3.8%
Rate of compensation increase
3.4%
 
3.4%
 
3.4%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assumed health care cost trend rates were as follows:
 
 
 
 
 
 
 
 
 
 
 
Health care trend rate assumed for next year
 
 
 
 
 
 
6.3%
 
6.4%
 
6.4%
Rate trend to which the cost trend is assumed to decline
 
 
 
 
 
 
4.4%
 
4.4%
 
4.4%
Year that rate reaches the ultimate trend rate
 
 
 
 
 
 
2037
 
2038
 
2038

For the Company's U.S. benefit plans, the discount rate used to determine the present value of the future pension and postretirement plan obligations was based on a yield curve constructed from a portfolio of high quality corporate bonds with various maturities. Each year's expected future benefit payments are discounted to their present value at the appropriate yield curve rate, thereby generating the overall discount rate. The Company utilized a variety of country-specific third-party bond indices to determine the appropriate discount rates to use for the benefit plans of its foreign subsidiaries.
The Company bases the overall expected long-term rate of return on assets on anticipated long-term returns of individual asset classes and each pension plans' target asset allocation strategy based on current economic conditions. For the U.S. pension plan, the expected long-term returns for each asset class are determined through a mean-variance model to estimate 20-year returns for the plan. 
Health care cost trend rate assumptions are not a significant input in the calculation of the amounts reported for the Company's postretirement benefits plans. A one percentage-point change in assumed health care cost trend rates would have no significant effect on the total service and interest cost components or on the postretirement benefit obligation.
Consolidated pension plan assets relate primarily to the U.S. pension plan. The Company utilizes the services of independent third-party investment managers to oversee the management of U.S. pension plan assets.
 The Company's investment strategy is to invest plan assets in a diversified portfolio of domestic and international equity securities, fixed income securities and real estate and other alternative investments with the objective of generating long-term growth in plan assets at a reasonable level of risk. Prohibited investments for the U.S. pension plan include certain privately placed or other non-marketable debt instruments, letter stock, commodities or commodity contracts and derivatives of mortgage-backed securities, such as interest-only, principal-only or inverse floaters. The current target allocation percentages for the Company's U.S. pension plan assets are 50% for equity securities and real estate with an allowable deviation of plus or minus 8% and 50% for fixed income securities with an allowable deviation of plus or minus 8%.
The fair value of the Company's pension plan assets by asset class are as follows:
 
Year Ended November 26, 2017
Asset Class
Total
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
(Dollars in thousands)
Cash and cash equivalents
$
1,164

 
$
1,164

 
$
—

 
$
—

Equity securities(1)
 
 

 

 

U.S. large cap
209,568

 
—

 
209,568

 
—

U.S. small cap
42,874

 
—

 
42,874

 
—

International
141,924

 
—

 
141,924

 
—

Fixed income securities(2)
463,617

 
—

 
463,617

 
—

Other alternative investments


 


 

 

Real estate(3)
69,546

 
—

 
69,546

 
—

Private equity(4)
764

 
—

 
—

 
764

Hedge fund(5)
14,934

 
—

 
14,934

 
—

Other(6)
4,315

 
—

 
4,315

 
—

Total investments at fair value
$
948,706

 
$
1,164

 
$
946,778

 
$
764

 
Year Ended November 27, 2016
Asset Class
Total
 
Quoted Prices in Active Markets for Identical Assets (Level 1)
 
Significant Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
(Dollars in thousands)
Cash and cash equivalents
$
2,676

 
$
2,676

 
$
—

 
$
—

Equity securities(1)
 
 
 
 
 
 
 
U.S. large cap
190,811

 
—

 
190,811

 
—

U.S. small cap
37,434

 
—

 
37,434

 
—

International
144,241

 
—

 
144,241

 
—

Fixed income securities(2)
395,995

 
—

 
395,995

 
—

Other alternative investments
 
 
 
 
 
 
 
Real estate(3)
53,783

 
—

 
53,783

 
—

Private equity(4)
1,344

 
—

 
—

 
1,344

Hedge fund(5)
7,337

 
—

 
7,337

 
—

Other(6)
3,701

 
—

 
3,701

 
—

Total investments at fair value
$
837,322

 
$
2,676

 
$
833,302

 
$
1,344

_____________
(1)
Primarily comprised of equity index funds that track various market indices.
(2)
Predominantly includes bond index funds that invest in long-term U.S. government and investment grade corporate bonds.
(3)
Primarily comprised of investments in U.S. Real Estate Investment Trusts.
(4)
Represents holdings in a diversified portfolio of private equity funds and direct investments in companies located primarily in North America. Fair values are determined by investment fund managers using primarily unobservable market data.
(5)
Primarily invested in a diversified portfolio of equities, bonds, alternatives and cash with a low tolerance for capital loss.
(6)
Primarily relates to accounts held and managed by a third-party insurance company for employee-participants in Belgium. Fair values are based on accumulated plan contributions plus a contractually-guaranteed return plus a share of any incremental investment fund profits.
The fair value of plan assets are composed of U.S. plan assets of $775.9 million and non-U.S. plan assets of $172.8 million. The fair values of the substantial majority of the equity, fixed income and real estate investments are based on the net asset value of commingled trust funds that passively track various market indices.
The Company's estimated future benefit payments to participants, which reflect expected future service, as appropriate are anticipated to be paid as follows:
 
Pension Benefits
 
Postretirement Benefits
 
Total
 
(Dollars in thousands)
2018
$
68,564

 
$
11,565

 
$
80,129

2019
66,263

 
11,037

 
77,300

2020
66,986

 
10,645

 
77,631

2021
67,966

 
10,187

 
78,153

2022
70,559

 
9,617

 
80,176

2023-2027
353,302

 
38,696

 
391,998


At November 26, 2017, the Company's contributions to its pension plans in 2018 were estimated to be approximately $94.7 million.