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Employee Benefits | 6 Months Ended
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Jun. 29, 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. Benefits under the majority of plans for hourly employees (including multiemployer plans) are primarily related to years of service. 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. Net periodic pension cost for our pension plans included the following (in thousands):
|  | Second Quarter
|  | Period from March 31, 2013 to June 29, 2013 |  | Period from April 1, 2012 to June 30, 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 |
|  | Six Months Ended
|  | Period from December 30, 2012 to June 29, 2013 |  | Period from January 1, 2012 to June 30, 2012
Service cost |  | $ | 1,096 |  |  | $ | 938 |
Interest cost on projected benefit obligation |  |  | 2,375 |  |  |  | 2,442 |
Expected return on plan assets |  |  | (2,612 | ) |  |  | (2,448 | )
Amortization of unrecognized loss |  |  | 1,436 |  |  |  | 1,038 |
Net periodic pension cost |  | $ | 2,295 |  |  | $ | 1,970 |
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, and we cannot provide any assurances that the IRS will grant the waiver. 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 currently are 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, are located in Charleston, S.C. and Buffalo, N.Y., and has been valued by independent appraisals at approximately $6.8 million. The contribution was recorded by the hourly pension plan at the fair value of $6.8 million. We are leasing back the contributed properties for an initial term of twenty years with two five-year extension options and continue to use the properties in our distribution operations. Each lease provides us a right of first refusal on any subsequent sale by the hourly pension plan and a repurchase option. The hourly pension plan engaged an independent fiduciary who evaluated the transaction on behalf of the hourly pension plan, negotiated the terms of the property contribution and the leases, and also manages the properties on behalf of the hourly pension plan. Due to the fact that the 2012 waiver is still being reviewed, we have not designated the contribution to a plan year. However, in the event the waiver is not granted, we believe the property contribution will be sufficient to cover both the 2012 and 2013 funding requirements discussed above. We determined that the contribution of the properties does not meet the accounting definition of a plan asset within the scope of relevant accounting guidance. Accordingly, the contributed properties are not considered a contribution for financial reporting purposes and, as a result, are not included in plan assets and have no impact on the net pension liability recorded on our Consolidated Balance Sheets. We continue to depreciate the carrying value of the properties in our financial statements, and no gain or loss was recognized at the contribution date for financial reporting purposes. Rent payments will be made on a monthly basis and will be recorded as contributions to the hourly pension plan, of which $0.1 million has been recorded as of June 29, 2013. These rental payments will reduce our unfunded obligation to the hourly pension plan.

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- Definition The entire disclosure for pension and other postretirement benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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