XML 41 R23.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Benefit Plans | 12 Months Ended
--- | ---
Dec. 26, 2015
Benefit Plans [Abstract] |
Benefit Plans | Note 14 – Benefit Plans Pension and Other Postretirement Plans The Company sponsors several qualified and nonqualified pension plans and other postretirement benefit plans for certain employees. The following tables provide a reconciliation of the changes in the plans' benefit obligations and the fair value of the plans' assets for 2015 and 2014, and a statement of the plans' aggregate funded status:
|  | Pension Benefits |  |  | Other Benefits |
(In thousands) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Change in benefit obligation: |  |  |  |  |  |  |  |  |  |  |  |
Obligation at beginning of year |  | $ | 207,738 |  |  | $ | 184,058 |  |  | $ | 19,307 |  |  | $ | 15,381 |
Service cost |  |  | 803 |  |  |  | 973 |  |  |  | 363 |  |  |  | 348 |
Interest cost |  |  | 8,032 |  |  |  | 8,590 |  |  |  | 1,005 |  |  |  | 685 |
Actuarial (gain) loss |  |  | (9,163 | ) |  |  | 30,138 |  |  |  | 270 |  |  |  | 4,272 |
Plan amendments |  |  | — |  |  |  | — |  |  |  | (9,094 | ) |  |  | — |
Business acquisitions |  |  | — |  |  |  | — |  |  |  | 5,655 |  |  |  | — |
Benefit payments |  |  | (10,795 | ) |  |  | (11,064 | ) |  |  | (1,037 | ) |  |  | (1,142 | )
Foreign currency translation adjustment |  |  | (3,854 | ) |  |  | (4,957 | ) |  |  | (626 | ) |  |  | (237 | )
Obligation at end of year |  |  | 192,761 |  |  |  | 207,738 |  |  |  | 15,843 |  |  |  | 19,307 |
Change in fair value of plan assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fair value of plan assets at beginning of year |  |  | 190,016 |  |  |  | 188,870 |  |  |  | — |  |  |  | — |
Actual return on plan assets |  |  | (1,682 | ) |  |  | 12,716 |  |  |  | — |  |  |  | — |
Employer contributions |  |  | 1,513 |  |  |  | 3,275 |  |  |  | 1,037 |  |  |  | 1,142 |
Benefit payments |  |  | (10,795 | ) |  |  | (11,064 | ) |  |  | (1,037 | ) |  |  | (1,142 | )
Foreign currency translation adjustment |  |  | (2,975 | ) |  |  | (3,781 | ) |  |  | — |  |  |  | — |
Fair value of plan assets at end of year |  |  | 176,077 |  |  |  | 190,016 |  |  |  | — |  |  |  | — |
Underfunded status at end of year |  | $ | (16,684 | ) |  | $ | (17,722 | ) |  | $ | (15,843 | ) |  | $ | (19,307 | )
During 2015 the Company amended one of its postretirement benefit plans to remove certain benefits, resulting in a $9.1 million reduction in the obligation. The following represents amounts recognized in AOCI (before the effect of income taxes):
|  | Pension Benefits |  |  | Other Benefits |
(In thousands) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Unrecognized net actuarial loss |  | $ | 48,681 |  |  | $ | 49,830 |  |  | $ | 767 |  |  | $ | 473 |
Unrecognized prior service (credit) cost |  |  | — |  |  |  | — |  |  |  | (9,087 | ) |  |  | 14 |
The Company sponsors one pension plan in the U.K. which comprised 41 and 40 percent of the above benefit obligation at December 26, 2015 and December 27, 2014, respectively, and 35 and 34 percent of the above plan assets at December 26, 2015 and December 27, 2014, respectively. As of December 26, 2015, $3.1 million of the actuarial net loss and $0.9 million of the prior service credit will, through amortization, be recognized as components of net periodic benefit cost in 2016. The aggregate status of all overfunded plans is recognized as an asset and the aggregate status of all underfunded plans is recognized as a liability in the Consolidated Balance Sheets. The amounts recognized as a liability are classified as current or long-term on a plan-by-plan basis. Liabilities are classified as current to the extent the actuarial present value of benefits payable within the next 12 months exceeds the fair value of plan assets, with all remaining amounts being classified as long-term. As of December 26, 2015 and December 27, 2014, the total funded status of the plans recognized in the Consolidated Balance Sheets was as follows:
|  | Pension Benefits |  |  | Other Benefits |
(In thousands) |  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Long-term asset |  | $ | 765 |  |  | $ | 2,348 |  |  | $ | — |  |  | $ | — |
Current liability |  |  | — |  |  |  | — |  |  |  | (1,221 | ) |  |  | (1,251 | )
Long-term liability |  |  | (17,449 | ) |  |  | (20,070 | ) |  |  | (14,622 | ) |  |  | (18,056 | )
Total underfunded status |  | $ | (16,684 | ) |  | $ | (17,722 | ) |  | $ | (15,843 | ) |  | $ | (19,307 | )
The components of net periodic benefit cost are as follows:
(In thousands) |  | 2015 |  |  | 2014 |  |  | 2013 |
Pension benefits: |  |  |  |  |  |  |  |  |
Service cost |  | $ | 803 |  |  | $ | 973 |  |  | $ | 948 |
Interest cost |  |  | 8,032 |  |  |  | 8,590 |  |  |  | 7,774 |
Expected return on plan assets |  |  | (10,289 | ) |  |  | (13,669 | ) |  |  | (11,059 | )
Amortization of prior service cost |  |  | — |  |  |  | 1 |  |  |  | 1 |
Amortization of net loss |  |  | 2,710 |  |  |  | 752 |  |  |  | 4,005 |
Net periodic benefit cost (income) |  | $ | 1,256 |  |  | $ | (3,353 | ) |  | $ | 1,669 |
Other benefits: |  |  |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 363 |  |  | $ | 348 |  |  | $ | 413 |
Interest cost |  |  | 1,005 |  |  |  | 685 |  |  |  | 647 |
Amortization of prior service cost (credit) |  |  | 6 |  |  |  | 6 |  |  |  | (2 | )
Amortization of net gain |  |  | (28 | ) |  |  | (218 | ) |  |  | (160 | )
Net periodic benefit cost |  | $ | 1,346 |  |  | $ | 821 |  |  | $ | 898 |
The weighted average assumptions used in the measurement of the Company's benefit obligations are as follows:
|  | Pension Benefits |  |  | Other Benefits |
|  | 2015 |  |  | 2014 |  |  | 2015 |  |  | 2014 |
Discount rate |  | 4.02 | % |  | 4.03 | % |  | 4.25 | % |  | 4.33 | %
Expected long-term return on plan assets |  | 5.59 | % |  | 5.58 | % |  | N/A |  |  | N/A |
Rate of compensation increases |  | N/A |  |  | N/A |  |  | 5.00 | % |  | 5.00 | %
Rate of inflation |  | 3.20 | % |  | 3.10 | % |  | N/A |  |  | N/A |
The weighted average assumptions used in the measurement of the Company's net periodic benefit cost are as follows:
|  | Pension Benefits |  |  | Other Benefits |
|  | 2015 |  |  | 2014 |  |  | 2013 |  |  | 2015 |  |  | 2014 |  |  | 2013 |
Discount rate |  | 4.03 | % |  | 4.82 | % |  | 4.13 | % |  | 4.33 | % |  | 4.89 | % |  | 4.06 | %
Expected long-term return on plan assets |  | 5.58 | % |  | 7.40 | % |  | 7.15 | % |  | N/A |  |  | N/A |  |  | N/A |
Rate of compensation increases |  | N/A |  |  | N/A |  |  | N/A |  |  | 5.00 | % |  | 5.50 | % |  | 5.04 | %
Rate of inflation |  | 3.10 | % |  | 3.40 | % |  | 2.70 | % |  | N/A |  |  | N/A |  |  | N/A |
The Company's Mexican postretirement plans use the rate of compensation increase in the benefit formulas. Past service in the U.K. pension plan will be adjusted for the effects of inflation. All other pension and postretirement plans use benefit formulas based on length of service. The annual assumed rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) is assumed to range from 6.8 to 9.0 percent for 2016, gradually decrease to 3.0 percent through 2036, and remain at that level thereafter. The health care cost trend rate assumption does not have a significant effect on the amounts reported. Pension Assets The weighted average asset allocation of the Company's pension fund assets are as follows:
|  | Pension Plan Assets |
Asset category |  | 2015 |  |  | 2014 |
Equity securities (includes equity mutual funds) |  | 51 | % |  | 49 | %
Fixed income securities (includes fixed income mutual funds) |  | 37 |  |  | 4 |
Cash and equivalents (includes money market funds) |  | 9 |  |  | 44 |
Alternative investments |  | 3 |  |  | 3 |
Total |  | 100 | % |  | 100 | %
At December 26, 2015, the long-term target allocation, by asset category, of assets of its defined benefit pension plans was: (i) fixed income securities – at least 60 percent; (ii) equity securities, including equity index funds – not more than 30 percent; and (iii) alternative investments – not more than 5 percent. The pension plan obligations are long-term and, accordingly, the plan assets are invested for the long-term. Plan assets are monitored periodically. Based upon results, investment managers and/or asset classes are redeployed when considered necessary. None of the plans' assets are expected to be returned to the Company during the next fiscal year. The assets of the plans do not include investments in securities issued by the Company. The estimated rates of return on plan assets are the expected future long-term rates of earnings on plan assets and are forward-looking assumptions that materially affect pension cost. Establishing the expected future rates of return on pension assets is a judgmental matter. The Company reviews the expected long-term rates of return on an annual basis and revises as appropriate. The expected long-term rate of return on plan assets was 5.59 percent for 2015 and 5.58 percent in 2014. The Company's investments for its pension plans are reported at fair value. The following methods and assumptions were used to estimate the fair value of the Company's plan asset investments: Cash and money market funds – Valued at cost, which approximates fair value. Common stock – Valued at the closing price reported on the active market on which the individual securities are traded. Mutual funds – Valued at the net asset value of shares held by the plans at December 26, 2015 and December 27, 2014, respectively, based upon quoted market prices. Limited partnerships – Limited partnerships include investments in various Cayman Island multi-strategy hedge funds. The plans' investments in limited partnerships are valued at the estimated fair value of the class shares owned by the plans based upon the equity in the estimated fair value of those shares. The estimated fair values of the limited partnerships are determined by the investment managers. In determining fair value, the investment managers of the limited partnerships utilize the estimated net asset valuations of the underlying investment entities. The underlying investment entities value securities and other financial instruments on a mark-to-market or estimated fair value basis. The estimated fair value is determined by the investment managers based upon, among other things, the type of investments, purchase price, marketability, current financial condition, operating results, and other information. The estimated fair values of substantially all of the investments of the underlying investment entities, which may include securities for which prices are not readily available, are determined by the investment managers or management of the respective underlying investment entities and may not reflect amounts that could be realized upon immediate sale. Accordingly, the estimated fair values may differ significantly from the values that would have been used had a ready market existed for these investments. The following table sets forth by level, within the fair value hierarchy, the assets of the plans at fair value:
| Fair Value Measurements at December 26, 2015 |
(In thousands) | Level 1 |  | Level 2 |  | Level 3 |  | Total |
Cash and money market funds |  |  | $ | 16,632 |  |  |  | $ | — |  |  |  | $ | — |  |  |  | $ | 16,632 |
Common stock (1) |  |  |  | 25,229 |  |  |  |  | — |  |  |  |  | — |  |  |  |  | 25,229 |
Mutual funds (2) |  |  |  | 9,666 |  |  |  |  | 119,960 |  |  |  |  | — |  |  |  |  | 129,626 |
Limited partnerships |  |  |  | — |  |  |  |  | — |  |  |  |  | 4,590 |  |  |  |  | 4,590 |
Total |  |  | $ | 51,527 |  |  |  | $ | 119,960 |  |  |  | $ | 4,590 |  |  |  | $ | 176,077 |
| Fair Value Measurements at December 27, 2014 |
(In thousands) | Level 1 |  | Level 2 |  | Level 3 |  | Total |
Cash and money market funds |  |  | $ | 84,377 |  |  |  | $ | — |  |  |  | $ | — |  |  |  | $ | 84,377 |
Common stock (3) |  |  |  | 26,105 |  |  |  |  | — |  |  |  |  | — |  |  |  |  | 26,105 |
Mutual funds (4) |  |  |  | 11,397 |  |  |  |  | 63,067 |  |  |  |  | — |  |  |  |  | 74,464 |
Limited partnerships |  |  |  | — |  |  |  |  | — |  |  |  |  | 5,070 |  |  |  |  | 5,070 |
Total |  |  | $ | 121,879 |  |  |  | $ | 63,067 |  |  |  | $ | 5,070 |  |  |  | $ | 190,016 |
(1) | Approximately 50 percent of common stock represents investments in U.S. companies primarily in the health care, utilities, financials, consumer staples, industrials, and information technology sectors. All investments in common stock are listed on U.S. stock exchanges. |
(2) | Approximately 67 percent of mutual funds are actively managed funds and approximately 33 percent of mutual funds are index funds. Additionally, 12 percent of the mutual funds' assets are invested in U.S. equities, 38 percent in non-U.S. equities, 46 percent in U.S. fixed income securities, and 4 percent in non-U.S. fixed income securities. |
(3) | Approximately 51 percent of common stock represents investments in U.S. companies primarily in the health care, utilities, financials, consumer staples, industrials, and information technology sectors. All investments in common stock are listed on U.S. stock exchanges. |
(4) | Approximately 40 percent of mutual funds are actively managed funds and approximately 60 percent of mutual funds are index funds. Additionally, 23 percent of the mutual funds' assets are invested in U.S. equities, 67 percent in non-U.S. equities, and 10 percent in non-U.S. fixed income securities. |
The table below reflects the changes in the assets of the plan measured at fair value on a recurring basis using significant unobservable inputs (Level 3 of fair value hierarchy) during the year ended December 26, 2015:
(In thousands) |  | Limited Partnerships |
Balance, December 27, 2014 |  | $ | 5,070 |
Redemptions |  |  | (697 | )
Subscriptions |  |  | 250 |
Net depreciation in fair value |  |  | (33 | )
Balance, December 26, 2015 |  | $ | 4,590 |
Contributions and Benefit Payments The Company expects to contribute approximately $1.5 million to its pension plans and $1.2 million to its other postretirement benefit plans in 2016. The Company expects future benefits to be paid from the plans as follows:
(In thousands) |  |  | Pension Benefits |  |  | Other Benefits |
2016 |  |  | $ | 10,832 |  |  | $ | 1,221 |
2017 |  |  |  | 10,856 |  |  |  | 1,112 |
2018 |  |  |  | 10,910 |  |  |  | 1,147 |
2019 |  |  |  | 10,994 |  |  |  | 1,111 |
2020 |  |  |  | 11,033 |  |  |  | 1,356 |
2021-2025 |  |  |  | 60,251 |  |  |  | 5,973 |
Total |  |  | $ | 114,876 |  |  | $ | 11,920 |
Multiemployer Plan The Company contributes to the IAM National Pension Fund, National Pension Plan (IAM Plan), a multiemployer defined benefit plan. Participation in the IAM Plan was negotiated under the terms of two collective bargaining agreements in Port Huron, Michigan, the Local 218 IAM and Local 44 UAW that expire on May 1, 2016 and July 20, 2016, respectively. The Employer Identification Number for this plan is 51-6031295. The risks of participating in multiemployer plans are different from single-employer plans in the following aspects: (i) Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the underfunded obligations of the plan may be borne by the remaining participating employers; (iii) if the Company chooses to stop participating in the plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The Company makes contributions to the IAM Plan trusts that cover certain union employees; contributions by employees are not permitted. Contributions to the IAM Plan were $1.1 million in 2015, $1.0 million in 2014, and $0.9 million in 2013. The Company's contributions are less than five percent of total employer contributions made to the IAM Plan indicated in the most recently filed Form 5500. Under the Pension Protection Act of 2006, the IAM Plan's actuary must certify the plan's zone status annually. Plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. If a plan is determined to be in endangered status, red zone or yellow zone, the plan's trustees must develop a formal plan of corrective action, a Financial Improvement Plan and/or a Rehabilitation Plan. For 2015 and 2014 the IAM Plan was determined to have green zone status; therefore, no formal plan of corrective action is either pending or has been implemented. 401(k) Plans The Company sponsors voluntary employee savings plans that qualify under Section 401(k) of the Internal Revenue Code of 1986. Compensation expense for the Company's matching contribution to the 401(k) plans was $4.2 million in 2015, $4.1 million in 2014, and $3.2 million in 2013. The Company match is a cash contribution. Participants direct the investment of their account balances by allocating among a range of asset classes including mutual funds (equity, fixed income, and balanced funds), and money market funds. The plans do not allow direct investment in securities issued by the Company. UMWA Benefit Plans In October 1992, the Coal Industry Retiree Health Benefit Act of 1992 (the Act) was enacted. The Act mandates a method of providing for postretirement benefits to the United Mine Workers of America (UMWA) current and retired employees, including some retirees who were never employed by the Company. In October 1993, beneficiaries were assigned to the Company and the Company began its mandated contributions to the UMWA Combined Benefit Fund, a multiemployer trust. Beginning in 1994, the Company was required to make contributions for assigned beneficiaries under an additional multiemployer trust created by the Act, the UMWA 1992 Benefit Plan. The ultimate amount of the Company's liability under the Act will vary due to factors which include, among other things, the validity, interpretation, and regulation of the Act, its joint and several obligation, the number of valid beneficiaries assigned, and the extent to which funding for this obligation will be satisfied by transfers of excess assets from the 1950 UMWA pension plan and transfers from the Abandoned Mine Reclamation Fund. Contributions to the plan were $214 thousand, $249 thousand, and $290 thousand for the years ended 2015, 2014, and 2013, respectively.

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

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=49170332&loc=SL14450702-114947 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=58740216&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 Reference 4: http://www.xbrl.org/2003/role/presentationRef -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 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6414199&loc=d3e39622-114963 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration