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Pension and Other Post-retirement Benefits (Tables) | 12 Months Ended
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Oct. 29, 2017
Pension and Other Post-retirement Benefits |
Schedule of net periodic cost of defined benefit plans |
| Pension Benefits | Post-retirement Benefits
(in thousands) | 2017 | 2016 | 2015 | 2017 | 2016 | 2015
Service cost | $ 30,256 | $ 26,951 | $ 28,795 | $ 1,106 | $ 1,297 | $ 1,795
Interest cost | 54,263 | 55,728 | 52,522 | 11,630 | 13,346 | 13,479
Expected return on plan assets | (90,936) | (88,681) | (88,792) | – | – | –
Amortization of prior service cost | (3,000) | (4,120) | (4,878) | (4,274) | (4,282) | (1,337)
Recognized actuarial loss (gain) | 26,166 | 20,318 | 18,476 | 2,424 | 1,617 | (2)
Curtailment (gain) charge | – | (4,438) | – | – | – | –
Net periodic cost | $ 16,749 | $ 5,758 | $ 6,123 | $ 10,886 | $ 11,978 | $ 13,935
Schedule of amounts that have not been recognized in net periodic pension cost and are included in accumulated other comprehensive loss |
| Pension Benefits | Post-retirement Benefits
(in thousands) | 2017 | 2016 | 2017 | 2016
Unrecognized prior service credit | $ 10,565 | $ 17,049 | $ 4,585 | $ 13,845
Unrecognized actuarial losses | (380,114) | (464,091) | (30,857) | (44,258)
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 2018:
(in thousands) | Pension Benefits | Post- retirement Benefits
Amortized prior service credit | $ (2,468) | $ (2,842)
Recognized actuarial losses | 18,165 | 179
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) | 2017 | 2016 | 2017 | 2016
Change in benefit obligation |  |  |  |
Benefit obligation at beginning of year | $ 1,394,870 | $ 1,248,209 | $ 317,472 | $ 334,544
Service cost | 30,256 | 26,951 | 1,106 | 1,297
Interest cost | 54,263 | 55,728 | 11,630 | 13,346
Actuarial loss (gain) | 35,379 | 112,208 | (10,977) | 5,285
Plan amendments | 3,483 | 6,884 | 4,986 | (15,283)
Curtailment (gain) loss | – | (674) | – | –
Participant contributions | – | – | 2,661 | 2,959
Medicare Part D subsidy | – | – | 1,355 | 2,090
Benefits paid | (58,153) | (54,436) | (23,550) | (26,766)
Benefit obligation at end of year | $ 1,460,098 | $ 1,394,870 | $ 304,683 | $ 317,472
| Pension Benefits | Post-retirement Benefits
(in thousands) | 2017 | 2016 | 2017 | 2016
Change in plan assets |  |  |  |
Fair value of plan assets at beginning of year | $ 1,232,626 | $ 1,179,777 | $ – | $ –
Actual return on plan assets | 184,126 | 76,756 | – | –
Participant contributions | – | – | 2,661 | 2,959
Employer contributions | 21,354 | 30,529 | 20,889 | 23,807
Benefits paid | (58,153) | (54,436) | (23,550) | (26,766)
Fair value of plan assets at end of year | $ 1,379,953 | $ 1,232,626 | $ – | $ –
Funded status at end of year | $ (80,145) | $ (162,244) | $ (304,683) | $ (317,472)
Schedule of amounts recognized in the Consolidated Statements of Financial Position |
| Pension Benefits | Post-retirement Benefits
(in thousands) | 2017 | 2016 | 2017 | 2016
Pension assets | $ 171,990 | $ 68,901 | $ – | $ –
Employee-related expenses | (5,957) | (5,425) | (20,612) | (20,836)
Pension and post-retirement benefits | (246,178) | (225,720) | (284,071) | (296,636)
Net amount recognized | $ (80,145) | $ (162,244) | $ (304,683) | $ (317,472)
Schedule of information for pension plans with accumulated benefit obligations in excess of plan assets |
(in thousands) | 2017 | 2016
Projected benefit obligation | $ 252,136 | $ 231,145
Accumulated benefit obligation | 247,687 | 225,364
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:
| 2017 | 2016
Discount rate | 3.91% | 3.94%
Rate of future compensation increase (for plans that base benefits on final compensation level) | 3.95% | 3.96%
Weighted-average assumptions used to determine net periodic benefit costs are as follows:
| 2017 | 2016 | 2015
Discount rate | 3.94% | 4.50% | 4.31%
Rate of future compensation increase (for plans that base benefits on final compensation level) | 3.96% | 3.92% | 3.94%
Expected long-term return on plan assets | 7.50% | 7.60% | 7.70%
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 | $ (13,582) | $ 17,240 | $ (188,947) | $ 238,709
Expected long-term rate of return on plan assets | (13,574) | 13,574 | – | –
Rate of future compensation increase | 3,521 | (3,102) | 3,131 | (2,774)
Post-retirement benefits |  |  |  |
Discount rate | $ 1,183 | $ 4,414 | $ (28,891) | $ 34,829
Health care cost trend rate | 1,386 | (1,187) | 31,157 | (26,649)
Schedule of benefits expected to be paid over the next ten fiscal years |
(in thousands) | Pension Benefits | Post- retirement Benefits
2018 | $ 60,374 | $ 21,003
2019 | 62,903 | 21,038
2020 | 65,920 | 20,813
2021 | 68,794 | 20,779
2022 | 71,836 | 20,664
2023-2027 | 414,167 | 97,888
Schedule of actual and target weighted-average asset allocations for pension plan assets |
| 2017 | 2016
Asset Category | Actual % | Target Range % | Actual % | Target Range %
Large capitalization equity | 22.1 | 12-22 | 21.7 | 12-22
Small capitalization equity | 5.4 | 3-13 | 5.2 | 3-13
International equity | 15.1 | 10-20 | 13.7 | 10-20
Global equity | 12.0 | 5-20 | 10.5 | 5-20
Private equity | 5.4 | 0-15 | 5.5 | 0-15
Total equity securities | 60.0 | 50-75 | 56.6 | 50-75
Fixed income | 33.5 | 25-45 | 36.4 | 25-45
Real estate | 5.0 | 0-10 | 5.0 | 0-10
Cash and cash equivalents | 1.5 | – | 2.0 | –
Schedule of categories of defined benefit pension plan assets and the level under which fair values were determined in the fair value hierarchy |
| Fair Value Measurements as of October 29, 2017
(in thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3)
Plan assets in fair value hierarchy |  |  |  |
Cash equivalents(1) | $ 21,653 | $ 21,653 | $ – | $ –
Large capitalization equity(2) |  |  |  |
Domestic | 189,536 | 189,536 | – | –
Foreign | 47,069 | 47,069 | – | –
Small capitalization equity(3) |  |  |  |
Domestic | 64,448 | 64,448 | – | –
Foreign | 9,486 | 9,486 | – | –
Private equity(4) |  |  |  |
Domestic | 53,652 | – | – | 53,652
International | 20,552 | – | – | 20,552
Fixed income(5) |  |  |  |
US government issues | 159,690 | 154,977 | 4,713 | –
Municipal issues | 21,002 | – | 21,002 | –
Corporate issues – domestic | 228,753 | – | 228,753 | –
Corporate issues – foreign | 52,610 | – | 52,610 | –
Plan assets in fair value hierarchy | $ 868,451 | $ 487,169 | $ 307,078 | $ 74,204
Plan assets at net asset value |  |  |  |
Large capitalization equity – domestic(6) | $ 68,579 |  |  |
International equity – mutual fund(7) | 123,608 |  |  |
International equity – collective trust(8) | 85,317 |  |  |
Global equity – mutual fund(9) | 165,138 |  |  |
Real estate – domestic(10) | 68,860 |  |  |
Plan assets at net asset value | $ 511,502 |  |  |
Total plan assets at fair value | $ 1,379,953 |  |  |
| Fair Value Measurements as of October 29, 2017
(in thousands) | Total Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3)
Plan assets in fair value hierarchy |  |  |  |
Cash equivalents(1) | $ 24,412 | $ 24,412 | $ – | $ –
Large capitalization equity(2) |  |  |  |
Domestic | 156,495 | 156,495 | – | –
Foreign | 32,795 | 32,795 | – | –
Small capitalization equity(3) |  |  |  |
Domestic | 52,599 | 52,599 | – | –
Foreign | 11,173 | 11,173 | – | –
Private equity(4) |  |  |  |
Domestic | 54,613 | – | – | 54,613
International | 13,489 | – | – | 13,489
Fixed income(5) |  |  |  |
US government issues | 153,333 | 126,673 | 26,660 | –
Municipal issues | 21,451 | – | 21,451 | –
Corporate issues – domestic | 224,963 | – | 224,963 | –
Corporate issues – foreign | 48,328 | – | 48,328 | –
Plan assets in fair value hierarchy | $ 793,651 | $ 404,147 | $ 321,402 | $ 68,102
Plan assets at net asset value |  |  |  |
Large capitalization equity – domestic(6) | $ 78,138 |  |  |
International equity – mutual fund(7) | 99,635 |  |  |
International equity – collective trust(8) | 69,184 |  |  |
Global equity – mutual fund(9) | 129,014 |  |  |
Real estate – domestic(10) | 63,004 |  |  |
Plan assets at net asset value | $ 438,975 |  |  |
Total plan assets at fair value | $ 1,232,626 |  |  |
The following is a description of the valuation methodologies used for instruments measured at fair value, including the general classification of such instruments:
| (1) |  | Cash Equivalents: These Level 1 investments consist primarily of highly liquid money market mutual funds 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.
| (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) |  | Private Equity: These Level 3 investments consist of various collective investment funds, which are managed by a third party, invested in a well-diversified portfolio of equity investments from top performing, high quality firms focused 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.
| (5) |  | 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 and municipal, domestic, and foreign securities, which are valued daily using institutional bond quote sources.
| (6) |  | Large Capitalization Equity – Domestic: The collective investment is valued at the publicly available NAV of shares held by the Master Trust at year end. The investment objective is to maintain a portfolio of equity securities that approximate the weighted total rate of return within the Standard & Poor’s 500 stock index. There are no restrictions on redemptions.
| (7) |  | International Equity – Mutual Funds: The mutual funds are valued at the publicly available NAV of shares held by the Master Trust at year end. The investment seeks long term growth of principal and income by investing in medium to large well established companies. There are no restrictions on redemptions.
| (8) |  | International Equity – Collective Trust: The collective investment funds are valued at the NAV of shares held by the Master Trust at year end. The investment objective of this fund is to generate a long term return through investments in quoted international equities. Redemptions can be made on a monthly basis as of the first business day of each month.
| (9) |  | Global Equity – Mutual Fund: This investment includes an open-ended mutual fund consisting of a mix of U.S. common stocks and foreign common stocks, which is valued at the publicly available NAV of shares held by the Master Trust at year end. The investment strategy is to obtain long term capital appreciation by focusing on companies generating above average earnings growth and are leading growth businesses in the marketplace. There are no restrictions on redemptions.
| (10) |  | Real Estate: These investments include ownership in open-ended real estate funds, which manage diversified portfolios of commercial properties within the office, residential, retail, and industrial property sectors. Investment strategies aim to acquire, own, hold, or dispose of investments with the goal of achieving current income and/or capital appreciation. The real estate investments are valued at the NAV of shares held by the Master Trust. Requests to redeem shares are granted on a quarterly basis with either 45 or 90 days advance notice, subject to availability of cash.
Schedule of reconciliation of the beginning and ending balance of the investments measured at fair value using significant unobservable inputs (Level 3) |
(in thousands) | 2017 | 2016
Beginning balance | $ 68,102 | $ 71,775
Purchases, issuances, and settlements (net) | (8,630) | (7,109)
Unrealized (losses) gains | (2,251) | (6,903)
Realized gains | 15,560 | 4,276
Interest and dividend income | 1,423 | 6,063
Ending balance | $ 74,204 | $ 68,102
Schedule of unfunded private equity commitment balance for each investment category |
(in thousands) | 2017 | 2016
Domestic equity | $ 1,585 | $ 4,696
International equity | 41,076 | 7,873
Unfunded commitment balance | $ 42,661 | $ 12,569

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- Definition Tabular disclosure of accumulated benefit obligations and fair values of plan assets of pension plans and/or other employee benefit plans where the accumulated benefit obligation exceeds the fair value of plan assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 3 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e2417-114920 + Details
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- Definition Tabular disclosure of the amounts that are recognized in the balance sheet (or statement of financial position) for pension plans and/or other employee benefit plans, showing separately the assets and current and noncurrent liabilities (if applicable) recognized. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=82843861&loc=d3e1928-114920 + Details
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