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Retirement Plan
 12 Months Ended
Jun. 28, 2012
Employee Benefit Plans/Retirement Plan [Abstract]  
RETIREMENT PLAN

NOTE 12 — RETIREMENT PLAN

On August 2, 2007, the committee then known as the Compensation, Nominating and Corporate Governance Committee (the “Committee”) approved a restated Supplemental Employee Retirement Plan (“SERP”) for certain executive officers and key employees, retroactively effective as of August 25, 2005. The restated SERP retroactively changed the plan adopted on August 25, 2005 to, among other things, clarify certain actuarial provisions and incorporate new Internal Revenue Service requirements. The SERP is an unfunded, non-qualified benefit plan that will provide eligible participants with monthly benefits upon retirement, disability or death, subject to certain conditions. Benefits paid to retirees are based on age at retirement, years of credited service, and average compensation. We use our fiscal year-end as the measurement date for the obligation calculation. Accounting guidance now codified in ASC Topic 715, “Compensation – Retirement Benefits” requires the recognition of the funded status of the SERP on the Consolidated Balance Sheet. Actuarial gains or losses, prior service costs or credits and transition obligations that have not yet been recognized are recorded as a component of “Accumulated Other Comprehensive Loss” (“AOCL”).

The following table presents the changes in the projected benefit obligation for the fiscal years ended:

 

                 
    June 28,
2012		     June 30,
2011		  

Change in projected benefit obligation

                

Benefit obligation at beginning of year

   $ 11,221     $ 10,604  

Service cost

     243       216  

Interest cost

     600       577  

Actuarial loss

     2,579       478  

Benefits paid

     (654 )      (654 ) 
   

 

 

    

 

 

  

Projected benefit obligation at end of year

   $ 13,989     $ 11,221  
   

 

 

    

 

 

  

Components of the actuarial loss portion of the change in projected benefit obligation are presented below for the fiscal years ended:

 

                         
    June 28,
2012		     June 30,
2011		     June 24,
2010		  

Actuarial Loss

                        

Change in assumed pay increases

   $ (35 )    $ 79     $ 95  

Change in discount rate

     2,494       150       1,611  

Other

     120       249       77  
   

 

 

    

 

 

    

 

 

  

Actuarial loss

   $ 2,579     $ 478     $ 1,783  
   

 

 

    

 

 

    

 

 

  

 

The components of the net periodic pension cost are as follows for the fiscal years ended:

 

                         
    June 28,
2012		     June 30,
2011		     June 24,
2010		  

Service cost

   $ 243     $ 216     $ 145  

Interest cost

     600       577       581  

Recognized gain amortization

     (185 )      (216 )      (332 ) 

Prior service cost amortization

     957       957       957  
   

 

 

    

 

 

    

 

 

  

Net periodic pension cost

   $ 1,615     $ 1,534     $ 1,351  
   

 

 

    

 

 

    

 

 

  

Significant assumptions related to our SERP include the discount rate used to calculate the actuarial present value of benefit obligations to be paid in the future and the average rate of compensation expense increase by SERP participants.

We used the following assumptions to calculate the benefit obligations of our SERP as of the following dates:

 

         
    June 28,
2012		   June 30,
2011

Discount rate

   4.17%   5.51%

Rate of compensation increases

   4.50%   4.50%

Bonus payment

   60% - 70% of
base,
paid 3 of 5
years		   60% - 70% of
base,
paid 3 of 5
years

We used the following assumptions to calculate the net periodic costs of our SERP as follows for the fiscal years ended:

 

             
    June 28,
2012		   June 30,
2011		   June 24,
2010

Discount rate

   5.51%   5.61%   6.90%

Rate of compensation increases

   4.50%   4.50%   4.50%

Bonus payment

   60% - 70% of
base,
paid 3 of 5
years		   60% - 70% of
base,
paid 3 of 5
years		   60% - 70% of
base,
paid 3 of 5
years

The assumed discount rate is based, in part, upon a discount rate modeling process that considers both high quality long-term indices and the duration of the SERP plan relative to the durations implicit in the broader indices. The discount rate is utilized principally in calculating the actuarial present value of our obligation and periodic expense pursuant to the SERP. To the extent the discount rate increases or decreases, our SERP obligation is decreased or increased, accordingly.

The following table presents the benefits expected to be paid in the next ten fiscal years:

 

         

Fiscal year

      

2013

   $ 654  

2014

     651  

2015

     646  

2016

     637  

2017

     625  

2018 — 2022

     2,768  

 

The following table presents the components of AOCL that have not yet been recognized in net pension expense:

 

                 
    June 28, 2012     June 30, 2011  

Unrecognized net gain

   $ 1,278     $ 4,042  

Unrecognized prior service cost

     (8,134 )      (9,091 ) 

Tax effect

     2,529       1,807  
   

 

 

    

 

 

  

Net amount unrecognized

   $ (4,327 )    $ (3,242 ) 
   

 

 

    

 

 

  

We expect to recognize $957 of the prior service cost into net pension expense during the fiscal year ending June 27, 2013.