Deferred Compensation Plan

6 Months Ended

Jul. 04, 2014

Deferred Compensation Arrangements [Abstract]

Note 6: Deferred Compensation Plan

The Company maintains a nonqualified deferred compensation plan for the benefit of a select group of highly compensated employees. Under this plan, participants may elect to defer up to 100% of their compensation. Company assets that are earmarked to pay benefits under the plan are held in a rabbi trust and are subject to the claims of the Company’s creditors. As of July 4, 2014 and January 3, 2014, the invested amounts under the plan totaled $42,448,000 and $37,979,000, respectively. These assets are classified as trading securities and are recorded at fair value with changes recorded as adjustments to other income and expense.

As of July 4, 2014 and January 3, 2014, vested amounts due under the plan totaled $44,169,000 and $37,926,000, respectively. Changes in the liability are recorded as adjustments to compensation expense. During the three months ended July 4, 2014 and June 28, 2013, the Company recognized compensation expense of $1,952,000 and $168,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as income in other income, net. During the six months ended July 4, 2014 and June 28, 2013, the Company recognized compensation expense of $2,682,000 and $2,234,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as income in other income, net.