XML 90 R14.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Employee Benefits | 12 Months Ended
--- | ---
Dec. 29, 2012
Employee Benefits [Abstract] |
Employee Benefits | 8. Employee Benefits Defined Benefit Pension Plans Most of our hourly employees participate in noncontributory defined benefit pension plans, which include a plan that is administered solely by us (the “hourly pension plan”) and union-administered multiemployer plans. Our funding policy for the hourly pension plan is based on actuarial calculations and the applicable requirements of federal law. We believe that each multiemployer pension plan is immaterial to our financial statements and that we represent an immaterial portion of the total contributions and future obligations of these plans. Contributions to multiemployer plans are generally based on negotiated labor contracts. We contributed $1.3 million, $1.2 million, and $1.1 million to union administered multiemployer pension plans for fiscal 2012, fiscal 2011, and fiscal 2010, respectively. Benefits under the majority of plans for hourly employees (including multiemployer plans) are primarily related to years of service. The following tables set forth the change in projected benefit obligation and the change in plan assets for the hourly pension plan:
|  | December 29, 2012 |  |  | December 31, 2011 |
|  | (In thousands) |
Change in projected benefit obligation: |  |  |  |  |  |
Projected benefit obligation at beginning of period |  | $ | 99,425 |  |  | $ | 87,510 |
Service cost |  |  | 1,878 |  |  |  | 2,091 |
Interest cost |  |  | 4,885 |  |  |  | 4,609 |
Actuarial loss |  |  | 12,183 |  |  |  | 9,029 |
Curtailment |  |  | — |  |  |  | — |
Benefits paid |  |  | (4,041 | ) |  |  | (3,814 | )
Projected benefit obligation at end of period |  |  | 114,330 |  |  |  | 99,425 |
Change in plan assets: |  |  |  |  |  |  |  |
Fair value of assets at beginning of period |  |  | 63,896 |  |  |  | 68,725 |
Actual return (loss) on plan assets |  |  | 6,758 |  |  |  | (1,015 | )
Employer contributions |  |  | 1,147 |  |  |  | — |
Benefits paid |  |  | (4,041 | ) |  |  | (3,814 | )
Fair value of assets at end of period |  |  | 67,760 |  |  |  | 63,896 |
Net (unfunded) status of plan |  | $ | (46,570 | ) |  | $ | (35,529 | )
We recognize the unfunded status (i.e., the difference between the fair value of plan assets and the projected benefit obligations) of our pension plan in our Consolidated Balance Sheets, with a corresponding adjustment to accumulated other comprehensive loss, net of tax, offset by a valuation allowance. On December 29, 2012, we measured the fair value of our plan assets and benefit obligations. As of December 29, 2012 and December 31, 2011, the net unfunded status of our benefit plan was $46.6 million and $35.5 million, respectively. These amounts were included in “Other non-current liabilities” on our Consolidated Balance Sheets. The net adjustment to other comprehensive loss for fiscal 2012, fiscal 2011, and fiscal 2010 was $8.2 million loss ($8.2 million loss, net of tax, offset by a valuation allowance), $15.0 million loss ($15.0 million loss, net of tax, offset by a valuation allowance), $1.0 million loss ($0.6 million loss, net of tax), respectively, which represents the net unrecognized actuarial (loss) gain and unrecognized prior service cost. The increase in the unfunded obligation for the period was approximately $11.0 million and was comprised of $6.7 million of liability growth, $12.2 million of actuarial losses offset by $6.8 million of asset returns and $1.1 million of pension contributions. The main driver of the $12.2 million of liability loss was the change in the underlying discount rate assumption which decreased from 5.02% in fiscal 2011 to 4.24% in fiscal 2012. The net periodic pension costs also increased to $3.9 million in fiscal 2012 from $1.8 million in fiscal 2011 and were primarily driven by an increase in the unrecognized amortization of the actuarial loss attributable to the decrease in the discount rate from 5.39% in fiscal 2010 to 5.02% in 2011 and a reduction in the hourly pension plan’s expected return on plan assets due to lowering the expected rate of return from 8.25% to 7.85%. The unfunded status and the amounts recognized on our Consolidated Balance Sheets for the hourly pension plan are set forth in the following table:
|  | December 29, 2012 |  |  | December 31, 2011 |
|  | (In thousands) |
Unfunded status |  | $ | (46,570 | ) |  | $ | (35,529 | )
Unrecognized prior service cost |  |  | 2 |  |  |  | 3 |
Unrecognized actuarial loss |  |  | 37,459 |  |  |  | 29,213 |
Net amount recognized |  | $ | (9,109 | ) |  | $ | (6,313 | )
Amounts recognized on the balance sheet consist of: |  |  |  |  |  |  |  |
Accrued pension liability |  |  | (46,570 | ) |  |  | (35,529 | )
Accumulated other comprehensive loss (pre-tax) |  |  | 37,461 |  |  |  | 29,216 |
Net amount recognized |  | $ | (9,109 | ) |  | $ | (6,313 | )
The portion of estimated net loss for the hourly pension plan that is expected to be amortized from accumulated other comprehensive loss into net periodic cost over the next fiscal year is $2.9 million. The expected amortization of prior service cost recognized into net periodic cost over the next fiscal year is immaterial. The accumulated benefit obligation for the hourly pension plan was $111.1 million and $96.8 million at December 29, 2012 and December 31, 2011, respectively. Net periodic pension cost for our pension plans included the following:
|  | Fiscal Year Ended December 29, 2012 |  |  | Fiscal Year Ended December 31, 2011 |  |  | Fiscal Year Ended January 1, 2011 |
|  | (In thousands) |
Service cost |  | $ | 1,878 |  |  | $ | 2,091 |  |  | $ | 1,992 |
Interest cost on projected benefit obligation |  |  | 4,885 |  |  |  | 4,609 |  |  |  | 4,744 |
Expected return on plan assets |  |  | (4,897 | ) |  |  | (5,505 | ) |  |  | (4,926 | )
Amortization of unrecognized loss |  |  | 2,077 |  |  |  | 579 |  |  |  | 494 |
Amortization of unrecognized prior service cost |  |  | — |  |  |  | — |  |  |  | — |
Net periodic pension cost |  | $ | 3,943 |  |  | $ | 1,774 |  |  | $ | 2,304 |
The following assumptions were used to determine the projected benefit obligation at the measurement date and the net periodic pension cost:
|  | December 29, 2012 |  |  | December 31, 2011 |
Projected benefit obligation: |  |  |  |  |  |
Discount rate |  |  | 4.24 | % |  |  | 5.02 | %
Average rate of increase in future compensation levels |  |  | 3.00 | % |  |  | 3.00 | %
Net periodic pension cost |  |  |  |  |  |  |  |
Discount rate |  |  | 5.02 | % |  |  | 5.39 | %
Average rate of increase in future compensation levels |  |  | 3.00 | % |  |  | 4.00 | %
Expected long-term rate of return on plan assets |  |  | 7.85 | % |  |  | 8.25 | %
Our estimates of the amount and timing of our future funding obligations for our defined benefit pension plans are based upon various assumptions specified above. These assumptions include, but are not limited to, the discount rate, projected return on plan assets, compensation increase rates, mortality rates, retirement patterns, and turnover rates. As indicated in the table above, we used a discount rate of 4.24% to compute the projected benefit obligation, which was determined by matching of plan liability cash flows to a portfolio of bonds. A change in the discount rate of 25 basis points, from 4.24% to 4.49%, while holding all other assumptions constant, would have resulted in a reduction in the Company’s projected benefit obligation of approximately $3.7 million in 2012. As indicated in the table above, we used an estimated rate of future compensation increases of 3.00% to compute the projected benefit obligation. A change in the rate of 25 basis points, from 3.00% to 3.25%, while holding all other assumptions constant, would have resulted in an increase in the Company’s projected benefit obligation of less than $0.2 million in 2012. Determination of expected long-term rate of return In developing expected return assumptions for our pension plan, the most influential decision affecting long-term portfolio performance is the determination of overall asset allocation. An asset class is a group of securities that exhibit similar characteristics and behave similarly in the marketplace. The three main asset classes are equities, fixed income, and cash equivalents. Upon calculation of the historical risk premium for each asset class, an expected rate of return can be established based on assumed 90-day Treasury bill rates. Based on the normal asset allocation structure of the portfolio (65% equities, 30% fixed income, and 5% other) with historical compound annualized risk free rate of 4.10%, the expected overall portfolio return is 8.35% offset by 0.5% expense estimate resulting in a 7.85% net long term rate of return as of December 29, 2012. Our percentage of fair value of total assets by asset category as of our measurement date is as follows:
Asset Category |  |  | December 29, 2012 |  |  | December 31, 2011 |
Equity securities — domestic |  |  | 56 | % |  |  | 47 | %
Equity securities — international |  |  | 9 | % |  |  | 5 | %
Fixed income |  |  | 31 | % |  |  | 45 | %
Other |  |  | 4 | % |  |  | 3 | %
Total |  |  | 100 | % |  |  | 100 | %
The fair value of our plan assets by asset category as of December 29, 2012 was as follows (in thousands):
Asset Category |  |  | Level 1 |
Equity securities — domestic |  | $ | 37,623 |
Equity securities — international |  |  | 6,304 |
Fixed income |  |  | 20,848 |
Other |  |  | 2,985 |
Total |  | $ | 67,760 |
The fair value of our plan assets by asset category as of December 31, 2011 was as follows (in thousands):
Asset Category |  |  | Level 1 |
Equity securities — domestic |  | $ | 30,179 |
Equity securities — international |  |  | 2,843 |
Fixed income |  |  | 28,975 |
Other |  |  | 1,899 |
Total |  | $ | 63,896 |
The plan assets are valued using quoted market prices in active markets and we consider the investments to be Level 1 in the fair value hierarchy. See Note 13 for a discussion of the levels of inputs to determine fair value. Investment policy and strategy Plan assets are managed as a balanced portfolio comprised of two major components: an equity portion and a fixed income portion. The expected role of plan equity investments will be to maximize the long-term real growth of fund assets, while the role of fixed income investments will be to generate current income, provide for more stable periodic returns, and provide some downside protection against the possibility of a prolonged decline in the market value of equity investments. We review this investment policy statement at least once per year. In addition, the portfolio will be reviewed quarterly to determine the deviation from target weightings and will be rebalanced as necessary. Target allocations for fiscal 2013 are 50% domestic and 15% international equity investments, 30% fixed income investments, and 5% cash. The expected long-term rate of return for the plan’s total assets is based on the expected return of each of the above categories, weighted based on the target allocation for each class. Our estimated future benefit payments reflecting expected future service are as follows (in thousands):
Fiscal Year Ending |  |  | (In thousands) |
January 4, 2014 |  | $ | 4,642 |
January 3, 2015 |  |  | 4,832 |
January 2, 2016 |  |  | 5,010 |
December 31, 2016 |  |  | 5,319 |
December 30, 2017 |  |  | 5,670 |
Thereafter |  |  | 32,774 |
The Company’s required cash contribution to the pension plan in 2012 was approximately $3.3 million. The 2012 required contribution was comprised of approximately $1.2 million related to our 2011 minimum required contribution and approximately $2.1 million related to our 2012 minimum required contribution. The Company’s minimum required contribution for plan year 2012 was $3.2 million. The Company has funded the $1.2 million related to its 2011 minimum required contribution with cash in 2012. However, in an effort to preserve additional cash for operations, we applied for a waiver from the IRS for our 2012 minimum required contribution. The waiver is still being reviewed by the IRS. We have not made the $2.1 million of required 2012 contributions related to the 2012 minimum required contribution. If we are granted the requested waiver, our contributions for 2012 will be amortized over the following five years, increasing our future minimum required contributions. We are currently required to make three quarterly cash contributions during fiscal 2013 of $0.8 million per quarter related to our 2013 minimum required contribution. We are pursuing contributing personal property to the pension plan during fiscal 2013. We will designate the contribution such that it will offset our future minimum required contribution. Defined Contribution Plans Our employees also participate in several defined contribution plans. Contributions to the plans are based on employee contributions and compensation. Contributions to the hourly defined contribution plan totaled $0.1 million, $0.1 million, and $0.1 million for fiscal 2012, fiscal 2011, and fiscal 2010, respectively. During fiscal 2009, we suspended the Company matching contributions to our defined salaried contribution plan as part of our cost reduction initiatives. The Company match was reinstated on January 1, 2012. Contributions to the salaried defined contribution plan totaled $1.0 million for fiscal 2012.

X
- Details
Name: | us-gaap_CompensationAndRetirementDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 158 -Paragraph 7, 21, 22 -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. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Staff Position (FSP) -Number FAS106-2 -Paragraph 20, 21, 22 -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. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Implementation Guide (Q and A) -Number FAS88 -Paragraph 63 -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. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 106 -Paragraph 518 -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. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5, 6, 7, 8 -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. Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph b -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. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 8 -Subparagraph m -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. Reference 9: 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. Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Accounting Principles Board Opinion (APB) -Number 30 -Paragraph 26 -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. Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Emerging Issues Task Force (EITF) -Number 03-2 -Paragraph 8 -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. Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph h -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. Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph a -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. Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 132R -Paragraph 5 -Subparagraph q -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. + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration