| Other Postretirement Benefits | Pension Benefits Single-Employer Plans We sponsor several frozen single-employer defined benefit pension plans. The Company and The NewsGuild of New York jointly sponsor the Guild-Times Adjustable Pension Plan which continues to accrue active benefits. Effective January 1, 2018, the Company became the sole sponsor of the frozen Newspaper Guild of New York - The New York Times Pension Plan (the “Guild-Times Plan”). The Guild-Times Plan was previously joint trusteed between the Guild and the Company. Effective December 31, 2018, the Guild-Times Plan and the Retirement Annuity Plan For Craft Employees of The New York Times Companies (the “RAP”) were merged into The New York Times Companies Pension Plan. We also have a foreign-based pension plan for certain employees (the “foreign plan”). The information for the foreign plan is combined with the information for U.S. non-qualified plans. The benefit obligation of the foreign plan is immaterial to our total benefit obligation. Net Periodic Pension Cost The components of net periodic pension cost were as follows: December 30, 2018 December 31, 2017 December 25, 2016 (In thousands) Qualified Plans Non- Qualified Plans All Plans Qualified Plans Non- Qualified Plans All Plans Qualified Plans Non- Qualified Plans All Plans Service cost $ 9,986 $ 79 $ 10,065 $ 9,720 $ 79 $ 9,799 $ 8,991 $ 143 $ 9,134 Interest cost 52,770 7,383 60,153 60,742 7,840 68,582 66,293 8,172 74,465 Expected return on plan assets (82,327 ) — (82,327 ) (102,900 ) — (102,900 ) (111,159 ) — (111,159 ) Amortization and other costs 26,802 5,114 31,916 29,051 4,318 33,369 28,274 4,184 32,458 Amortization of prior service credit (1,945 ) — (1,945 ) (1,945 ) — (1,945 ) (1,945 ) — (1,945 ) Effect of settlement/curtailment — 221 221 102,109 — 102,109 21,294 (1,599 ) 19,695 Net periodic pension cost $ 5,286 $ 12,797 $ 18,083 $ 96,777 $ 12,237 $ 109,014 $ 11,748 $ 10,900 $ 22,648 As a result of the adoption of ASU 2017-07 during the first quarter of 2018, the service cost component of net periodic pension cost continues to be recognized in “Total operating costs” while the other components have been reclassified to “Other components of net periodic benefit costs” in our Consolidated Statements of Operations below “Operating profit” on a retrospective basis. Over the past several years the Company has taken steps to reduce the size and volatility of our pension obligations. In the first quarter of 2018, the Company signed an agreement that froze the accrual of benefits under the RAP with respect to all participants covered by a collective bargaining agreement between the Company and The Newspaper and Mail Deliverers’ Union of New York and Vicinity. This group of participants was the last group under the RAP to have their benefit accruals frozen. In the fourth quarter of 2017, the Company entered into agreements with two insurance companies to transfer future benefit obligations and annuity administration for certain retirees (or their beneficiaries) in two of the Company’s qualified pension plans. This transfer of plan assets and obligations reduced the Company’s qualified pension plan obligations by $263.3 million . As a result of these agreements, the Company recorded pension settlement charges of $102.1 million . Additionally, during the fourth quarter of 2017, the Company made discretionary contributions totaling $120 million to certain qualified pension plans. In the fourth quarter of 2016, we recorded a pension settlement charge of $21.3 million in connection with a lump-sum payment offer made to certain former employees who participated in certain qualified pension plans. These lump-sum payments totaled $49.5 million and were made with cash from the qualified pension plans, not with Company cash. The effect of this lump-sum settlement was to reduce our pension obligations by $52.2 million . In addition, we recorded a $1.7 million curtailment related to the streamlining of the Company’s international print operations. See Note 8 for more information on the streamlining of the Company’s international print operations. Other changes in plan assets and benefit obligations recognized in other comprehensive income/loss were as follows: (In thousands) December 30, December 31, December 25, Net actuarial loss/(gain) $ 29,965 $ 22,600 $ (4,289 ) Amortization of loss (31,916 ) (33,369 ) (32,458 ) Amortization of prior service credit 1,945 1,945 1,945 Effect of settlement (421 ) (102,109 ) (21,294 ) Total recognized in other comprehensive (income)/loss (427 ) (110,933 ) (56,096 ) Net periodic pension cost 18,083 109,014 22,648 Total recognized in net periodic benefit cost and other comprehensive (income)/loss $ 17,656 $ (1,919 ) $ (33,448 ) Actuarial gains and losses are amortized using a corridor approach. The gain or loss corridor is equal to 10% of the greater of the projected benefit obligation and the market-related value of assets. Gains and losses in excess of the corridor are generally amortized over the future working lifetime for the ongoing plans and average life expectancy for the frozen plans. The estimated actuarial loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic pension cost over the next fiscal year is approximately $23 million and $2 million , respectively. We also contribute to defined contribution benefit plans. The amount of cost recognized for defined contribution benefit plans was approximately $22 million , $23 million and $15 million for 2018 , 2017 and 2016 , respectively. Benefit Obligation and Plan Assets The changes in the benefit obligation and plan assets and other amounts recognized in other comprehensive loss were as follows: December 30, 2018 December 31, 2017 (In thousands) Qualified Plans Non- Qualified Plans All Plans Qualified Plans Non- Qualified Plans All Plans Change in benefit obligation Benefit obligation at beginning of year $ 1,636,488 $ 245,302 $ 1,881,790 $ 1,798,652 $ 240,399 $ 2,039,051 Service cost 9,986 79 10,065 9,720 79 9,799 Interest cost 52,770 7,383 60,153 60,742 7,840 68,582 Plan participants’ contributions 3 — 3 9 — 9 Actuarial (gain)/loss (123,670 ) (10,221 ) (133,891 ) 142,980 15,342 158,322 Curtailments — (200 ) (200 ) — — — Settlements — — — (269,287 ) — (269,287 ) Benefits paid (84,179 ) (19,219 ) (103,398 ) (106,328 ) (18,510 ) (124,838 ) Effects of change in currency conversion — (58 ) (58 ) — 152 152 Benefit obligation at end of year 1,491,398 223,066 1,714,464 1,636,488 245,302 1,881,790 Change in plan assets Fair value of plan assets at beginning of year 1,567,411 — 1,567,411 1,576,760 — 1,576,760 Actual return on plan assets (81,529 ) — (81,529 ) 238,622 — 238,622 Employer contributions 8,445 19,219 27,664 127,635 18,510 146,145 Plan participants’ contributions 3 — 3 9 — 9 Settlements — — — (269,287 ) — (269,287 ) Benefits paid (84,179 ) (19,219 ) (103,398 ) (106,328 ) (18,510 ) (124,838 ) Fair value of plan assets at end of year 1,410,151 — 1,410,151 1,567,411 — 1,567,411 Net amount recognized $ (81,247 ) $ (223,066 ) $ (304,313 ) $ (69,077 ) $ (245,302 ) $ (314,379 ) Amount recognized in the Consolidated Balance Sheets Current liabilities $ — $ (17,034 ) $ (17,034 ) $ — $ (16,901 ) $ (16,901 ) Noncurrent liabilities (81,247 ) (206,032 ) (287,279 ) (69,077 ) (228,401 ) (297,478 ) Net amount recognized $ (81,247 ) $ (223,066 ) $ (304,313 ) $ (69,077 ) $ (245,302 ) $ (314,379 ) Amount recognized in accumulated other comprehensive loss Actuarial loss $ 654,579 $ 94,123 $ 748,702 $ 641,194 $ 109,880 $ 751,074 Prior service credit (18,786 ) — (18,786 ) (20,731 ) — (20,731 ) Total $ 635,793 $ 94,123 $ 729,916 $ 620,463 $ 109,880 $ 730,343 Information for pension plans with an accumulated benefit obligation in excess of plan assets was as follows: (In thousands) December 30, December 31, Projected benefit obligation $ 1,714,464 $ 1,881,790 Accumulated benefit obligation $ 1,712,619 $ 1,874,445 Fair value of plan assets $ 1,410,151 $ 1,567,411 Assumptions Weighted-average assumptions used in the actuarial computations to determine benefit obligations for qualified pension plans were as follows: December 30, December 31, Discount rate 4.43 % 3.75 % Rate of increase in compensation levels 3.00 % 2.95 % The rate of increase in compensation levels is applicable only for the Guild-Times Adjustable Pension Plan that has not been frozen. Weighted-average assumptions used in the actuarial computations to determine net periodic pension cost for qualified plans were as follows: December 30, December 31, December 25, Discount rate for determining projected benefit obligation 3.75 % 4.31 % 4.60 % Discount rate in effect for determining service cost 3.88 % 4.74 % 5.78 % Discount rate in effect for determining interest cost 3.31 % 3.54 % 3.68 % Rate of increase in compensation levels 2.95 % 2.95 % 2.91 % Expected long-term rate of return on assets 5.69 % 6.73 % 7.01 % Weighted-average assumptions used in the actuarial computations to determine benefit obligations for non-qualified plans were as follows: December 30, December 31, Discount rate 4.35 % 3.67 % Rate of increase in compensation levels 2.50 % 2.50 % The rate of increase in compensation levels is applicable only for the foreign plan, which has not been frozen. Weighted-average assumptions used in the actuarial computations to determine net periodic pension cost for non-qualified plans were as follows: December 30, December 31, December 25, Discount rate for determining projected benefit obligation 3.67 % 4.17 % 4.40 % Discount rate in effect for determining interest cost 3.14 % 3.39 % 3.44 % Rate of increase in compensation levels 2.50 % 2.50 % 2.50 % We determined our discount rate using a Ryan ALM, Inc. Curve (the “Ryan Curve”). The Ryan Curve provides the bonds included in the curve and allows adjustments for certain outliers (i.e., bonds on “watch”). We believe the Ryan Curve allows us to calculate an appropriate discount rate. To determine our discount rate, we project a cash flow based on annual accrued benefits. The projected plan cash flow is discounted to the measurement date, which is the last day of our fiscal year, using the annual spot rates provided in the Ryan Curve. In determining the expected long-term rate of return on assets, we evaluated input from our investment consultants, actuaries and investment management firms, including our review of asset class return expectations, as well as long-term historical asset class returns. Projected returns by such consultants and economists are based on broad equity and bond indices. Our objective is to select an average rate of earnings expected on existing plan assets and expected contributions to the plan during the year, less expense expected to be incurred by the plan during the year. The market-related value of plan assets is multiplied by the expected long-term rate of return on assets to compute the expected return on plan assets, a component of net periodic pension cost. The market-related value of plan assets is a calculated value that recognizes changes in fair value over three years. Plan Assets Company-Sponsored Pension Plans The assets underlying the Company-sponsored qualified pension plans are managed by professional investment managers. These investment managers are selected and monitored by the pension investment committee, composed of certain senior executives, who are appointed by the Finance Committee of the Board of Directors of the Company. The Finance Committee is responsible for adopting our investment policy, which includes rules regarding the selection and retention of qualified advisors and investment managers. The pension investment committee is responsible for implementing and monitoring compliance with our investment policy, selecting and monitoring investment managers and communicating the investment guidelines and performance objectives to the investment managers. Our contributions are made on a basis determined by the actuaries in accordance with the funding requirements and limitations of the Employee Retirement Income Security Act (“ERISA”) and the Internal Revenue Code. Investment Policy and Strategy The primary long-term investment objective is to allocate assets in a manner that produces a total rate of return that meets or exceeds the growth of our pension liabilities. An additional investment objective is to transition the asset mix to hedge liabilities and minimize volatility in the funded status of the plans. Asset Allocation Guidelines In accordance with our asset allocation strategy, for substantially all of our Company-sponsored pension plan assets, investments are categorized into long duration fixed income investments whose value is highly correlated to that of the pension plan obligations (“Long Duration Assets”) or other investments, such as equities and high-yield fixed income securities, whose return over time is expected to exceed the rate of growth in our pension plan obligations (“Return-Seeking Assets”). The proportional allocation of assets between Long Duration Assets and Return-Seeking Assets is dependent on the funded status of each pension plan. Under our policy, for example, a funded status at 100% requires an allocation of total assets of 71.5% to 76.5% to Long Duration Assets and 23.5% to 28.5% to Return-Seeking Assets. As a plan's funded status increases, the allocation to Long Duration Assets will increase and the allocation to Return-Seeking Assets will decrease. The following asset allocation guidelines apply to the Return-Seeking Assets: Asset Category Percentage Range Actual Public Equity 70% - 100% 85 % High-Yield Fixed Income 0% - 15% 0 % Alternatives 0% - 15% 15 % Cash 0% - 10% 0 % The asset allocations by asset category for both Long Duration and Return-Seeking Assets, as of December 30, 2018 , were as follows: Asset Category Percentage Range Actual Long Duration Fixed Income 71.5% - 76.5% 75 % Public Equity 16.5% - 28.5% 21 % High-Yield Fixed Income 0% - 4% 0 % Alternatives 0% - 4% 3 % Cash 0% - 3% 1 % The specified target allocation of assets and ranges set forth above are maintained and reviewed on a periodic basis by the pension investment committee. The pension investment committee may direct the transfer of assets between investment managers in order to rebalance the portfolio in accordance with approved asset allocation ranges to accomplish the investment objectives for the pension plan assets. Fair Value of Plan Assets The fair value of the assets underlying our Company-sponsored qualified pension plans and the joint-sponsored Guild-Times Adjustable Pension Plan by asset category are as follows: December 30, 2018 (In thousands) Quoted Prices Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Investment Measured at Net Asset Value (3) Asset Category (Level 1) (Level 2) (Level 3) Total Equity Securities: U.S. Equities $ 25,459 $ — $ — $ — $ 25,459 International Equities 27,805 — — — 27,805 Mutual Funds 18,891 — — — 18,891 Registered Investment Companies 36,908 — — — 36,908 Common/Collective Funds (1) — — — 412,815 412,815 Fixed Income Securities: Corporate Bonds — 532,466 — — 532,466 U.S. Treasury and Other Government Securities — 155,229 — — 155,229 Group Annuity Contract — — — 64,559 64,559 Municipal and Provincial Bonds — 42,170 — — 42,170 Government Sponsored Enterprises (2) — 14,278 — — 14,278 Other — 13,754 — — 13,754 Cash and Cash Equivalents — — — 19,667 19,667 Private Equity — — — 12,752 12,752 Hedge Fund — — — 33,398 33,398 Assets at Fair Value 109,063 757,897 — 543,191 1,410,151 Other Assets — Total $ 109,063 $ 757,897 $ — $ 543,191 $ 1,410,151 (1) The underlying assets of the common/collective funds are primarily comprised of equity and fixed income securities. The fair value in the above table represents our ownership share of the NAV of the underlying funds. (2) Represents investments that are not backed by the full faith and credit of the U.S. government. (3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) have not been classified in the fair value hierarchy. Fair Value Measurement at December 31, 2017 (In thousands) Quoted Prices Markets for Identical Assets Significant Observable Inputs Significant Unobservable Inputs Investment Measured at Net Asset Value (3) Asset Category (Level 1) (Level 2) (Level 3) Total Equity Securities: U.S. Equities $ 65,466 $ — $ — $ — $ 65,466 International Equities 62,256 — — — 62,256 Mutual Funds 44,173 — — — 44,173 Registered Investment Companies 42,868 — — — 42,868 Common/Collective Funds (1) — — — 601,896 601,896 Fixed Income Securities: Corporate Bonds — 416,201 — — 416,201 U.S. Treasury and Other Government Securities — 144,085 — — 144,085 Group Annuity Contract — — — 45,005 45,005 Municipal and Provincial Bonds — 36,674 — — 36,674 Government Sponsored Enterprises (2) — 11,364 — — 11,364 Other — 10,883 — — 10,883 Cash and Cash Equivalents — — — 32,352 32,352 Private Equity — — — 20,289 20,289 Hedge Fund — — — 33,899 33,899 Assets at Fair Value 214,763 619,207 — 733,441 1,567,411 Other Assets — Total $ 214,763 $ 619,207 $ — $ 733,441 $ 1,567,411 (1) The underlying assets of the common/collective funds are primarily comprised of equity and fixed income securities. The fair value in the above table represents our ownership share of the NAV of the underlying funds. (2) Represents investments that are not backed by the full faith and credit of the U.S. government. (3) Certain investments that are measured at fair value using the NAV per share (or its equivalent) have not been classified in the fair value hierarchy. Level 1 and Level 2 Investments Where quoted prices are available in an active market for identical assets, such as equity securities traded on an exchange, transactions for the asset occur with such frequency that the pricing information is available on an ongoing/daily basis. We classify these types of investments as Level 1 where the fair value represents the closing/last trade price for these particular securities. For our investments where pricing data may not be readily available, fair values are estimated by using quoted prices for similar assets, in both active and not active markets, and observable inputs, other than quoted prices, such as interest rates and credit risk. We classify these types of investments as Level 2 because we are able to reasonably estimate the fair value through inputs that are observable, either directly or indirectly. There are no restrictions on our ability to sell any of our Level 1 and Level 2 investments. Cash Flows In 2018 , we made contributions to the Guild-Times Adjustable Pension Plan of $8.4 million . We expect contributions made to satisfy minimum funding requirements to total approximately $9 million in 2019. The following benefit payments, which reflect future service for plans that have not been frozen, are expected to be paid: Plans (In thousands) Qualified Non- Qualified Total 2019 $ 86,901 $ 17,368 $ 104,269 2020 88,041 17,107 105,148 2021 89,678 16,909 106,587 2022 91,557 16,726 108,283 2023 92,962 16,423 109,385 2024-2028 (1) 480,374 77,975 558,349 (1) While benefit payments under these plans are expected to continue beyond 2028 we have presented in this table only those benefit payments estimated over the next 10 years. Multiemployer Plans We contribute to a number of multiemployer defined benefit pension plans under the terms of various collective bargaining agreements that cover our union-represented employees. In recent years, certain events, such as amendments to various collective bargaining agreements and the sale of the New England Media Group, resulted in withdrawals from multiemployer pension plans. These actions, along with a reduction in covered employees, have resulted in us estimating withdrawal liabilities to the respective plans for our proportionate share of any unfunded vested benefits. In 2016, we recorded $6.7 million in charges for partial withdrawal obligations under multiemployer pension plans. There was no such charge in 2017. During the third quarter of 2018, we recorded a gain of $4.9 million from a pension liability adjustment, which was recorded in “Multiemployer pension and other contractual (gain)/loss” in our Consolidated Statements of Operations. Our multiemployer pension plan withdrawal liability was approximately $97 million as of December 30, 2018 and approximately $108 million as of December 31, 2017 . This liability represents the present value of the obligations related to complete and partial withdrawals that have already occurred as well as an estimate of future partial withdrawals that we considered probable and reasonably estimable. For those plans that have yet to provide us with a demand letter, the actual liability will not be fully known until they complete a final assessment of the withdrawal liability and issue a demand to us. Therefore, the estimate of our multiemployer pension plan liability will be adjusted as more information becomes available that allows us to refine our estimates. The risks of participating in multiemployer plans are different from single-employer plans in the following aspects: • Assets contributed to the multiemployer 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 we elect to withdraw from these plans or if we trigger a partial withdrawal due to declines in contribution base units or a partial cessation of our obligation to contribute, we may be assessed a withdrawal liability based on a calculated share of the underfunded status of the plan. • If a multiemployer plan from which we have withdrawn subsequently experiences a mass withdrawal, we may be required to make additional contributions under applicable law. Our participation in significant plans for the fiscal period ended December 30, 2018 , is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit plan number. The zone status is based on the latest information that we received from the plan and is certified by the plan’s actuary. A plan is generally classified in critical status if a funding deficiency is projected within four years or five years, depending on other criteria. A plan in critical status is classified in critical and declining status if it is projected to become insolvent in the next 15 or 20 years, depending on other criteria. A plan is classified in endangered status if its funded percentage is less than 80% or a funding deficiency is projected within seven years. If the plan satisfies both of these triggers, it is classified in seriously endangered status. A plan not classified in any other status is classified in the green zone. 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 “Surcharge Imposed” column includes plans in a red zone status that are required to pay a surcharge in excess of regular contributions. The last column lists the expiration date(s) of the collective bargaining agreement(s) to which the plans are subject. EIN/Pension Plan Number Pension Protection Act Zone Status FIP/RP Status Pending/Implemented (In thousands) Contributions of the Company Surcharge Imposed Collective Bargaining Agreement Expiration Date Pension Fund 2018 2017 2018 2017 2016 CWA/ITU Negotiated Pension Plan 13-6212879-001 Critical and Declining as of 1/01/18 Critical and Declining as of 1/01/17 Implemented $ 408 $ 425 $ 486 No (1) Newspaper and Mail Deliverers’-Publishers’ Pension Fund (2) 13-6122251-001 Green as of 6/01/18 Green as of 6/01/17 N/A 992 995 1,040 No 3/30/2020 GCIU-Employer Retirement Benefit Plan 91-6024903-001 Critical and Declining as of 1/01/18 Critical and Declining as of 1/01/17 Implemented 42 39 43 Yes 3/30/2021 (3) Pressmen’s Publishers’ Pension Fund (4) 13-6121627-001 Green as of 4/01/18 Green as of 4/01/17 N/A 1,129 963 1,001 No 3/30/2021 Paper-Handlers’-Publishers’ Pension Fund (5) 13-6104795-001 Critical and Declining as of 4/01/18 Critical and Declining as of 4/01/17 Implemented 99 88 100 Yes 3/30/2021 Contributions for individually significant plans $ 2,670 $ 2,510 $ 2,670 Total Contributions $ 2,670 $ 2,510 $ 2,670 (1) There are two collective bargaining agreements requiring contributions to this plan: Mailers, which expires March 30, 2019, and Typographers, which expires March 30, 2020. (2) Elections under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010: Extended Amortization of Net Investment Losses (IRS Section 431(b)(8)(A)) and the Expanded Smoothing Period (IRS Section 431(b)(8)(B)). (3) We previously had two collective bargaining agreements requiring contributions to this plan. As of December 30, 2018, only one collective bargaining agreement remained for the Stereotypers. The method for calculating actuarial value of assets was changed retroactive to January 1, 2009, as elected by the Board of Trustees and as permitted by IRS Notice 2010-83. This election includes smoothing 2008 investment losses over ten years. (4) The Plan sponsor elected two provisions of funding relief under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010 (PRA 2010) to more slowly absorb the 2008 plan year investment loss, retroactively effective as of April 1, 2009. These included extended amortization under the prospective method and 10 -year smoothing of the asset loss for the plan year beginning April 1, 2008. (5) Board of Trustees elected funding relief. This election includes smoothing the March 31, 2009 investment losses over 10 years. The rehabilitation plan for the GCIU-Employer Retirement Benefit Plan includes minimum annual contributions no less than the total annual contribution made by us from September 1, 2008 through August 31, 2009. The Company was listed in the plans’ respective Forms 5500 as providing more than 5% of the total contributions for the following plans and plan years: Pension Fund Year Contributions to Plan Exceeded More Than 5 Percent of Total Contributions (as of Plan’s Year-End) CWA/ITU Negotiated Pension Plan 12/31/2017 & 12/31/2016 (1) Newspaper and Mail Deliverers’-Publishers’ Pension Fund 5/31/2017 & 5/31/2016 (1) Pressmen’s Publisher’s Pension Fund 3/31/2018 & 3/31/2017 Paper-Handlers’-Publishers’ Pension Fund 3/31/2018 & 3/31/2017 (1) Forms 5500 for the plans’ year ended 12/31/18 and 5/31/18 were not available as of the date we filed our financial statements. The Company received a notice and demand for payment of withdrawal liability from the Newspaper and Mail Deliverers’-Publishers’ Pension Fund in September 2013 and December 2014 associated with partial withdrawals. See Note 19 for further information. Other Postretirement Benefits We provide health benefits to retired employees (and their eligible dependents) who meet the definition of an eligible participant and certain age and service requirements, as outlined in the plan document. While we offer pre-age 65 retiree medical coverage to employees who meet certain retiree medical eligibility requirements, we do not provide post-age 65 retiree medical benefits for employees who retired on or after March 1, 2009. We accrue the costs of postretirement benefits during the employees’ active years of service and our policy is to pay our portion of insurance premiums and claims from general corporate assets. Net Periodic Other Postretirement Benefit Cost/(Income) The components of net periodic postretirement benefit cost/(income) were as follows: (In thousands) December 30, December 31, December 25, Service cost $ 21 $ 367 $ 417 Interest cost 1,476 1,881 1,979 Amortization and other costs 4,735 3,621 4,105 Amortization of prior service credit (6,157 ) (7,755 ) (8,440 ) Effect of settlement/curtailment (1) — (32,737 ) — Net periodic postretirement benefit cost/(income) $ 75 $ (34,623 ) $ (1,939 ) (1) In the fourth quarter of 2017, the Company recorded a gain in connection with the settlement of a funding obligation related to a postretirement plan. As a result of the adoption of ASU 2017-07 during the first quarter of 2018, the service cost component of net periodic postretirement benefit cost/(income) continues to be recognized in “Total operating costs” while the other components have been reclassified to “Other components of net periodic benefit costs” in our Consolidated Statements of Operations below “Operating profit” on a retrospective basis. The changes in the benefit obligations recognized in other comprehensive (income)/loss were as follows: (In thousands) December 30, December 31, December 25, Net actuarial loss/(gain) $ (4,905 ) $ (6,625 ) $ 28 Amortization of loss (4,735 ) (3,621 ) (4,105 ) Amortization of prior service credit 6,157 7,755 8,440 Effect of curtailment — 6,502 — Effect of settlement — 26,235 — Total recognized in other comprehensive (income)/loss (3,483 ) 30,246 4,363 Net periodic postretirement benefit cost/(income) 75 (34,623 ) (1,939 ) Total recognized in net periodic postretirement benefit cost/(income) and other comprehensive (income)/loss $ (3,408 ) $ (4,377 ) $ 2,424 Actuarial gains and losses are amortized using a corridor approach. The gain or loss corridor is equal to 10% of the accumulated postretirement benefit obligation. Gains and losses in excess of the corridor are generally amortized over the average remaining service period to expected retirement of active participants. The estimated actuarial loss and prior service credit that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is approximately $3 million and $5 million , respectively. In connection with collective bargaining agreements, we contribute to several multiemployer welfare plans. These plans provide medical benefits to active and retired employees covered under the respective collective bargaining agreement. Contributions are made in accordance with the formula in the relevant agreement. Postretirement costs related to these plans are not reflected above and were approximately $16 million in 2018 , $15 million in 2017 and $15 million in 2016 . The changes in the benefit obligation and plan assets and other amounts recognized in other comprehensive income/loss were as follows: (In thousands) December 30, December 31, Change in benefit obligation Benefit obligation at beginning of year $ 54,642 $ 65,042 Service cost 21 367 Interest cost 1,476 1,881 Plan participants’ contributions 3,974 4,007 Actuarial (gain)/loss (4,905 ) 3,703 Curtailments/settlements — (10,328 ) Benefits paid (9,171 ) (10,030 ) Benefit obligation at the end of year 46,037 54,642 Change in plan assets Fair value of plan assets at beginning of year — — Employer contributions 5,197 6,023 Plan participants’ contributions 3,974 4,007 Benefits paid (9,171 ) (10,030 ) Fair value of plan assets at end of year — — Net amount recognized $ (46,037 ) $ (54,642 ) Amount recognized in the Consolidated Balance Sheets Current liabilities $ (5,645 ) $ (5,826 ) Noncurrent liabilities (40,392 ) (48,816 ) Net amount recognized $ (46,037 ) $ (54,642 ) Amount recognized in accumulated other comprehensive loss Actuarial loss $ 28,871 $ 38,512 Prior service credit (12,456 ) (18,613 ) Total $ 16,415 $ 19,899 Weighted-average assumptions used in the actuarial computations to determine the postretirement benefit obligations were as follows: December 30, December 31, Discount rate 4.18 % 3.46 % Estimated increase in compensation level 3.50 % 3.50 % Weighted-average assumptions used in the actuarial computations to determine net periodic postretirement cost were as follows: December 30, December 31, December 25, Discount rate for determining projected benefit obligation 3.46 % 3.93 % 4.05 % Discount rate in effect for determining service cost 3.56 % 4.08 % 4.24 % Discount rate in effect for determining interest cost 3.01 % 3.21 % 2.96 % Estimated increase in compensation level 3.50 % 3.50 % 3.50 % The assumed health-care cost trend rates were as follows: December 30, December 31, Health-care cost trend rate 6.90 % 7.60 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2025 2025 Because our health-care plans are capped for most participants, the assumed health-care cost trend rates do not have a |
