EMPLOYEE BENEFIT PLANS

The company maintains retirement benefit plans for substantially all of its employees.

Pension Plans and Post-Retirement Medical Insurance

During the fourth quarter of fiscal 2012, the company announced a change to its employee retirement programs from a defined benefit-based model to a defined contribution structure. The company approved a plan to freeze future benefit accruals of its primary domestic defined benefit plan as of September 1, 2012 and intends to ultimately terminate its domestic defined benefit plans. The company transitioned employees to a new defined contribution program as of September 1, 2012. The termination process for the domestic defined benefit plans is expected to be completed during the second quarter of fiscal 2014. The company also froze its International defined benefit plan during fiscal 2012.

A pension settlement charge is recorded when the total lump-sum payments for a year exceed total service and interest costs recognized for that year. The settlement charge recognizes a pro-rata portion of the unrecognized actuarial net losses equal to the percentage reduction in the pension benefit obligation. The settlement expenses recognized do not affect total equity, as the amounts are reclassified from accumulated other comprehensive loss within stockholders' equity.

Based on information currently available to the company, it is likely, but not certain, that the company will recognize settlement expenses of approximately $170 million during the remainder of fiscal 2014.

Components of Net Periodic Benefit Costs



(In millions)	Three Months Ended
	August 31, 2013			September 1, 2012			August 31, 2013		September 1, 2012
	Pension Benefits						Other Post-Retirement Benefits
Domestic:
Service cost	$	—		$	2.0		$	—	$	—
Interest cost	2.6			2.9			0.1		0.1
Expected return on plan assets	(1.9		)	(3.2		)	—		—
Net amortization loss	2.4			3.1			—		—
Settlement loss recognized	—			—			—		—
Net periodic benefit cost	$	3.1		$	4.8		$	0.1	$	0.1

International:
Service cost	$	—		$	—
Interest cost	1.0			0.9
Expected return on plan assets	(1.2		)	(1.2		)
Net amortization loss	0.4			0.4
Net periodic benefit cost	$	0.2		$	0.1