Employee Benefit Plans

12 Months Ended

Nov. 29, 2020

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
	2020		2019		2020		2019
	(Dollars in thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	1,261,763	$	1,136,720	$	72,135	$	82,907
Service cost	4,026		3,377		48		65
Interest cost	30,643		41,341		1,665		3,042
Plan participants' contribution	689		665		4,282		4,256
Actuarial loss (gain)(1)	87,443		146,562		1,531		(2,903)
Net curtailment loss	(1,009)		64		—		—
Impact of foreign currency changes	10,899		(2,210)		—		—
Plan settlements(2)	(64,525)		(436)		—		—
Net benefits paid	(65,300)		(64,320)		(12,300)		(15,232)
Benefit obligation at end of year	$	1,264,629	$	1,261,763	$	67,361	$	72,135
Change in plan assets:
Fair value of plan assets at beginning of year	1,091,162		958,576		—		—
Actual return on plan assets	161,856		182,309		—		—
Employer contribution	20,865		15,062		8,018		10,976
Plan participants' contributions	689		665		4,282		4,256
Plan settlements(2)	(64,525)		(436)		—		—
Impact of foreign currency changes	8,544		(694)		—		—
Net benefits paid	(65,300)		(64,320)		(12,300)		(15,232)
Fair value of plan assets at end of year	1,153,291		1,091,162		—		—
Unfunded status at end of year	$	(111,338)	$	(170,601)	$	(67,361)	$	(72,135)

_____________

(1)Fiscal year 2020 and 2019 actuarial losses in the Company's pension benefit plans resulted from changes in discount rate assumptions. Changes in financial markets during 2019 including a decrease in corporate bond yield indices, resulted in an increase in benefit obligations.

(2)The increase in pension plan settlements in fiscal year 2020 was primarily due to a voluntary lump-sum, cash-out program offered to vested, terminated U.S. pension plan participants in the last half of the fiscal year 2020. The extent of the funding from the cash-out program exceeded the settlement accounting threshold, and as such in fiscal year 2020, these activities have been categorized as settlements. Pension plan assets were utilized to settle pension obligations for deferred participants that elected to participate in the program.

Amounts recognized in the Company's consolidated balance sheets as of November 29, 2020 and November 24, 2019, consist of the following:

	Pension Benefits				Postretirement Benefits
	2020		2019		2020		2019
	(Dollars in thousands)
Unfunded status recognized on the balance sheet:
Prepaid benefit cost	$	62,161	$	27,704	$	—	$	—
Accrued benefit liability – current portion	(9,663)		(9,480)		(7,112)		(8,129)
Accrued benefit liability – long-term portion	(163,836)		(188,825)		(60,249)		(64,006)
	$	(111,338)	$	(170,601)	$	(67,361)	$	(72,135)
Accumulated other comprehensive loss:
Net actuarial loss	$	(296,330)	$	(358,484)	$	(12,491)	$	(11,284)
Net prior service benefit	259		291		—		—
	$	(296,071)	$	(358,193)	$	(12,491)	$	(11,284)

The accumulated benefit obligation for all defined benefit plans was both $1.3 billion and $1.2 billion at November 29, 2020 and November 24, 2019. 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
	2020		2019
	(Dollars in thousands)
Accumulated benefit obligations in excess of plan assets:
Aggregate accumulated benefit obligation	$	168,390	$	1,093,503
Aggregate fair value of plan assets	—		903,556
Projected benefit obligations in excess of plan assets:
Aggregate projected benefit obligation	$	222,055	$	1,142,114
Aggregate fair value of plan assets	48,578		943,810

Amounts in the table above decreased in fiscal year 2020 primarily due to the exclusion of the Company’s U.S. pension plans as compared to 2019, as the fair value of these pension plan assets in fiscal year 2020 increased resulting in those plans’ plan assets exceeding the benefit obligations.

The components of the Company's net periodic benefit cost were as follows:

	Pension Benefits						Postretirement Benefits
	2020		2019		2018		2020		2019		2018
	(Dollars in thousands)
Net periodic benefit cost:
Service cost	$	4,026	$	3,377	$	3,602	$	48	$	65	$	113
Interest cost	30,643		41,341		36,070		1,665		3,042		2,718
Expected return on plan assets	(41,189)		(42,098)		(48,830)		—		—		—
Amortization of prior service benefit	(62)		(61)		(65)		—		—		—
Amortization of actuarial loss	13,407		13,306		12,650		324		465		872
Curtailment loss	(650)		13		38		—		—		—
Net settlement (gain) loss	14,699		(56)		(102)		—		—		—
Net periodic benefit cost	20,874		15,822		3,363		2,037		3,572		3,703
Changes in accumulated other comprehensive loss:
Actuarial loss (gain)	(34,821)		6,309		15,373		1,531		(2,903)		(6,354)
Amortization of prior service benefit	62		61		65		—		—		—
Amortization of actuarial loss	(13,407)		(13,306)		(12,650)		(324)		(465)		(872)
Curtailment gain	742		—		—		—		—		—
Net settlement gain (loss)	(14,699)		56		102		—		—		—
Total recognized in accumulated other comprehensive loss	(62,123)		(6,880)		2,890		1,207		(3,368)		(7,226)
Total recognized in net periodic benefit cost and accumulated other comprehensive loss	$	(41,249)	$	8,942	$	6,253	$	3,244	$	204	$	(3,523)

The amounts that will be amortized from "Accumulated other comprehensive loss" into net periodic benefit cost in 2021 for the Company's defined benefit pension and postretirement benefit plans are expected to be $10.5 million and $0.5 million, respectively.

Assumptions used in accounting for the Company's benefit plans were as follows:

	Pension Benefits			Postretirement Benefits
	2020	2019	2018	2020	2019	2018
Weighted-average assumptions used to determine net periodic benefit cost:
Discount rate	2.8%	4.1%	3.4%	2.8%	4.2%	3.4%
Expected long-term rate of return on plan assets	3.8%	4.6%	5.4%
Rate of compensation increase	3.3%	3.4%	3.4%
Weighted-average assumptions used to determine benefit obligations:
Discount rate	2.1%	2.8%	4.1%	2.0%	2.8%	4.2%
Rate of compensation increase	3.3%	3.3%	3.4%
Assumed health care cost trend rates were as follows:
Health care trend rate assumed for next year				5.4%	5.7%	5.9%
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	2037	2037

For the Company'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 to provide a regular and reliable source of assets to meet the benefit obligation of the pension plans. 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 25% for equity securities and real estate with an allowable deviation of plus or minus 4% and 75% for fixed income securities with an allowable deviation of plus or minus 4%.

The fair value of the Company's pension plan assets by asset class are as follows:

	Year Ended November 29, 2020
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	$	2,337	$	2,337	$	—	$	—
Equity securities(1)
U.S. large cap	74,850		—		74,850		—
U.S. small cap	14,343		—		14,343		—
International	143,408		—		143,408		—
Fixed income securities(2)	859,323		—		859,323		—
Other alternative investments
Real estate(3)	41,699		—		41,699		—
Private equity(4)	228		—		—		228
Hedge fund(5)	11,692		—		11,692		—
Other(6)	5,411		—		5,411		—
Total investments at fair value	$	1,153,291	$	2,337	$	1,150,726	$	228

	Year Ended November 24, 2019
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	$	4,427	$	4,427	$	—	$	—
Equity securities(1)
U.S. large cap	93,019		—		93,019		—
U.S. small cap	13,307		—		13,307		—
International	115,607		—		115,607		—
Fixed income securities(2)	808,546		—		808,546		—
Other alternative investments
Real estate(3)	38,076		—		38,076		—
Private equity(4)	289		—		—		289
Hedge fund(5)	13,328		—		13,328		—
Other(6)	4,564		—		4,564		—
Total investments at fair value	$	1,091,163	$	4,427	$	1,086,447	$	289

_____________

(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 $940.4 million and non-U.S. plan assets of $212.8 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)
2021	$	73,162	$	8,040	$	81,202
2022	70,481		7,510		77,991
2023	69,181		7,020		76,201
2024	69,406		6,528		75,934
2025	69,690		5,994		75,684
2025-2028	340,445		22,464		362,909

At November 29, 2020, the Company's contributions to its pension plans for fiscal year 2021 are estimated to be $13.4 million.