Albertsons 2016 Annual Report Download - page 93

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91
The following is a summary of changes in the fair value of Level 3 investments for 2016 and 2015:
Real Estate
Partnerships Private Equity
Ending balance, February 22, 2014 $ 149 $ 125
Purchases 10 36
Sales (7)(21)
Unrealized gains 10 4
Realized gains and losses — —
Ending balance, February 28, 2015 162 144
Purchases 7 25
Sales (18)(18)
Unrealized gains 9 (10)
Realized gains and losses 4 —
Ending balance, February 27, 2016 $ 164 $ 141
Contributions
In August 2014, the Highway and Transportation Funding Act of 2014, which included an extension of pension funding interest
rate relief, was signed into law. The Highway and Transportation Funding Act includes a provision for interest rate stabilization
for defined benefit employee pension plans. As a result of this stabilization provision, the Company's required pension
contributions to the SUPERVALU Retirement Plan decreased significantly in fiscal 2016 compared to fiscal 2015 and the
Company expects that to continue for the next several years. The Company expects to contribute approximately $30 to $35 to
its defined benefit pension plans and postretirement benefit plans in fiscal 2017.
The Company funds its defined benefit pension plans based on the minimum contribution required under the Employee
Retirement Income Security Act of 1974, as amended, the Pension Protection Act of 2006 and other applicable laws, as
determined by the Company’s external actuarial consultant, and additional contributions made at the Company's discretion. The
Company had agreed to make $100 in aggregate contributions to the SUPERVALU Retirement Plan in excess of the minimum
required contributions pursuant to a term sheet entered into with the Pension Benefit Guarantee Corporation (the “PBGC”) in
connection with the sale of NAI. On September 11, 2014, the Company, AB Acquisition and the PBGC amended the term sheet.
Pursuant to that amendment, the Company made excess contributions of $47 to the SUPERVALU Retirement Plan and the
Company no longer has any obligations or restrictions under the term sheet. The Company will recognize contributions in
accordance with applicable regulations, with consideration given to recognition for the earliest plan year permitted.
At the Company’s discretion, additional funds may be contributed to the pension plan. The Company may accelerate
contributions or undertake contributions in excess of the minimum requirements from time to time subject to the availability of
cash in excess of operating and financing needs or other factors as may be applicable. The Company assesses the relative
attractiveness of the use of cash including such factors as expected return on assets, discount rates, cost of debt, reducing or
eliminating required PBGC variable rate premiums or the ability to achieve exemption from participant notices of
underfunding.
Lump Sum Pension Settlement
During fiscal 2015, the Company made lump sum settlement payments to certain deferred vested pension plan participants
under a lump sum payment option window. The payments were equal to the present value of the participant’s pension benefits,
and were made to certain former employees who were deferred vested participants in the SUPERVALU Retirement Plan, who
had not yet begun receiving monthly pension benefit payments and who elected to participate in the lump sum payment option
window. In fiscal 2015, the SUPERVALU Retirement Plan made lump sum settlement payments of approximately $272. The
lump sum settlement payments resulted in a non-cash pension settlement charge of $64 from the acceleration of a portion of the
accumulated unrecognized actuarial loss. As a result of the lump sum settlements, the SUPERVALU Retirement Plan assets and
liabilities were re-measured at November 29, 2014 using a discount rate of 4.1 percent, an expected rate of return on plan assets
of 6.5 percent and the RP-2014 Generational Mortality Table. The November 29, 2014 re-measurement resulted in an increase
to Accumulated other comprehensive loss of $200 pre-tax ($141 after-tax) and a corresponding decrease to the SUPERVALU
Retirement Plan's funded status.