Retirement Benefits | 12 Months Ended |
Apr. 27, 2014 |
Compensation And Retirement Disclosure [Abstract] | ' |
Retirement Benefits | ' |
Note 11. | Retirement Benefits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Defined Benefit Plans. The Company sponsors a qualified defined benefit pension plan (“pension benefits” or “pension plan”) and several unfunded defined benefit postretirement plans (“other benefits” or “postretirement plans”) providing certain medical, dental and life insurance benefits to eligible retired, salaried, non-union hourly and union employees. The details of such plans, including discontinued operations, are as follows (in millions): |
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| | | | Pension benefits | | | | | Other benefits | | | | | | | |
| | | | April 27, | | | | | April 28, | | | | | April 27, | | | | | April 28, | | | | | | | |
2014 | 2013 | 2014 | 2013 | | | | | | |
Change in benefit obligation: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Benefit obligation at beginning of period | | $ | | | 499.6 | | | $ | | | 466.4 | | | $ | | | 138.3 | | | $ | | | 157.9 | | | | | | | |
Service cost | | | | | 12.1 | | | | | | 13.5 | | | | | | 1.0 | | | | | | 1.5 | | | | | | | |
Interest cost | | | | | 16.0 | | | | | | 20.4 | | | | | | 4.9 | | | | | | 7.6 | | | | | | | |
Actuarial (gain) loss | | | | | -23.2 | | | | | | 33.7 | | | | | | -15.1 | | | | | | -24.4 | | | | | | | |
Benefits paid | | | | | -37.1 | | | | | | -34.4 | | | | | | -4.3 | | | | | | -4.3 | | | | | | | |
Obligation transferred to Acquiror | | | | | -341.5 | | | | | | - | | | | | | -93.7 | | | | | | - | | | | | | | |
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Benefit obligation at end of period | | $ | | | 125.9 | | | $ | | | 499.6 | | | $ | | | 31.1 | | | $ | | | 138.3 | | | | | | | |
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Accumulated benefit obligation | | $ | | | 121.4 | | | $ | | | 484.1 | | | | | | | | | | | | | | | | | | | |
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Change in plan assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fair value of plan assets at beginning of period | | $ | | | 487.1 | | | $ | | | 460.5 | | | $ | | | - | | | $ | | | - | | | | | | | |
Actual gain on plan assets | | | | | 32.1 | | | | | | 46.0 | | | | | | - | | | | | | - | | | | | | | |
Employer contributions | | | | | 10.0 | | | | | | 15.0 | | | | | | 4.3 | | | | | | 4.3 | | | | | | | |
Benefits paid | | | | | -37.1 | | | | | | -34.4 | | | | | | -4.3 | | | | | | -4.3 | | | | | | | |
Plan assets transferred to Acquiror1 | | | | | -356.2 | | | | | | - | | | | | | - | | | | | | - | | | | | | | |
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Fair value of plan assets at end of period | | $ | | | 135.9 | | | $ | | | 487.1 | | | $ | | | - | | | $ | | | - | | | | | | | |
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Funded status at end of period | | $ | | | 10.0 | | | $ | | | -12.5 | | | $ | | | -31.1 | | | $ | | | -138.3 | | | | | | | |
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Amounts recognized in the Consolidated Balance Sheets consist of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Other non-current assets | | $ | | | 10.0 | | | $ | | | - | | | $ | | | - | | | $ | | | - | | | | | | | |
Accounts payable and accrued expenses | | | | | - | | | | | | -15 | | | | | | -1.3 | | | | | | -6.1 | | | | | | | |
Other non-current liabilities | | | | | - | | | | | | 2.5 | | | | | | -29.8 | | | | | | -132.2 | | | | | | | |
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Total | | $ | | | 10.0 | | | $ | | | -12.5 | | | $ | | | -31.1 | | | $ | | | -138.3 | | | | | | | |
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Amounts recognized in accumulated other comprehensive income/(loss) consist of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Actuarial net gain (loss) | | $ | | | -0.1 | | | $ | | | -43.4 | | | $ | | | 11.5 | | | $ | | | 29.0 | | | | | | | |
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Total | | $ | | | -0.1 | | | $ | | | -43.4 | | | $ | | | 11.5 | | | $ | | | 29.0 | | | | | | | |
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| 1 | The plans assets transferred to the Acquiror are an estimate which could differ from actual results. Please refer to discussion below regarding requirements under the Employee Retirement Income Security Act of 1974. | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The components of net periodic benefit cost for the pension benefits and other benefits for the periods indicated, including discontinued operations, are as follows (in millions): |
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| | | | Pension benefits | | | | | | | | | | | | | |
| | | | Fiscal | | | | | Fiscal | | | | | Fiscal | | | | | | | | | | | | | |
2014 | 2013 | 2012 | | | | | | | | | | | | |
Components of net periodic benefit cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service cost for benefits earned during the period | | $ | | | 12.1 | | | $ | | | 13.5 | | | $ | | | 13.6 | | | | | | | | | | | | | |
Interest cost on projected benefit obligation | | | | | 16.0 | | | | | | 20.4 | | | | | | 23.0 | | | | | | | | | | | | | |
Expected return on plan assets | | | | | -29 | | | | | | -32.4 | | | | | | -32.7 | | | | | | | | | | | | | |
Amortization of loss/(gain) | | | | | - | | | | | | - | | | | | | - | | | | | | | | | | | | | |
Settlement loss, net of curtailment gain | | | | | 31.8 | | | | | | - | | | | | | - | | | | | | | | | | | | | |
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Net periodic benefit cost | | $ | | | 30.9 | | | $ | | | 1.5 | | | $ | | | 3.9 | | | | | | | | | | | | | |
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| | | | Other benefits | | | | | | | | | | | | | |
| | | | Fiscal | | | | | Fiscal | | | | | Fiscal | | | | | | | | | | | | | |
2014 | 2013 | 2012 | | | | | | | | | | | | |
Components of net periodic benefit cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Service cost for benefits earned during the period | | $ | | | 1.0 | | | $ | | | 1.5 | | | $ | | | 1.5 | | | | | | | | | | | | | |
Interest cost on projected benefit obligation | | | | | 4.9 | | | | | | 7.6 | | | | | | 8.4 | | | | | | | | | | | | | |
Expected return on plan assets | | | | | - | | | | | | - | | | | | | - | | | | | | | | | | | | | |
Amortization of gain | | | | | -2.3 | | | | | | - | | | | | | - | | | | | | | | | | | | | |
Settlement gain | | | | | -30.3 | | | | | | - | | | | | | - | | | | | | | | | | | | | |
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Net periodic benefit cost (credit) | | $ | | | -26.7 | | | $ | | | 9.1 | | | $ | | | 9.9 | | | | | | | | | | | | | |
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For fiscal 2015, pension benefits expense for continuing operations is expected to be approximately $3.9 million. Other benefits expense for fiscal 2015 is currently estimated to be approximately a net credit of $0.1 million as the net amortization gain exceeds service and interest costs. These estimates incorporate the Company’s fiscal 2015 assumptions. Actual future pension benefit and other benefit expense amounts may vary depending upon the accuracy of original assumptions and future assumptions. |
Sale of the Consumer Products Business |
Following the sale of the Consumer Products Business, the Company transferred a significant amount of the plan obligations and plan assets for the pension benefits and other benefits, as well as the related components of net periodic benefit costs, for the transferred employees and retirees of the Consumer Products Business to the Acquiror. Plan assets for pension benefits must be allocated to the Acquiror in accordance with the Employee Retirement Income Security Act of 1974 (“ERISA”) Section 4044, which the Company expects to be completed in fiscal 2015. The plan assets presented are an estimate which could differ from actual results. |
Assumptions |
Since the pension plan and other benefits liabilities are measured on a discounted basis, the discount rate is a significant assumption. The discount rate was determined based on an analysis of interest rates for high-quality, long-term corporate debt at each measurement date. In order to appropriately match the bond maturities with expected future cash payments, the Company utilizes differing bond portfolios to estimate the discount rates for the pension plan and for the other benefits. The discount rate used to determine the pension plan and other benefits projected benefit obligation as of the balance sheet date is the rate in effect at the measurement date. The same rate is also used to determine the pension plan and other benefits expense for the following fiscal year. The long-term rate of return for the pension plan’s assets is based on the Company’s historical experience, the pension plan’s investment guidelines and the Company’s expectations for long-term rates of return. The pension plan’s investment guidelines are established based upon an evaluation of market conditions, tolerance for risk and cash requirements for benefit payments. |
The following table presents the weighted-average assumptions used to determine the projected benefit obligations for pension benefits and other benefits: |
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| | April 27, | | | April 28, | | | | | | | | | | | | | | | | | | | | | | | |
2014 | 2013 | | | | | | | | | | | | | | | | | | | | | | |
Pension benefits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Discount rate | | | 4.60% | | | | 3.90% | | | | | | | | | | | | | | | | | | | | | | | |
Rate of increase in compensation levels | | | 3.94% | | | | 3.69% | | | | | | | | | | | | | | | | | | | | | | | |
Other benefits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Discount rate | | | 4.85% | | | | 4.25% | | | | | | | | | | | | | | | | | | | | | | | |
The weighted-average assumptions for pension benefits and other benefits reflect a weighted-average assumption for the prior year as reported and an interim measurement in fiscal 2014 following the sale of Consumer Products Business. |
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The following table presents the weighted-average assumptions used to determine the net periodic benefit cost for pension benefits and other benefits: |
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| | Fiscal | | | Fiscal | | | Fiscal | | | | | | | | | | | | | | | | | | | |
2014 | 2013 | 2012 | | | | | | | | | | | | | | | | | | |
Pension benefits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Discount rate | | | 4.07% | | | | 4.60% | | | | 5.50% | | | | | | | | | | | | | | | | | | | |
Rate of increase in compensation levels | | | 3.69% | | | | 3.68% | | | | 4.69% | | | | | | | | | | | | | | | | | | | |
Long-term rate of return on plan assets | | | 7.20% | | | | 7.25% | | | | 7.50% | | | | | | | | | | | | | | | | | | | |
Other benefits | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Discount rate | | | 4.41% | | | | 4.90% | | | | 5.75% | | | | | | | | | | | | | | | | | | | |
The weighted-average asset allocation of the pension plan assets and weighted-average target allocation as of the measurement date for fiscal 2014 and fiscal 2013 are as follows: |
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| | April 27, | | | April 28, | | | Target Allocation | | | | | | | | | | | | | | | | | | | |
2014 | 2013 | Range | | | | | | | | | | | | | | | | | | |
Equity securities | | | 44% | | | | 47% | | | | 31-51% | | | | | | | | | | | | | | | | | | | |
Debt securities | | | 48% | | | | 52% | | | | 47-64% | | | | | | | | | | | | | | | | | | | |
Other | | | 8% | | | | 1% | | | | 2-9% | | | | | | | | | | | | | | | | | | | |
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Total | | | 100% | | | | 100% | | | | | | | | | | | | | | | | | | | | | | | |
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Sensitivity of Assumptions |
For measurement purposes, an annual rate of increase in the per capita cost of covered health care benefits was assumed as indicated below: |
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Plan | | | | Fiscal | | | Fiscal | | | Fiscal | | | | | | | | | | | | | | | | | |
2014 | 2013 | 2012 | | | | | | | | | | | | | | | | |
Preferred provider organization and associated indemnity plans | | | | | 7.80% | | | | 8.10% | | | | 8.40% | | | | | | | | | | | | | | | | | |
Health maintenance organization plans | | | | | 8.30% | | | | 8.70% | | | | 9.10% | | | | | | | | | | | | | | | | | |
Dental and vision plans | | | | | 5.00% | | | | 5.00% | | | | 5.00% | | | | | | | | | | | | | | | | | |
The rate of increase is assumed to decline gradually to 4.0% for the preferred provider organization and associated indemnity plans, as well as for the health maintenance organization plans. |
The health care cost trend rate assumption has a significant effect on the amounts reported. The following table presents the impact of a 1% increase or decrease of the health care cost trend rate on the projected benefit obligation and the aggregate of the service and interest cost components of net periodic benefit cost of other benefits, for continuing operations, as of April 27, 2014 and for the year then ended, respectively (in millions): |
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| | | | 1% Increase | | | | | 1% Decrease | | | | | | | | | | | | | | | | | | | |
Projected benefit obligation at April 27, 2014 increase/(decrease) | | $ | | | 4.2 | | | $ | | | -3.5 | | | | | | | | | | | | | | | | | | | |
Aggregate of service and interest rate cost components of net periodic | | | | | 0.9 | | | | | | -0.7 | | | | | | | | | | | | | | | | | | | |
benefit cost for fiscal 2014 increase/(decrease) | | | | | | | | | | | | | | | | | | |
No amounts will be amortized from AOCI into net periodic benefit cost over the next fiscal year for the pension plan. Amortization of net gain of $1.7 million will be recognized for other benefit plans. |
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Contributions |
The Company made contributions to the pension plan of $10.0 million for fiscal 2014. The Company currently meets and plans to continue to meet the minimum funding levels required under the Pension Protection Act of 2006 (the “Act”). The Act imposes certain consequences on the Company’s pension plan if it does not meet the minimum funding levels. The Company has made contributions in excess of its required minimum amounts for fiscal 2014, fiscal 2013, and fiscal 2012 and is more than 100% funded as of April 27, 2014. Due to uncertainties of future funding levels, as well as plan financial returns, the Company cannot predict whether it will continue to achieve specified plan funding thresholds or remain fully funded. The Company currently expects to make a contribution of approximately $8 million in fiscal 2015. |
Future Benefit Payments |
As of April 27, 2014 the projected future benefit payments for continuing operations are as follows (in millions): |
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| | | | Pension | | | | | Other | | | | | | | | | | | | | | | | | | | |
benefits | benefits | | | | | | | | | | | | | | | | | | |
2015 | | $ | | | 11.3 | | | $ | | | 1.3 | | | | | | | | | | | | | | | | | | | |
2016 | | | | | 10.6 | | | | | | 1.4 | | | | | | | | | | | | | | | | | | | |
2017 | | | | | 10.7 | | | | | | 1.4 | | | | | | | | | | | | | | | | | | | |
2018 | | | | | 11.1 | | | | | | 1.5 | | | | | | | | | | | | | | | | | | | |
2019 | | | | | 11.4 | | | | | | 1.6 | | | | | | | | | | | | | | | | | | | |
Years 2020-2024 | | | | | 61.9 | | | | | | 9.4 | | | | | | | | | | | | | | | | | | | |
Fair Value Hierarchy of Plan Assets |
Plan assets: The Company has adopted the fair value provisions (as described in Note 9) for the plan assets of its pension plan. The Company categorizes plan assets within a three level fair value hierarchy. |
The following is a description of the valuation methodologies used for assets measured at fair value: |
Investments stated at fair value as determined by quoted market prices (Level 1) include: |
Interest bearing cash: valued based on cost, which approximates fair value; |
Mutual funds: valued at quoted market prices on the last business day of the fiscal year; |
Corporate stock: valued at the last reported sales price on the last business day of the fiscal year; and |
Government securities: securities traded on a national securities exchange are valued at the last reported sales price on the last business day of the fiscal year. |
Investments stated at estimated fair value using significant observable inputs (Level 2) include: |
Common collective trust funds: valued based on the net asset value of the fund and is redeemable daily; |
Corporate debt securities: valued based on yields currently available on comparable securities of issuers with similar credit ratings; |
Government securities: securities traded in the over-the-counter market and listed securities for which no sale was reported on the last business day of the fiscal year are valued at the average of the last reported bid and ask price; and |
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Investments stated at estimated fair value using significant unobservable inputs (Level 3) include: |
Limited partnership interests: valued at their estimated fair value based on audited financial statements of the partnerships. |
The following table sets forth by level within the fair value hierarchy of the plan’s assets at fair value as of April 27, 2014 (in millions): |
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| | | | Investments at Fair Value | | | | | | | | | | | | |
| | | | Level 1 | | | | | Level 2 | | | | | Level 3 | | | | | Total | | | | | | | |
Plan investments in Master Trust: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing cash | | $ | | | 10.0 | | | $ | | | - | | | $ | | | - | | | $ | | | 10.0 | | | | | | | |
Common collective trust funds: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed income | | | | | - | | | | | | 84.7 | | | | | | - | | | | | | 84.7 | | | | | | | |
Equity index funds | | | | | - | | | | | | 39.4 | | | | | | - | | | | | | 39.4 | | | | | | | |
Equity fund | | | | | - | | | | | | 16.5 | | | | | | - | | | | | | 16.5 | | | | | | | |
Other funds | | | | | - | | | | | | 5.8 | | | | | | - | | | | | | 5.8 | | | | | | | |
Mutual funds: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity fund | | | | | 8.0 | | | | | | - | | | | | | - | | | | | | 8.0 | | | | | | | |
Corporate debt securities | | | | | - | | | | | | - | | | | | | - | | | | | | - | | | | | | | |
Corporate stock | | | | | 7.7 | | | | | | - | | | | | | - | | | | | | 7.7 | | | | | | | |
Government securities | | | | | - | | | | | | - | | | | | | - | | | | | | - | | | | | | | |
Limited partnership interests | | | | | - | | | | | | - | | | | | | 4.3 | | | | | | 4.3 | | | | | | | |
Other | | | | | - | | | | | | - | | | | | | - | | | | | | - | | | | | | | |
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Total Investments | | $ | | | 25.7 | | | $ | | | 146.4 | | | $ | | | 4.3 | | | $ | | | 176.4 | | | | | | | |
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In accordance with the Purchase Agreement, an initial transfer representing a portion of the fair value of plan assets related to the Consumer Products Business was completed in connection with the closing date of February 18, 2014. A true-up adjustment is due within 270 days after the transaction closing date. The total fair value of the plan’s assets in the table above includes the estimated residual fair value of plan assets to be transferred, and is reconciled to plan assets reflected in the Consolidated Balance Sheets as follows (in millions): |
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Investments at fair value as of April 27, 2014 | | $ | | | 176.4 | | | | | | | | | | | | | | | | | | | | | | | | | |
Less: Residual fair value of plan assets to be transferred | | | | | -40.5 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Net investments at fair value | | $ | | | 135.9 | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table sets forth by level within the fair value hierarchy of the plan’s assets at fair value for both continuing and discontinued operations as of April 28, 2013 (in millions): |
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| | | | Investments at Fair Value | | | | | | | | | | | | |
| | | | Level 1 | | | | | Level 2 | | | | | Level 3 | | | | | Total | | | | | | | |
Plan investments in Master Trust: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest bearing cash | | $ | | | 5.5 | | | $ | | | - | | | $ | | | - | | | $ | | | 5.5 | | | | | | | |
Common collective trust funds: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Fixed income | | | | | - | | | | | | 144.0 | | | | | | - | | | | | | 144.0 | | | | | | | |
Equity index funds | | | | | - | | | | | | 106.3 | | | | | | - | | | | | | 106.3 | | | | | | | |
Equity fund | | | | | - | | | | | | 39.4 | | | | | | - | | | | | | 39.4 | | | | | | | |
Other funds | | | | | - | | | | | | 25.4 | | | | | | - | | | | | | 25.4 | | | | | | | |
Mutual funds: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity fund | | | | | 31.7 | | | | | | - | | | | | | - | | | | | | 31.7 | | | | | | | |
Corporate debt securities | | | | | - | | | | | | 46.2 | | | | | | - | | | | | | 46.2 | | | | | | | |
Corporate stock | | | | | 26.3 | | | | | | - | | | | | | - | | | | | | 26.3 | | | | | | | |
Government securities | | | | | 49.9 | | | | | | 3.9 | | | | | | - | | | | | | 53.8 | | | | | | | |
Limited partnership interests | | | | | - | | | | | | - | | | | | | 3.6 | | | | | | 3.6 | | | | | | | |
Other | | | | | - | | | | | | 4.9 | | | | | | - | | | | | | 4.9 | | | | | | | |
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Total Investments | | $ | | | 113.4 | | | $ | | | 370.1 | | | $ | | | 3.6 | | | $ | | | 487.1 | | | | | | | |
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There were no transfers of plan assets between Level 1 and Level 2 or into or out of Level 3 during fiscal 2014 and fiscal 2013. |
The Company held investments in a private limited partnership with unobservable inputs (Level 3). Investments are valued at estimated fair value based on audited financial statements received from the general partner. The general partner annually engages an independent appraiser to value the investments of the limited partnership. |
Changes in fair value measurements of Level 3 investments during fiscal 2014 were as follows (in millions): |
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| | | | Level 3 | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at April 29, 2012 | | $ | | | 3.7 | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized loss | | | | | -0.1 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Balance at April 28, 2013 | | | | | 3.6 | | | | | | | | | | | | | | | | | | | | | | | | | |
Unrealized gain | | | | | 0.7 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Balance at April 27, 2014 | | $ | | | 4.3 | | | | | | | | | | | | | | | | | | | | | | | | | |
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The Company’s investment objectives are to ensure that the assets of its pension plan are invested to provide an optimal rate of investment return on the total investment portfolio, consistent with the assumption of a reasonable risk level, and to ensure that pension funds are available to meet the plan’s benefit obligations as they become due. The Company believes that a well-diversified investment portfolio, including both equity and fixed income components, will result in the highest attainable investment return with an acceptable level of overall risk. The Company’s investment policies and procedures are designed to ensure that the plan’s investments are in compliance with ERISA. |
Defined Contribution Plans. The Company participates in three defined contribution plans, two of which have Company contributions. Company contributions to these defined contribution plans are based on employee contributions and compensation. Company contributions under these plans were as follows for the periods indicated (in millions): |
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| | | | Fiscal | | | | | Fiscal | | | | | Fiscal | | | | | | | | | | | | | |
2014 | 2013 | 2012 | | | | | | | | | | | | |
Company contributions | | $ | | | 5.1 | | | $ | | | 5.4 | | | $ | | | 5.6 | | | | | | | | | | | | | |
Following the sale of the Consumer Products Business, the Company transferred employees and retirees under the defined contribution plans to the Acquiror in accordance with the Purchase Agreement. |
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Multi-employer Plans. The Company participates in one multi-employer pension plan, which provides defined benefits to certain union employees. Company contributions to the plan were as follows for the periods indicated (in millions): |
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| | | | Fiscal | | | | | Fiscal | | | | | Fiscal | | | | | | | | | | | | | |
2014 | 2013 | 2012 | | | | | | | | | | | | |
Company contributions | | $ | | | 1.9 | | | $ | | | 1.7 | | | $ | | | 1.2 | | | | | | | | | | | | | |
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: |
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| • | | Assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers; | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| • | | 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; and | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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| • | | 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 following table presents information regarding the multi-employer plan of the Company: |
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Pension | | EIN/ Pension | | Pension Protection Act | | FIP/RP Status | | | | | Contributions of | | Surcharge | | Expiration Date of |
Zone Status 1 | Pending/ | the Company (For the 12 | Imposed3 | Collective |
| | months ended December 31) | | Bargaining |
| | (in millions) | | Agreement |
Fund Name | | Plan Number | | 2013 | | 2012 | | Implemented2 | | | | | 2013 | | | | | 2012 | | | | | 2011 | | | | |
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Bakery and Confectionery | | | | as of 1/1/13 | | as of 1/1/12 | | | | | | | | | | | | | | | | | | | | | | Yes | | |
Union and Industry | | 52-6118572 | | 66.41% | | 66.86% | | Implemented | | $ | | | | 1.9 | | $ | | | | 1.7 | | $ | | | | 1.2 | | 5% Calendar 2012 | | 9/28/14 |
International Health | | | | RED | | RED | | | | | | | | | | | | | | | | | | | | | | 10% Calendar 2013 | | |
Benefits and Pension Fund 4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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1 | The Pension Protection Act of 2006 ranks the funded status of multiemployer pension plans depending upon a plan’s current and projected funding. A plan is in the Red Zone (Critical) if it has a current funded percentage less than 65%. A plan is in the Yellow Zone (Endangered) if it has a current funded percentage of less than 80%, or projects a credit balance deficit within seven years. A plan is in the Green Zone (Healthy) if it has a current funded percentage greater than 80% and does not have a projected credit balance deficit within seven years. The zone status is based on the plan’s year end, not the Company’s year-end. The zone status is based on information that the Company received from the plan and is certified by the plan’s actuary. During calendar year 2013, the Bakery and Confectionery Union and Industry International Health Benefits and Pension Fund (Bakery and Confectionery Union Fund) was in Red Zone status. Although the current funding status as of calendar year 2013 was 66.41%, the Company’s actuary concluded that the funding status is more than likely to fall below 65% within the next five years and has classified the Bakery and Confectionery Union Fund in Red Zone status. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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2 | Funding Improvement Plan or Rehabilitation Plan as defined under ERISA has been implemented or is pending. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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3 | Whether the Company paid a surcharge to the Plan in the most current year due to funding shortfalls and the amount of the surcharge. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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4 | The Company was not listed in the Plan’s Form 5500 as providing more than 5% of the total contributions for the plan year ending December 31, 2012, the most recent year available. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Other Plans. The Company has various other non-qualified retirement plans and supplemental retirement plans for executives, designed to provide benefits in excess of those otherwise permitted under the Company’s qualified retirement plans. These plans are unfunded and comply with the Internal Revenue Service (“IRS”) rules for nonqualified plans. |