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EMPLOYEE BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 30, 2012
Funded Status of Company Significant Foreign Defined Benefit Plans

The tables presented below set forth the funded status of the Company’s significant foreign defined benefit plans and required disclosures in accordance with applicable accounting standards

 

     FISCAL YEAR  
     2012     2011  
     (in thousands)  

Change in benefit obligation

     

Benefit obligation, beginning of year

    $ 216,721      $ 212,378   

Service cost

      505        469   

Interest cost

      10,212        11,386   

Benefits and expenses paid

      (9,969 )      (11,641 ) 

Actuarial loss (gain)

      17,538        5,224   

Member contributions

      296        375   

Currency translation adjustment

      8,346        (1,470 ) 
  

 

 

    

 

 

  

Benefit obligation, end of year

    $ 243,649      $ 216,721   
  

 

 

    

 

 

  

 

     FISCAL YEAR  
     2012     2011  
     (in thousands)  

Change in plan assets

     

Plan assets, beginning of year

    $ 206,402      $ 205,810   

Actual return on assets

      31,204        8,769   

Company contributions

      5,248        5,112   

Member contributions

      0        0   

Benefits paid

      (9,704 )      (11,697 ) 

Currency translation adjustment

      7,877        (1,592 ) 
  

 

 

    

 

 

  

Plan assets, end of year

    $ 241,027      $ 206,402   
  

 

 

    

 

 

  

Reconciliation to balance sheet

     

Funded status (benefit liability)

    $ (2,622 )    $ (10,319 ) 
  

 

 

    

 

 

  

Net amount recognized

    $ (2,622 )    $ (10,319 ) 
  

 

 

    

 

 

  

Amounts recognized in accumulated other comprehensive income (after tax)

     

Unrecognized actuarial loss

    $ 30,711      $ 32,455   

Unamortized prior service costs

      774        809   
  

 

 

    

 

 

  

Total amount recognized

    $ 31,485      $ 33,264   
  

 

 

    

 

 

  
Schedule of Defined Benefit Plans

As of December 30, 2012, and January 1, 2012, one of these plans, which primarily covers certain employees in the United Kingdom (the “UK Plan”), had an accumulated benefit obligation in excess of the plan assets. The other plan, which covers certain employees in Europe (the “Europe Plan”), had assets in excess of the accumulated benefit obligation. The following table summarizes this information as of December 30, 2012, and January 1, 2012.

 

     2012      2011  
     (in thousands)  

UK Plan

   

Projected Benefit Obligation

    $ 171,381       $ 157,600   

Accumulated Benefit Obligation

      171,381         157,600   

Plan Assets

      162,998         139,796   

Europe Plan

      

Projected Benefit Obligation

    $ 72,267       $ 59,121   

Accumulated Benefit Obligation

      69,472         57,247   

Plan Assets

      78,029         66,606   

 

     FISCAL YEAR  
     2012     2011     2010  
     (in thousands)  

Components of net periodic benefit cost

       

Service cost

    $ 505      $ 492      $ 357   

Interest cost

      10,212        11,194        10,873   

Expected return on plan assets

      (11,203 )      (11,966 )      (11,058 ) 

Amortization of prior service cost

      86        0        89   

Recognized net actuarial (gains)/losses

      1,189        602        1,566   
  

 

 

    

 

 

    

 

 

  

Net periodic benefit cost

    $ 789      $ 322      $ 1,827   
  

 

 

    

 

 

    

 

 

  

 
Assumption Used to Determine Net Period Benefit Cost

During 2012, other comprehensive income was impacted by approximately $2.7 million comprised of actuarial gain of approximately $1.8 million and amortization of $0.8 million

 

     FISCAL YEAR  
     2012     2011     2010  

Weighted average assumptions used to determine net periodic benefit cost

       

Discount rate

      4.7 %      5.3 %      5.6 % 

Expected return on plan assets

      5.7 %      5.9 %      6.6 % 

Rate of compensation

      2.0 %      2.0 %      2.0 % 

Weighted average assumptions used to determine benefit obligations

       

Discount rate

      4.0 %      4.7 %      5.3 % 

Rate of compensation

      2.0 %      2.0 %      2.0 % 
Projected, Accumulated Benefit Plans and Fair Value of Plan Assets

The projected benefit obligations, accumulated benefit obligations and fair value of these plan assets are as follows:

 

     FISCAL YEAR  
     2012      2011  
     (in thousands)  

Projected benefit obligation

    $ 243,649       $ 216,721   

Accumulated benefit obligations

      240,853         214,848   

Fair value of plan assets

      241,027         206,402   
Weighted Average Assets Allocation and Target Asset Allocation

The Company’s actual weighted average asset allocations for 2012 and 2011, and the targeted asset allocation for 2013, of the foreign defined benefit plans by asset category, are as follows:

 

     FISCAL YEAR  
     2013     2012     2011  
     Target Allocation     Percentage of Plan Assets at Year End  

Asset Category:

       

Equity Securities

      55-65 %      68 %      66 % 

Debt Securities

      30-40 %      28 %      30 % 

Other

      0-5 %      4 %      4 % 
  

 

 

    

 

 

    

 

 

  
     100 %      100 %      100 % 
  

 

 

    

 

 

    

 

 

  

 
Pension Plan Assets at Fair Value

The following table sets forth by level within the fair value hierarchy the foreign defined benefit plans’ assets at fair value, as of December 30, 2012 and January 1, 2012. As required by accounting standards, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

 

      Pension Plan Assets by Category as of December 30,  2012  
     Europe Plan      UK Plan      Total  
            (in thousands)         

Level 1

    $ 78,029       $ 153,847       $ 231,876   

Level 2

      0         0         0   

Level 3

      0         9,151         9,151   
  

 

 

     

 

 

     

 

 

  

Total

    $ 78,029       $ 162,998       $ 241,027   
  

 

 

     

 

 

     

 

 

  

 

      Pension Plan Assets by Category as of January 1,  2012  
     Europe Plan      UK Plan      Total  
            (in thousands)         

Level 1

    $ 66,606       $ 132,491       $ 199,097   

Level 2

      0         0         0   

Level 3

      0         7,305         7,305   
  

 

 

     

 

 

     

 

 

  

Total

    $ 66,606       $ 139,796       $ 206,402   
  

 

 

     

 

 

     

 

 

  
Domestic SCP [Member]
  
Change in Value of Assets

The tables presented below set forth the required disclosures in accordance with applicable accounting standards, and amounts recognized in the consolidated financial statements related to the domestic SCP.

 

     FISCAL YEAR  
     2012     2011  
     (in thousands)  

Change in benefit obligation

     

Benefit obligation, beginning of year

    $ 19,308      $ 19,008   

Service cost

      452        393   

Interest cost

      1,014        1,135   

Benefits paid

      (847 )      (949 ) 

Actuarial loss (gain)

      1,996        (279 ) 
  

 

 

    

 

 

  

Benefit obligation, end of year

    $ 21,923      $ 19,308   
  

 

 

    

 

 

  
Foreign Defined Benefit Plans

It is anticipated that future benefit payments for the SCP will be as follows:

 

FISCAL YEAR

    EXPECTED PAYMENTS  
     (in thousands)  

2013

    $ 847   

2014

      847   

2015

      847   

2016

      847   

2017

      847   

2018-2022

      6,706   
Amount Recognized in Consolidated Balance Sheets

The amounts recognized in the consolidated balance sheets are as follows:

 

     2012      2011  
     (in thousands)  

Current liabilities

    $ 847       $ 847   

Non-current liabilities

      21,076         18,461   
  

 

 

     

 

 

  
   $ 21,923       $ 19,308   
  

 

 

     

 

 

  

 
Components of Accumulated Other Comprehensive Income

The components of the amounts in accumulated other comprehensive income, after tax, are as follows:

 

     2012      2011  
     (in thousands)  

Unrecognized actuarial loss

    $ 3,963       $ 2,926   

Unrecognized transition asset

      0         0   

Unamortized prior service cost

      43         72   
  

 

 

     

 

 

  
   $ 4,006       $ 2,998   
  

 

 

     

 

 

  
Salary Continuation Plan (SCP) [Member]
  
Assumption Used to Determine Net Period Benefit Cost

The Company uses insurance instruments to help limit its exposure under the SCP.

 

     2012     2011     2010  
     (in thousands, except for assumptions)  

Assumptions used to determine net periodic benefit cost

       

Discount rate

      4.75 %      5.5 %      6.0 % 

Rate of compensation

      4.0 %      4.0 %      4.0 % 

Assumptions used to determine benefit obligations

       

Discount rate

      4.0 %      4.75 %      5.5 % 

Rate of compensation

      4.0 %      4.0 %      4.0 % 

Components of net periodic benefit cost

       

Service cost

    $ 452      $ 393      $ 342   

Interest cost

      1,014        1,138        1,121   

Amortizations

      316        637        545   
  

 

 

    

 

 

    

 

 

  

Net periodic benefit cost

    $ 1,782      $ 2,168      $ 2,008   
  

 

 

    

 

 

    

 

 

  
Foreign defined benefit plans [Member]
  
Foreign Defined Benefit Plans

It is anticipated that future benefit payments for the foreign defined benefit plans will be as follows:

 

FISCAL YEAR

    EXPECTED PAYMENTS  
     (in thousands)  

2013

    $ 10,003   

2014

      10,144   

2015

      10,343   

2016

      10,669   

2017

      10,902   

2018-2022

      55,684   
Level 3 [Member]
  
Change in Value of Assets

The table below indicates the change in value related to these level 3 assets during 2012:

 

     (in thousands)  

Balance of level 3 assets, beginning of year

    $ 7,305   

Interest cost

      380   

Benefits paid

      (1,129 ) 

Actuarial gain

      2,243   

Translation adjustment

      352   
  

 

 

  

Ending Balance of level 3 assets

    $ 9,151