XML 23 R10.htm IDEA: XBRL DOCUMENT

Retirement and Other Benefit Plans

12 Months Ended

Nov. 03, 2017

NOTE 3 - 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 requires 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:

	November 3, 2017			October 28, 2016
	(53 Weeks)			(52 Weeks)
Service cost	$	131		$	130
Interest cost		2,196			2,448
Expected return on plan assets		(2,901	)		(2,871	)
Amortization of unrecognized loss		2,412			1,927
Net pension cost	$	1,838		$	1,634

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:

	2017			2016
Discount rate		3.65	%		3.40	%
Rate of increase in salary levels		N/A			N/A
Expected return on plan assets		7.00	%		7.00	%

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

	November 3, 2017			October 28, 2016
	(53 Weeks)			(52 Weeks)
Change in plan assets:
Fair value of plan assets - beginning of year	$	41,871		$	41,419
Employer contributions		1,150			1,150
Actual return on plan assets		6,853			790
Benefits paid		(1,666	)		(1,488	)
Fair value of plan assets - end of year	$	48,209		$	41,871
Change in benefit obligations:
Benefit obligations - beginning of year	$	68,287		$	59,931
Service cost		131			130
Interest cost		2,196			2,448
Actuarial (gain) loss		(6,468	)		7,266
Benefits paid		(1,666	)		(1,488	)
Benefit obligations - end of year		62,480			68,287
Funded status of the plans		(14,271	)		(26,416	)
Unrecognized prior service costs		-			-
Unrecognized net actuarial loss		20,431			33,264
Net amount recognized	$	6,160		$	6,848

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 October 31, 2017 and September 30, 2016, 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 2018 is $1,150.

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 remained the same at 7.00% effective for fiscal years 2017 and 2016, respectively.

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

Asset Class	2017			Target Asset Allocation			2016			Target Asset Allocation
Large Cap Equities		29.7	%		30.0	%		32.0	%		32.0	%
Mid Cap Equities		0.0	%		0.0	%		0.0	%		0.0	%
Small Cap Equities		13.2	%		12.0	%		12.1	%		12.0	%
International (equities only)		22.9	%		23.0	%		21.3	%		21.0	%
Fixed Income		32.2	%		33.0	%		30.7	%		31.0	%
Other (Government/Corporate, Bonds)		0.0	%		0.0	%		2.0	%		2.0	%
Cash		2.0	%		2.0	%		1.9	%		2.0	%
Total		100.0	%		100.0	%		100.0	%		100.0	%

The fair value of our pension plan assets as of November 3, 2017 and the level under which fair values were determined, using the hierarchy described in Note 1, is as follows:

	2017
	Level 1		Level 2		Level 3		Total

Total plan assets	$	48,209		-		-	$	48,209

Expected payments for the pension benefits are as follows:

Fiscal Years	Pension Benefits
2017	$	2,123
2018	$	2,254
2019	$	2,193
2020	$	2,554
2021	$	2,722
2022-2026	$	16,047

Executive Retirement Plans

Non-Qualified Deferred Compensation

Effective January 1, 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 2017 and 2016.

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 $5,607 and $5,454 as of November 3, 2017 and October 28, 2016, respectively. In connection with these arrangements 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 $13,105 and $13,769 as of November 3, 2017 and October 28, 2016, respectively.

Expected payments for executive postretirement benefits are as follows:

Fiscal Years	Executive Postretirement Benefits
2018	$	126
2019	$	293
2020	$	526
2021	$	526
2022	$	526
2023-2027	$	2,631

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 or five-year periods. The total amount payable related to this arrangement was $10,530 and $7,098 as of November 3, 2017 and October 28, 2016, respectively. Future payments are approximately $4,502, $3,745, $2,089, $132 and $63 for fiscal years 2018 through 2022, respectively.

Postretirement Healthcare Benefits for Selected Executive Employees

We provide postretirement health care benefits for selected executive employees. Net periodic postretirement healthcare (benefit) 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 (benefit) cost consisted of the following:

	November 3. 2017			October 28. 2016
	(53 Weeks)			(52 Weeks)
Service cost	$	13		$	13
Interest cost		17			28
Amortization of prior service cost		(132	)		(132	)
Amortization of actuarial gain		(58	)		(106	)
Net periodic postretirement healthcare (benefit)	$	(160	)	$	(197	)

Weighted average assumptions for the fiscal years ended November 3, 2017 and October 28, 2016 are as follows:

	2017			2016
Discount rate		3.51	%		3.38	%
Medical trend rate next year		8.50	%		8.50	%
Ultimate trend rate		5.00	%		5.00	%
Year ultimate trend rate is achieved		2022			2021

The table below shows the estimated effect of a 1% increase in healthcare cost trend rate on the following:

	2017		2016
Interest cost plus service cost	$	4	$	6
Accumulated postretirement healthcare obligation	$	64	$	59

The table below shows the estimated effect of a 1% decrease in healthcare cost trend rate on the following:

	2017			2016
Interest cost plus service cost	$	(4	)	$	(5	)
Accumulated postretirement healthcare obligation	$	(53	)	$	(49	)

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

	2017			2016
Change in accumulated postretirement healthcare obligation:
Healthcare obligation - beginning of year	$	511		$	1,003
Service cost		13			13
Interest cost		17			28
Eliminate FSA		-			(441	)
Actuarial (gain) loss		(11	)		(89	)
Benefits paid		(2	)		(3	)
Healthcare obligation – end of year	$	528		$	511

Funded status of the plans		528			511
Unrecognized prior service costs		(176	)		(308	)
Unrecognized net actuarial gain		(110	)		(156	)
Unrecognized amounts recorded in other comprehensive income		286			464
Postretirement healthcare liability	$	528		$	511

Expected payments for the postretirement benefits are as follows:

Fiscal Years	Postretirement Heathcare Benefits
2018	$	54
2019	$	78
2020	$	62
2021-2025	$	131

401(K) Plan for Sales, Administrative, Supervisory and Certain Other Employees

During the fiscal year ended November 3, 2006, we implemented a qualified 401(K) retirement plan (the “Plan”) for our sales, administrative, supervisory and certain other employees. During fiscal years 2017 and 2016, we made total employer contributions to the Plan in the amounts of $599 and $549, respectively.