Pension and Postretirement Benefits | Pension and Postretirement Benefits As a result of acquisitions, the Company maintains two pension and several postretirement medical and life insurance plans which cover certain employees. The Company uses the accrued benefit actuarial method and best estimate assumptions to determine pension costs, liabilities and other pension information for defined benefit plans. The George W. Prescott Company pension plan, assumed in the Enterprise News Media, LLC acquisition, was amended to freeze all future benefit accruals by December 31, 2008, except for a select group of union employees whose benefits were frozen during 2009. Also, during 2008, the medical and life insurance benefits were frozen, and the plan was amended to limit future benefits to a select group of active employees under the Enterprise News Media, LLC postretirement medical and life insurance plan. Benefits under the postretirement medical and life insurance plan assumed with the Copley Press, Inc. acquisition are only available to Brush-Moore employees hired before January 1, 1976. The Times Publishing Company pension plan was frozen prior to the acquisition. The following table provides a reconciliation of benefit obligations, plan assets and funded status, along with the related amounts in the consolidated balance sheets of the Company’s pension and postretirement medical and life insurance plans as of December 30, 2018 and December 31, 2017 : Pension Postretirement Year Ended December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017 Change in projected benefit obligation: Projected benefit obligation at beginning of period $ 82,344 $ 78,323 $ 4,835 $ 5,010 Service cost 606 630 7 11 Interest cost 2,775 3,143 153 189 Actuarial (gain) loss (6,228 ) 5,850 (363 ) (88 ) Benefits and expenses paid (5,307 ) (5,602 ) (500 ) (481 ) Participant contributions — — 221 211 Employer implicit subsidy fulfilled — — (23 ) (17 ) Projected benefit obligation at end of period $ 74,190 $ 82,344 $ 4,330 $ 4,835 Change in plan assets: Fair value of plan assets at beginning of period $ 61,539 $ 57,266 $ — $ — Actual return on plan assets (3,648 ) 8,390 — — Employer contributions 1,451 1,485 — — Benefits paid (4,705 ) (4,750 ) — — Expenses paid (602 ) (852 ) — — Fair value of plan assets at end of period $ 54,035 $ 61,539 $ — $ — Reconciliation of funded status: Benefit obligation at end of period $ (74,190 ) $ (82,344 ) $ (4,330 ) $ (4,835 ) Fair value of assets at end of period 54,035 61,539 — — Funded status (20,155 ) (20,805 ) (4,330 ) (4,835 ) Unrecognized actuarial loss (gain) 7,986 6,227 (1,105 ) (766 ) Net accrued benefit cost $ (12,169 ) $ (14,578 ) $ (5,435 ) $ (5,601 ) Balance sheet presentation: Accrued liabilities $ — $ — $ 355 $ 375 Pension and other postretirement benefit obligations 20,155 20,805 3,975 4,460 Accumulated other comprehensive (loss) income (7,986 ) (6,227 ) 1,105 766 Net accrued benefit cost $ 12,169 $ 14,578 $ 5,435 $ 5,601 Comparison of obligations to plan assets: Projected benefit obligation $ 74,190 $ 82,344 $ 4,330 $ 4,835 Accumulated benefit obligation 74,190 82,344 4,330 4,835 Fair value of plan assets 54,035 61,539 — — The following table provides the components of net periodic benefit cost and other changes in plan assets recognized in other comprehensive income (loss) of the Company’s pension and postretirement medical and life insurance plans for the years ended December 30, 2018 , December 31, 2017 , and December 25, 2016 : Pension Postretirement Year Ended December 30, 2018 December 31, 2017 December 25, 2016 December 30, 2018 December 31, 2017 December 25, 2016 Components of net periodic benefit cost: Service cost $ 606 $ 630 $ 300 $ 7 $ 11 $ 14 Interest cost 2,775 3,143 3,255 153 189 213 Expected return on plan assets (4,452 ) (4,157 ) (4,174 ) — — — Amortization of unrecognized loss (gain) 113 194 94 (24 ) (148 ) (97 ) Net periodic benefit (credit) cost $ (958 ) $ (190 ) $ (525 ) $ 136 $ 52 $ 130 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss (gain) $ 1,872 $ 1,618 $ 1,371 $ (363 ) $ (88 ) $ (555 ) Amortization of net actuarial (loss) gain (113 ) (194 ) (94 ) 24 148 97 Total recognized in other comprehensive income (loss) $ 1,759 $ 1,424 $ 1,277 $ (339 ) $ 60 $ (458 ) The following assumptions were used in connection with the Company’s actuarial valuation of its defined benefit pension and postretirement plans obligation: Pension Postretirement December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017 Weighted average discount rate 4.1 % 3.5 % 4.0 % 3.3 % Rate of increase in future compensation levels — — — — Expected return on assets 7.5 % 7.5 % — — Current year medical trend — — 6.2 % 6.6 % Ultimate year medical trend — — 4.5 % 4.5 % Year of ultimate trend — — 2034 2025 The following assumptions were used to calculate the net periodic benefit cost for the Company’s defined benefit pension and postretirement plans: Pension Postretirement Year Ended December 30, 2018 December 31, 2017 December 25, 2016 December 30, 2018 December 31, 2017 December 25, 2016 Weighted average discount rate 3.5 % 4.1 % 3.9 % 3.3 % 3.9 % 4.3 % Rate of increase in future compensation levels — — — — — — Expected return on assets 7.5 % 7.5 % 7.6 % — — — Current year medical trend — — — 6.4 % 6.7 % 7.2 % Ultimate year medical trend — — — 4.5 % 4.5 % 4.5 % Year of ultimate trend — — — 2026 2026 2026 To determine the expected long-term rate of return on pension plan assets, the Company considers the current and expected asset allocations, as well as historical and expected returns on various categories of plan assets, input from the actuaries and investment consultants, and long-term inflation assumptions. The expected allocation of pension plan assets is based on a diversified portfolio consisting of domestic and international equity securities and fixed income securities. This expected return is then applied to the fair value of plan assets. The Company amortizes experience gains and losses, including the effects of changes in actuarial assumptions and plan provisions over a period equal to the average future service of plan participants or over the average remaining life expectancy of inactive participants. Postretirement 2018 2017 Effect of 1% increase in health care cost trend rates Accumulated postretirement benefit obligation $ 4,617 $ 5,188 Dollar change $ 287 $ 353 Percent change 6.6 % 7.3 % Effect of 1% decrease in health care cost trend rates Accumulated postretirement benefit obligation $ 4,082 $ 4,534 Dollar change $ (248 ) $ (301 ) Percent change (5.7 )% (6.2 )% Fair Value of the majority of plan assets is measured on a recurring basis using quoted market prices in active markets for identical assets, Level 1 input, or net asset value. The pension plans’ assets by asset category at December 30, 2018 and December 31, 2017 are as follows: December 30, 2018 December 31, 2017 Dollar Percent Dollar Percent Equity mutual funds $ 33,850 63 % $ 37,383 61 % Fixed income mutual funds 18,431 34 % 15,092 24 % Cash and cash equivalents 780 1 % 1,805 3 % Other 974 2 % 7,259 12 % Total $ 54,035 100 % $ 61,539 100 % The following table presents the consolidated plan assets using the fair value hierarchy, which is described in Note 15 "Fair Value Measurement", as of December 30, 2018 and December 31, 2017 . Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Other Significant Total Fair Value As of December 30, 2018 Investments at fair value: Shares of registered investment companies: Equity mutual funds $ 18,746 $ — $ — $ 18,746 Fixed income mutual funds 14,074 — — 14,074 Cash and cash equivalents — 780 — 780 Total investments in fair value hierarchy 32,820 780 — 33,600 Investments measured at NAV practical expedient (1) 20,418 Total investments at fair value $ 32,820 $ 780 $ — $ 54,035 As of December 31, 2017 Investments at fair value: Shares of registered investment companies: Equity mutual funds $ 12,531 $ — $ — $ 12,531 Fixed income mutual funds 12,734 — — 12,734 Mutual funds 5,201 — — 5,201 Cash and cash equivalents — 1,806 — 1,806 Total investments in fair value hierarchy 30,466 1,806 — 32,272 Investments measured at NAV practical expedient (1) 29,267 Total investments at fair value $ 30,466 $ 1,806 $ — $ 61,539 (1) Per adoption of ASU 2015-07, "Fair Value Measurement (Topic 820)" ("ASC 820"), certain investments that are measured at fair value using the net asset value per share ("NAV" ) (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the total retirement plan assets. The fiduciaries of the pension plan set investment policies and strategies for the pension trusts. Objectives include preserving the funded status of the plan and balancing risk against return. The general target investment allocation for the George W. Prescott Publishing Company LLC Pension Plan is 70% in equity funds and 30% in fixed income funds. To accomplish this goal, the plan’s assets are actively managed by outside investment managers with the objective of optimizing long-term return while maintaining a high standard of portfolio quality and proper diversification. The Company monitors the maturities of fixed income securities so that there is sufficient liquidity to meet current benefit payment obligations. The George W. Prescott Publishing Company LLC Pension Plan had an accumulated benefit obligation of $26,349 and $28,938 and a plan asset fair value of $19,395 and $21,600 at December 30, 2018 and December 31, 2017 , respectively. The general target allocation for the Times Publishing Company Pension Plan is 52% in equity funds, 26% in fixed income securities, 20% in alternative securities and 2% in cash or money market funds. The Times Publishing Company Pension Plan, assumed in 2016, had an accumulated benefit obligation of $47,841 and $53,406 and an asset fair value of $34,640 and $39,939 at December 30, 2018 and December 31, 2017 , respectively. The following benefit payments, which reflect expected future services, as appropriate, are expected to be paid as follows: Pension Postretirement 2019 $ 4,757 $ 356 2020 4,745 334 2021 4,710 338 2022 4,729 327 2023 4,738 308 2024-2028 23,018 1,460 Employer contribution expected to be paid during the year ending December 29, 2019 $ 1,050 $ 356 The postretirement plans are not funded. The aggregate amount of net actuarial loss related to the Company’s pension and postretirement plans recognized in other comprehensive (loss) income as of December 30, 2018 was $6,881 of which $109 is expected to be amortized in 2019 . Multiemployer Plans The Company is a participant in three multi-employer pension plans covering certain employees with Collective Bargaining Agreements (“CBAs”) in Ohio and Massachusetts. The risks of participating in these multi-employer plans are different from single-employer plans in the following aspects: • The Company plays no part in the management of plan investments or any other aspect of plan administration. • Assets contributed to the 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 may be borne by the remaining participating employers. • If the Company chooses to stop participating in some of its multi-employer plans, the Company may be required to pay those plans an amount based on the unfunded status of the plan, referred to as withdrawal liability. The Company’s participation in these plans for the year ended December 30, 2018 , is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN) and the three-digit plan number. Unless otherwise noted, the two most recent Pension Protection Act (PPA) zone statuses available are for the plans for the years ended 2018 and 2017 , respectively. The zone status is based on information that the company received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65% funded; plans in the orange zone are both a) less than 80% funded and b) have an accumulated/expected funding deficiency in any of the next six plan years, net of any amortization extensions; plans in the yellow zone meet either one of the criteria mentioned in the orange zone; and plans in the green zone are at least 80% funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the collective-bargaining agreement(s) to which the plans are subject. The Company makes all required contributions to these plans as determined under the respective CBAs. For each of the plans listed below, the Company’s contribution represented less than 5% of total contributions to the plan. EIN Number/ Zone Status FIP/RP Status Pending/ Contributions (in thousands) Surcharge Expiration Pension Plan Name Plan Number 2018 2017 Implemented 2018 2017 2016 Imposed Dates of CBAs CWA/ITU Negotiated Pension Plan 13-6212879/001 Red Red Implemented $ 9 $ 10 $ 11 No Auto renewal and May 4, 2019 GCIU—Employer Retirement Benefit Plan (1) 91-6024903/001 Red Red Implemented 78 84 89 No Under negotiation The Newspaper Guild International Pension Plan (1) 52-1082662/001 Red Red Implemented 19 36 40 No Under negotiation and June 8, 2019 Total $ 106 $ 130 $ 140 (1) 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. The Company assumed two multi-employer plan withdrawal liabilities in an acquisition in 2016. The liability at the acquisition date was estimated to be approximately $1,240 , excluding interest. The penalties are payable over twenty years . The unpaid balance as of December 30, 2018 is approximately $1,098 |