| Other Postretirement Benefits | Pension Benefits Single-Employer Plans We maintain The New York Times Companies Pension Plan (the ”Pension Plan”), a frozen single-employer defined benefit pension plan. The Company also jointly sponsors a defined benefit plan with The NewsGuild of New York known as the Guild-Times Adjustable Pension Plan (the “APP”) that 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 NewsGuild of New York 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 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 (Income)/Cost The components of net periodic pension (income)/cost were as follows: December 27, 2020 December 29, 2019 December 30, 2018 (In thousands) Qualified Non- All Qualified Non- All Qualified Non- All Service cost $ 10,429 $ 119 $ 10,548 $ 5,113 $ 118 $ 5,231 $ 9,986 $ 79 $ 10,065 Interest cost 43,710 6,601 50,311 58,835 8,420 67,255 52,770 7,383 60,153 Expected return on plan assets (67,146) — (67,146) (80,877) — (80,877) (82,327) — (82,327) Amortization and other costs 21,887 6,072 27,959 18,639 4,381 23,020 26,802 5,114 31,916 Amortization of prior service (credit)/cost (1,945) 51 (1,894) (1,945) 13 (1,932) (1,945) — (1,945) Effect of settlement/curtailment 80,641 (562) 80,079 — (373) (373) — 221 221 Net periodic pension (income)/cost $ 87,576 $ 12,281 $ 99,857 $ (235) $ 12,559 $ 12,324 $ 5,286 $ 12,797 $ 18,083 Over the past several years, the Company has taken steps to reduce the size and volatility of our pension obligations. In October 2020, the Company entered into an agreement with an insurance company to transfer the future benefit obligations and annuity administration for certain retirees (or their beneficiaries) in the Pension Plan. This transfer of plan assets and obligations reduced the Company’s qualified pension plan obligations by $236.3 million. As a result of this agreement, the Company recorded a pension settlement charge of $80.6 million. Other changes in plan assets and benefit obligations recognized in other comprehensive income/loss were as follows: (In thousands) December 27, December 29, December 30, Net actuarial (gain)/loss $ (4,172) $ (10,292) $ 29,965 Prior service cost — 706 — Amortization of loss (27,959) (23,020) (31,916) Amortization of prior service credit 1,894 1,932 1,945 Effect of settlement (80,641) — (421) Total recognized in other comprehensive income (110,878) (30,674) (427) Net periodic pension cost 99,857 12,324 18,083 Total recognized in net periodic benefit (income)/cost and other comprehensive (income)/loss $ (11,021) $ (18,350) $ 17,656 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. We also contribute to defined contribution benefit plans. The amount of cost recognized for defined contribution benefit plans was approximately $27 million for 2020 and 2019, respectively, and $22 million for 2018. 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 27, 2020 December 29, 2019 (In thousands) Qualified Non- All Plans Qualified Non- All Plans Change in benefit obligation Benefit obligation at beginning of year $ 1,660,287 $ 247,748 $ 1,908,035 $ 1,491,398 $ 223,066 $ 1,714,464 Service cost 10,429 119 10,548 5,113 118 5,231 Interest cost 43,710 6,601 50,311 58,835 8,420 67,255 Amendments — — — — 706 706 Actuarial loss 153,136 21,152 174,288 191,104 32,874 223,978 Curtailments — (562) (562) — (373) (373) Settlements (236,282) — (236,282) — — — Benefits paid (82,268) (15,609) (97,877) (86,163) (17,046) (103,209) Effects of change in currency conversion — 144 144 — (17) (17) Benefit obligation at end of year 1,549,012 259,593 1,808,605 1,660,287 247,748 1,908,035 Change in plan assets Fair value of plan assets at beginning of year 1,648,667 — 1,648,667 1,410,151 — 1,410,151 Actual return on plan assets 245,606 — 245,606 315,148 — 315,148 Employer contributions 9,498 15,609 25,107 9,531 17,046 26,577 Settlements (236,282) — (236,282) — — — Benefits paid (82,268) (15,609) (97,877) (86,163) (17,046) (103,209) Fair value of plan assets at end of year 1,585,221 — 1,585,221 1,648,667 — 1,648,667 Net amount recognized $ 36,209 $ (259,593) $ (223,384) $ (11,620) $ (247,748) $ (259,368) Amount recognized in the Consolidated Balance Sheets Noncurrent Assets $ 54,950 $ — $ 54,950 $ — $ — $ — Current liabilities — (16,990) (16,990) — (17,147) (17,147) Noncurrent liabilities (18,741) (242,603) (261,344) (11,620) (230,601) (242,221) Net amount recognized $ 36,209 $ (259,593) $ (223,384) $ (11,620) $ (247,748) $ (259,368) Amount recognized in accumulated other comprehensive loss Actuarial loss $ 464,922 $ 137,697 $ 602,619 $ 592,774 $ 122,617 $ 715,391 Prior service credit (14,897) 642 (14,255) (16,842) 693 (16,149) Total $ 450,025 $ 138,339 $ 588,364 $ 575,932 $ 123,310 $ 699,242 Benefit obligations decreased from $1.9 billion at December 29, 2019, to $1.8 billion at December 27, 2020, primarily due to the previously discussed settlement transaction of $236.3 million, partially offset by actuarial losses of $174.3 million. The main driver of the actuarial loss was a decrease in the discount rate, partially offset by updating the latest mortality improvement scale. Benefit obligations increased from $1.7 billion at December 30, 2018, to $1.9 billion at December 29, 2019, primarily due to the actuarial loss of $224.0 million, driven by a decrease in the discount rate. The accumulated benefit obligation for all pension plans was $1.8 billion and $1.9 billion as of December 27, 2020, and December 29, 2019, respectively. Information for pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets was as follows: (In thousands) December 27, December 29, Projected benefit obligation $ 364,272 $ 1,908,035 Accumulated benefit obligation $ 349,429 $ 1,904,979 Fair value of plan assets $ 85,938 $ 1,648,667 Assumptions Weighted-average assumptions used in the actuarial computations to determine benefit obligations for qualified pension plans were as follows: December 27, December 29, Discount rate 2.64 % 3.30 % Rate of increase in compensation levels 3.00 % 3.00 % The rate of increase in compensation levels is applicable only for the APP 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 27, December 29, December 30, Discount rate for determining projected benefit obligation 3.30 % 4.43 % 3.75 % Discount rate in effect for determining service cost 3.67 % 3.87 % 3.88 % Discount rate in effect for determining interest cost 2.70 % 4.06 % 3.31 % Rate of increase in compensation levels 3.00 % 3.00 % 2.95 % Expected long-term rate of return on assets 4.59 % 5.68 % 5.69 % Weighted-average assumptions used in the actuarial computations to determine benefit obligations for non-qualified plans were as follows: December 27, December 29, Discount rate 2.39 % 3.17 % Rate of increase in compensation levels 2.50 % 2.50 % The rate of increase in compensation levels is applicable only for the foreign plan that 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 27, December 29, December 30, Discount rate for determining projected benefit obligation 3.17 % 4.35 % 3.67 % Discount rate in effect for determining interest cost 2.78 % 3.94 % 3.14 % 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 The Pension Plan The assets underlying the Pension Plan 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 Pension Plan. Asset Allocation Guidelines In accordance with our asset allocation strategy, investments are categorized into long duration fixed income investments whose value is highly correlated to that of the Pension Plan’s 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 the Pension Plan’s obligations (“Return-Seeking Assets”). The proportional allocation of assets between Long Duration Assets and Return-Seeking Assets is dependent on the funded status of the Pension Plan. Under our policy, for example, a funded status at 102.5% requires an allocation of total assets of 77.5% to 82.5% to Long Duration Assets and 17.5% to 22.5% to Return-Seeking Assets. As the Pension 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% 87 % High-Yield Fixed Income 0% - 15% 0 % Alternatives 0% - 15% 11 % Cash 0% - 10% 2 % The asset allocations by asset category for both Long Duration and Return-Seeking Assets, as of December 27, 2020, were as follows: Asset Category Percentage Range Actual Long Duration Fixed Income 77.5% - 82.5% 78 % Public Equity 12.3% - 22.5% 19 % High-Yield Fixed Income 0% - 3% 0 % Alternatives 0% - 3% 2 % Cash 0% - 2% 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’s assets. The APP The assets underlying the joint Company and The NewsGuild of New York sponsored plan are managed by professional investment managers. These investment managers are selected and monitored by the APP’s Board of Trustees (the “APP Trustees”). The APP Trustees are responsible for adopting an investment policy, implementing and monitoring compliance with that policy, selecting and monitoring investment managers, and communicating the investment guidelines and performance objectives to the investment managers. Investment Policy and Strategy The investment objective is to allocate investment assets in a manner that satisfies the funding objectives of the APP and to maximize the probability of maintaining a 100% funded status. Asset Allocation Guidelines In accordance with the asset allocation guidelines, investments are segmented into hedging assets whose value is highly correlated to that of the APP’s obligations (“Hedging 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 the APP’s obligations (“Return-Seeking Assets”). The asset allocations by asset category as of December 27, 2020, were as follows: Asset Category Percentage Range Actual Hedging Assets 75% - 90% 78 % Return-Seeking Assets 10% - 25% 22 % Cash and Equivalents 0% - 5% 0 % The specified target allocation of assets and ranges set forth above are maintained and reviewed on a periodic basis by the APP Trustees. The APP Trustees 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 APP’s assets. Fair Value of Plan Assets The fair value of the assets underlying the Pension Plan and the joint-sponsored APP by asset category are as follows: December 31, 2020 (In thousands) Quoted Prices Significant Significant Investment Measured at Net Asset Value (2) Asset Category (Level 1) (Level 2) (Level 3) Total Equity Securities: U.S. Equities $ 28,002 $ — $ — $ — $ 28,002 International Equities 34,025 — — — 34,025 Mutual Funds 29,011 — — — 29,011 Registered Investment Companies 66,923 — — — 66,923 Common/Collective Funds (1) — — — 643,443 643,443 Fixed Income Securities: Corporate Bonds — 646,330 — — 646,330 U.S. Treasury and Other Government Securities — 42,111 — — 42,111 Municipal and Provincial Bonds — 40,150 — — 40,150 Other — 10,693 — — 10,693 Cash and Cash Equivalents — — — 5,481 5,481 Private Equity — — — 9,770 9,770 Hedge Fund — — — 29,282 29,282 Assets at Fair Value $ 157,961 $ 739,284 $ — $ 687,976 $ 1,585,221 (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) 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, 2019 (In thousands) Quoted Prices Significant Significant Investment Measured at Net Asset Value (2) Asset Category (Level 1) (Level 2) (Level 3) Total Equity Securities: U.S. Equities $ 55,011 $ — $ — $ — $ 55,011 International Equities 38,231 — — — 38,231 Mutual Funds 46,276 — — — 46,276 Registered Investment Companies 52,582 — — — 52,582 Common/Collective Funds (1) — — — 575,738 575,738 Fixed Income Securities: Corporate Bonds — 574,756 — — 574,756 U.S. Treasury and Other Government Securities — 196,009 — — 196,009 Municipal and Provincial Bonds — 42,812 — — 42,812 Other — 11,745 — — 11,745 Cash and Cash Equivalents — — — 19,097 19,097 Private Equity — — — 11,345 11,345 Hedge Fund — — — 25,065 25,065 Assets at Fair Value $ 192,100 $ 825,322 $ — $ 631,245 $ 1,648,667 (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) 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 2020, we made contributions to the APP of $9.5 million. We expect contributions made to satisfy minimum funding requirements to total approximately $10 million in 2021. 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- Total 2021 $ 69,821 $ 17,173 $ 86,994 2022 71,905 16,908 88,813 2023 73,927 16,701 90,628 2024 75,470 16,455 91,925 2025 76,982 16,175 93,157 2026-2030 (1) 399,881 77,545 477,426 (1) While benefit payments under these plans are expected to continue beyond 2030, 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. During the third quarter of 2019 and 2018, we recorded a gain of $2.0 million and $4.9 million, respectively, from multiemployer pension liability adjustment which was recorded in Gain from pension liability adjustment in our Consolidated Statements of Operations. Our multiemployer pension plan withdrawal liability was approximately $76 million as of December 27, 2020, and approximately $82 million as of December 29, 2019. 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 27, 2020, 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 funding 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 2020 2019 2020 2019 2018 CWA/ITU Negotiated Pension Plan 13-6212879-001 Critical and Declining as of 1/01/20 Critical and Declining as of 1/01/19 Implemented $ 384 $ 415 $ 408 No (1) Newspaper and Mail Deliverers’-Publishers’ Pension Fund (2) 13-6122251-001 Green as of 6/01/20 Green as of 6/01/19 N/A 1,010 1,014 992 No 3/30/2025 GCIU-Employer Retirement Benefit Plan 91-6024903-001 Critical and Declining as of 1/01/20 Critical and Declining as of 1/01/19 Implemented 65 58 42 Yes 3/30/2021 (3) Pressmen’s Publishers’ Pension Fund (4) 13-6121627-001 Endangered as of 4/01/20 Green as of 4/01/19 Pending 1,328 1,213 1,129 No 3/30/2021 Paper Handlers’-Publishers’ Pension Fund (5) 13-6104795-001 Critical and Declining as of 4/01/20 Critical and Declining as of 4/01/19 Implemented 101 100 99 Yes 3/30/2021 Contributions for individually significant plans $ 2,888 $ 2,800 $ 2,670 Contributions for a plan not individually significant $ 24 $ — $ — Total Contributions $ 2,912 $ 2,800 $ 2,670 (1) There are two collective bargaining agreements requiring contributions to this plan: Mailers, which expires March 30, 2023, and Typographers, which expires March 30, 2025. (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 12/31/2019 Newspaper and Mail Deliverers’-Publishers’ Pension Fund 5/31/2019 & 5/31/2018 (1) Pressmen’s Publisher’s Pension Fund 3/31/2020 & 3/31/2019 Paper Handlers’-Publishers’ Pension Fund 3/31/2020 & 3/31/2019 (1) Form 5500 for the plan year ended 5/31/20 was not available as of the date we filed our financial statements. We provide health benefits to certain primarily grandfathered retired employee groups (and their eligible dependents) who meet the definition of an eligible participant and certain age and service requirements, as outlined in the plan document. There is a de minimis liability for retiree health benefits for active employees. 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 27, December 29, December 30, Service cost $ 29 $ 27 $ 21 Interest cost 1,026 1,602 1,476 Amortization and other costs 3,051 3,375 4,735 Amortization of prior service credit (4,225) (4,766) (6,157) Net periodic postretirement benefit cost/(income) $ (119) $ 238 $ 75 The changes in the benefit obligations recognized in other comprehensive loss/(income) were as follows: (In thousands) December 27, December 29, December 30, Net actuarial loss/(gain) $ 4,044 $ 296 $ (4,905) Amortization of loss (3,051) (3,375) (4,735) Amortization of prior service credit 4,225 4,766 6,157 Total recognized in other comprehensive loss/(income) 5,218 1,687 (3,483) Net periodic postretirement benefit cost/(income) (119) 238 75 Total recognized in net periodic postretirement benefit cost/(income) and other comprehensive loss/(income) $ 5,099 $ 1,925 $ (3,408) 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. 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 2020 , $15 million in 2019, and $16 million in 2018. The changes in the benefit obligation and plan assets and other amounts recognized in other comprehensive loss were as follows: (In thousands) December 27, December 29, Change in benefit obligation Benefit obligation at beginning of year $ 42,803 $ 46,037 Service cost 29 27 Interest cost 1,026 1,602 Plan participants’ contributions 2,820 3,835 Actuarial loss 4,044 296 Benefits paid (7,414) (8,994) Benefit obligation at the end of year 43,308 42,803 Change in plan assets Employer contributions 4,594 5,159 Plan participants’ contributions 2,820 3,835 Benefits paid (7,414) (8,994) Fair value of plan assets at end of year — — Net amount recognized $ (43,308) $ (42,803) Amount recognized in the Consolidated Balance Sheets Current liabilities $ (4,618) $ (5,115) Noncurrent liabilities (38,690) (37,688) Net amount recognized $ (43,308) $ (42,803) Amount recognized in accumulated other comprehensive loss Actuarial loss $ 26,785 $ 25,793 Prior service credit (3,466) (7,691) Total $ 23,319 $ 18,102 Benefit obligations increased from $42.8 million at December 29, 2019, to $43.3 million at December 27, 2020, primarily due to the actuarial loss of $4.0 million, driven by a decrease in the discount rate . Information for postretirement plans with accumulated benefit obligations in excess of plan assets was as follows: (In thousands) December 27, December 29, Accumulated benefit obligation $ 43,308 $ 42,803 Fair value of plan assets $ — $ — Weighted-average assumptions used in the actuarial computations to determine the postretirement benefit obligations were as follows: December 27, December 29, Discount rate 2.01 % 2.94 % 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 27, December 29, December 30, Discount rate for determining projected benefit obligation 2.94 % 4.18 % 3.46 % Discount rate in effect for determining service cost 3.04 % 4.19 % 3.56 % Discount rate in effect for determining interest cost 2.55 % 3.71 % 3.01 % Estimated increase in compensation level 3.50 % 3.50 % 3.50 % The assumed health-care cost trend rates were as follows: December 27, December 29, Health-care cost trend rate 5.95 % 6.57 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.92 % 5.00 % Year that the rate reaches the ultimate trend rate 2027 2025 Because our health-care plans are capped for most participants, the assumed health-care cost trend rates do not have a significant effect on the amounts reported for the health-care plans. The following benefit payments (net of plan participant contributions) under our Company’s postretirement plans, which reflect expected future services, are expected to be paid: (In thousands) Amount 2021 $ 4,716 2022 4,417 2023 4,173 2024 3,886 2025 3,594 2026-2030 (1) 14,130 (1) While benefit payments under these plans are expected to continue beyond 2030, we have presented in this table only those benefit payments estimated over the next 10 years. We accrue the cost of certain benefits provided to former or inactive employees after employment, but before retirement. The cost is recognized only when it is probable and can be estimated. Benefits include life insurance, disability benefits and health-care continuation coverage. The accrued obligation for these benefits was $8.6 million as of December 27, 2020, and $9.5 million as of December 29, 2019. |
