Pension and Other Postretirement Benefits Disclosure [Text Block] | Note 10: Pension and Postretirement Benefits Defined Contribution Plan All U.S. employees have the option of contributing up to 75 percent of their pre-tax earnings to a 401(k) plan, subject to IRS limitations. We match up to the first 4 percent of each employee's pre-tax earnings, based on the employee’s contributions. All U.S. employees are eligible for a separate annual retirement contribution to the 401(k) plan of 3 percent of pay, that is invested based on the election of the individual participant. The 3 percent contribution is in addition to our 4 percent matching contribution described above and is in lieu of participation in our defined benefit pension plan. The total contribution to the 401(k) plan for 2015 was $9,375 which included the cost of the 4 percent company match of $4,502 and the additional 3 percent contribution of $4,873. The total contributions to the 401(k) plan were $9,414 and $8,022 in 2014 and 2013, respectively. The defined contribution plan liability recorded in the Consolidated Balance Sheets was $6,062 and $5,989 in 2015 and 2014, respectively for the U.S. Plan and several statutorily required non-U.S. Plans. Defined Benefit Plan s Noncontributory defined benefit pension plans cover all U.S. employees employed prior to January 1, 2007. Benefits for these plans are based primarily on each employee’s years of service and average compensation. During 2011, we made significant changes to our U.S. Pension Plan (the Plan). The changes included: benefits under the Plan were locked-in using service and salary as of May 31, 2011, participants no longer earn benefits for future service and salary as they had in the past, affected participants receive a three percent increase to the locked-in benefit for every year they continue to work for us and we are making a retirement contribution of three percent of eligible compensation to the 401(k) Plan for those participants. The funding policy is consistent with the funding requirements of federal law and regulations. Plan assets consist principally of listed equity securities and bonds. During 2015, we amended the plan to add a program for eligible employees to take a lump sum distribution. A total of $15,493 was paid during 2015 as lump sum distributions under this program. Other U.S. postretirement benefits are funded through a Voluntary Employees' Beneficiaries Association Trust. Health care and life insurance benefits are provided for eligible retired employees and their eligible dependents. These benefits are provided through various insurance companies and health care providers. Costs are accrued during the years the employee renders the necessary service. Certain non-U.S. subsidiaries provide pension benefits for their employees consistent with local practices and regulations. These plans are primarily defined benefit plans covering substantially all employees upon completion of a specified period of service. Benefits for these plans are generally based on years of service and annual compensation. Following is a reconciliation of the beginning and ending balances of the benefit obligation and fair value of plan assets as of November 28, 2015 and November 29, 2014: Pension Benefits Other Postretirement U.S. Plans Non-U.S. Plans Benefits 2015 2014 2015 2014 2015 2014 Change in projected benefit obligation Benefit obligation at beginning of year $ 408,595 $ 347,668 $ 220,216 $ 206,407 $ 54,370 $ 50,811 Service cost 107 93 1,924 1,699 449 434 Interest cost 16,322 16,086 5,986 7,626 2,042 2,143 Participant contributions - - - - 328 350 Actuarial (gain)/loss 1 (15,317 ) 62,014 3,780 30,312 (3,988 ) 3,948 Curtailments - - - (100 ) - - Settlement payments (15,493 ) - - (1,638 ) - - Benefits paid (18,116 ) (17,266 ) (7,726 ) (8,377 ) (3,278 ) (3,316 ) Foreign currency translation effect - - (23,008 ) (15,713 ) - - Benefit obligation at end of year 376,098 408,595 201,172 220,216 49,923 54,370 Change in plan assets Fair value of plan assets at beginning of year 384,335 358,233 188,210 182,152 63,076 54,196 Actual return on plan assets (15,799 ) 41,874 7,408 20,657 1,249 8,621 Employer contributions 1,534 1,494 1,901 7,856 1,210 3,225 Participant contributions - - - - 328 350 Settlement payments (15,493 ) - - - - - Benefits paid 2 (18,116 ) (17,266 ) (7,726 ) (8,377 ) (3,278 ) (3,316 ) Foreign currency translation effect - - (17,552 ) (14,078 ) - - Fair value of plan assets at end of year 336,461 384,335 172,241 188,210 62,585 63,076 Plan assets (less than) in excess of benefit obligation as of year end $ (39,637 ) $ (24,260 ) $ (28,931 ) $ (32,006 ) $ 12,662 $ 8,706 1 Actuarial gain for the U.S. Plans includes $11,455 due to assumption changes and $3,862 due to plan experience. 2 Amount excludes benefit payments made from sources other than plan assets. For the U.S. Pension Plan, we adopted the new RP-2014 mortality tables projected generationally using scale MP-2015 . Amounts in accumulated other comprehensive income (loss) that have not Pension Benefits Other Postretirement been recognized as components of net U.S. Plans Non-U.S. Plans Benefits periodic benefit cost 2015 2014 2015 2014 2015 2014 Unrecognized actuarial loss $ 160,544 $ 140,009 $ 75,157 $ 82,598 $ 21,189 $ 23,348 Unrecognized prior service cost (benefit) 90 119 (11 ) (17 ) (41 ) (2,546 ) Ending balance $ 160,634 $ 140,128 $ 75,146 $ 82,581 $ 21,148 $ 20,802 Pension Benefits Other Postretirement U.S. Plans Non-U.S. Plans Benefits 2015 2014 2015 2014 2015 2014 Statement of financial position as of fiscal year-end Non-current assets $ - $ - $ 4,282 $ 7,592 $ 15,755 $ 12,054 Accrued benefit cost Current liabilities (1,490 ) (1,510 ) (1,100 ) (1,248 ) (191 ) (201 ) Non-current liabilities (38,147 ) (22,750 ) (32,113 ) (38,350 ) (2,902 ) (3,146 ) Ending balance $ (39,637 ) $ (24,260 ) $ (28,931 ) $ (32,006 ) $ 12,662 $ 8,707 The accumulated benefit obligation of the U.S. pension and other postretirement plans was $407,011 at November 28, 2015 and $445,701 at November 29, 2014. The accumulated benefit obligation of the non-U.S. pension plans was $193,565 at November 28, 2015 and $211,488 at November 29, 2014. The following amounts relate to pension plans with accumulated benefit obligations in excess of plan assets as of November 28, 2015 and November 29, 2014: Pension Benefits and Other Postretirement Benefits U.S. Plans Non-U.S. Plans 2015 2014 2015 2014 Accumulated benefit obligation $ 355,988 $ 20,568 $ 99,010 $ 122,860 Fair value of plan assets 336,461 - 73,389 91,990 The following amounts relate to pension plans with projected benefit obligations in excess of plan assets as of November 28, 2015 and November 29, 2014: Pension Benefits and Other Postretirement Benefits U.S. Plans Non-U.S. Plans 2015 2014 2015 2014 Projected benefit obligation $ 376,098 $ 408,595 $ 113,633 $ 131,588 Fair value of plan assets 336,461 384,335 80,421 91,990 Information about the expected cash flows follows: Pension Benefits Other U.S. Plans Non-U.S. Plans Postretirement Benefits Employer contributions 2016 $ - $ 503 $ 3,000 Expected benefit payments 2016 $ 26,801 $ 7,190 $ 3,338 2017 18,913 7,359 3,371 2018 19,456 7,539 3,401 2019 19,972 7,955 3,425 2020 20,478 7,807 3,437 2021-2025 108,454 42,559 16,940 Components of net periodic benefit cost and other supplemental information for the years ended November 28, 2015, November 29, 2014 and November 30, 2013 follow: Pension Benefits Other U.S. Plans Non-U.S. Plans Postretirement Benefits Net periodic cost (benefit) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Service cost $ 107 $ 93 $ 106 $ 1,924 $ 1,699 $ 1,799 $ 449 $ 434 $ 623 Interest cost 16,322 16,086 14,719 5,986 7,626 7,486 2,042 2,143 2,133 Expected return on assets (25,682 ) (23,865 ) (22,720 ) (10,422 ) (10,749 ) (9,390 ) (5,510 ) (4,742 ) (3,725 ) Amortization: Prior service cost 29 29 49 (4 ) (4 ) (4 ) (2,505 ) (3,771 ) (4,134 ) Actuarial loss (gain) 5,628 4,575 6,742 3,173 3,056 3,778 2,431 2,709 5,717 Curtailment loss (gain) - - 102 - - 53 - - - Settlement charge (credit) - - - - 246 153 - - - Net periodic benefit (benefit) cost $ (3,596 ) $ (3,082 ) $ (1,002 ) $ 657 $ 1,874 $ 3,875 $ (3,093 ) $ (3,227 ) $ 614 Pension Benefits U.S. Plans Non-U.S. Plans Postretirement benefits Amounts expected to be amortized from accumulated other comprehensive income into net periodic benefit costs over next fiscal year as of November 28, 2015 Amortization of prior service cost (benefit) $ 29 $ (4 ) $ (41 ) Amortization of net actuarial (gain) loss 5,270 3,220 2,169 $ 5,299 $ 3,216 $ 2,128 Pension Benefits Weighted-average assumptions used to U.S. Plans Non-U.S. Plans Other Postretirement Benefits Determine benefit obligations 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 4.28 % 4.08 % 4.74 % 2.82 % 2.90 % 3.74 % 4.02 % 3.84 % 4.34 % Rate of compensation increase 1 4.50 % 4.50 % 4.50 % 1.58 % 1.67 % 1.84 % N/A N/A N/A Weighted-average assumptions used to Determine net costs for years ended 2015 2014 2013 2015 2014 2013 2015 2014 2013 Discount rate 4.08 % 4.74 % 3.81 % 2.95 % 3.77 % 3.74 % 3.84 % 4.33 % 3.46 % Expected return on plan assets 7.75 % 7.75 % 7.75 % 6.22 % 6.17 % 5.96 % 8.75 % 8.75 % 8.75 % Rate of compensation increase 4.50 % 4.50 % 4.50 % 1.58 % 1.67 % 1.84 % N/A N/A N/A 1 Benefits under the U.S. Pension Plan were locked-in as of May 31, 2011 and no longer include compensation increases. The 4.50 percent rate for 2015, 2014 and 2013 are for the supplemental executive retirement plan only. The discount rate assumption is determined using an actuarial yield curve approach, which results in a discount rate that reflects the characteristics of the plan. The approach identifies a broad population of corporate bonds that meet the quality and size criteria for the particular plan. We use this approach rather than a specific index that has a certain set of bonds that may or may not be representative of the characteristics of our particular plan. A higher discount rate decreases the present value of the pension obligations. The discount rate for the U.S. pension plan was 4.30 percent at November 28, 2015, compared to 4.10 percent at November 29, 2014 and 4.77 percent at November 30, 2013. Net periodic pension cost for a given fiscal year is based on assumptions developed at the end of the previous fiscal year. A discount rate reduction of 0.5 percentage points at November 28, 2015 would increase pension and other postretirement plan expense approximately $307 (pre-tax) in fiscal 2016. Discount rates for non-U.S. plans are determined in a manner consistent with the U.S. plan. The expected long-term rate of return on plan assets assumption for the U.S. pension plan was 7.75 percent in 2015, 2014 and 2013. Our expected long-term rate of return on U.S. plan assets was based on our target asset allocation assumption of 60 percent equities and 40 percent fixed-income. Management, in conjunction with our external financial advisors, determines the expected long-term rate of return on plan assets by considering the expected future returns and volatility levels for each asset class that are based on historical returns and forward-looking observations. For 2015 the expected long-term rate of return on the target equities allocation was 8.75 percent and the expected long-term rate of return on the target fixed-income allocation was 5.0 percent. The total plan rate of return assumption included an estimate of the effect of diversification and the plan expense. A change of 0.5 percentage points for the expected return on assets assumption would impact U.S. net pension and other postretirement plan expense by approximately $1,995 (pre-tax). Management, in conjunction with our external financial advisors, uses the actual historical rates of return of the asset categories to assess the reasonableness of the expected long-term rate of return on plan assets. The expected long-term rate of return on plan assets assumption for non-U.S. pension plans was a weighted-average of 6.22 percent in 2015 compared to 6.17 percent in 2014 and 5.96 percent in 2013. The expected long-term rate of return on plan assets assumption used in each non-U.S. plan is determined on a plan-by-plan basis for each local jurisdiction and is based on expected future returns for the investment mix of assets currently in the portfolio for that plan. Management, in conjunction with our external financial advisors, develops expected rates of return for each plan, considers expected long-term returns for each asset category in the plan, reviews expectations for inflation for each local jurisdiction, and estimates the effect of active management of the plan’s assets. Our largest non-U.S. pension plans are in the United Kingdom and Germany, respectively. The expected long-term rate of return on plan assets for the United Kingdom was 6.75 percent and the expected long-term rate of return on plan assets for Germany was 5.75 percent. Management, in conjunction with our external financial advisors, uses actual historical returns of the asset portfolio to assess the reasonableness of the expected rate of return for each plan. Assumed health care trend rates 2015 2014 2013 Health care cost trend rate assumed for next year 7.00 % 6.50 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % 5.00 % Fiscal year that the rate reaches the ultimate trend rate 2024 2018 2019 Sensitivity Information: One-Percentage Point Increase Decrease Effect on service and interest cost components – annual $ 1 $ (101 ) Effect on accumulated postretirement benefit obligation $ (193 ) $ (2,387 ) The asset allocation for the company’s U.S. and non-U.S. pension plans at the end of 2015 and 2014 follows. U.S. Pension Plans Non-U.S. Pension Plans Other Postretirement Plans Target Percentage of Plan Assets at Year-End Target Percentage of Plan Assets at Year-End Target Percentage of Plan Assets at Year-End Asset Category 2015 2015 2014 2015 2015 2014 2015 2015 2014 Equities 60.0 % 57.7 % 60.2 % 49.5 % 50.3 % 49.8 % 0.0 % 0.0 % 0.0 % Fixed income 40.0 % 38.8 % 38.9 % 50.5 % 49.1 % 46.7 % 0.0 % 0.0 % 0.0 % Real Estate 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 1.1 % 0.0 % 0.0 % 0.0 % Insurance 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 0.0 % 100.0 % 99.5 % 98.3 % Cash 0.0 % 3.5 % 0.9 % 0.0 % 0.6 % 2.4 % 0.0 % 0.5 % 1.7 % Total 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % Plan Asset Management Plan assets are held in trust and invested in mutual funds, separately managed accounts and other commingled investment vehicles holding U.S. and non-U.S. equity securities, fixed income securities and other investment classes. We employ a total return approach whereby a mix of equities and fixed income investments are used to maximize the long-term return of plan assets for a prudent level of risk. Futures and options may also be used to enhance risk-adjusted long-term returns while improving portfolio diversification and duration. Risk management is accomplished through diversification across asset classes, utilization of multiple investment managers and general plan-specific investment policies. Risk tolerance is established through careful consideration of the plan liabilities, plan funded status and our assessment of our overall liquidity position. This asset allocation policy mix is reviewed annually and actual versus target allocations are monitored regularly and rebalanced on an as-needed basis. Plan assets are invested using a combination of active and passive investment strategies. Passive, or “indexed” strategies, attempt to mimic rather than exceed the investment performance of a market benchmark. The plans’ active investment strategies employ multiple investment management firms which in aggregate cover a range of investment styles and approaches. Performance is monitored and compared to relevant benchmarks on a regular basis. The U.S. pension plans consist of two plans: a pension plan and a supplemental executive retirement plan (SERP). There were no assets in the SERP in 2015 and 2014. Consequently, all of the data disclosed in the asset allocation table for the U.S. pension plans pertain to our U.S. pension plan. During 2015 we maintained our assets within the allowed ranges of the target asset allocation mix of 60 percent equities and 40 percent fixed income plus or minus 5 percent and continued our focus to reduce volatility of plan assets in future periods and to more closely match the duration of the assets with the duration of the liabilities of the plan. We plan to maintain the portfolio at this target allocation in 2016. The non-U.S. pension plans consist of all the pension plans administered by us outside the U.S., principally consisting of plans in Germany, the United Kingdom, France and Canada. During 2015 we maintained our assets for the non-U.S. pension plans at the specific target asset allocation mix determined for each plan plus or minus the allowed rate and continued our focus to reduce volatility of plan assets in future periods and to more closely match the duration of the assets with the duration of the liabilities of the individual plans. We plan to maintain the portfolios at their respective target asset allocations in 2016. Other postretirement benefits plans consist of two U.S. plans: a retiree medical health care plan and a group term life insurance plan. There were no assets in the group term life insurance plan for 2015 and 2014. Consequently, all of the data disclosed in the asset allocation table for other postretirement plans pertain to our retiree medical health care plan. Our investment strategy for other postretirement benefit plans is to own insurance policies that maintain an asset allocation nearly completely in equities. These equities are invested in a passive portfolio indexed to the S&P 500. Our large weighting to equities in these plans is driven by the investment options available and the relative underfunded status of the plans. Fair Value of Plan Assets The following table presents plan assets categorized within a three-level fair value hierarchy as described in Note 13. November 28, 2015 U.S. Pension Plans Level 1 Level 2 Level 3 Total Assets Equities $ 123,816 $ 70,325 $ - $ 194,141 Fixed income 29,948 100,086 352 130,386 Cash 11,934 - - 11,934 Total $ 165,698 $ 170,411 $ 352 $ 336,461 Non-U.S. Pension Plans Level 1 Level 2 Level 3 Total Assets Equities $ 31,253 $ 55,430 $ - $ 86,683 Fixed income 41,572 42,595 530 84,697 Cash 861 - - 861 Total $ 73,686 $ 98,025 $ 530 $ 172,241 Other Postretirement Benefits Level 1 Level 2 Level 3 Total Assets Insurance $ - $ - $ 62,299 $ 62,299 Cash 286 - - 286 Total $ 286 $ - $ 62,299 $ 62,585 November 29, 2014 U.S. Pension Plans Level 1 Level 2 Level 3 Total Assets Equities $ 138,308 $ 93,056 $ - $ 231,364 Fixed income 27,782 121,450 407 149,639 Cash 3,332 - - 3,332 Total $ 169,422 $ 214,506 $ 407 $ 384,335 Non-U.S. Pension Plans Level 1 Level 2 Level 3 Total Assets Equities $ 34,362 $ 59,504 $ - $ 93,866 Fixed income 48,346 39,006 582 87,934 Real Estate - - 2,160 2,160 Cash 4,464 - - 4,464 Total $ 87,172 $ 98,510 $ 2,742 $ 188,424 Other Postretirement Benefits Level 1 Level 2 Level 3 Total Assets Insurance $ - $ - $ 61,980 $ 61,980 Cash 1,096 - - 1,096 Total $ 1,096 $ - $ 61,980 $ 63,076 The definitions of fair values of our pension and other postretirement benefit plan assets at November 28, 2015 and November 29, 2014 by asset category are as follows: Equities Funds valued at net asset value have various investment strategies including seeking maximum total returns consistent with prudent investment management, seeking current income consistent with preservation of capital and daily liquidity and seeking to approximate the risk and return characterized by a specific index fund. There are no restrictions for redeeming holdings out of these funds and the funds have no unfunded commitments. Fixed income Real Estate Insurance Cash – The following is a roll forward of the Level 3 investments of our pension and postretirement benefit plan assets during the year ended November 28, 2015: U.S. Pension Plans Fixed Income Level 3 balance at beginning of year $ 407 Purchases, sales, issuances and settlements, net (55 ) Level 3 balance at end of year $ 352 Non-U.S. Pension Plans Fixed Income Real Estate Total Level 3 balance at beginning of year $ 582 $ 2,160 $ 2,742 Net transfers into / (out of) level 3 28 (12 ) 16 Purchases, sales, issuances and settlements, net - (2,388 ) (2,388 ) Net gains 9 282 291 Currency change effect (89 ) (42 ) (131 ) Level 3 balance at end of year $ 530 $ - $ 530 Other Postretirement Benefits Insurance Level 3 balance at beginning of year $ 61,980 Net transfers into / (out of) level 3 (701 ) Purchases, sales, issuances and settlements, net (462 ) Net gains 1,482 Level 3 balance at end of year $ 62,299 |