XML 43 R30.htm IDEA: XBRL DOCUMENT
v3.20.4

Pensions And Other Postretirement Benefits | 12 Months Ended
--- | ---
Oct. 03, 2020
Retirement Benefits, Description [Abstract] |
Pensions And Other Postretirement Benefits | PENSIONS AND OTHER POSTRETIREMENT BENEFITS At October 3, 2020, we had six defined benefit pension plans consisting of two frozen and noncontributory funded qualified plans and four unfunded non-qualified plans. Additionally, we have two plans that were terminated during fiscal 2020, which have residual plan assets of $27 million and no benefit obligations as of October 3, 2020. The benefits provided under these plans are based on a formula using years of service and either a specified benefit rate or compensation level. The non-qualified defined benefit plans are for certain contracted officers and use a formula based on years of service and final average salary. We also have other postretirement benefit plans for which substantially all of our team members may receive benefits if they satisfy applicable eligibility criteria. The postretirement healthcare plans are contributory with participants’ contributions adjusted when deemed necessary. We have defined contribution retirement programs for various groups of team members. We recognized expenses of $103 million, $97 million and $84 million in fiscal 2020, 2019 and 2018, respectively. We use a fiscal year end measurement date for our defined benefit plans and other postretirement plans. We recognize the effect of actuarial gains and losses into earnings immediately for other postretirement plans rather than amortizing the effect over future periods. Other postretirement benefits include postretirement medical costs and life insurance. During fiscal 2017, we issued a notice of intent to terminate two of our qualified pension plans with a termination date of April 30, 2017. The settlements of the terminated plans occurred during fiscal 2019, through purchased annuities, and we incurred a $19 million settlement charge at final liquidation. During fiscal 2019, we issued a notice of intent to terminate three other qualified pension plans. The settlements of the terminated plans occurred during fiscal 2020, through purchased annuities, and we incurred settlement gains of approximately $112 million related to the plan terminations. No significant contributions to purchase annuities at the time of settlement were necessary. Due to favorable annuity pricing at the time of settlement, approximately $52 million in residual plan assets remained in the plan following the annuity purchase. A portion of these funds have been transferred to a qualified replacement plan during fiscal 2020, with the remaining funds to be transferred in fiscal 2021. Benefit Obligations and Funded Status The following table provides a reconciliation of the changes in the plans’ benefit obligations, assets and funded status at October 3, 2020, and September 28, 2019 (in millions):
| Pension Benefits |  | Other Postretirement
| Qualified |  | Non-Qualified |  | Benefits
| 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020 |  | 2019
Change in benefit obligation |  |  |  |  |  |  |  |  |  |  |
Benefit obligation at beginning of year | $ | 1,478 |  |  | $ | 1,392 |  |  | $ | 239 |  |  | $ | 220 |  |  | $ | 77 |  |  | $ | 28 |
Service cost | — |  |  | — |  |  | — |  |  | 1 |  |  | 2 |  |  | 2 |
Interest cost | 14 |  |  | 56 |  |  | 8 |  |  | 9 |  |  | 1 |  |  | 1 |
Plan amendments | — |  |  | — |  |  | — |  |  | — |  |  | (6) |  |  | 4 |
Actuarial (gain)/loss | — |  |  | 154 |  |  | 5 |  |  | 17 |  |  | 4 |  |  | 6 |
Benefits paid | (38) |  |  | (77) |  |  | (14) |  |  | (12) |  |  | (4) |  |  | (4) |
Business Acquisition | — |  |  | 2 |  |  | — |  |  | 4 |  |  | — |  |  | 13 |
Plan Terminations | (1,423) |  |  | (49) |  |  | — |  |  | — |  |  | — |  |  | — |
Other | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 27 |
Benefit obligation at end of year | 31 |  |  | 1,478 |  |  | 238 |  |  | 239 |  |  | 74 |  |  | 77 |
Change in plan assets |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year | 1,477 |  |  | 1,450 |  |  | — |  |  | — |  |  | — |  |  | — |
Actual return on plan assets | (14) |  |  | 146 |  |  | — |  |  | — |  |  | — |  |  | — |
Employer contributions | 7 |  |  | 1 |  |  | 12 |  |  | 12 |  |  | 4 |  |  | 4 |
Benefits paid | (38) |  |  | (77) |  |  | (12) |  |  | (12) |  |  | (4) |  |  | (4) |
Business Acquisition | — |  |  | 2 |  |  | — |  |  | — |  |  | — |  |  | — |
Plan Terminations | (1,397) |  |  | (45) |  |  | — |  |  | — |  |  | — |  |  | — |
Fair value of plan assets at end of year | 35 |  |  | 1,477 |  |  | — |  |  | — |  |  | — |  |  | — |
Funded status | $ | 4 |  |  | $ | (1) |  |  | $ | (238) |  |  | $ | (239) |  |  | $ | (74) |  |  | $ | (77) |
Amounts recognized in the Consolidated Balance Sheets consist of (in millions):
| Pension Benefits |  | Other Postretirement
| Qualified |  | Non-Qualified |  | Benefits
| 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020 |  | 2019
Other assets | $ | 4 |  |  | $ | 16 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Other current liabilities | — |  |  | — |  |  | (12) |  |  | (12) |  |  | (3) |  |  | (3) |
Other liabilities | — |  |  | (17) |  |  | (226) |  |  | (227) |  |  | (71) |  |  | (74) |
Total assets (liabilities) | $ | 4 |  |  | $ | (1) |  |  | $ | (238) |  |  | $ | (239) |  |  | $ | (74) |  |  | $ | (77) |
Amounts recognized in Accumulated Other Comprehensive Income consist of (in millions):
| Pension Benefits |  | Other Postretirement
| Qualified |  | Non-Qualified |  | Benefits
| 2020 |  | 2019 |  | 2020 |  | 2019 |  | 2020 |  | 2019
Accumulated other comprehensive (income)/loss: |  |  |  |  |  |  |  |  |  |  |
Actuarial (gain) loss | $ | 4 |  |  | $ | (53) |  |  | $ | 45 |  |  | $ | 46 |  |  | $ | 24 |  |  | $ | 27 |
Prior service (credit) cost | — |  |  | — |  |  | 3 |  |  | 4 |  |  | (37) |  |  | (42) |
Total accumulated other comprehensive (income)/loss: | $ | 4 |  |  | $ | (53) |  |  | $ | 48 |  |  | $ | 50 |  |  | $ | (13) |  |  | $ | (15) |
We had four pension plans at October 3, 2020 and five pension plans at September 28, 2019, that had an accumulated benefit obligation in excess of plan assets. Plans with accumulated benefit obligations in excess of plan assets are as follows (in millions):
| Pension Benefits
| Qualified |  | Non-Qualified
| 2020 |  | 2019 |  | 2020 |  | 2019
Projected benefit obligation | $ | — |  |  | $ | 381 |  |  | $ | 238 |  |  | $ | 239 |
Accumulated benefit obligation | — |  |  | 381 |  |  | 238 |  |  | 239 |
Fair value of plan assets | — |  |  | 364 |  |  | — |  |  | — |
The accumulated benefit obligation for all qualified pension plans was $31 million and $1,478 million at October 3, 2020, and September 28, 2019, respectively. Net Periodic Benefit Cost (Credit) Components of net periodic benefit cost (credit) for pension and postretirement benefit plans recognized in the Consolidated Statements of Income are as follows (in millions):
| Pension Benefits |  | Other Postretirement
| Qualified |  | Non-Qualified |  | Benefits
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Service cost | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1 |  |  | $ | 7 |  |  | $ | 2 |  |  | $ | 2 |  |  | $ | 1 |
Interest cost | 14 |  |  | 56 |  |  | 55 |  |  | 8 |  |  | 9 |  |  | 8 |  |  | 1 |  |  | 1 |  |  | 1 |
Expected return on plan assets | (17) |  |  | (57) |  |  | (62) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Amortization of prior service cost | — |  |  | — |  |  | 1 |  |  | 1 |  |  | 1 |  |  | 1 |  |  | (6) |  |  | (2) |  |  | (25) |
Recognized actuarial loss (gain), net | — |  |  | (1) |  |  | — |  |  | 3 |  |  | 2 |  |  | 3 |  |  | 4 |  |  | 5 |  |  | (5) |
Recognized settlement loss (gain) | (112) |  |  | 19 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Net periodic benefit cost (credit) | $ | (115) |  |  | $ | 17 |  |  | $ | (6) |  |  | $ | 12 |  |  | $ | 13 |  |  | $ | 19 |  |  | $ | 1 |  |  | $ | 6 |  |  | $ | (28) |
Each of the components other than the service cost component were recorded in the Consolidated Statements of Income in Other, net. As of October 3, 2020, we expect no amounts to be reclassified into earnings within the next 12 months related to net periodic benefit cost (credit) for the qualified pension plans, excluding pending settlements. As of October 3, 2020, the amounts expected to be reclassified into earnings within the next 12 months related to net periodic benefit cost (credit) for the non-qualified pension plans and the other postretirement benefit plans are not significant. Assumptions Weighted average assumptions are as follows:
| Pension Benefits |  | Other Postretirement
| Qualified |  | Non-Qualified |  | Benefits
| 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018 |  | 2020 |  | 2019 |  | 2018
Discount rate to determine net periodic benefit cost | 3.23 | % |  | 4.26 | % |  | 3.85 | % |  | 3.19 | % |  | 4.31 | % |  | 3.88 | % |  | 2.68 | % |  | 3.99 | % |  | 3.39 | %
Discount rate to determine benefit obligations | 1.70 | % |  | 3.23 | % |  | 4.26 | % |  | 2.63 | % |  | 3.16 | % |  | 4.31 | % |  | 1.95 | % |  | 2.68 | % |  | 4.11 | %
Rate of compensation increase | n/a |  | n/a |  | n/a |  | n/a |  | n/a |  | 2.53 | % |  | n/a |  | n/a |  | n/a
Expected return on plan assets | 3.50 | % |  | 3.50 | % |  | 4.20 | % |  | n/a |  | n/a |  | n/a |  | n/a |  | n/a |  | n/a
To determine the expected return on plan assets assumption, we first examined historical rates of return for the various asset classes within the plans. We then determined a long-term projected rate-of-return based on expected returns. Our discount rate assumptions used to account for pension and other postretirement benefit plans reflect the rates at which the benefit obligations could be effectively settled. The discount rates for two of our plans that were settled in fiscal 2020 were determined using a composite rate comprised of an annuity purchase rate and a lump sum conversion discount rate based on the portions of the populations that were purchased under the annuity contract with the insurance company versus those who elected lump sums, respectively. The discount rates for our other plans were determined using a cash flow matching technique whereby the rates of a yield curve, developed from high-quality debt securities, were applied to the benefit obligations to determine the appropriate discount rate. For all periods presented, all pension and other postretirement benefit plans used the RP-2014 mortality tables. We have eight other postretirement benefit plans, of which five are healthcare and life insurance related. Two of these plans, with benefit obligations totaling $16 million at October 3, 2020, were not impacted by healthcare cost trend rates as one consists of fixed annual payments and one is life insurance related. One of the healthcare plans, with benefit obligations less than $1 million at October 3, 2020, was not impacted by healthcare cost trend rates due to previous plan amendments. The remaining two plans, with benefit obligations totaling $8 million and $3 million, at October 3, 2020, utilized assumed healthcare cost trend rates of 7.0% and 6.8%, respectively. The healthcare cost trend rates will be grading down to an ultimate rate of 4.5% and 5.0%, respectively in 2027. A one-percentage-point change in assumed health-care cost trend rates would not have a significant effect on the postretirement benefit obligation. Plan Assets The asset allocation for domestic pension plan assets at October 3, 2020 was 100% cash due to the intent to terminate the remaining domestic qualified pension plan in the next year. Additionally, one of our foreign subsidiary pension plans had $32 million in plan assets held in an insurance trust at October 3, 2020. At October 3, 2020, 7% of plan assets were held in cash and cash equivalents (Level 1) and 93% were held in an insurance trust (Level 3). At September 28, 2019, 36% of plan assets were held in cash and cash equivalents (Level 1), 61% in corporate and municipal bonds (Level 2) and 3% were held in an insurance trust (Level 3). Contributions Our policy is to fund at least the minimum contribution required to meet applicable federal employee benefit and local tax laws. In our sole discretion, we may from time to time fund additional amounts. Expected contributions to pension plans for fiscal 2021 are approximately $13 million. For fiscal 2020, 2019 and 2018, we funded $19 million, $13 million and $29 million, respectively, to pension plans. Estimated Future Benefit Payments The following benefit payments are expected to be paid (in millions):
| Pension Benefits |  | Other Postretirement
| Qualified |  | Non-Qualified |  | Benefits
2021 | $ | — |  |  | $ | 12 |  |  | $ | 4 |
2022 | — |  |  | 12 |  |  | 3 |
2023 | — |  |  | 13 |  |  | 3 |
2024 | 2 |  |  | 13 |  |  | 3 |
2025 | 1 |  |  | 13 |  |  | 3 |
2026-2030 | 3 |  |  | 63 |  |  | 10 |
The above benefit payments for other postretirement benefit plans are not expected to be offset by Medicare Part D subsidies in fiscal 2021. Multi-Employer Plans Additionally, we participate in three multi-employer plans that provide defined benefits to certain team members covered by collective bargaining agreements. Such plans are usually administered by a board of trustees composed of the management of the participating companies and labor representatives. The risks of participating in multi-employer plans are different from single-employer plans. Assets contributed to the multi-employer plan by one employer may be used to provide benefits to team members of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligation of the plan may be borne by the remaining participating employers. If we stop participating in a plan, we may be required to pay that plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The net pension cost of the plans is equal to the annual contributions determined in accordance with the provisions of negotiated labor contracts. Contributions to the plans were $1 million in fiscal 2020 and $2 million in fiscal 2019. Assets contributed to such plans are not segregated or otherwise restricted to provide benefits only to our team members. The future cost of the plans is dependent on a number of factors including the funded status of the plans and the ability of the other participating companies to meet ongoing funding obligations. Our participation in these multi-employer plans for fiscal 2020 is outlined below. The EIN/Pension Plan Number column provides the Employer Identification Number (“EI”) and the three-digit plan number. Unless otherwise noted, the most recent Pension Protection Act (“PPA”) zone status available in fiscal 2020 and fiscal 2019 is for the plan's year beginning January 1, 2020, and 2019, respectively. The zone status is based on information that we have received from the plan and is certified by the plan's actuaries. Among other factors, plans in the red zone are generally less than 65 percent funded. Plans that are critical and declining status are projected to have an accumulated funding deficiency. The FIP/RP Status column indicates plans for which a financial improvement plan (“FIP”) or rehabilitation plan (“RP”) is either pending or has been implemented. The last column lists the expiration date of the collective-bargaining agreements to which the plan is subject. During fiscal 2019, as part of our acquisition of Keystone Foods, we acquired an interest in four multi-employer plans. Our interest in two of these plans was subsequently disposed of in conjunction with the divestiture of a chicken further processing facility acquired during the Keystone Foods acquisition. See Note 3: Acquisitions and Divestitures for additional information on these transactions. Additionally, during fiscal 2019, we initiated our withdrawal from the Retail, Wholesale and Department Store International Union and Industry Pension Fund (“RWDSU Fund”). As a result of our withdrawal from the RWDSU Fund, we recorded a $15 million termination liability. We received the withdrawal letter from the RWDSU fund during fiscal 2020 and reduced the termination liability accordingly to $10 million. Subsequently during fiscal 2020, we initiated our withdrawal from the Pension Fund of Local 227. As a result of our withdrawal from the Pension Fund of Local 227, we recorded a $1 million termination liability. In addition to regular contributions, we could be obligated to pay additional contributions (known as complete or partial withdrawal liabilities) if it has unfunded vested benefits.
|  |  | PPA Zone Status |  | FIP/RP Status |  | Contributions (in millions) |  | Surcharge Imposed |  |
Pension Fund Plan Name | EIN/Pension Plan Number |  | 2020 |  | 2019 |  | Implemented | 2020 | 2019 | 2018 |  | 2020 |  | Expiration Date of Collective Bargaining Agreement(a)
Bakery and Confectionery Union and Industry International Pension Fund | 52-6118572/001 |  | Red |  | Red |  | Nov 2012 |  | $1 | $1 | $2 |  | 10% |  | 2015-10-10
Pension Fund of Local 227 | 61-6054018/001 |  | Green |  | Green |  | n/a |  | $— | $0.2 | n/a |  | None |  | 2023-11-08
Retail, Wholesale and Department Store International Union and Industry Pension Fund | 63-0708442/001 |  | Red |  | Red |  | Nov 2015 |  | $— | $0.5 | n/a |  | 9% |  | 2021-11-07
(a) Renewal negotiations for the Bakery and Confectionery Union and Industry International Pension Fund are in progress.

X
- References No definition available. + Details
Name: | us-gaap_GeneralDiscussionOfPensionAndOtherPostretirementBenefitsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for retirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 55 -Paragraph 17 -URI http://asc.fasb.org/extlink&oid=118257860&loc=d3e4179-114921 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section S99 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=21916913&loc=d3e273930-122802 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(i) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (o) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (p) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 3 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39689-114964 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iv)(03) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (q) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(1) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(iii) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (l) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (r)(2) -URI http://asc.fasb.org/extlink&oid=118255775&loc=d3e1928-114920 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration