XML 57 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Employee Benefits
 3 Months Ended
Mar. 30, 2013
Employee Benefits [Abstract]  
Employee Benefits
5.    Employee Benefits
 
Defined Benefit Pension Plans
 
Most of our hourly employees participate in noncontributory defined benefit pension plans. These 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 our portion of 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.
 
The Company’s minimum required contribution for plan year 2012 was $3.2 million.   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 $2.1 million of the required 2012 contributions related to the 2012 minimum required contribution.  If we are granted the requested waiver, our minimum required contribution for 2012 will be amortized over the following five years, increasing our future minimum required contributions.  Should the waiver be denied we will be required to make our entire 2012 minimum required contribution in fiscal 2013.  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.
 
During the second quarter of fiscal 2013, we contributed certain qualifying employer real property to our hourly pension plan. The real property, including certain land and buildings, is located in Charleston, S.C. and Buffalo, N.Y., and has been valued by independent appraisals at approximately $6.8 million.  We are leasing back the property from our hourly pension plan for 20 years and will pay monthly rent to the pension plan. The contribution of the property will not have any impact on our day-to-day operations at these locations. The contribution of real estate is expected to exceed our 2013 cash contribution requirements, inclusive of the 2012 minimum required contribution should the waiver be denied, for the hourly pension plan.
 
Benefits under the majority of plans for hourly employees (including multiemployer plans) are primarily related to years of service.
 
Net periodic pension cost for our pension plans included the following (in thousands):
 
    First Quarter  
             
   
Period from December 30,
2012 to March 30, 2013
    
Period from January 1, 2012
to March 31, 2012
  
       
Service cost
   $ 548     $ 469  
Interest cost on projected benefit obligation
     1,188       1,221  
Expected return on plan assets
     (1,306 )         (1,224 )
Amortization of unrecognized loss
     718       519  
Net periodic pension cost
   $ 1,148     $ 985