XML 93 R18.htm IDEA: XBRL DOCUMENT
v2.4.0.6

PENSION AND OTHER RETIREMENT PLANS | 12 Months Ended
--- | ---
Apr. 29, 2012
Compensation and Retirement Disclosure [Abstract] |
PENSION AND OTHER RETIREMENT PLANS | PENSION AND OTHER RETIREMENT BENEFIT PLANS Company Sponsored Defined Benefit Pension Plans We provide the majority of our U.S. employees with pension benefits. Salaried employees are provided benefits based on years of service and average salary levels. Hourly employees are provided benefits of stated amounts for each year of service. The following table presents a reconciliation of the pension benefit obligation, plan assets and the funded status of these pension plans.
|  | April 29, 2012 |  | May 1, 2011
|  | (in millions)
Change in benefit obligation: |  |  |  |
Benefit obligation at beginning of year |  | $ | 1,329.9 |  |  | $ | 1,283.9 |
Service cost |  | 37.4 |  |  | 37.0 |
Interest cost |  | 75.9 |  |  | 74.9 |
Benefits paid |  | (63.2 | ) |  | (69.3 | )
Actuarial loss |  | 229.1 |  |  | 1.0 |
Other |  | 1.5 |  |  | 2.4 |
Benefit obligation at end of year |  | 1,610.6 |  |  | 1,329.9 |
Change in plan assets: (1) |  |  |  |  |
Fair value of plan assets at beginning of year |  | 956.4 |  |  | 788.7 |
Actual return on plan assets |  | (16.0 | ) |  | 125.8 |
Employer contributions |  | 142.8 |  |  | 95.1 |
Benefits paid |  | (59.7 | ) |  | (56.2 | )
Other |  | — |  |  | 3.0 |
Fair value of plan assets at end of year |  | 1,023.5 |  |  | 956.4 |
Funded status |  | $ | (587.1 | ) |  | $ | (373.5 | )
Amounts recognized in the consolidated balance sheet: |  |  |  |  |
Net long-term pension liability |  | $ | (581.9 | ) |  | $ | (369.6 | )
Accrued expenses and other current liabilities |  | (5.2 | ) |  | (4.5 | )
Other assets |  | — |  |  | 0.6 |
Net amount recognized at end of year |  | $ | (587.1 | ) |  | $ | (373.5 | )
——————————————
(1) | Excludes the assets and related activity of our non-qualified defined benefit pension plans. The fair value of assets related to our non-qualified plans was $107.1 million and $117.7 million as of April 29, 2012 and May 1, 2011, respectively. We made cash contributions of $33.4 million in fiscal 2011. In fiscal 2011, we also contributed company-owned life insurance policies with cash surrender values totaling $29.4 million on the date of contribution. We made no contributions to our non-qualified plans in fiscal 2012. Benefits paid for our non-qualified plans were $3.5 million and $13.1 million for fiscal 2012 and fiscal 2011, respectively.
The accumulated benefit obligation for all defined benefit pension plans was $1.5 billion and $1.3 billion as of April 29, 2012 and May 1, 2011, respectively. The accumulated benefit obligation for all of our defined benefit pension plans exceeded the fair value of plan assets for both periods presented. The following table shows the pre-tax unrecognized items included as components of accumulated other comprehensive loss related to our defined benefit pension plans as of the dates indicated.
|  | April 29, 2012 |  | May 1, 2011
|  | (in millions)
Unrecognized actuarial loss |  | $ | (665.4 | ) |  | $ | (365.3 | )
Unrecognized prior service credit |  | 4.7 |  |  | 7.2 |
We expect to recognize $52.9 million of the actuarial loss and prior service cost as net periodic pension cost in fiscal 2013. The following table presents the components of the net periodic pension costs for the periods indicated:
|  | Fiscal Years
|  | 2012 |  | 2011 |  | 2010
|  | (in millions)
Service cost |  | $ | 37.4 |  |  | $ | 37.0 |  |  | $ | 22.6 |
Interest cost |  | 75.9 |  |  | 74.9 |  |  | 73.7 |
Expected return on plan assets |  | (79.6 | ) |  | (63.9 | ) |  | (49.3 | )
Net amortization |  | 23.5 |  |  | 34.0 |  |  | 20.3 |
Net periodic pension cost |  | $ | 57.2 |  |  | $ | 82.0 |  |  | $ | 67.3 |
The following table shows our weighted-average assumptions for the periods indicated.
|  | Fiscal Years
|  | 2012 |  | 2011 |  | 2010
Discount rate to determine net periodic benefit cost |  | 5.85 | % |  | 6.00 | % |  | 8.25 | %
Discount rate to determine benefit obligation |  | 4.75 |  |  | 5.85 |  |  | 6.00 |
Expected long-term rate of return on plan assets |  | 7.75 |  |  | 8.00 |  |  | 8.25 |
Rate of compensation increase |  | 4.00 |  |  | 4.00 |  |  | 4.00 |
We use an independent third-party actuary to assist in the determination of assumptions used and the measurement of our pension obligation and related costs. We review and select the discount rate to be used in connection with our pension obligation annually. In determining the discount rate, we use the yield on corporate bonds (rated AA or better) that coincides with the cash flows of the plans’ estimated benefit payouts. The model uses a yield curve approach to discount each cash flow of the liability stream at an interest rate specifically applicable to the timing of each respective cash flow. Using imputed interest rates, the model sums the present value of each cash flow stream to calculate an equivalent weighted average discount rate. We use this resulting weighted average discount rate to determine our final discount rate. To determine the expected long-term return on plan assets, we consider the current and anticipated asset allocations, as well as historical and estimated returns on various categories of plan assets. Long-term trends are evaluated relative to market factors such as inflation, interest rates and fiscal and monetary polices in order to assess the capital market assumptions. Over the 5-year period ended April 29, 2012 and May 1, 2011, the average rate of return on plan assets was approximately 1.40% and 3.87% percent, respectively. Actual results that differ from our assumptions are accumulated and amortized over future periods and, therefore, affect expense in future periods. Pension plan assets may be invested in cash and cash equivalents, equities, debt securities, insurance contracts and real estate. Our investment policy for the pension plans is to balance risk and return through a diversified portfolio of high-quality equity and fixed income securities. Equity targets for the pension plans are as indicated in the following table. Maturity for fixed income securities is managed such that sufficient liquidity exists to meet near-term benefit payment obligations. The plans retain outside investment advisors to manage plan investments within parameters established by our plan trustees. The following table presents the fair value of our qualified pension plan assets by major asset category as of April 29, 2012 and May 1, 2011. The allocation of our pension plan assets is based on the target range presented in the following table.
|  | April 29, 2012 |  | May 1, 2011 |  | Target Range
Asset category: |  | (in millions) |  |
Cash and cash equivalents, net of unsettled transactions |  | $ | 24.7 |  |  | $ | 83.9 |  |  | 0-4%
Equity securities |  | 427.0 |  |  | 570.5 |  |  | 30-50%
Debt securities |  | 495.2 |  |  | 266.6 |  |  | 35-55%
Alternative assets |  | 76.6 |  |  | 35.4 |  |  | 5-20%
Total |  | $ | 1,023.5 |  |  | $ | 956.4 |  |  |
See Note 14—Fair Value Measurements for additional information about the fair value of our pension assets. As of April 29, 2012 and May 1, 2011, the amount of our common stock included in plan assets was 4,154,344 and 4,757,066 shares, respectively, with market values of $88.2 million and $112.1 million, respectively. We generally contribute the minimum amount required under government regulations to our qualified pension plans, plus amounts necessary to maintain an 80% funded status in order to avoid benefit restrictions under the Pension Protection Act. Minimum employer contributions to our qualified pension plans are expected to be $44.8 million for fiscal 2013. Expected future benefit payments for our defined benefit pension plans are as follows:
Fiscal Year |  | (in millions)
2013 |  | $ | 69.2 |
2014 |  | 72.3 |
2015 |  | 75.6 |
2016 |  | 79.5 |
2017 |  | 83.3 |
2018-2022 |  | 476.3 |
Multiemployer Defined Benefit Pension Plans In addition to our Company sponsored defined benefit pension plans, we contribute to several multiemployer defined benefit pension plans under collective bargaining agreements that cover certain of our union-represented employees. The risks of participating in such plans are different from the risks of single-employer plans, in the following respects:
▪ | Assets contributed to a multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.
▪ | If a participating employer ceases to contribute to a multiemployer plan, the unfunded obligation of the plan may be borne by the remaining participating employers.
▪ | If we were to withdraw from a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan and on the history of our participation in the plan prior to withdrawal. This is referred to as a withdrawal liability.
Each multiemployer plan in which we participate has a certified zone status as currently defined by the Pension Protection Act of 2006. The zone status is based on information provided to us and other participating employers by each plan and is certified by the plan's actuary. The following are descriptions of the zone status types based on criteria established under the Internal Revenue Code (IRC):
▪ | "Red” Zone—Plan has been determined to be in “critical status” and is generally less than 65% funded. A rehabilitation plan, as required under the IRC, must be adopted by plans in the "red" zone. Plan participants may be responsible for the payment of surcharges, in addition to the contribution rate specified in the applicable collective bargaining agreement, for a plan in “critical status,” in accordance with the requirements of the IRC.
▪ | "Yellow” Zone—Plan has been determined to be in “endangered status” and is generally less than 80% funded. A funding improvement plan, as required under the IRC, must be adopted.
▪ | "Green” Zone—Plan has been determined to be neither in “critical status” nor in “endangered status,” and is generally at least 80% funded.
All plans in which we participate were in the "green" zone for the two most recent benefit plan years that have been certified. The following table summarizes our contributions to multiemployer plans (1).
|  |  |  | Fiscal Years |  |
Plan |  | EIN / PN (2) |  | 2012 |  | 2011 |  | 2010 |  | Expiration Dates of Collective Bargaining Agreements
|  |  |  | (in millions) |  |
United Food and Commercial Workers International Union Industry Pension Fund |  | 51-6055922 / 001 |  | $ | 1.1 |  |  | $ | 1.4 |  |  | $ | 1.7 |  |  | Multiple (3)
Central Pension Fund of the International Union of Operating Engineers and Participating Employers |  | 36-6052390 / 001 |  | 0.2 |  |  | 0.2 |  |  | 0.2 |  |  | October 2013
IAM National Pension Fund National Pension Plan |  | 51-6031295 / 002 |  | 0.1 |  |  | 0.1 |  |  | 0.1 |  |  | February 2014
Total contributions to multiemployer plans |  |  |  | $ | 1.4 |  |  | $ | 1.7 |  |  | $ | 2.0 |  |  |
——————————————
(1) | Contributions represent the amounts we contributed to the plans during the fiscal periods ending in the specified year. Our contributions to each plan did not exceed 5% of total plan contributions for any plan year presented.
(2) | Represents the Employer Identification Number and the three-digit plan number assigned to a plan by the Internal Revenue Service.
(3) | We have multiple collective bargaining agreements associated with the United Food and Commercial Workers International Union Industry Pension Fund. These agreements are currently scheduled to expire in May 2012, December 2013, January 2014 and October 2015.
Other Employee Benefit Plans We sponsor defined contribution pension plans (401(k) plans) covering substantially all U.S. employees. Our contributions vary depending on the plan but are based primarily on each participant’s level of contribution and cannot exceed the maximum allowable for tax purposes. Total contributions were $13.9 million for each of the last three fiscal years. We also provide health care and life insurance benefits for certain retired employees. These plans are unfunded and generally pay covered costs reduced by retiree premium contributions, co-payments and deductibles. We retain the right to modify or eliminate these benefits. We consider disclosures related to these plans immaterial to the consolidated financial statements and related notes.

X
- Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
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 Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number FAS88 -Paragraph 63 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 518 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7, 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 8 -Subparagraph m -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 264 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 30 -Paragraph 26 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-2 -Paragraph 8 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph h -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph q -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration