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Note 15 Employee Benefit Plans | 12 Months Ended
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Oct. 01, 2011
Compensation and Retirement Disclosure [Abstract] |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans The Company has various defined contribution retirement plans that cover the majority of its domestic employees. These retirement plans permit participants to elect to have contributions made to the retirement plans in the form of salary deferrals. Under these retirement plans, the Company may match a portion of employee contributions. Amounts contributed by the Company were zero for 2011 and 2010, and $2.8 million for 2009. The Company sponsors deferred compensation plans for eligible employees and non-employee members of its board of directors. These plans allow eligible participants to defer payment of all or part of their compensation. Deferrals under these plans were $1.9 million and $1.2 million for 2011 and 2010, respectively. As of October 1, 2011 and October 2, 2010, $10.3 million and $10.8 million, respectively, associated with these plans was recorded in other long-term liabilities in the consolidated balance sheets. Prior to its merger with Sanmina Corporation in December 2001, SCI Systems had defined benefit pension plans covering substantially all employees in the United States and Brockville, Ontario, Canada. These plans generally provided pension benefits that are based on compensation levels and years of service. Annual contributions to the plans were made according to the established laws and regulations of the applicable countries and were funded annually at amounts that approximated the maximum deductible for income taxes. Upon the merger between Sanmina Corporation and SCI Systems, benefits were calculated and frozen. Employees who had not yet vested will continue to be credited with service until vesting occurs, but no additional benefits will accrue. The Company also provides defined benefit pension plans in certain other countries. The assumptions used for calculating the obligation for non-U.S. plans depend on the local economic environment and regulations. The measurement date for the Company's pension plans is October 1, 2011. Changes in benefit obligations for the plans described above were as follows (in thousands):
|  | As of October 1, 2011 |  | As of October 2, 2010 |  | As of October 3, 2009
Change in Benefit Obligations |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S.
Beginning benefit obligation |  | $ | 27,302 |  |  | $ | 29,346 |  |  | $ | 28,089 |  |  | $ | 26,110 |  |  | $ | 28,974 |  |  | $ | 25,767 |
Service cost |  | — |  |  | 599 |  |  | — |  |  | 396 |  |  | — |  |  | 558 |
Interest cost |  | 1,050 |  |  | 1,382 |  |  | 1,364 |  |  | 1,213 |  |  | 1,598 |  |  | 1,482 |
Actuarial (gain) loss |  | 656 |  |  | (5,891 | ) |  | 2,128 |  |  | 6,598 |  |  | 4,448 |  |  | 1,011 |
Benefits paid |  | (2,123 | ) |  | (723 | ) |  | (4,279 | ) |  | (773 | ) |  | (6,931 | ) |  | (2,369 | )
Settlement / Curtailment |  | — |  |  | — |  |  | — |  |  | (1,252 | ) |  | — |  |  | 349 |
Other (1) |  | — |  |  | 683 |  |  | — |  |  | (2,946 | ) |  | — |  |  | (688 | )
Ending benefit obligation |  | $ | 26,885 |  |  | $ | 25,396 |  |  | $ | 27,302 |  |  | $ | 29,346 |  |  | $ | 28,089 |  |  | $ | 26,110 |
Ending accumulated benefit obligation |  | $ | 26,885 |  |  | $ | 23,374 |  |  | $ | 27,302 |  |  | $ | 27,871 |  |  | $ | 28,089 |  |  | $ | 24,549 |
____________________ (1) Primarily related to fluctuations in exchange rates between foreign currencies and the US dollar. Weighted-average actuarial assumptions used to determine benefit obligations were as follows:
| U.S. Pensions |  | Non-U.S. Pensions
| As of |  | As of
| October 1, 2011 |  | October 2, 2010 |  | October 1, 2011 |  | October 2, 2010
Discount rate | 4.00 | % |  | 4.00 | % |  | 5.80 | % |  | 4.64 | %
Rate of compensation increases | — | % |  | — | % |  | 0.82 | % |  | 0.38 | %
The Company evaluates these assumptions on a regular basis taking into consideration current market conditions and historical market data. The discount rate is used to measure expected future cash flows at present value on the measurement date. This rate represents the market rate for high-quality fixed income investments. A lower discount rate would increase the present value of the benefit obligation. Other assumptions include demographic factors such as retirement, mortality, and turnover. Changes in plan assets and funded status for the plans described above were as follows (in thousands):
|  | As of October 1, 2011 |  | As of October 2, 2010 |  | As of October 3, 2009
Change in Plan Assets |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S.
Beginning fair value |  | $ | 19,216 |  |  | $ | 26,771 |  |  | $ | 20,164 |  |  | $ | 17,315 |  |  | $ | 22,324 |  |  | $ | — |
Actual return |  | 892 |  |  | 1,249 |  |  | 2,661 |  |  | 882 |  |  | (730 | ) |  | — |
Employer contributions |  | 824 |  |  | 294 |  |  | 670 |  |  | 11,327 |  |  | 5,501 |  |  | 19,684 |
Benefits paid |  | (2,123 | ) |  | (723 | ) |  | (4,279 | ) |  | (773 | ) |  | (6,931 | ) |  | (2,369 | )
Actuarial loss |  | — |  |  | (1,533 | ) |  | — |  |  | (871 | ) |  | — |  |  | — |
Other (1) |  | — |  |  | 29 |  |  | — |  |  | (1,109 | ) |  | — |  |  | — |
Ending fair value |  | $ | 18,809 |  |  | $ | 26,087 |  |  | $ | 19,216 |  |  | $ | 26,771 |  |  | $ | 20,164 |  |  | $ | 17,315 |
Over (under) Funded Status |  | $ | (8,076 | ) |  | $ | 691 |  |  | $ | (8,086 | ) |  | $ | (2,575 | ) |  | $ | (7,925 | ) |  | $ | (8,795 | )
____________________ (1) Related to fluctuations in exchange rates between foreign currencies and the US dollar. Weighted-average asset allocations by asset category for the U.S. and non-U.S. plans were as follows:
| U.S. |  | Non-U.S.
| Level 1 |  | Level 1
| As of |  | As of
| Target |  | October 1, 2011 |  | October 2, 2010 |  | Target |  | October 1, 2011 |  | October 2, 2010
Equity securities | 51 | % |  | 48.9 | % |  | 47 | % |  | 20 | % |  | 19.0 | % |  | 21.7 | %
Debt securities | 49 | % |  | 51.1 | % |  | 53 | % |  | 80 | % |  | 80.7 | % |  | 76.5 | %
Cash | — | % |  | — | % |  | — | % |  | — | % |  | 0.3 | % |  | 1.8 | %
Total | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | % |  | 100 | %
In 2010, the Company adopted ASC Topic 715, Compensation- Retirement Benefits, and is required to disclose information about investment policies and strategies, categories of plan assets, fair value measurement of plan assets and significant concentrations of credit risk. The Company's investment strategy is designed to ensure that sufficient pension assets are available to pay benefits as they become due. In order to meet this objective, the Company has established targeted investment allocation percentages for equity and debt securities as noted in the preceding table. As of October 1, 2011, U.S plan assets are invested in an SEI Institutional Trust, with investments in the following SEC registered mutual funds: Core Fixed Income Fund, S&P 500 Index Fund, World Equity ex-US Fund, High Yield Bond Fund, and Emerging Market Debt Fund. These mutual funds are valued based on the net asset value (NAV) of the underlying securities in an active market, which is considered a Level 1 input under ASC Topic 820, Fair Value Measurements and Disclosures (refer to Note 5). The beneficial interest of each participant is represented in units which are issued and redeemed daily at the fund's closing NAV. Non-U.S plan assets are invested in publicly-traded mutual funds consisting of medium-term Euro bonds and stocks of companies in the European region. The mutual funds are valued using the NAV that is quoted in an active market and is considered a Level 1 input under ASC Topic 820. The plans are managed consistent with regulations or market practice of the country in which the assets are invested. As of October 1, 2011 there were no significant concentrations of credit risk related to pension plan assets. The funded status of the plans, reconciled to the amount reported on the consolidated balance sheets, is as follows (in thousands):
|  | As of October 1, 2011 |  | As of October 2, 2010 |  | As of October 3, 2009
|  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S.
Over (under) Funded Status at Year End |  | $ | (8,076 | ) |  | $ | 691 |  |  | $ | (8,086 | ) |  | $ | (2,575 | ) |  | $ | (7,925 | ) |  | $ | (8,795 | )
Unrecognized transition obligation |  | — |  |  | 76 |  |  | — |  |  | 106 |  |  | — |  |  | 999 |
Unrecognized net actuarial (gain) loss |  | 9,822 |  |  | (1,706 | ) |  | 10,427 |  |  | 2,647 |  |  | 12,300 |  |  | (4,982 | )
Net amount recognized in Consolidated |  |  |  |  |  |  |  |  |  |  |  |
Balance Sheet |  | $ | 1,746 |  |  | $ | (939 | ) |  | $ | 2,341 |  |  | $ | 178 |  |  | $ | 4,375 |  |  | $ | (12,778 | )
Components of Net Amount Recognized in Consolidated Balance Sheet: |  |  |  |  |  |  |  |  |  |  |  |
Non-current assets |  | $ | — |  |  | $ | 4,412 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Current liabilities |  | — |  |  | (286 | ) |  | — |  |  | (263 | ) |  | — |  |  | (570 | )
Non-current liabilities |  | (8,076 | ) |  | (3,435 | ) |  | (8,086 | ) |  | (2,312 | ) |  | (7,925 | ) |  | (8,225 | )
Accumulated other comprehensive income |  | 9,822 |  |  | (1,630 | ) |  | 10,427 |  |  | 2,753 |  |  | 12,300 |  |  | (3,983 | )
Net asset (liability) recognized in |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Balance Sheet |  | $ | 1,746 |  |  | $ | (939 | ) |  | $ | 2,341 |  |  | $ | 178 |  |  | $ | 4,375 |  |  | $ | (12,778 | )
Estimated amortization from accumulated other comprehensive income into net periodic benefit cost in 2012 is as follows (in thousands):
| U.S. |  | Non-U.S.
Amortization of actuarial loss | $ | 951 |  |  | $ | 15 |
Amortization of transition obligation | — |  |  | 23 |
Total | $ | 951 |  |  | $ | 38 |
Components of net periodic benefit costs were as follows (in thousands):
|  | As of October 1, 2011 |  | As of October 2, 2010 |  | As of October 3, 2009
|  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S. |  | U.S. |  | Non-U.S.
Service cost |  | $ | — |  |  | $ | 599 |  |  | $ | — |  |  | $ | 396 |  |  | $ | — |  |  | $ | 558 |
Interest cost |  | 1,050 |  |  | 1,382 |  |  | 1,364 |  |  | 1,213 |  |  | 1,598 |  |  | 1,482 |
Return on plan assets |  | (1,162 | ) |  | (1,249 | ) |  | (1,244 | ) |  | (882 | ) |  | (1,839 | ) |  | — |
Settlement charge |  | 532 |  |  | — |  |  | 1,382 |  |  | (1,041 | ) |  | 2,757 |  |  | 1,302 |
Amortization of: |  |  |  |  |  |  |  |  |  |  |  |
Actuarial (gain) or loss |  | 1,000 |  |  | 78 |  |  | 1,201 |  |  | (190 | ) |  | 724 |  |  | (243 | )
Transition obligation |  | — |  |  | 23 |  |  | — |  |  | 24 |  |  | — |  |  | 405 |
Net periodic benefit cost |  | $ | 1,420 |  |  | $ | 833 |  |  | $ | 2,703 |  |  | $ | (480 | ) |  | $ | 3,240 |  |  | $ | 3,504 |
Weighted-average assumptions used to determine benefit costs were as follows:
| U.S. Pensions |  | Non-U.S. Pensions
| As of |  | As of
| October 1, 2011 |  | October 2, 2010 |  | October 1, 2011 |  | October 2, 2010
Discount rate | 4.00 | % |  | 5.25 | % |  | 4.64 | % |  | 5.87 | %
Expected return on plan assets | 6.25 | % |  | 6.75 | % |  | 4.70 | % |  | 4.70 | %
Rate of compensation increases | — | % |  | — | % |  | 0.38 | % |  | 1.60 | %
The expected long-term rate of return on assets for the U.S. and non-U.S pension plans used in these calculations is assumed to be 6.25% and 4.70%, respectively. Several factors, including historical rates of returns, expectations of future returns for each major asset class in which the plan invests, the weight of each asset class in the target mix, the correlations between asset classes and their expected volatilities are considered in developing the asset return assumptions. Estimated future benefit payments are as follows:
| Pension Benefits
| (In thousands)
2012 | $ | 7,308 |
2013 | $ | 3,749 |
2014 | $ | 3,397 |
2015 | $ | 3,594 |
2016 | $ | 3,585 |
Years 2017 through 2021 | $ | 16,685 |

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 87 -Paragraph 264 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. 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