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Employee Benefits (Tables)

12 Months Ended

Dec. 29, 2018

Schedule of changes in projected benefit obligations and change in plan assets

The following tables set forth the change in projected benefit obligation and the change in plan assets for the pension plan:



	December 29, 2018			December 30, 2017
	(In thousands)
Change in projected benefit obligation:
Projected benefit obligation at beginning of period	$	118,812		$	113,436
Service cost	534			633
Interest cost	3,853			4,663
Actuarial (gain) loss	(9,732		)	5,808
Curtailment gain	—			(310		)
Benefits paid	(5,558		)	(5,418		)
Projected benefit obligation at end of period	107,909			118,812
Change in plan assets:
Fair value of assets at beginning of period	88,452			79,087
Actual (loss) return on plan assets	(6,321		)	11,109
Employer contributions	4,668			3,674
Benefits paid	(5,558		)	(5,418		)
Fair value of assets at end of period	81,241			88,452
Net unfunded status of plan	$	(26,668	)	$	(30,360	)

Schedule of amounts recognized on consolidated balance sheets

The unfunded status recorded as Pension Benefit Obligation on our Consolidated Balance Sheets for the pension plan is set forth in the following table, along with the unrecognized actuarial loss, which is presented as part of Accumulated Other Comprehensive Loss:



	December 29, 2018			December 30, 2017
	(In thousands)
Unfunded status	$	(26,668	)	$	(30,360	)
Unrecognized prior service cost	—			—
Unrecognized actuarial loss	34,699			33,884
Net amount recognized	$	8,031		$	3,524
Amounts recognized on the balance sheet consist of:
Accrued pension liability	$	(26,668	)	$	(30,360	)
Accumulated other comprehensive loss (pre-tax)	34,699			33,884
Net amount recognized	$	8,031		$	3,524

Schedule of net periodic pension cost for pension plans

Net periodic pension cost (credit) for the pension plan included the following:



	Fiscal Year Ended December 29, 2018			Fiscal Year Ended December 30, 2017			Fiscal Year Ended December 31, 2016
	(In thousands)
Service cost	$	534		$	633		$	996
Interest cost on projected benefit obligation	3,853			4,663			4,901
Expected return on plan assets	(5,309		)	(6,538		)	(6,224		)
Amortization of unrecognized loss	1,084			1,056			1,126
Net periodic pension cost (credit)	$	162		$	(186	)	$	799

Schedule of assumptions used to determine the projected benefit obligation

The following assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic pension cost:



	December 29, 2018		December 30, 2017
Projected benefit obligation:
Discount rate	4.37	%	3.69	%
Average rate of increase in future compensation levels	Graded 5.5-2.5%		Graded 5.5-2.5%
Net periodic pension cost:
Discount rate	3.69	%	4.26	%
Average rate of increase in future compensation levels	Graded 5.5-2.5%		Graded 5.5-2.5%
Expected long-term rate of return on plan assets	6.00	%	8.10	%

Schedule of fair value of plan assets by asset category

The current targets, adjusted to exclude non-GAAP BlueLinx real-estate holdings, and actual investment allocation, by asset category as of December 30, 2018, consisted of the following:



	Current Target Allocation		Actual Allocation, December 29, 2018
Return-seeking securities	70	%	69	%
Liability-matching securities	28	%	30	%
Cash and cash equivalents	2	%	1	%
Total	100	%	100	%

The following table sets forth by level, within the fair value hierarchy, pension plan assets at their fair values as of December 30, 2017:



	Quoted prices in active markets of identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)		Total
	(In thousands)
Return-seeking securities
Corporate bonds ^(a)	$	10,393	$	—	$	—	$	10,393
Global equity securities ^(b)	25		—		—		25
Collective investment trust ^(c)	—		43,910		—		43,910
Liability-matching securities
Corporate bonds ^(d)	20,711		—		—		20,711
Collective investment trusts ^(e)	—		11,739		—		11,739
Cash and cash equivalents	1,674		—		—		1,674
Total	$	32,803	$	55,649	$	—	$	88,452

Schedule of percentage of fair value of total assets by asset category

The following table sets forth by level, within the fair value hierarchy (as defined in Note 10), pension plan assets at their fair values as of December 29, 2018:



	Quoted prices in active markets of identical assets (Level 1)		Significant other observable inputs (Level 2)		Significant other unobservable inputs (Level 3)		Total
	(In thousands)
Return-seeking securities
Corporate bonds ^(a)	$	—	$	—	$	—	$	—
Global equity securities ^(b)	—		—		—		—
Collective investment trust ^(c)	—		55,766		—		55,766
Liability-matching securities
Corporate bonds ^(d)	—		—		—		—
Collective investment trusts ^(e)	—		24,649		—		24,649
Cash and cash equivalents	853		—		—		853
Total	$	853	$	80,415	$	—	$	81,268

^(a)This category comprises high yield and global bond funds.

^(b)This category consists of a diversified global mutual fund.

^(c) This category is comprised of a collective investment trust of equity funds that track the MCSI World Index, and a collective investment trust that holds publicly traded listed infrastructure securities.

^(d) This category comprises fixed income funds primarily invested in U.S. Treasury notes and bonds, along with high-quality mortgage-backed securities and corporate bonds.

^(e)This category is consists of a collective investment trust investing in Treasury STRIPS.

Schedule of estimated future benefit payments

Our estimated normal future benefit payments to pension plan participants are as follows:



Fiscal Year Ending	(In thousands)
2019	$	6,345
2020	6,585
2021	6,844
2022	6,965
2023	7,080
Thereafter	35,800

Schedule of multiemployer plans

The following table lists our participation in our multiemployer plans which we deem significant. “Contributions” represent the amounts contributed to the plan during the fiscal years presented:



					Contributions (in millions)
Pension Fund:	EIN/Pension Plan Number	Pension Act Zone Status	FIP/RP Status	Surcharge	2018		2017		2016
Lumber Employees Local 786 Retirement Fund ⁽¹⁾	516067407	Green (September 1, 2015)	N/A	No	n/a		n/a		$	0.4
Central States, Southeast and Southwest Areas Pension Fund ⁽²⁾	366044243	Critical and Declining (January 1, 2018)	RP	No	0.4		0.7		0.6
Other					0.1		0.2		0.4
Total					$	0.5	$	0.9	$	1.4

⁽¹⁾ We withdrew from this plan in fiscal 2017, and recorded an estimated $5.0 million withdrawal liability on the Consolidated Balance Sheet in “other non-current liabilities,” and recorded an offsetting non-cash expense in the Consolidated Statement of Operations in “selling, general, and administrative” costs. We expect the liability to be paid over a 19-year period, with payments substantially similar on a total annual basis to those disclosed above.

Our contributions for fiscal 2016 exceeded 5% of total plan contributions, and we were deemed to be a significant contributor to this plan.

⁽²⁾ Our contributions to this plan are approximately 0.06% of total contributions, which is less than the required disclosure threshold of 5% of total plan contributions. However, this plan is deemed significant for disclosure as it is severely underfunded. Additionally, we recorded an estimated partial withdrawal liability of $7.1 million in fiscal 2018, related to the closure of certain facilities. We may, in the future, record an additional liability if required by an event of our withdrawal from the plan or a mass withdrawal. Our most recent contingent withdrawal liability was estimated at approximately $52.5 million, for a complete withdrawal occurring in fiscal 2019. In the case of both a complete withdrawal and a mass withdrawal, our payments to the Central States Plan would generally continue at approximately the current rate, which, even with potential rehabilitation increases, is less than $1.0 million per year. In a complete withdrawal, the payments would not amortize the liability fully; however, payments for a complete withdrawal are limited to a 20-year period. In the case of a mass withdrawal, the liability would never amortize, and payments would continue indefinitely.