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PENSION AND POSTRETIREMENT BENEFITS | 9 Months Ended
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Feb. 26, 2017
Compensation and Retirement Disclosure [Abstract] |
PENSION AND POSTRETIREMENT BENEFITS | PENSION AND POSTRETIREMENT BENEFITS We have defined benefit retirement plans (“plans”) for eligible salaried and hourly employees. Benefits are based on years of credited service and average compensation or stated amounts for each year of service. We also sponsor postretirement plans which provide certain medical and dental benefits (“other postretirement benefits”) to qualifying U.S. employees. As a result of the Spinoff, during the second quarter of fiscal 2017, we recorded a pension curtailment gain of $19.5 million within other comprehensive income (loss) and remeasured a significant qualified pension plan as of November 9, 2016. In connection with the remeasurement, we updated the effective discount rate assumption from 3.86% to 4.04%. The remeasurement and the curtailment gain decreased the underfunded status of the pension plans by $66.0 million with a corresponding benefit within other comprehensive income (loss) for the second quarter of fiscal 2017. During the second quarter of fiscal 2017, we provided a voluntary lump-sum settlement offer to certain terminated vested participants in our salaried pension plan. During the third quarter of fiscal 2017, lump-sum settlement payments totaling $287.5 million were distributed from pension plan assets to such participants. Due to the pension settlement, we were required to remeasure our pension plan liability. In connection with the remeasurement, we updated the effective discount rate assumption to 4.11%, as of December 31, 2016. The settlement and related remeasurement resulted in the recognition of a settlement charge of $13.8 million, reflected in selling, general, and administrative expenses, as well as a benefit to accumulated other comprehensive income (loss) totaling $62.2 million in the third quarter of fiscal 2017. Components of pension benefit and other postretirement benefit costs are (includes amounts related to discontinued operations):
| Pension Benefits
| Thirteen weeks ended |  | Thirty-nine weeks ended
| February 26, 2017 |  | February 28, 2016 |  | February 26, 2017 |  | February 28, 2016
Service cost | $ | 12.2 |  |  | $ | 23.5 |  |  | $ | 44.8 |  |  | $ | 71.1 |
Interest cost | 28.9 |  |  | 40.0 |  |  | 88.8 |  |  | 122.0 |
Expected return on plan assets | (50.9 | ) |  | (65.1 | ) |  | (158.6 | ) |  | (198.8 | )
Amortization of prior service cost | 0.7 |  |  | 0.7 |  |  | 2.0 |  |  | 2.1 |
Settlement charge | 13.8 |  |  | — |  |  | 13.8 |  |  | — |
Special termination benefits | — |  |  | 25.6 |  |  | 1.5 |  |  | 25.6 |
Benefit cost — Company plans | 4.7 |  |  | 24.7 |  |  | (7.7 | ) |  | 22.0 |
Pension benefit cost — multi-employer plans | 3.9 |  |  | 32.4 |  |  | 9.0 |  |  | 38.8 |
Total benefit cost | $ | 8.6 |  |  | $ | 57.1 |  |  | $ | 1.3 |  |  | $ | 60.8 |
| Postretirement Benefits
| Thirteen weeks ended |  | Thirty-nine weeks ended
| February 26, 2017 |  | February 28, 2016 |  | February 26, 2017 |  | February 28, 2016
Service cost | $ | — |  |  | $ | 0.1 |  |  | $ | 0.1 |  |  | $ | 0.3 |
Interest cost | 1.1 |  |  | 1.9 |  |  | 3.2 |  |  | 5.8 |
Amortization of prior service benefit | (1.6 | ) |  | (2.0 | ) |  | (4.9 | ) |  | (6.0 | )
Recognized net actuarial loss | 0.1 |  |  | — |  |  | 0.3 |  |  | — |
Total cost (benefit) | $ | (0.4 | ) |  | $ | — |  |  | $ | (1.3 | ) |  | $ | 0.1 |
Beginning in fiscal 2017, the Company has elected to use a split discount rate (spot-rate approach) for the U.S. plans and certain foreign plans. Historically, a single weighted-average discount rate was used in the calculation of service and interest costs, both of which are components of pension benefit costs. The spot-rate approach applies separate discount rates for each projected benefit payment in the calculation of pension service and interest cost. This change is considered a change in accounting estimate and has been applied prospectively. The pre-tax reduction in total pension benefit cost associated with this change in the third quarter and first three quarters of fiscal 2017 was approximately $7.4 million and $22.2 million, respectively. The weighted-average discount rates for service and interest costs under the spot-rate approach used for pension benefit cost in fiscal 2017 were 4.14% and 3.15%, respectively. The weighted-average discount rates for service and interest costs subsequent to November 9, 2016 were 4.25% and 3.22%, respectively. The weighted-average discount rates for service and interest costs subsequent to December 31, 2016 are 4.28% and 3.32%, respectively. During the third quarter and first three quarters of fiscal 2017, we contributed $3.9 million and $9.8 million, respectively, to our pension plans and contributed $2.3 million and $11.1 million, respectively, to our other postretirement plans. Based upon the current funded status of the plans and the current interest rate environment, we anticipate making further contributions of approximately $2.7 million to our pension plans for the remainder of fiscal 2017. We anticipate making further contributions of $11.0 million to our other postretirement plans during the remainder of fiscal 2017. These estimates are based on ERISA guidelines, current tax laws, plan asset performance, and liability assumptions, which are subject to change. During the third quarter of fiscal 2017 and 2016, we recorded expenses of $2.0 million and $29.8 million, respectively, related to our expected incurrence of certain multi-employer pension plan withdrawal costs. These expenses have been included in restructuring activities.

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