EMPLOYEE BENEFIT PLANS

Pension Plans and Post-Retirement Medical Insurance

During the second quarter of fiscal 2014, the company settled the remaining obligations associated with its primary domestic defined benefit pension plans. The company contributed a total of $48.8 million in cash to these plans during fiscal 2014 in order to cover the remaining unfunded liabilities. Plan participants received vested benefits from the plan assets by electing either a lump sum distribution, roll-over contribution to other 401(k) or individual retirement plans, or an annuity contract with a qualifying third-party provider. These payments resulted in the settlement of the primary domestic defined benefit plans, thus relieving the company of any further obligation.

In connection with the termination of the primary domestic defined benefit plans, settlement charges of $158.2 million, before tax, were recorded during the second quarter of fiscal 2014. The settlement expenses in the second quarter included the pre-tax reclassifications of actuarial gains and losses from accumulated other comprehensive income (loss) of $137.7 million, cash contributions to the plan of $48.6 million, net of the outstanding pension plan liability prior to settlement. Cost of goods sold included $49.3 million of the settlement expense, while $108.9 million of the expense was included in operating expenses. During the third quarter, the company completed the final distributions to participants as certain annuity contracts were not in place until the beginning of the quarter.

Components of Net Periodic Benefit Costs



(In millions)	Three Months Ended
	Pension Benefits						Other Post-Retirement Benefits
	March 1, 2014			March 2, 2013			March 1, 2014		March 2, 2013
Domestic:
Service cost	$	—		$	—		$	—	$	—
Interest cost	—			2.4			0.1		0.1
Expected return on plan assets	—			(2.9		)	—		—
Net amortization loss	—			2.8			—		—
Settlement loss recognized	—			1.7			—		—
Net periodic benefit cost	$	—		$	4.0		$	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



	Nine Months Ended
	Pension Benefits						Other Post-Retirement Benefits
	March 1, 2014			March 2, 2013			March 1, 2014		March 2, 2013
Domestic:
Service cost	$	—		$	1.9		$	—	$	—
Interest cost	5.2			8.3			0.2		0.2
Expected return on plan assets	(3.8		)	(9.2		)	—		—
Net amortization loss	4.8			8.9			—		0.1
Settlement loss recognized	158.2			17.7			—		—
Net periodic benefit cost	$	164.4		$	27.6		$	0.2	$	0.3

International:
Service cost	$	—		$	—
Interest cost	3.0			2.8
Expected return on plan assets	(3.6		)	(3.7		)
Net amortization loss	1.2			1.1
Net periodic benefit cost	$	0.6		$	0.2