XML 24 R13.htm IDEA: XBRL DOCUMENT v3.20.2
Note 7 - Pension, Postretirement and Postemployment Defined Benefit Plans
 9 Months Ended
Jun. 28, 2020
Pension Plan [Member]  
Notes to Financial Statements  
Retirement Benefits [Text Block]

7

PENSION, POSTRETIREMENT AND POSTEMPLOYMENT DEFINED BENEFIT PLANS

 

We have several noncontributory defined benefit pension plans that together cover selected employees. Benefits under the plans were generally based on salary and years of service. With the exception of defined benefit plans acquired in the Transactions, effective in 2012, substantially all benefits are frozen. Our liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations. Plan funding strategies are influenced by government regulations. Plan assets consist primarily of domestic and foreign corporate equity securities, government and corporate bonds, hedge fund investments and cash.

 

We provide retiree medical and life insurance benefits under postretirement plans at several of our operating locations. The level and adjustment of participant contributions vary depending on the specific plan. In addition, St. Louis Post-Dispatch LLC, provides postemployment disability benefits to certain employee groups prior to retirement. Our liability and related expense for benefits under the postretirement plans are recorded over the service period of active employees based upon annual actuarial calculations. We accrue postemployment disability benefits when it becomes probable that such benefits will be paid and when sufficient information exists to make reasonable estimates of the amounts to be paid.

 

As part of the Transactions, the Company assumed several non-contributory defined benefit pension plans that together cover selected employees. Benefits under the plans are generally based on salary and years of service. The liability and related expense for benefits under the plans are recorded over the service period of employees based upon annual actuarial calculations. Plan funding strategies are influenced by government regulations. Plan assets consist primarily of domestic corporate equity securities, government and corporate bonds, money markets and deposits with insurance companies. The amount of net pension obligations for those plans as of March 16, 2020, the initial measurement date, was $43,503,000. The total pension benefit recognized for the period between March 16, 2020 and June 28, 2020 was $642,000.

 

Additionally, as part of the Transactions, the Company assumed certain unfunded postemployment benefit plans which provide coverage to retirees for portions of premiums associated with medical, dental, life, and vision insurance benefits in eight collective bargaining units. The amount of premiums paid in five bargaining units are capped at specific dollar amounts per month. The amount of premiums paid in three bargaining units are uncapped. The plan groups consist of capped retirees, uncapped retirees, capped active employees, and uncapped active employees. New participants in the uncapped plans are eligible for Medicare supplemental medical insurance. The total postemployment benefit obligation recognized for these plans as of March 16, 2020, the initial measurement date, was $36,800,000. The total postemployment benefit cost recognized for the period between March 16, 2020 and June 28, 2020 was $590,000.

 

We use a fiscal year end measurement date for all of our pension and postretirement medical plan obligations.

 

The net periodic pension and postretirement cost (benefit) components for our plans are as follows:

 

PENSION PLANS

 

13 Weeks Ended

  

39 Weeks Ended

 
  

June 28,

  

June 30,

  

June 28,

  

June 30,

 

(Thousands of Dollars)

 

2020

  

2019

  

2020

  

2019

 
             

Service cost for benefits earned during the period

 626  9  737  27 

Interest cost on projected benefit obligation

 2,462  1,641  5,113  4,923 

Expected return on plan assets

 (4,356) (2,018) (8,628) (6,055)
Amortization of net loss 792  284  2,376  851 

Amortization of prior service benefit

 (2) (25) (6) (75)

Pension benefit

 (478) (109) (408) (329)

 

POSTRETIREMENT MEDICAL PLANS

 

13 Weeks Ended

  

39 Weeks Ended

 
  

June 28,

  

June 30,

  

June 28,

  

June 30,

 

(Thousands of Dollars)

 

2020

  

2019

  

2020

  

2019

 
             
Service cost for benefits earned during the period 232  —  268  — 

Interest cost on projected benefit obligation

 346  103  523  309 

Expected return on plan assets

 (265) (270) (795) (811)

Amortization of net gain

 (186) (244) (558) (732)

Amortization of prior service benefit

 (161) (181) (483) (543)

Postretirement medical benefit

 (34) (592) (1,045) (1,777)

 

In the 39 weeks ended June 28, 2020 we did not contribute to our pension plans.

 

On March 27, 2020, Congress approved the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act") to address the economic impact associated with the COVID-19 virus. The CARES Act allows the Company to defer pension contributions until December 31, 2020. The Company does not expect to make pension contributions for the remainder of fiscal 2020.