XML 60 R17.htm IDEA: XBRL DOCUMENT
v3.10.0.1

PENSION PLANS | 12 Months Ended
--- | ---
Jul. 28, 2018
Compensation Related Costs [Abstract] |
PENSION PLANS | PENSION PLANS Company-Sponsored Pension Plans The Company sponsors four defined benefit pension plans. Two are tax-qualified plans covering members of unions. Benefits under these two plans are based on a fixed amount for each year of service. One is a tax-qualified plan covering nonunion associates. Benefits under this plan are based upon percentages of annual compensation. Funding for these plans is based on an analysis of the specific requirements and an evaluation of the assets and liabilities of each plan. The fourth plan is an unfunded, nonqualified plan providing supplemental pension benefits to certain executives. On November 29, 2016, the Company amended the Village Super Market Local 72 Retail Clerks Employees’ Retirement Plan, which covers union employees in the Stroudsburg store, to freeze all benefits effective January 31, 2017. As a result of this amendment, the Company recognized a pre-tax remeasurement gain totaling $629 in accumulated other comprehensive loss during fiscal 2017. The remeasurement had no impact on the consolidated statements of operations. Net periodic pension cost for the four plans include the following components:
| 2018 |  | 2017
Service cost | $ | 259 |  |  | $ | 388 |
Interest cost on projected benefit obligation | 2,515 |  |  | 2,424 |
Expected return on plan assets | (3,280 | ) |  | (3,684 | )
Loss on settlement | 866 |  |  | 965 |
Amortization of gains and losses | 569 |  |  | 1,343 |
Net periodic pension cost | $ | 929 |  |  | $ | 1,436 |
The Company recognized a settlement loss of $866 and $965 in fiscal 2018 and 2017, respectively, for plans where benefits paid exceeded the sum of the service cost and interest cost components of net periodic pension cost during the year. The changes in benefit obligations and the reconciliation of the funded status of the Company’s plans to the consolidated balance sheets were as follows:
| 2018 |  | 2017
Changes in Benefit Obligation: |  |  |  |  |
Benefit obligation at beginning of year | $ | 71,701 |  |  | $ | 80,021 |
Service cost | 259 |  |  | 388 |
Interest cost | 2,515 |  |  | 2,424 |
Benefits paid | (643 | ) |  | (549 | )
Settlement | (4,317 | ) |  | (4,487 | )
Actuarial loss (gain) | 38 |  |  | (6,096 | )
Benefit obligation at end of year | $ | 69,553 |  |  | $ | 71,701 |
Changes in Plan Assets: |  |  |  |  |
Fair value of plan assets at beginning of year | $ | 56,507 |  |  | $ | 53,281 |
Actual return on plan assets | 3,014 |  |  | 5,262 |
Employer contributions | 6,510 |  |  | 3,000 |
Benefits paid | (643 | ) |  | (549 | )
Settlements paid | (4,317 | ) |  | (4,487 | )
Fair value of plan assets at end of year | 61,071 |  |  | 56,507 |
Funded status at end of year | $ | 8,482 |  |  | $ | 15,194 |
Amounts recognized in the consolidated balance sheets: |  |  |  |  |
Pension liabilities | 8,482 |  |  | 15,194 |
Accumulated other comprehensive loss, net of income taxes | 8,185 |  |  | 7,406 |
Amounts included in Accumulated other comprehensive loss (pre-tax): |  |  |  |  |
Net actuarial loss | $ | 11,388 |  |  | $ | 12,521 |
The Company expects approximately $583 of the net actuarial loss to be recognized as a component of net periodic benefit costs in fiscal 2019. The accumulated benefit obligations of the four plans were $69,553 and $71,701 at July 28, 2018 and July 29, 2017, respectively. The following information is presented for those plans with an accumulated benefit obligation in excess of plan assets:
| 2018 |  | 2017
Projected benefit obligation | $ | 67,861 |  |  | $ | 70,019 |
Accumulated benefit obligation | 67,861 |  |  | 70,019 |
Fair value of plan assets | 59,283 |  |  | 54,557 |
Weighted average assumptions used to determine benefit obligations and net periodic pension cost for the Company’s defined benefit plans were as follows:
| 2018 |  | 2017
Assumed discount rate — net periodic pension cost | 3.60 | % |  | 3.08 | %
Assumed discount rate — benefit obligation | 3.99 | % |  | 3.60 | %
Assumed rate of increase in compensation levels | 4.5 | % |  | 4.5 | %
Expected rate of return on plan assets | 7.50 | % |  | 7.50 | %
Investments in the pension trusts are overseen by the trustees of the plans, who are officers of Village. In fiscal 2018, the Company transitioned to a liability-driven investment ("LDI") strategy. A LDI strategy focuses on maintaining a close to fully-funded status over the long-term with minimal funded status risk. This is achieved by investing more of the plan assets in fixed income instruments to more closely match the duration of the plan liability. The investment allocation to fixed income instruments will increase as each plans funded status increases. The target allocations for plan assets are 25-35% equity securities, 65-75% fixed income securities and 0-10% cash. Asset allocations are reviewed periodically and appropriate rebalancing is performed. Equity securities include investments in large-cap, small-cap and mid-cap companies located both in and outside the United States. Fixed income securities include U.S. treasuries, mortgage-backed securities and corporate bonds of companies from diversified industries. Investments in securities are made through mutual funds. In addition, one plan held Class A common stock of Village in the amount of $611 and $636 at July 28, 2018 and July 29, 2017, respectively. Risk management is accomplished through diversification across asset classes and fund strategies, multiple investment portfolios and investment guidelines. The plans do not allow for investments in derivative instruments. The fair value of the pension assets were as follows:
|  | July 28, 2018 |  | July 29, 2017
Asset Category |  | Level 1 |  | Assets Measured at NAV |  | Total |  | Level 1 |  | Level 2 |  | Total
Cash |  | $ | 17 |  |  | $ | — |  |  | $ | 17 |  |  | $ | 166 |  |  | $ | 610 |  |  | $ | 776 |
Equity securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Company stock |  | 611 |  |  | — |  |  | 611 |  |  | 636 |  |  | — |  |  | 636 |
Mutual/Collective Trust Funds - U.S. (1) |  | — |  |  | 10,213 |  |  | 10,213 |  |  | — |  |  | — |  |  | — |
Mutual/Collective Trust Funds - International (1) |  | — |  |  | 8,337 |  |  | 8,337 |  |  | — |  |  | — |  |  | — |
U.S. large cap (2) |  | — |  |  | — |  |  | — |  |  | 19,696 |  |  | 1,197 |  |  | 20,893 |
U.S. small/mid cap (3) |  | — |  |  | — |  |  | — |  |  | 6,644 |  |  | 179 |  |  | 6,823 |
International (4) |  | — |  |  | — |  |  | — |  |  | 7,187 |  |  | 421 |  |  | 7,608 |
Emerging markets (5) |  | — |  |  | — |  |  | — |  |  | 1,277 |  |  | — |  |  | 1,277 |
Fixed income securities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mutual/Collective Trust Funds - Fixed Income (1) |  | — |  |  | 41,893 |  |  | 41,893 |  |  | — |  |  | — |  |  | — |
U.S. treasuries (6) |  | — |  |  | — |  |  | — |  |  | 9,520 |  |  | 356 |  |  | 9,876 |
Mortgage-backed (6) |  | — |  |  | — |  |  | — |  |  | 1,783 |  |  | 106 |  |  | 1,889 |
Corporate bonds (6) |  | — |  |  | — |  |  | — |  |  | 2,931 |  |  | 3,179 |  |  | 6,110 |
International (7) |  | — |  |  | — |  |  | — |  |  | 619 |  |  | — |  |  | 619 |
Total |  | $ | 628 |  |  | $ | 60,443 |  |  | $ | 61,071 |  |  | $ | 50,459 |  |  | $ | 6,048 |  |  | $ | 56,507 |
(1) | Includes pools of investments that are measured at fair value using the Net Asset Value (NAV) per share (or its equivalent) practical expedient. The NAV is based on the underlying net assets owned by the fund and the relative interest of each participating investor in the fair value of the underlying assets. The underlying investments are classified as either level 1 or 2 of the fair value hierarchy.
(2) | Includes directly owned securities and mutual funds, primarily low-cost equity index funds not actively managed that track the S&P 500.
(3) | Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded U.S. common stocks of small and medium cap companies.
(4) | Includes directly owned securities and mutual funds, which invest in diversified portfolios of publicly traded common stocks of large, non-U.S. companies.
(5) | Consists of mutual and exchange traded funds which invest in non-U.S. stocks in emerging markets.
(6) | Includes directly owned securities, mutual funds and exchange traded funds.
(7) | Consists of exchange traded funds which invest in non-U.S. bonds in emerging markets.
Based on actuarial assumptions, estimated future defined benefit payments, which may be significantly impacted by participant elections related to retirement dates and forms of payment, are as follows:
Fiscal Year |
2019 | $ | 7,336 |
2020 | 2,980 |
2021 | 2,950 |
2022 | 3,000 |
2023 | 11,446 |
2024 - 2028 | 17,300 |
The Company expects to contribute $3,000 in cash to all defined benefit pension plans in fiscal 2019. Multi-Employer Plans The Company contributes to three multi-employer pension plans under collective bargaining agreements covering union-represented employees. These plans provide benefits to participants that are generally based on a fixed amount for each year of service. Based on the most recent information available, certain of these multi-employer plans are underfunded. The amount of any increase or decrease in Village’s required contributions to these multi-employer pension plans will depend upon the outcome of collective bargaining, actions taken by trustees who manage the plans, government regulations and the actual return on assets held in the plans, among other factors. The risks of participating in multi-employer pension plans are different from the risks of participating in single-employer pension plans in the following respects:
• | Assets contributed to a multi-employer plan by one employer may be used to provide benefits to employees of other participating employers.
• | If a participating employer stops contributing to the plan, the unfunded obligations of the plan allocable to such withdrawing employer may be borne by the remaining participating employers.
• | If the Company stops participating in some of its multi-employer pension plans, the Company may be required to pay those plans an amount based on its allocable share of the underfunded status of the plan, referred to as a withdrawal liability.
The Company’s participation in these plans is outlined in the following tables. The “EIN / Pension Plan Number” column provides the Employer Identification Number (“EIN”) and the three-digit pension plan number. The most recent “Pension Protection Act Zone Status” available in 2017 and 2016 is for the plan’s year-end at December 31, 2017 and December 31, 2016, respectively, unless otherwise noted. Among other factors, generally, plans in the red zone are less than 65 percent funded, plans in the yellow zone are between 65 and 80 percent funded and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending / Implemented” column indicates plans for which a funding improvement plan (“FIP”) or a rehabilitation plan (“RP”) is either pending or has been implemented.
|  | Pension Protection Act Zone Status | FIP/RP Status Pending / Implemented | Contributions for the year ended (5) |  | Expiration date of Collective- Bargaining Agreement
Pension Fund | EIN / Pension Plan Number | 2017 | 2016 | July 28, 2018 | July 29, 2017 | Surcharge Imposed (6)
Pension Plan of Local 464A (1) | 22-6051600-001 | Green | Green | N/A | $ | 779 |  | $ | 762 |  | N/A | October 2020
UFCW Local 1262 & Employers Pension Fund (2), (4) | 22-6074414-001 | Red | Red | Implemented | 3,481 |  | 3,498 |  | No | October 2023
UFCW Regional Pension Plan (3), (4) | 16-6062287-074 | Red | Red | Implemented | $ | 1,373 |  | $ | 1,314 |  | No | March 2019
Total Contributions |  |  |  |  | $ | 5,633 |  | $ | 5,574 |  |  |
(1) | The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2017 and December 31, 2016.
(2) | The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at December 31, 2016 and December 31, 2015.
(3) | The information for this fund was obtained from the Form 5500 filed for the plan’s year-end at September 30, 2017 and September 30, 2016.
(4) | This plan has elected to utilize special amortization provisions provided under the Preservation of Access to Care for Medicare Beneficiaries and Pension Relief Act of 2010. There were no changes to the plan’s zone status as a result of this election.
(5) | The Company’s contributions represent more than 5% of the total contributions received by each applicable pension fund for all periods presented.
(6) | Under the Pension Protection Act, a surcharge may be imposed when employers make contributions under a collective bargaining agreement that is not in compliance with a rehabilitation plan. As of July 28, 2018, the collective bargaining agreements under which the Company was making contributions were in compliance with rehabilitation plans adopted by each applicable pension fund.
Other Multi-Employer Benefit Plans The Company also contributes to various other multi-employer benefit plans that provide health and welfare benefits to active and retired participants. Total contributions made by the Company to these other multi-employer benefit plans were $27,713 and $28,137 in fiscal 2018 and 2017, respectively. Defined Contribution Plans The Company sponsors a 401(k) savings plan for certain eligible associates. Company contributions under that plan, which are based on specified percentages of associate contributions, were $1,260 and $1,132 in fiscal 2018 and 2017, respectively. The Company also contributes to union sponsored defined contribution plans for certain eligible associates. Company contributions under these plans were $820 and $783 in fiscal 2018 and 2017, respectively.

X
- References No definition available. + Details
Name: | us-gaap_CompensationRelatedCostsAbstract
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 Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration