17.

Pension and Other Employee Benefits

The Company has certain defined benefit pension plans covering the employees of its Hitec Imaging German subsidiary (the “Pension Benefits”). As of September 28, 2013 and September 29, 2012, the Company’s pension liability is $10.1 million and $9.7 million, respectively, which is primarily recorded as a component of long-term liabilities in the Consolidated Balance Sheets. Under German law, there are no rules governing investment or statutory supervision of the pension plan. As such, there is no minimum funding requirement imposed on employers. Pension benefits are safeguarded by the Pension Guaranty Fund, a form of compulsory reinsurance that guarantees an employee will receive vested pension benefits in the event of insolvency.

The tables below provide a reconciliation of benefit obligations, plan assets, funded status, and related actuarial assumptions of the Company’s German Pension Benefits.


Change in Benefit Obligation	Years ended
Change in Benefit Obligation	September 28, 2013			September 29, 2012			September 24, 2011
Benefit obligation at beginning of year	$	(9,744	)	$	(8,064	)	$	(9,093	)
Service cost		—			—			—
Interest cost		(354	)		(391	)		(389	)
Plan participants’ contributions		—			—			—
Actuarial gain (loss)		188			(2,002	)		1,092
Foreign exchange (loss) gain		(503	)		383			(5	)
Benefits paid		348			330			331

Benefit obligation at end of year		(10,065	)		(9,744	)		(8,064	)
Plan assets		—			—			—

Funded status	$	(10,065	)	$	(9,744	)	$	(8,064	)

The tables below outline the components of the net periodic benefit cost and related actuarial assumptions of the Company’s German Pension Benefits plan.


Components of Net Periodic Benefit Cost	Years ended
Components of Net Periodic Benefit Cost	September 28, 2013		September 29, 2012			September 24, 2011
Service cost	$	—	$	—		$	—
Interest cost		354		391			389
Expected return on plan assets		—		—			—
Amortization of prior service cost		—		—			—
Recognized net actuarial gain		—		(38	)		—

Net periodic benefit cost	$	354	$	353		$	389


Weighted-Average Net Periodic Benefit Cost Assumptions	2013			2012			2011
Discount rate		3.60	%		3.52	%		5.20	%
Expected return on plan assets		0	%		0	%		0	%
Rate of compensation increase		0	%		0	%		0	%

The projected benefit obligation for the German Pension Benefits plans with projected benefit obligations in excess of plan assets was $10.1 million and $9.7 million at September 28, 2013 and September 29, 2012, respectively, and the accumulated benefit obligation for the German Pension Benefits plans was $10.1 million and $9.7 million at September 28, 2013 and September 29, 2012, respectively.

The Company is also obligated to pay long-term service award benefits. The projected benefit obligation for long-term service awards was $0.6 million at September 28, 2013 and September 29, 2012, respectively.

The table below reflects the total Pension Benefits expected to be paid each fiscal year as of September 28, 2013:


2014	$	374
2015		399
2016		415
2017		428
2018		441
2019 to 2023		2,404

The Company also maintains additional contractual pension benefits for its top German executive officers in the form of a defined contribution plan. These contributions were insignificant in fiscal 2013, 2012 and 2011.