Expected ultimate pre-Medicare and post-Medicare rate (as a percent)

[Table of Contents](#ic0f1e00f8fa04a87b8ba424679040b3d_7)  


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| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  | Pension Benefits |  | Post-retirement Benefits |
| (in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020 |
| Change in Plan Assets |  |  |  |  |  |  |  |  |
| Fair Value of Plan Assets at Beginning of Year |  | $ | 1,553,532  |  |  | $ | 1,477,288  |  |  | $ | —  |  |  | $ | —  |  |
| Actual Return on Plan Assets |  | 211,054  |  |  | 183,647  |  |  | —  |  |  | —  |  |
| Participant Contributions |  | —  |  |  | —  |  |  | 2,113  |  |  | 2,344  |  |
| Employer Contributions |  | 10,712  |  |  | 8,562  |  |  | 21,105  |  |  | 18,646  |  |
| Benefits Paid |  | (76,702) |  |  | (115,965) |  |  | (23,218) |  |  | (20,990) |  |
| Fair Value of Plan Assets at End of Year |  | $ | 1,698,596  |  |  | $ | 1,553,532  |  |  | $ | —  |  |  | $ | —  |  |
| Funded Status at End of Year |  | $ | (13,362) |  |  | $ | (113,354) |  |  | $ | (274,666) |  |  | $ | (285,293) |  |

 Amounts recognized in the Consolidated Statements of Financial Position as of October 31, 2021, and October 25, 2020, are as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | Pension Benefits |  | Post-retirement Benefits |
| (in thousands) |  | 2021 |  | 2020 |  | 2021 |  | 2020 |
| Pension Assets |  | $ | 289,096  |  |  | $ | 183,232  |  |  | $ | —  |  |  | $ | —  |  |
| Employee-related Expenses |  | (11,173) |  |  | (9,332) |  |  | (19,589) |  |  | (19,669) |  |
| Pension and Post-retirement Benefits |  | (291,285) |  |  | (287,254) |  |  | (255,077) |  |  | (265,624) |  |
| Net Amount Recognized |  | $ | (13,362) |  |  | $ | (113,354) |  |  | $ | (274,666) |  |  | $ | (285,293) |  |

  
The accumulated benefit obligation for all pension plans was $1.7 billion and $1.6 billion as of October 31, 2021, and October 25, 2020, respectively. The following table provides information for pension plans with projected and accumulated benefit obligations in excess of plan assets: 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| (in thousands) |  | 2021 |  | 2020 |
| Projected Benefit Obligation |  | $ | 302,458  |  |  | $ | 296,585  |  |
| Accumulated Benefit Obligation |  | 292,877  |  |  | 288,359  |  |
| Fair Value of Plan Assets |  | —  |  |  | —  |  |

  
Weighted-average assumptions used to determine benefit obligations are as follows: 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | 2021 |  | 2020 |
| Discount Rate |  | 3.00  | % |  | 3.06  | % |
| Rate of Future Compensation Increase (For Plans that Base Benefits onFinal Compensation Level) |  | 4.14  | % |  | 4.09  | % |

  
Weighted-average assumptions used to determine net periodic benefit costs are as follows: 

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |  | 2021 |  | 2020 |  | 2019 |
| Discount Rate |  | 3.06  | % |  | 3.37  | % |  | 4.55  | % |
| Rate of Future Compensation Increase (For Plans that Base Benefits on Final Compensation Level) |  | 4.09  | % |  | 4.06  | % |  | 3.96  | % |
| Expected Long-term Return on Plan Assets |  | 6.75  | % |  | 7.00  | % |  | 7.15  | % |

  
The expected long-term rate of return on plan assets is based on fair value and developed in consultation with outside advisors. A range is determined based on the composition of the asset portfolio, historical long-term rates of return, and estimates of future performance.   
For measurement purposes, an 8 percent annual rate of increase in the per capita cost of covered health care benefits for pre-Medicare and post-Medicare retirees’ coverage is assumed for 2022. The pre-Medicare and post-Medicare rate is assumed to decrease to 5 percent for 2027 and remain steady thereafter. The Company’s funding policy is to make annual contributions of not less than the minimum required by applicable regulations. The Company expects to make contributions of $31.1 million during fiscal 2022 that represent benefit payments for unfunded plans. 50
