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Pension and Other Post-retirement Benefits (Tables) | 12 Months Ended
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Oct. 25, 2015
Pension and Other Post-retirement Benefits |
Schedule of net periodic cost of defined benefit plans |
| Pension Benefits | Post-retirement Benefits
(in thousands) | 2015 | 2014 | 2013 | 2015 | 2014 | 2013
Service cost | $ 28,795 | $ 25,935 | $ 30,979 | $ 1,795 | $ 1,963 |  | $ 2,494
Interest cost | 52,522 | 53,030 | 47,688 | 13,479 | 15,279 |  | 14,910
Expected return on plan assets | (88,792) | (83,702) | (73,144) | – | – |  | –
Amortization of prior service cost | (4,878) | (4,971) | (5,079) | (1,337) | (1,337) |  | (1,332)
Recognized actuarial loss (gain) | 18,476 | 12,697 | 34,019 | (2) | (2) |  | 7,719
Curtailment charge | – | – | 6 | – | – |  | –
Net periodic cost | $ 6,123 | $ 2,989 | $ 34,469 | $ 13,935 | $ 15,903 |  | $ 23,791
Schedule of amounts that have not been recognized in net periodic pension cost and are included in accumulated other comprehensive loss |
(in thousands) | Pension Benefits | Post-retirement Benefits
2015 | 2014 | 2015 | 2014
Unrecognized prior service credit |  | $ 32,490 |  | $ 37,368 |  | $ 2,844 |  | $ 4,180
Unrecognized actuarial losses |  | (360,949) |  | (343,398) |  | (40,590) |  | (30,250)
Schedule of amounts that are expected to be recognized in net periodic benefit expense in fiscal year 2016 | The following amounts are expected to be recognized in net periodic benefit expense in fiscal year 2016:
|  | Post-
| Pension | retirement
(in thousands) | Benefits | Benefits
Amortized prior service credit | $ (4,878) | $ (1,337)
Recognized actuarial losses | 18,693 | 1,303
Schedule of reconciliation of the beginning and ending balances of the benefit obligation, the fair value of plan assets, and the funded status of the plans |
| Pension Benefits | Post-retirement Benefits
(in thousands) | 2015 | 2014 | 2015 | 2014
Change in benefit obligation: |  |  |  |
Benefit obligation at beginning of year | $ 1,235,769 | $ 1,098,060 | $ 330,841 | $ 334,447
Service cost | 28,795 | 25,935 | 1,795 | 1,963
Interest cost | 52,522 | 53,030 | 13,479 | 15,279
Actuarial (gain) loss | (16,872) | 108,047 | 10,339 | 927
Employee contributions | – | – | 2,798 | 2,715
Medicare Part D subsidy | – | – | 1,313 | 1,941
Benefits paid | (52,005) | (49,303) | (26,021) | (26,431)
Benefit obligation at end of year | $ 1,248,209 | $ 1,235,769 | $ 334,544 | $ 330,841
| Pension Benefits | Post-retirement Benefits
(in thousands) | 2015 | 2014 | 2015 | 2014
Change in plan assets: |  |  |  |
Fair value of plan assets at beginning of year | $ 1,168,765 | $ 1,087,315 | $ – | $ –
Actual return on plan assets | 35,870 | 101,025 | – | –
Employee contributions | – | – | 2,798 | 2,715
Employer contributions | 27,147 | 29,728 | 23,223 | 23,716
Benefits paid | (52,005) | (49,303) | (26,021) | (26,431)
Fair value of plan assets at end of year | $ 1,179,777 | $ 1,168,765 | $ – | $ –
Funded status at end of year | $ (68,432) | $ (67,004) | $ (334,544) | $ (330,841)
Schedule of amounts recognized in the Consolidated Statements of Financial Position |
| Pension Benefits | Post-retirement Benefits
(in thousands) | 2015 | 2014 | 2015 | 2014
Pension assets | $ 132,861 | $ 130,284 | $ – | $ –
Employee related expenses | (4,931) | (4,532) | (21,645) | (20,904)
Pension and post-retirement benefits | (196,362) | (192,756) | (312,899) | (309,937)
Net amount recognized | $ (68,432) | $ (67,004) | $ (334,544) | $ (330,841)
Schedule of information for pension plans with accumulated benefit obligations in excess of plan assets |
(in thousands) | 2015 | 2014
Projected benefit obligation | $ 201,293 | $ 197,288
Accumulated benefit obligation | 193,913 | 186,085
Fair value of plan assets | – | –
Schedule of weighted-average assumptions used to determine benefit obligations and net periodic benefit costs | Weighted-average assumptions used to determine benefit obligations are as follows:
| 2015 | 2014
Discount rate | 4.50% | 4.31%
Rate of future compensation increase |  |
(for plans that base benefits on final compensation level) | 3.92% | 3.94%
Weighted-average assumptions used to determine net periodic benefit costs are as follows:
| 2015 | 2014 | 2013
Discount rate | 4.31% | 4.89% | 4.05%
Rate of future compensation increase (for plans that base benefits on final compensation level) | 3.94% | 3.91% | 3.97%
Expected long-term return on plan assets | 7.70% | 7.80% | 7.90%
Schedule of effects of one-percentage-point change in assumed discount rate, expected long-term rate of return on plan assets, rate of future compensation increase, and health care cost trend rate |
| 1-Percentage-Point
| Expense | Benefit Obligation
(in thousands) | Increase | Decrease | Increase | Decrease
Pension Benefits: |  |  |  |
Discount rate | $ (12,892) | $ 16,810 | $ (157,394) | $ 197,869
Expected long-term rate of return on plan assets | (11,629) | 11,629 | – | –
Rate of future compensation increase | 461 | (442) | 2,504 | (2,417)
Post-retirement Benefits: |  |  |  |
Discount rate | $ (64) | $ 5,035 | $ (33,462) | $ 40,619
Health care cost trend rate | 1,749 | (1,451) | 38,194 | (31,112)
Schedule of actual and target weighted-average asset allocations for pension plan assets |
| 2015 | 2014
Asset Category | Actual | Target Range | Actual | Target Range
Large Capitalization Equity | 38.8% | 15-35% | 33.0% | 15-35%
Small Capitalization Equity | 5.4% | 5-15% | 6.0% | 5-15%
International Equity | 14.0% | 15-25% | 20.8% | 15-25%
Private Equity | 6.1% | 0-15% | 5.0% | 0-15%
Total Equity Securities | 64.3% | 50-75% | 64.8% | 55-75%
Fixed Income | 34.3% | 25-45% | 34.0% | 25-45%
Real Estate | – | 0-10% | – | –
Cash and Cash Equivalents | 1.4% | – | 1.2% | –
Schedule of benefits expected to be paid over the next ten fiscal years |
|  | Post-
| Pension | retirement
(in thousands) | Benefits | Benefits
2016 | $ 53,515 | $ 22,113
2017 | 55,661 | 22,441
2018 | 58,010 | 22,612
2019 | 60,934 | 22,711
2020 | 63,916 | 22,621
2021 – 2025 | 361,518 | 108,832
Schedule of fair values of the defined benefit pension plan investments |
| Fair Value Measurements at October 25, 2015
|  | Quoted Prices |  |
|  | in Active | Significant Other | Significant
|  | Markets for | Observable | Unobservable
| Total | Identical Assets | Inputs | Inputs
(in thousands) | Fair Value | (Level 1) | (Level 2) | (Level 3)
Investments at Fair Value: |  |  |  |
Cash Equivalents(1) |  | $ 16,551 |  | $ 16,551 |  | $ – |  | $ –
Large Capitalization Equity(2) |  |  |  |
Domestic |  | $ 300,735 |  | $ 175,206 |  | $ 125,529 |  | $ –
Foreign | 36,637 | 36,637 | – | –
World | 120,206 | – | 120,206 | –
Total Large Capitalization Equity |  | $ 457,578 |  | $ 211,843 |  | $ 245,735 |  | $ –
Small Capitalization Equity(3) |  |  |  |
Domestic |  | $ 55,513 |  | $ 55,513 |  | $ – |  | $ –
Foreign | 8,246 | 8,246 | – | –
Total Small Capitalization Equity |  | $ 63,759 |  | $ 63,759 |  | $ – |  | $ –
International Equity(4) |  |  |  |
Mutual fund |  | $ 101,062 |  | $ – |  | $ 101,062 |  | $ –
Collective trust | 63,861 | – | 63,861 | –
Total International Equity |  | $ 164,923 |  | $ – |  | $ 164,923 |  | $ –
Private Equity(5) |  |  |  |
Domestic |  | $ 54,748 |  | $ – |  | $ – |  | $ 54,748
International | 17,027 | – | – | 17,027
Total Private Equity |  | $ 71,775 |  | $ – |  | $ – |  | $ 71,775
Total Equity |  | $ 758,035 |  | $ 275,602 |  | $ 410,658 |  | $ 71,775
Fixed Income(6) |  |  |  |
US government issues |  | $ 130,456 |  | $ 104,460 |  | $ 25,996 |  | $ –
Municipal issues | 20,211 | – | 20,211 | –
Corporate issues – domestic | 210,035 | – | 210,035 | –
Corporate issues – foreign | 44,489 | – | 44,489 | –
Total Fixed Income |  | $ 405,191 |  | $ 104,460 |  | $ 300,731 |  | $ –
Total Investments at Fair Value |  | $ 1,179,777 |  | $ 396,613 |  | $ 711,389 |  | $ 71,775
| Fair Value Measurements at October 26, 2014
|  | Quoted Prices |  |
|  | in Active | Significant Other | Significant
|  | Markets for | Observable | Unobservable
| Total | Identical Assets | Inputs | Inputs
(in thousands) | Fair Value | (Level 1) | (Level 2 | (Level 3)
Investments at Fair Value: |  |  |  |
Cash Equivalents(1) |  | $ 14,342 |  | $ 14,342 |  | $ – |  | $ –
Large Capitalization Equity(2) |  |  |  |
Domestic |  | $ 351,195 |  | $ 196,977 |  | $ 154,218 |  | $ –
Foreign | 34,126 | 34,126 | – | –
Total Large Capitalization Equity |  | $ 385,321 |  | $ 231,103 |  | $ 154,218 |  | $ –
Small Capitalization Equity(3) |  |  |  |
Domestic |  | $ 62,521 |  | $ 62,521 |  | $ – |  | $ –
Foreign | 8,031 | 8,031 | – | –
Total Small Capitalization Equity |  | $ 70,552 |  | $ 70,552 |  | $ – |  | $ –
International Equity(4) |  |  |  |
Mutual fund |  | $ 69,393 |  | $ – |  | $ 69,393 |  | $ –
Collective trust | 173,008 | – | 173,008 | –
Total International Equity |  | $ 242,401 |  | $ – |  | $ 242,401 |  | $ –
Private Equity(5) |  |  |  |
Domestic |  | $ 43,340 |  | $ – |  | $ – |  | $ 43,340
International | 15,383 | – | – | 15,383
Total Private Equity |  | $ 58,723 |  | $ – |  | $ – |  | $ 58,723
Total Equity |  | $ 756,997 |  | $ 301,655 |  | $ 396,619 |  | $ 58,723
Fixed Income(6) |  |  |  |
US government issues |  | $ 126,894 |  | $ 96,199 |  | $ 30,695 |  | $ –
Municipal issues | 20,232 | – | 20,232 | –
Corporate issues – domestic | 212,299 | – | 212,299 | –
Corporate issues – foreign | 38,001 | – | 38,001 | –
Total Fixed Income |  | $ 397,426 |  | $ 96,199 |  | $ 301,227 |  | $ –
Total Investments at Fair Value |  | $ 1,168,765 |  | $ 412,196 |  | $ 697,846 |  | $ 58,723
The following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments pursuant to the valuation hierarchy:
| (1) |  | Cash Equivalents: These Level 1 investments consist primarily of money market mutual funds that are highly liquid and traded in active markets.
| (2) |  | Large Capitalization Equity: The Level 1 investments include a mix of predominately U.S. common stocks and foreign common stocks, which are valued at the closing price reported on the active market in which the individual securities are traded. The Level 2 investment includes mutual funds consisting of a mix of U.S. and foreign common stocks that are valued at the publicly available net asset value (NAV) of shares held by the pension plans at year end.
| (3) |  | Small Capitalization Equity: The Level 1 investments include a mix of predominately U.S. common stocks and foreign common stocks, which are valued at the closing price reported on the active market in which the individual securities are traded.
| (4) |  | International Equity: These Level 2 investments include a mix of collective investment funds and mutual funds. The mutual funds are valued at the publicly available NAV of shares held by the pension plans at year end. The value of the collective investment funds is based on the fair value of the underlying investments and the NAV can be calculated for these funds.
| (5) |  | Private Equity: These Level 3 investments consist of various collective investment funds, which are managed by a third party, that invest in a well-diversified portfolio of equity investments from top performing, high quality firms that focus on U.S. and foreign small to mid-markets, venture capitalists, and entrepreneurs with a concentration in areas of innovation. Investment strategies include buyouts, growth capital, buildups, and distressed, as well as early stages of company development mainly in the U.S. The fair value of the units for these investments is based on the fair value of the underlying investments, and the NAV can be calculated for these funds.
| (6) |  | Fixed Income: The Level 1 investments include U.S. Treasury bonds and notes, which are valued at the closing price reported on the active market in which the individual securities are traded. The Level 2 investments consist principally of U.S. government securities, which are valued daily using institutional bond quote sources and mortgage-backed securities pricing sources; municipal, domestic, and foreign securities, which are valued daily using institutional bond quote sources; and mutual funds invested in long-duration corporate bonds that are valued at the publicly available NAV of shares held by the pension plans at year-end.
Schedule of reconciliation of the beginning and ending balance of the investments measured at fair value using significant unobservable inputs (Level 3) |
(in thousands) | 2015 | 2014
Beginning Balance | $ 58,723 | $ 45,783
Purchases, issuances, and settlements (net) | (3,574) | 3,050
Unrealized gains | 7,741 | 4,260
Realized gains | 7,623 | 4,479
Interest and dividend income | 1,262 | 1,151
Ending Balance | $ 71,775 | $ 58,723
Schedule of unfunded private equity commitment balance for each investment category |
(in thousands) | 2015 | 2014
Domestic equity | $ 9,264 | $ 17,659
International equity | 9,514 | 12,640
Unfunded commitment balance | $ 18,778 | $ 30,299

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