| 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. 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 31, 2022 December 26, 2021 December 27, 2020 (In thousands) Qualified Non- All Qualified Non- All Qualified Non- All Service cost $ 11,526 $ 105 $ 11,631 $ 9,105 $ 95 $ 9,200 $ 10,429 $ 119 $ 10,548 Interest cost 35,350 5,142 40,492 30,517 4,352 34,869 43,710 6,601 50,311 Expected return on plan assets (55,229) — (55,229) (50,711) — (50,711) (67,146) — (67,146) Amortization and other costs 13,065 6,572 19,637 20,225 7,275 27,500 21,887 6,072 27,959 Amortization of prior service (credit)/cost (1,945) 48 (1,897) (1,945) 55 (1,890) (1,945) 51 (1,894) Effect of settlement/curtailment — — — — (163) (163) 80,641 (562) 80,079 Net periodic pension cost $ 2,767 $ 11,867 $ 14,634 $ 7,191 $ 11,614 $ 18,805 $ 87,576 $ 12,281 $ 99,857 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, which was completed in 2021, 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 were as follows: (In thousands) December 31, December 26, December 27, Net actuarial gain $ (22,500) $ (25,585) $ (4,172) Prior service cost — — — Amortization of loss (19,637) (27,500) (27,959) Amortization of prior service credit 1,897 1,890 1,894 Effect of settlement — — (80,641) Total recognized in other comprehensive income (40,240) (51,195) (110,878) Net periodic pension cost 14,634 18,805 99,857 Total recognized in net periodic pension benefit cost and other comprehensive income $ (25,606) $ (32,390) $ (11,021) 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 $29 million for 2022, $33 million for 2021 and $27 million for 2020, 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 31, 2022 December 26, 2021 (In thousands) Qualified Non- All Plans Qualified Non- All Plans Change in benefit obligation Benefit obligation at beginning of year $ 1,475,764 $ 239,190 $ 1,714,954 $ 1,549,012 $ 259,593 $ 1,808,605 Service cost 11,526 105 11,631 9,105 95 9,200 Interest cost 35,350 5,142 40,492 30,517 4,352 34,869 Actuarial (gain)/loss (374,109) (46,835) (420,944) (42,883) (7,762) (50,645) Curtailments — — — — (163) (163) Benefits paid (72,119) (17,917) (90,036) (69,987) (16,818) (86,805) Effects of change in currency conversion — (77) (77) — (107) (107) Benefit obligation at end of year 1,076,412 179,608 1,256,020 1,475,764 239,190 1,714,954 Change in plan assets Fair value of plan assets at beginning of year 1,550,078 — 1,550,078 1,585,221 — 1,585,221 Actual return on plan assets (343,215) — (343,215) 25,651 — 25,651 Employer contributions 11,189 17,917 29,106 9,193 16,818 26,011 Benefits paid (72,119) (17,917) (90,036) (69,987) (16,818) (86,805) Fair value of plan assets at end of year 1,145,933 — 1,145,933 1,550,078 — 1,550,078 Net amount recognized $ 69,521 $ (179,608) $ (110,087) $ 74,314 $ (239,190) $ (164,876) Amount recognized in the Consolidated Balance Sheets Pension assets $ 69,521 $ — $ 69,521 $ 87,601 $ — $ 87,601 Current liabilities — (16,361) (16,361) — (16,669) (16,669) Noncurrent liabilities — (163,247) (163,247) (13,287) (222,521) (235,808) Net amount recognized $ 69,521 $ (179,608) $ (110,087) $ 74,314 $ (239,190) $ (164,876) Amount recognized in accumulated other comprehensive loss Actuarial loss $ 438,145 $ 69,252 $ 507,397 $ 426,874 $ 122,660 $ 549,534 Prior service credit (11,007) 539 (10,468) (12,952) 587 (12,365) Total $ 427,138 $ 69,791 $ 496,929 $ 413,922 $ 123,247 $ 537,169 Benefit obligations decreased from $1.7 billion at December 26, 2021, to $1.3 billion at December 31, 2022, primarily due to actuarial gains of $420.9 million, driven by an increase in the discount rate, and benefit payments of $90.0 million. Benefit obligations decreased from $1.8 billion at December 27, 2020, to $1.7 billion at December 26, 2021, primarily due to benefit payments of $86.8 million and actuarial gains of $50.6 million, primarily driven by an increase in the discount rate. The accumulated benefit obligation for all pension plans was $1.3 billion and $1.7 billion as of December 31, 2022, and December 26, 2021, 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 31, December 26, Projected benefit obligation $ 179,608 $ 348,831 Accumulated benefit obligation $ 179,370 $ 338,346 Fair value of plan assets $ — $ 96,354 Assumptions Weighted-average assumptions used in the actuarial computations to determine benefit obligations for qualified pension plans were as follows: December 31, December 26, Discount rate 5.66 % 2.94 % 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 31, December 26, December 27, Discount rate for determining projected benefit obligation 2.94 % 2.64 % 3.30 % Discount rate in effect for determining service cost 3.14 % 3.87 % 3.67 % Discount rate in effect for determining interest cost 2.45 % 2.02 % 2.70 % Rate of increase in compensation levels 3.00 % 3.00 % 3.00 % Expected long-term rate of return on assets 3.75 % 3.74 % 4.59 % Weighted-average assumptions used in the actuarial computations to determine benefit obligations for non-qualified plans were as follows: December 31, December 26, Discount rate 5.64 % 2.81 % Rate of increase in compensation levels 3.00 % 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 31, December 26, December 27, Discount rate for determining projected benefit obligation 2.81 % 2.39 % 3.17 % Discount rate in effect for determining interest cost 2.24 % 1.74 % 2.78 % 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 liability-hedging assets whose value is highly correlated to that of the Pension Plan’s obligations (“Liability-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 Pension Plan’s obligations (“Return-Seeking Assets”). The proportional allocation of assets between Liability-Hedging 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 85.5% to 90.5% to Liability-Hedging Assets and 9.5% to 14.5% to Return-Seeking Assets. As the Pension Plan’s funded status increases, the allocation to Liability-Hedging Assets will increase and the allocation to Return-Seeking Assets will decrease. The following asset allocation guidelines apply to the Return-Seeking Assets as of December 31, 2022: Asset Category Percentage Range Actual Public Equity 70% - 90% 83 % Growth Fixed Income 0% - 15% 0 % Alternatives 0% - 15% 13 % Cash 0% - 10% 4 % The asset allocations by asset category for both Liability-Hedging and Return-Seeking Assets, as of December 31, 2022, were as follows: Asset Category Percentage Range Actual Liability-Hedging 85.5% - 90.5% 86 % Public Equity 6.7% - 13.1% 12 % Growth Fixed Income 0% - 2% 0 % Alternatives 0% - 2% 2 % Cash 0% - 1% 0 % 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 31, 2022, were as follows: Asset Category Percentage Range Actual Hedging Assets 75% - 90% 77 % Return-Seeking Assets 10% - 25% 21 % Cash and Equivalents 0% - 5% 2 % 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, 2022 (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 $ 10,548 $ — $ — $ — $ 10,548 International Equities 23,448 — — — 23,448 Registered Investment Companies 171,310 — — — 171,310 Common/Collective Funds (1) — — — 288,489 288,489 Fixed Income Securities: Corporate Bonds — 531,033 — — 531,033 U.S. Treasury and Other Government Securities — 46,279 — — 46,279 Municipal and Provincial Bonds — 27,851 — — 27,851 Other — 12,781 — — 12,781 Cash and Cash Equivalents — — — 15,064 15,064 Private Equity — — — 4,766 4,766 Hedge Fund — — — 14,364 14,364 Assets at Fair Value $ 205,306 $ 617,944 $ — $ 322,683 $ 1,145,933 (1) The underlying assets of the common/collective funds primarily consist 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. December 26, 2021 (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 $ 12,739 $ — $ — $ — $ 12,739 International Equities 29,453 — — — 29,453 Registered Investment Companies (3) 270,662 — — — 270,662 Common/Collective Funds (1) (3) — — — 370,042 370,042 Fixed Income Securities: Corporate Bonds — 710,413 — — 710,413 U.S. Treasury and Other Government Securities — 52,520 — — 52,520 Municipal and Provincial Bonds — 37,922 — — 37,922 Other — 36,630 — — 36,630 Cash and Cash Equivalents — — — 7,229 7,229 Private Equity — — — 7,014 7,014 Hedge Fund — — — 15,454 15,454 Assets at Fair Value $ 312,854 $ 837,485 $ — $ 399,739 $ 1,550,078 (1) The underlying assets of the common/collective funds primarily consist 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. (3) Certain prior year amounts have been reclassified to conform with current period presentation. 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 2022, we made contributions to the APP in the amount of $11.2 million. We expect contributions made to satisfy minimum funding requirements to total approximately $11 million in 2023. 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 2023 $ 73,742 $ 16,776 $ 90,518 2024 75,741 16,541 92,282 2025 77,742 16,266 94,008 2026 79,180 16,069 95,249 2027 80,587 15,899 96,486 2028-2032 (1) 413,683 73,871 487,554 (1) While benefit payments under these plans are expected to continue beyond 2032, 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. 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. Our multiemployer pension plan withdrawal liability was approximately $74 million and $70 million as of December 31, 2022, and December 26, 2021, respectively. 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 such plans 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. In 2022, the Company recorded a $22.1 million charge in connection with the Company’s withdrawal from a plan, which was partially offset by a $7.1 million gain related to a multiemployer pension liability adjustment. These were recorded in Multiemployer pension plan liability adjustment in our Consolidated Statements of Operations for the year ended December 31, 2022. 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 31, 2022, 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 2022 2021 2022 2021 2020 CWA/ITU Negotiated Pension Plan 13-6212879-001 Critical and Declining as of 1/01/22 Critical and Declining as of 1/01/21 Implemented $ 328 $ 364 $ 384 No (1) Newspaper and Mail Deliverers’-Publishers’ Pension Fund (2) 13-6122251-001 Green as of 6/01/22 Green as of 6/01/21 N/A 804 912 1,010 No 3/30/2026 GCIU-Employer Retirement Benefit Plan 91-6024903-001 Critical and Declining as of 1/01/22 Critical and Declining as of 1/01/21 Implemented 56 48 65 No 3/30/2026 Pressmen’s Publishers’ Pension Fund (3) 13-6121627-001 Green as of 4/01/22 Green as of 4/01/21 N/A 1,447 1,337 1,328 No 3/30/2027 Paper Handlers’-Publishers’ Pension Fund 13-6104795-001 Critical and Declining as of 4/01/22 Critical and Declining as of 4/01/21 Implemented 96 103 101 Yes 3/30/2026 Contributions for individually significant plans $ 2,731 $ 2,764 $ 2,888 Contributions for a plan not individually significant $ 36 $ 33 $ 24 Total Contributions $ 2,767 $ 2,797 $ 2,912 (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 (IRC Section 431(b)(8)(A)) and the Expanded Smoothing Period (IRC Section 431(b)(8)(B)). (3) 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 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. 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% of Total Contributions (as of Plan’s Year-End) CWA/ITU Negotiated Pension Plan 12/31/2021 & 12/31/2020 Newspaper and Mail Deliverers’-Publishers’ Pension Fund 5/31/2021 & 5/31/2020 (1) Pressmen’s Publisher’s Pension Fund 3/31/2022 & 3/31/2021 Paper Handlers’-Publishers’ Pension Fund 3/31/2022 & 3/31/2021 (1) Form 5500 for the plan year ended 5/31/22 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 31, December 26, December 27, Service cost $ 46 $ 53 $ 29 Interest cost 731 565 1,026 Amortization and other costs 3,293 3,407 3,051 Amortization of prior service credit (368) (3,098) (4,225) Net periodic postretirement benefit cost/(income) $ 3,702 $ 927 $ (119) The changes in the benefit obligations recognized in other comprehensive loss were as follows: (In thousands) December 31, December 26, December 27, Net actuarial (gain)/loss $ (6,801) $ 2,254 $ 4,044 Amortization of loss (3,293) (3,407) (3,051) Amortization of prior service credit 368 3,098 4,225 Total recognized in other comprehensive (income)/loss (9,726) 1,945 5,218 Net periodic postretirement benefit cost/(income) 3,702 927 (119) Total recognized in net periodic postretirement benefit cost/(income) and other comprehensive (income)/loss $ (6,024) $ 2,872 $ 5,099 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 $19 million in 2022 , $17 million in 2021 and $16 million in 2020. The changes in the benefit obligation and plan assets and other amounts recognized in other comprehensive loss were as follows: (In thousands) December 31, December 26, Change in benefit obligation Benefit obligation at beginning of year $ 40,607 $ 43,308 Service cost 46 53 Interest cost 731 565 Plan participants’ contributions 2,271 2,319 Actuarial (gain)/loss (6,801) 2,254 Benefits paid (6,158) (7,892) Benefit obligation at the end of year 30,696 40,607 Change in plan assets Employer contributions 3,887 5,573 Plan participants’ contributions 2,271 2,319 Benefits paid (6,158) (7,892) Fair value of plan assets at end of year — — Net amount recognized $ (30,696) $ (40,607) Amount recognized in the Consolidated Balance Sheets Current liabilities $ (4,241) $ (4,521) Noncurrent liabilities (26,455) (36,086) Net amount recognized $ (30,696) $ (40,607) Amount recognized in accumulated other comprehensive loss Actuarial loss $ 15,537 $ 25,632 Prior service credit — (368) Total $ 15,537 $ 25,264 Benefit obligations decreased from $40.6 million at December 26, 2021, to $30.7 million at December 31, 2022, primarily due to the actuarial gain of $6.8 million, driven by an increase in the discount rate and benefit payments, net of participation contributions of $3.9 million . Benefit obligations decreased from $43.3 million at December 27, 2020, to $40.6 million at December 26, 2021, primarily due to benefit payments net of participation contributions of $5.6 million partially offset by the actuarial loss of $2.3 million, driven by an increase in assumed costs to reflect updated claims experience . Information for postretirement plans with accumulated benefit obligations in excess of plan assets was as follows: (In thousands) December 31, December 26, Accumulated benefit obligation $ 30,696 $ 40,607 Fair value of plan assets $ — $ — Weighted-average assumptions used in the actuarial computations to determine the postretirement benefit obligations were as follows: December 31, December 26, Discount rate 5.55 % 2.55 % 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 31, December 26, December 27, Discount rate for determining projected benefit obligation 2.55 % 2.01 % 2.94 % Discount rate in effect for determining service cost 2.58 % 2.09 % 3.04 % Discount rate in effect for determining interest cost 1.91 % 1.38 % 2.55 % Estimated increase in compensation level 3.50 % 3.50 % 3.50 % The assumed health-care cost trend rates were as follows: December 31, December 26, Health-care cost trend rate 6.75 % 5.99 % Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 4.92 % 4.92 % Year that the rate reaches the ultimate trend rate 2030 2030 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 2023 $ 4,407 2024 4,086 2025 3,796 2026 3,516 2027 3,251 2028-2032 (1) 12,582 (1) While benefit payments under these plans are expected to continue beyond 2032, 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 $7.9 million as of December 31, 2022, and $8.5 million as of December 26, 2021. |
