v3.26.1
PENSION AND POSTRETIREMENT BENEFITS
 9 Months Ended
Feb. 22, 2026
PENSION AND POSTRETIREMENT BENEFITS  
PENSION AND POSTRETIREMENT BENEFITS

14. PENSION AND POSTRETIREMENT BENEFITS

We have defined benefit retirement plans (“pension plans”) for eligible salaried and hourly employees. Benefits are based on years of credited service and average compensation or stated amounts for each year of service. We also sponsor postretirement plans which provide certain medical and dental benefits to qualifying U.S. employees.

Components of pension and postretirement plan costs (benefits) are:

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Pension Plans

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Thirteen Weeks Ended

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Thirty-Nine Weeks Ended

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  ​ ​ ​

February 22, 2026

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February 23, 2025

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February 22, 2026

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February 23, 2025

Service cost

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$

1.4

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$

1.4

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$

4.1

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$

4.1

Interest cost

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22.0

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34.4

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66.2

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101.8

Expected return on plan assets

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(27.8)

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(37.0)

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(83.4)

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(109.4)

Amortization of prior service cost

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0.4

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0.4

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1.2

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1.2

Pension cost (benefit) — Company plans

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(4.0)

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(0.8)

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(11.9)

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(2.3)

Pension cost (benefit) — multi-employer plans

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2.1

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2.1

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7.2

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7.3

Total pension cost (benefit)

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$

(1.9)

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$

1.3

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$

(4.7)

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$

5.0

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Postretirement Plans

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Thirteen Weeks Ended

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Thirty-Nine Weeks Ended

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February 22, 2026

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February 23, 2025

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February 22, 2026

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February 23, 2025

Service cost

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$

—

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$

—

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$

0.1

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$

0.1

Interest cost

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0.6

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0.6

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1.7

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1.8

Amortization of prior service cost (benefit)

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​

(0.4)

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(0.4)

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(1.3)

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(1.3)

Recognized net actuarial gain

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(0.9)

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(1.1)

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(2.7)

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(3.4)

Total postretirement cost (benefit)

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$

(0.7)

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$

(0.9)

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$

(2.2)

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$

(2.8)

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The Company uses a split discount rate (spot-rate approach) for the U.S. plans and certain foreign plans. The spot-rate approach applies separate discount rates for each projected benefit payment in the calculation of pension service and interest cost.

The weighted-average discount rates for service and interest costs under the spot-rate approach used for pension cost in fiscal 2026 were 6.17% and 5.41%, respectively.

During the third quarter and first three quarters of fiscal 2026, we contributed $2.8 million and $8.1 million, respectively, to our pension plans and contributed $1.5 million and $4.2 million, respectively, to our postretirement plans. Based upon the current funded status of the plans and the current interest rate environment, we anticipate making further contributions of approximately $2.9 million to our pension plans during the remainder of fiscal 2026. We anticipate making further contributions of approximately $2.4 million to our postretirement plans during the remainder of fiscal 2026. These estimates are based on ERISA guidelines, current tax laws, plan asset performance, and liability assumptions, which are subject to change.

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Subsequent to the end of the third quarter of fiscal 2026, and in connection with the termination and settlement of a pension plan for the benefit of certain hourly employees, we transferred $40.3 million of our U.S. defined benefit pension plan obligations to an insurance company through the purchase of an irrevocable group annuity contract. The group annuity contract was purchased and funded directly from the assets of our pension plans. The transaction will require a remeasurement of the applicable pension plan in the fourth quarter of fiscal 2026.