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EMPLOYEE BENEFIT PLANS
 6 Months Ended
Jun. 30, 2012
Compensation and Retirement Disclosure [Abstract]  
EMPLOYEE BENEFIT PLANS

         NOTE 5 - EMPLOYEE BENEFIT PLANS

 

The Company has migrated its retirement benefit focus from defined benefit pension plans to defined contribution retirement plans, utilizing its current 401(k) plan.

 

Defined Benefit Plans

 

In 2007, the Company amended its hourly and salaried defined benefit pension plans to freeze the benefits for current participants and to discontinue the plans for all future employees. All active participants became fully vested in the amount of benefit services accrued through December 31, 2007 and no benefits have accrued since that date. Currently, the Company provides supplemental discretionary contributions to substantially all employees’ individual 401(k) accounts.

 

In future years, the Company may be required to make cash contributions to the two defined benefit pension plans. The annual contributions will be based on the amount of the unfunded plan liabilities derived from the frozen benefits and will not include liabilities for any future accrued benefits for any new or existing participants. The total amount of these future cash contributions will depend on the investment returns generated by the plans’ assets and the then applicable discount rates used to calculate the plans’ liabilities.

 

The Company plans to contribute approximately $3 million in 2012, which is expected to satisfy the required minimum contribution. Contributions in the three and six months ended June 30, 2012 totaled $0.6 million and $1.4 million, respectively.

 

The estimated cost of the frozen defined benefit plans for 2012 is $0.4 million.

 

Defined Contribution Plan

 

Effective January 1, 2007, the Company modified the terms of its 401(k) plan and now matches a certain portion of employee contributions. Expenses related to these matching contributions totaled $0.5 million and $1.1 million for the three and six months ended June 30, 2012 and $0.5 million and $1.0 million for the three and six months ended July 2, 2011, respectively. The Company plans to contribute approximately $1.2 million to the plan in matching employee contributions during the remainder of 2012.

 

In addition, the Company provided supplemental discretionary contributions to the 401(k) plan totaling $0.6 million and $1.3 million for the three and six months ended June 30, 2012 and $0.5 million and $1.1 million for the three and six months ended July 2, 2011, respectively. The Company plans to contribute supplemental contributions to the plan of approximately $1.2 million during the remainder of 2012.