NOTE

Retirement and Other Benefit Plans:

Noncontributory - Trusteed Defined Benefit Retirement Plans for Sales, Administrative, Supervisory and Certain Other Employees

We have noncontributory - trusteed defined benefit retirement plans for sales, administrative, supervisory and certain other employees. In the

third

quarter of fiscal year

2006,

we froze future benefit accruals under this plan for employees classified within the administrative, sales or supervisory job classifications or within any non - bargaining class. The benefits under these plans are primarily based on years of service and compensation levels. The funding policy of the plan is to make contributions which are at least equal to the minimum required contributions needed to avoid a funding deficiency. The measurement date for the plan is our fiscal year end.

Net pension cost consisted of the following:

	52 Weeks
	2016			2015
Service cost	$	130		$	113
Interest cost		2,448			2,176
Expected return on plan assets		(2,871	)		(3,346	)
Amortization of unrecognized loss		1,927			1,244
Amortization of unrecognized prior service costs		-			-
Net pension cost	$	1,634		$	187

Net pension costs and benefit obligations are determined using assumptions as of the beginning of each fiscal year. Weighted average assumptions for each fiscal year are as follows:

	2016			2015
Discount rate		3.40	%		4.15	%
Rate of increase in salary levels		N/A			N/A
Expected return on plan assets		7.00	%		8.00	%

The benefit obligation, plan assets, and funded status of these plans as of the fiscal years ended are as follows:

	52 Weeks
	2016			2015
Change in plan assets:
Fair value of plan assets - beginning of year	$	41,419		$	42,320
Employer contributions		1,150			1,157
Actual return (depreciation) on plan assets		790			(640	)
Benefits paid		(1,488	)		(1,418	)
Fair value of plan assets - end of year	$	41,871		$	41,419
Change in benefit obligations:
Benefit obligations - beginning of year	$	59,931		$	54,277
Service cost		130			113
Interest cost		2,448			2,176
Actuarial loss		7,266			4,783
Benefits paid		(1,488	)		(1,418	)
Benefit obligations - end of year		68,287			59,931
Funded status of the plans		(26,416	)		(18,512	)
Unrecognized prior service costs		-			-
Unrecognized net actuarial loss		33,264			25,844
Net amount recognized	$	6,848		$	7,332

We perform an internal rate of return analysis when making the discount rate selection. The discount rates were based on Citigroup Pension Liability Index as of

September

30,

2016

and

October

31,

2015

respectively.

Plan assets are primarily invested in marketable equity securities, corporate and government debt securities and are administered by an investment management company. The plans’ long - term return on assets is based on the weighted - average of the plans’ investment allocation as of the measurement date and the published historical returns for those types of asset categories, taking into consideration inflation rate forecasts. Our expected employer contribution to the plan in fiscal year

2017

$1,109.

During fiscal year

2015,

our actuary updated mortality tables from the IRS

2014

Combined Static Mortality assumptions to the SOA RP

2014

Total Dataset Adjusted to

2006

with Scale MP -

2015.

The change in mortality table resulted in a significant liability increase in fiscal year

2015

as well as an increased net periodic pension cost (NPPC) projection for fiscal year

2016.

The expected rate of return on plan assets decreased from

8.00%

7.00%

effective for fiscal year

2016.

The lower expected rate of return increases net pension costs in future fiscal years.

The actual and target allocation for plan assets are as follows:

Asset Class	2016			Target Asset Allocation			2015			Target Asset Allocation
Large Cap Equities		32.0	%		32.0	%		31.1	%		32.0	%
Mid Cap Equities		0	%		0.0	%		0	%		0.0	%
Small Cap Equities		12.1	%		12.0	%		13.3	%		12.0	%
International (equities only)		21.3	%		21.0	%		20.3	%		21.0	%
Fixed Income		30.7	%		31.0	%		30.8	%		31.0	%
Other (Government/Corporate, Bonds)		2.0	%		2.0	%		1.9	%		2.0	%
Cash		1.9	%		2.0	%		2.6	%		2.0	%
Total		100.0			100.0	%		100.0			100.0	%

The fair value of our pension plan assets as of

October

28,

2016

and the level under which fair values were determined, using the hierarchy described in Note

is as follows:

	2016
	Level 1		Level 2		Level 3		Total

Total plan assets	$	41,871		-		-	$	41,871

Expected payments for the pension benefits are as follows:

Fiscal Years	Pension Benefits
2017	$	2,277
2018	$	2,197
2019	$	2,124
2020	$	2,466
2021	$	2,663
2022-2026	$	15,888

Executive Retirement Plans

Non - Qualified Deferred Compensation

Effective

January

1991

we adopted a deferred compensation savings plan for certain key employees. Under this arrangement, selected employees contribute a portion of their annual compensation to the plan. We contribute an amount to each participant’s account by computing an investment return equal to Moody’s Average Seasoned Bond Rate plus

2%.

Employees receive vested amounts upon death, termination or attainment of retirement age. No benefit expense was recorded under these plans for fiscal years

2016

and

2015.

Supplemental Executive Retirement Plan

In fiscal year

1991,

we adopted a non - qualified supplemental retirement plan for certain key employees. Benefits provided under the plan are equal to

60%

of the employee’s final average earnings, less amounts provided by our defined benefit pension plan and amounts available through Social Security.

Benefits payable related to these plans and included in the accompanying consolidated financial statements were

$5,454

and

$4,907

October

28,

2016

and

October

30,

2015,

respectively. In connection with this arrangement we are the beneficiary of life insurance policies on the lives of certain key employees and retirees. The aggregate cash surrender value of these policies, included in non - current assets, was

$13,769

and

$13,660

October

28,

2016

and

October

30,

2015,

respectively.

Expected payments for executive postretirement benefits are as follows:

Fiscal Years	Executive Postretirement Benefits
2017	$	75
2018	$	121
2019	$	287
2020	$	521
2021	$	521
2022-2026	$	2,603

Incentive Compensation Plan for Certain Key Executives

We provide an incentive compensation plan for certain key executives, which is based upon our pretax income. The payment of these amounts is generally deferred over

three

five

- year periods. The total amount payable related to this arrangement was

$7,098

and

$3,125

October

28,

2016

and

October

30,

2015,

respectively. Future payments are approximately

$2,574,

$2,541,

$1,785,

$129

and

$69

for fiscal years

2017

through

2021,

respectively.

Postretirement Healthcare Benefits for Selected Executive Employees

We provide postretirement health care benefits for selected executive employees. Net periodic postretirement healthcare cost is determined using assumptions as of the beginning of each fiscal year, except for the total actual benefit payments and the discount rate used to develop the net periodic postretirement benefit expense, which is determined at the end of the fiscal year.

Net periodic postretirement healthcare cost consisted of the following:

	52 Weeks
	2016			2015
Service cost	$	13		$	20
Interest cost		28			36
Amortization of prior service cost		(132	)		-
Amortization of actuarial gain		(106	)		(37	)
Net periodic postretirement healthcare (benefit) cost	$	(197	)	$	19

Weighted average assumptions for the fiscal years ended

October

28,

2016

and

October

30,

2015

are as follows:

	2016			2015
Discount rate		3.38	%		3.94	%
Medical trend rate next year		8.50	%		8.50	%
Ultimate trend rate		5.00	%		5.00	%
Year ultimate trend rate is achieved	2021			2021

The table below shows the estimated effect of a

increase in healthcare cost trend rate on the following:

	2016		2015
Interest cost plus service cost	$	6	$	5
Accumulated postretirement healthcare obligation	$	59	$	80

The table below shows the estimated effect of a

decrease in healthcare cost trend rate on the following:

	2016			2015
Interest cost plus service cost	$	(5	)	$	(4	)
Accumulated postretirement healthcare obligation	$	(49	)	$	(66	)

The healthcare obligation and funded status of this plan as of the fiscal years ended are as follows:

	2016			2015
Change in accumulated postretirement healthcare obligation:
Healthcare obligation - beginning of year	$	1,003		$	965
Service cost		13			20
Interest cost		28			36
Eliminate FSA		(441	)		-
Actuarial (gain) loss		(89	)		1
Benefits paid		(3	)		(19	)
Healthcare obligation – end of year	$	511		$	1,003

Funded status of the plans		511			1,003
Unrecognized prior service costs		(308	)		-
Unrecognized net actuarial gain		(156	)		(174	)
Unrecognized amounts recorded in other comprehensive income		464			174
Postretirement healthcare liability	$	511		$	1,003

Expected payments for the postretirement benefits are as follows:

Fiscal Years	Postretirement Heathcare Benefits
2017	$	13
2018	$	13
2019	$	53
2020	$	76
2021-2025	$	396

401(K)

Plan for Sales, Administrative, Supervisory and Certain Other Employees

During the fiscal year ended

November

2006,

we implemented a qualified

401(K)

retirement plan (the “Plan”) for our sales, administrative, supervisory and certain other employees. During fiscal years

2016

and

2015,

we made total employer contributions to the Plan in the amounts of

$549

and

$515,

respectively.