PENSION PLANS | PENSION PLANS Company-Sponsored Pension Plans The Company sponsors four defined benefit pension plans. Two are tax-qualified plans covering members of unions. Benefits under these two plans are based on a fixed amount for each year of service. One is a tax-qualified plan covering nonunion associates. Benefits under this plan are based upon percentages of annual compensation. Funding for these plans is based on an analysis of the specific requirements and an evaluation of the assets and liabilities of each plan. The fourth plan is an unfunded, nonqualified plan providing supplemental pension benefits to certain executives. On November 29, 2016, the Company amended the Village Super Market Local 72 Retail Clerks Employees’ Retirement Plan, which covers union employees in the Stroudsburg store, to freeze all benefits effective January 31, 2017. As a result of this amendment, the Company recognized a pre-tax remeasurement gain totaling $ 629 in accumulated other comprehensive loss during fiscal 2017. The remeasurement had no impact on the consolidated statements of operations. On February 15, 2016, the Company amended the Village Super Market Employees Retirement Plan, which covers nonunion employees and pharmacists, to freeze all benefits effective March 31, 2016. As a result of this amendment, the Company recognized a pre-tax curtailment gain totaling $ 17,904 in accumulated other comprehensive loss during fiscal 2016. Net periodic pension cost for the four plans include the following components: 2017 2016 2015 Service cost $ 388 $ 3,099 $ 3,642 Interest cost on projected benefit obligation 2,424 3,031 3,055 Expected return on plan assets (3,684 ) (3,645 ) (3,719 ) Loss (gain) on settlement 965 — (239 ) Amortization of gains and losses 1,343 1,504 1,295 Net periodic pension cost $ 1,436 $ 3,989 $ 4,034 The Company recognized a settlement loss (gain) of $ 965 and $ (239) in fiscal 2017 and 2015 , respectively, for plans where benefits paid exceeded the sum of the service cost and interest cost components of net periodic pension cost during the year. The changes in benefit obligations and the reconciliation of the funded status of the Company’s plans to the consolidated balance sheets were as follows: 2017 2016 Changes in Benefit Obligation: Benefit obligation at beginning of year $ 80,021 $ 83,961 Service cost 388 3,099 Interest cost 2,424 3,031 Benefits paid (549 ) (3,440 ) Curtailment — (17,904 ) Settlement (4,487 ) — Actuarial loss (6,096 ) 11,274 Benefit obligation at end of year $ 71,701 $ 80,021 Changes in Plan Assets: Fair value of plan assets at beginning of year $ 53,281 $ 51,729 Actual return on plan assets 5,262 1,468 Employer contributions 3,000 3,524 Benefits paid (549 ) (3,440 ) Settlements paid (4,487 ) — Fair value of plan assets at end of year 56,507 53,281 Funded status at end of year $ 15,194 $ 26,740 Amounts recognized in the consolidated balance sheets: Pension liabilities 15,194 26,740 Accumulated other comprehensive loss, net of income taxes 7,406 13,339 Amounts included in Accumulated other comprehensive loss (pre-tax): Net actuarial loss $ 12,521 $ 22,502 The Company expects approximately $570 of the net actuarial loss to be recognized as a component of net periodic benefit costs in fiscal 2018 . The accumulated benefit obligations of the four plans were $71,701 and $80,021 at July 29, 2017 and July 30, 2016 , respectively. The following information is presented for those plans with an accumulated benefit obligation in excess of plan assets: 2017 2016 Projected benefit obligation $ 70,019 $ 80,021 Accumulated benefit obligation 70,019 80,021 Fair value of plan assets 54,557 53,281 Weighted average assumptions used to determine benefit obligations and net periodic pension cost for the Company’s defined benefit plans were as follows: 2017 2016 2015 Assumed discount rate — net periodic pension cost 3.08 % 4.02 % 3.95 % Assumed discount rate — benefit obligation 3.60 % 3.08 % 4.02 % Assumed rate of increase in compensation levels 4 - 4.5 % 4 - 4.5 % 4 - 4.5 % Expected rate of return on plan assets 7.50 % 7.50 % 7.50 % Investments in the pension trusts are overseen by the trustees of the plans, who are officers of Village. The Company’s overall investment strategy is to maintain a broadly diversified portfolio of stocks, bonds and money market instruments that, along with periodic plan contributions, provide the necessary funds for ongoing benefit obligations. Expected rates of return on plan assets are developed by determining projected stock and bond returns and then applying these returns to the target asset allocations of the trusts, resulting in a weighted-average rate of return on plan assets. Equity returns were based primarily on historical returns of the S&P 500 Index. Fixed-income projected returns were based primarily on historical returns for the broad U.S. bond market. The target allocations for plan assets are 50 - 70% equity securities, 25 - 40% fixed income securities and 0 - 10% cash. Asset allocations are reviewed periodically and appropriate rebalancing is performed. Equity securities include investments in large-cap, small-cap and mid-cap companies located both in and outside the United States. Fixed income securities include U.S. treasuries, mortgage-backed securities and corporate bonds of companies from diversified industries. Investments in securities are made both directly and through mutual funds. In addition, one plan held Class A common stock of Village in the amount of $636 and $770 at July 29, 2017 and July 30, 2016 , respectively. Risk management is accomplished through diversification across asset classes and fund strategies, multiple investment portfolios and investment guidelines. The plans do not allow for investments in derivative instruments. The fair value of the pension assets were as follows: July 29, 2017 July 30, 2016 Asset Category Level 1 Level 2 Total Level 1 Level 2 Total Cash $ 166 $ 610 $ 776 $ 1,173 $ — $ 1,173 Equity securities: Company stock 636 — 636 770 — 770 U.S large cap (1) 19,696 1,197 20,893 18,416 — 18,416 U.S. small/mid cap (2) 6,644 179 6,823 6,591 — 6,591 International (3) 7,187 421 7,608 6,752 — 6,752 Emerging markets (4) 1,277 — 1,277 1,219 — 1,219 Fixed income securities: U.S treasuries (5) 9,520 356 9,876 10,560 — 10,560 Mortgage-backed (5) 1,783 106 1,889 — 1,918 1,918 Corporate bonds (5) 2,931 3,179 6,110 3,054 2,140 5,194 International (6) 619 — 619 688 — 688 Total $ 50,459 $ 6,048 $ 56,507 $ 49,223 $ 4,058 $ 53,281 (1) Includes directly owned securities and mutual funds, primarily low-cost equity index funds not actively managed that track the S&P 500. (2) Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded U.S. common stocks of small and medium cap companies. (3) Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded common stocks of large, non-U.S. companies. (4) Consists of mutual and exchange traded funds which invest in non-U.S. stocks in emerging markets. (5) Includes directly owned securities, mutual funds and exchange traded funds. (6) Consists of exchange traded funds which invest in non-U.S. bonds in emerging markets. Based on actuarial assumptions, estimated future defined benefit payments, which may be significantly impacted by participant elections related to retirement dates and forms of payment, are as follows: Fiscal Year 2018 $ 3,670 2019 2,530 2020 3,130 2021 3,101 2022 12,750 2023 - 2027 17,830 The Company expects to contribute $3,500 in cash to all defined benefit pension plans in fiscal 2018 . Multi-Employer Plans The Company contributes to three multi-employer pension plans under collective bargaining agreements covering union-represented employees. These plans provide benefits to participants that are generally based on a fixed amount for each year of service. Based on the most recent information available, certain of these multi-employer plans are underfunded. The amount of any increase or decrease in Village’s required contributions to these multi-employer pension plans will depend upon the outcome of collective bargaining, actions taken by trustees who manage the plans, government regulations and the actual return on assets held in the plans, among other factors. The risks of participating in multi-employer pension plans are different from the risks of participating in single-employer pension plans in the following respects: • Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers. • If a participating employer stops contributing to the plan, the unfunded obligations of the plan allocable to such withdrawing employer may be borne by the remaining participating employers. • If the Company stops participating in some of its multi-employer pension plans, the Company may be required to pay those plans an amount based on its allocable share of the underfunded status of the plan, referred to as a withdrawal liability. The Company’s participation in these plans is outlined in the following tables. The “EIN / Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit pension plan number. The most recent “Pension Protection Act Zone Status” available in 2016 and 2015 is for the plan’s year-end at December 31, 2016 and December 31, 2015 , respectively, unless otherwise noted. Among other factors, generally, plans in the red zone are less than 65 percent funded, plans in the yellow zone are between 65 and 80 percent funded and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending / Implemented” column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented. Pension Protection Act Zone Status FIP/RP Status Pending / Implemented Contributions for the year ended (5) Expiration date of Collective- Bargaining Agreement Pension Fund EIN / Pension Plan Number 2016 2015 July 29, July 30, July 25, Surcharge Imposed (6) Pension Plan of Local 464A (1) 22-6051600-001 Green Green N/A $ 762 $ 679 $ 665 N/A October 2020 UFCW Local 1262 & Employers Pension Fund (2), (4) 22-6074414-001 Red Red Implemented 3,498 3,510 3,501 No October 2018 UFCW Regional Pension Plan (3), (4) 16-6062287-074 Red Red Implemented 1,314 1,275 1,235 No March 2019 Total Contributions $ 5,574 $ 5,464 $ 5,401 (1) The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2016 and December 31, 2015 . (2) The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2015 and December 31, 2014 . (3) The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at September 30, 2016 and September 30, 2015 . (4) This plan has elected to utilize special amortization provisions provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010. There were no changes to the plan’s zone status as a result of this election. (5) The Company’s contributions represent more than 5% of the total contributions received by each applicable pension fund for all periods presented. (6) Under the Pension Protection Act, a surcharge may be imposed when employers make contributions under a collective bargaining agreement that is not in compliance with a rehabilitation plan. As of July 29, 2017 , the collective bargaining agreements under which the Company was making contributions were in compliance with rehabilitation plans adopted by each applicable pension fund. Other Multi-Employer Benefit Plans The Company also contributes to various other multi-employer benefit plans that provide health and welfare benefits to active and retired participants. Total contributions made by the Company to these other multi-employer benefit plans were approximately $28,137 , $27,965 and $26,932 in fiscal 2017 , 2016 and 2015 , respectively. Defined Contribution Plans The Company sponsors a 401(k) savings plan for certain eligible associates. Company contributions under that plan, which are based on specified percentages of associate contributions, were $1,132 , $641 and $392 in fiscal 2017 , 2016 and 2015 , respectively. The Company also contributes to union sponsored defined contribution plans for certain eligible associates. Company contributions under these plans were $783 , $836 and $817 in fiscal 2017 , 2016 and 2015 , respectively. |