XML 31 R16.htm IDEA: XBRL DOCUMENT
v3.8.0.1

EMPLOYEE BENEFITS | 12 Months Ended
--- | ---
Sep. 29, 2017
Compensation and Retirement Disclosure [Abstract] |
EMPLOYEE BENEFITS | EMPLOYEE BENEFITS The Company has non-contributory defined benefit pension plans covering certain U.S. employees. Retirement benefits are generally provided based on the employees’ years of service and average earnings. Normal retirement age is 65, with provisions for earlier retirement. The Company elected to freeze its U.S. defined benefit pension plans as of September 30, 2009 and, as a result, there are no benefit accruals related to service performed after that date. The financial position of the Company’s non-contributory defined benefit plans as of fiscal year end 2017 and 2016 was as follows:
| 2017 |  | 2016
Projected benefit obligation: |  |  |
Projected benefit obligation, beginning of year | $ | 29,449 |  |  | $ | 26,212 |
Service cost | — |  |  | — |
Interest cost | 1,043 |  |  | 1,137 |
Actuarial (gain) loss | (1,025 | ) |  | 3,069 |
Benefits paid | (995 | ) |  | (969 | )
Projected benefit obligation, end of year | 28,472 |  |  | 29,449 |
Fair value of plan assets: |  |  |  |  |
Fair value of plan assets, beginning of year | 17,793 |  |  | 17,020 |
Actual gain on plan assets | 2,639 |  |  | 1,260 |
Company contributions | 1,365 |  |  | 482 |
Benefits paid | (995 | ) |  | (969 | )
Fair value of plan assets, end of year | 20,802 |  |  | 17,793 |
Funded status of the plans | (7,670 | ) |  | (11,656 | )
Amounts recognized in the Consolidated Balance Sheets consist of: |  |  |  |  |
Current pension liabilities | 186 |  |  | 188 |
Non-current pension liabilities | 7,484 |  |  | 11,468 |
Accumulated other comprehensive loss | (7,799 | ) |  | (10,999 | )
Components of accumulated other comprehensive loss: |  |  |  |  |
Net actuarial loss | (7,799 | ) |  | (10,999 | )
Accumulated other comprehensive loss | $ | (7,799 | ) |  | $ | (10,999 | )
Net periodic benefit cost for the non-contributory defined benefit pension plans for the respective years included the following pre-tax amounts:
| 2017 |  | 2016 |  | 2015
Interest cost | $ | 1,043 |  |  | $ | 1,137 |  |  | $ | 1,108 |
Expected return on plan assets | (1,193 | ) |  | (1,265 | ) |  | (1,197 | )
Amortization of unrecognized net actuarial loss | 731 |  |  | 566 |  |  | 622 |
Net periodic pension cost | 581 |  |  | 438 |  |  | 533 |
Other changes in benefit obligations recognized in other comprehensive income ("OCI"): |  |  |  |  |  |  |  |
Net actuarial (gain) loss | (3,201 | ) |  | 2,507 |  |  | 1,511 |
Total recognized in net periodic pension cost and OCI | $ | (2,620 | ) |  | $ | 2,945 |  |  | $ | 2,044 |
The Company expects to recognize $538 of unrecognized loss amortization as a component of net periodic benefit cost in 2018. This amount is included in accumulated other comprehensive income as of September 29, 2017. At September 29, 2017, the aggregate accumulated benefit obligation and aggregate fair value of plan assets for plans with benefit obligations in excess of plan assets was $28,472 and $20,802, respectively, and there were no plans with plan assets in excess of benefit obligations. At September 30, 2016, the aggregate accumulated benefit obligation and aggregate fair value of plan assets for plans with benefit obligations in excess of plan assets was $29,449 and $17,793, respectively, and there were no plans with plan assets in excess of benefit obligations. The Company anticipates making contributions to the defined benefit pension plans of $1,151 through September 28, 2018. Estimated benefit payments from the Company’s defined benefit plans to participants for each of the next five years and the five years thereafter are as follows:
2018 | $ | 1,121 |
2019 | 1,152 |
2020 | 1,205 |
2021 | 1,217 |
2022 | 1,233 |
Five years thereafter | 6,926 |
Actuarial assumptions used to determine the projected benefit obligation and net periodic pension cost as of the following fiscal years were as follows:
| Projected Benefit Obligation |  | Net Periodic Pension Cost
| 2017 |  | 2016 |  | 2015 |  | 2017 |  | 2016 |  | 2015
Discount rate | 3.79 | % |  | 3.60 | % |  | 4.35 | % |  | 3.60 | % |  | 4.35 | % |  | 4.25 | %
Long-term rate of return | N/A |  |  | N/A |  |  | N/A |  |  | 6.50 | % |  | 7.50 | % |  | 7.50 | %
Average salary increase rate | N/A |  |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |  |  | N/A |
The change in discount rates in 2017 resulted in an actuarial gain during 2017 of approximately $795. The change in discount rates in 2016 resulted in an actuarial loss during 2016 of approximately $3,152. The change in discount rates in 2015 resulted in an actuarial gain during 2015 of approximately $390. The remainder of the actuarial gains or losses for each of the three years was related to adjustments to mortality tables and other modifications to actuarial assumptions. To determine the discount rate assumption used in the Company’s pension valuation, the Company identified a benefit payout stream based on the demographics of the pension plans and constructed a hypothetical bond portfolio using high-quality corporate bonds with cash flows that matched that benefit payout stream. A yield curve was calculated based on this hypothetical portfolio which was used for the discount rate determination. The Company determines the long-term rate of return assumption for plan assets by using the historical asset returns for various investment asset classes and adjusting them to reflect future expectations. The expected asset class returns are weighted by the targeted asset allocations, resulting in a weighted average return which is rounded to the nearest quarter percent. The Company uses measurement dates of October 1 to determine pension expenses for each year and the last day of the fiscal year to determine the fair value of the pension assets. The Company’s pension plans’ weighted average asset allocations at September 29, 2017 and September 30, 2016, by asset category were as follows:
| 2017 |  |  | 2016 |
Equity securities | 73 | % |  | 69 | %
Fixed income securities | 24 | % |  | 30 | %
Other securities | 3 | % |  | 1 | %
| 100 | % |  | 100 | %
The Company’s primary investment objective for the plans’ assets is to maximize the probability of meeting the plans’ actuarial target rate of return of 6.5%, with a secondary goal of returning 4% above the rate of inflation. These return objectives are targeted while simultaneously striving to minimize risk of loss to the plans’ assets. The investment horizon over which the investment objectives are expected to be met is a full market cycle or five years, whichever is greater. The Company’s investment strategy for the plans is to invest in a diversified portfolio that will generate average long-term returns commensurate with the aforementioned objectives while minimizing risk. The following table summarizes the Company’s pension plan assets measured at fair value as of September 29, 2017:
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Description: |  |  |  |  |  |  |
Mutual funds | $ | 20,207 |  |  | $ | — |  |  | $ | — |  |  | $ | 20,207 |
Money market funds | 515 |  |  | — |  |  | — |  |  | 515 |
Group annuity contract | — |  |  | — |  |  | 80 |  |  | 80 |
Total | $ | 20,722 |  |  | $ | — |  |  | $ | 80 |  |  | $ | 20,802 |
The following table summarizes the Company’s pension plan assets measured at fair value as of September 30, 2016:
| Level 1 |  | Level 2 |  | Level 3 |  | Total
Description: |  |  |  |  |  |  |
Mutual funds | $ | 17,467 |  |  | $ | — |  |  | $ | — |  |  | $ | 17,467 |
Money market funds | 213 |  |  | — |  |  | — |  |  | 213 |
Group annuity contract | — |  |  | — |  |  | 113 |  |  | 113 |
Total | $ | 17,680 |  |  | $ | — |  |  | $ | 113 |  |  | $ | 17,793 |
The tables below set forth a summary of changes in fair value of the Company’s Level 3 pension plan assets for the years ended September 29, 2017 and September 30, 2016:
| 2017 |  | 2016
Level 3 assets, beginning of year | $ | 113 |  |  | $ | 155 |
Purchases | 2 |  |  | 2 |
Unrealized loss | 1 |  |  | (2 | )
Sales | (36 | ) |  | (42 | )
Level 3 assets, end of year | $ | 80 |  |  | $ | 113 |
The fair values of the money market fund and mutual fund assets were derived from quoted market prices as substantially all of these instruments have active markets. The fair value of the group annuity contract was derived using a discounted cash flow model with inputs based on current yields of similar instruments with comparable durations. The asset allocation of the mutual funds is based on a moderate allocation style, generally investing approximately 70% to 75% in equity index funds and the remainder in fixed income index funds. The annuity contract consists of high quality bonds. The Company also has a non-qualified deferred compensation plan that provides certain officers and employees the ability to defer a portion of their compensation until a later date. The deferred amounts and earnings thereon are payable to participants, or designated beneficiaries, at specified future dates upon retirement, death or termination of employment from the Company. The deferred compensation liability, which is reported at fair value equal to the related rabbi trust assets, and is classified as “Other liabilities” on our accompanying Consolidated Balance Sheets, was approximately $14,932 and $12,637 as of September 29, 2017 and September 30, 2016, respectively. See “Note 4 Fair Value” for additional information. A majority of the Company’s full-time employees are covered by defined contribution programs. Expenses attributable to the defined contribution programs were approximately $1,189, $1,126 and $1,093 for 2017, 2016 and 2015, respectively.

X
- References No definition available. + 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 Accounting Standards Codification -Topic 715 -SubTopic 80 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65877416&loc=SL14450702-114947 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e2410-114920 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6414203&loc=d3e39675-114964 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 70 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=49170846&loc=d3e28014-114942 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 60 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66047640&loc=d3e39622-114963 + Details
Name: | us-gaap_PensionAndOtherPostretirementBenefitsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration