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Employee Benefit Plans
 12 Months Ended
Dec. 26, 2012
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
 
We maintain several defined benefit plans which cover a substantial number of employees. Benefits are based upon each employee’s years of service and average salary. Our funding policy is based on the minimum amount required under the Employee Retirement Income Security Act of 1974. Our pension plan was closed to new participants as of December 31, 1999. Benefits ceased to accrue for pension plan participants as of December 31, 2004. We also maintain defined contribution plans.
 
Defined Benefit Plans
 
The obligations and funded status for our pension plan and other defined benefit plans were as follows:

 
Pension Plan
 
Other Defined Benefit Plans
 
December 26, 2012
 
December 28, 2011
 
December 26, 2012
 
December 28, 2011
 
(In thousands)
Change in Benefit Obligation:
 
 
 
 
 
 
 
Benefit obligation at beginning of year
$
70,468

 
$
63,125

 
$
2,689

 
$
2,493

Service cost
380

 
335

 
—

 
—

Interest cost
3,200

 
3,364

 
116

 
127

Actuarial losses
4,575

 
7,160

 
227

 
264

Benefits paid
(4,697
)
 
(3,516
)
 
(195
)
 
(195
)
Benefit obligation at end of year
$
73,926

 
$
70,468

 
$
2,837

 
$
2,689

Accumulated benefit obligation
$
73,926

 
$
70,468

 
$
2,837

 
$
2,689

 
 
 
 
 
 
 
 
Change in Plan Assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
$
53,270

 
$
53,580

 
$
—

 
$
—

Actual return on plan assets
6,666

 
1,341

 
—

 
—

Employer contributions
2,767

 
1,865

 
195

 
195

Benefits paid
(4,697
)
 
(3,516
)
 
(195
)
 
(195
)
Fair value of plan assets at end of year
$
58,006

 
$
53,270

 
$
—

 
$
—

Funded status
$
(15,920
)
 
$
(17,198
)
 
$
(2,837
)
 
$
(2,689
)

 
The amounts recognized in the Consolidated Balance Sheets were as follows:

 
Pension Plan
 
Other Defined Benefit Plans
 
December 26, 2012
 
December 28, 2011
 
December 26, 2012
 
December 28, 2011
 
(In thousands)
Other current liabilities 
$
—

 
$
—

 
$
(341
)
 
$
(338
)
Other noncurrent liabilities and deferred credits
(15,920
)
 
(17,198
)
 
(2,496
)
 
(2,351
)
Net amount recognized 
$
(15,920
)
 
$
(17,198
)
 
$
(2,837
)
 
$
(2,689
)

 
The amounts recognized in accumulated other comprehensive income, that have not yet been recognized as a component of net periodic benefit cost, were as follows:

 
Pension Plan
 
Other Defined Benefit Plans
 
December 26, 2012
 
December 28, 2011
 
December 26, 2012
 
December 28, 2011
 
(In thousands)
Unamortized actuarial losses, net
$
(27,798
)
 
(27,596
)
 
(1,007
)
 
(832
)


During fiscal 2013, $1.7 million and less than $0.1 million of accumulated other comprehensive income will be recognized related to the pension plan and other defined benefit plans, respectively.
 
The components of the change in unamortized actuarial losses, net, included in accumulated other comprehensive loss were as follows:
 
 
Fiscal Year Ended
 
December 26, 2012
 
December 28, 2011
 
(In thousands)
Pension Plan:
 
 
 
Balance, beginning of year
$
(27,596
)
 
$
(18,599
)
Benefit obligation actuarial loss
(4,575
)
 
(7,160
)
Net gain (loss)
2,610

 
(2,841
)
Amortization of net loss
1,763

 
1,004

Balance, end of year
$
(27,798
)
 
$
(27,596
)
 
 
 
 
Other Defined Benefit Plans:
 
 
 
Balance, beginning of year
$
(832
)
 
$
(600
)
Benefit obligation actuarial loss
(227
)
 
(264
)
Amortization of net loss
52

 
32

Balance, end of year
$
(1,007
)
 
$
(832
)

 
Minimum pension liability adjustments, net of tax for 2012, 2011 and 2010 were additions of $0.2 million, $5.6 million and $1.2 million, respectively.

Total minimum pension liability adjustments of $25.0 million (net of tax of $3.8 million) and $24.8 million (net of tax of $3.6 million) are included as a component of accumulated other comprehensive loss, net in our Consolidated Statement of Shareholders' Deficit for the years ended December 26, 2012 and December 28, 2011, respectively. 
 
The components of net periodic benefit cost were as follows:
 
 
Fiscal Year Ended
 
December 26, 2012
 
December 28, 2011
 
December 29, 2010
 
(In thousands)
Pension Plan:
 
 
 
 
 
Service cost
$
380

 
$
335

 
$
375

Interest cost
3,200

 
3,364

 
3,431

Expected return on plan assets
(4,057
)
 
(4,182
)
 
(3,928
)
Amortization of net loss
1,763

 
1,004

 
915

Net periodic benefit cost
$
1,286

 
$
521

 
$
793

Other comprehensive loss
$
202

 
$
8,997

 
$
1,050

 
 
 
 
 
 
Other Defined Benefit Plans:
 
 
 
 
 
Interest cost
$
116

 
$
127

 
$
138

Amortization of net loss
52

 
32

 
22

Net periodic benefit cost
$
168

 
$
159

 
$
160

Other comprehensive loss
$
175

 
$
232

 
$
103



Net pension and other defined benefit plan costs (including premiums paid to the Pension Benefit Guaranty Corporation) for 2012, 2011 and 2010 were $1.5 million, $0.7 million and $1.0 million, respectively.

Assumptions

Because our pension plan was closed to new participants as of December 31, 1999 and benefits ceased to accrue for Pension Plan participants as of December 31, 2004, an assumed rate of increase in compensation levels was not applicable for 2012, 2011 or 2010. Weighted-average assumptions used to determine benefit obligations were as follows:
 
 
December 26, 2012
 
December 28, 2011
Discount rate
4.18
%
 
4.59
%
Measurement date
12/26/2012

 
12/28/2011

 
Weighted-average assumptions used to determine net periodic pension cost were as follows:
 
 
December 26, 2012
 
December 28, 2011
 
December 29, 2010
Discount rate
4.59
%
 
5.42
%
 
5.99
%
Rate of increase in compensation levels
N/A

 
N/A

 
N/A

Expected long-term rate of return on assets
7.75
%
 
8.00
%
 
8.00
%
Measurement date 
12/26/2012

 
12/28/2011

 
12/29/2010


 
In determining the expected long-term rate of return on assets, we evaluated our asset class return expectations, as well as long-term historical asset class returns. Projected returns are based on broad equity and bond indices. Additionally, we considered our historical compounded returns, which have been in excess of our forward-looking return expectations. In determining the discount rate, we have considered long-term bond indices of bonds having similar timing and amounts of cash flows as our estimated defined benefit payments. We use a yield curve based on high quality, long-term corporate bonds to calculate the single equivalent discount rate that results in the same present value as the sum of each of the plan's estimated benefit payments discounted at their respective spot rates.
 
Plan Assets
 
The investment policy of our pension plan is based on an evaluation of our ability and willingness to assume investment risk in light of the financial and benefit-related goals objectives deemed to be prudent by the fiduciaries of our pension plan assets. These objectives include, but are not limited to, earning a rate of return over time to satisfy the benefit obligation, managing funded status volatility, and maintaining sufficient liquidity. As of December 26, 2012, the strategic target asset allocation is 60% equity securities (diversified between domestic and international holdings) and 40% fixed income securities (diversified between corporate and government holdings and generally long duration).
 
We review the strategic asset allocation periodically to determine the appropriate balance between cost and risk, taking into account the regulatory funding requirements and the nature of our pension plan's liabilities. We monitor the competitive performance versus market benchmarks and rebalance to target allocations if necessary on a quarterly basis.
 
The fair values of our pension plan assets were as follows:

 
Fair Value Measurements as of December 26, 2012
Asset Category
Total
 
Quoted Prices in Active Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
(In thousands)
Cash equivalents 
$
873

 
$
873

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
U.S. large-cap (a)
15,569

 
15,569

 
—

 
—

U.S. mid-cap (b)
4,702

 
4,702

 
—

 
—

U.S. small-cap (c)
1,157

 
1,157

 
—

 
—

International large-cap
9,292

 
9,292

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
U.S. Treasuries
2,582

 
2,582

 
—

 
—

Corporate bonds (d)
20,179

 
20,179

 
—

 
—

Other types of investments:
 
 
 
 
 
 
 
Commingled funds (e)
3,652

 
—

 
3,652

 
—

Total
$
58,006

 
$
54,354

 
$
3,652

 
$
—


(a)
The majority of this category represents a fund with the objective of approximating the return of the S&P 500 Index.  The remaining securities include both a large-value fund and a large-growth fund investing in diverse industries.
(b)
This category includes both a mid-growth fund with the objective of outperforming the Russell Mid Cap Growth Index and a mid-value fund investing in diverse industries.
(c)
This category includes both a small-value fund and a small-growth fund investing in diverse industries.
(d)
This category includes intermediate and long-term investment grade bonds from diverse industries.
(e)
This category represents a fund of well diversified mutual funds with the objective of providing a low-volatility means to access equity-like returns.

 
Fair Value Measurements as of December 28, 2011
Asset Category
Total
 
Quoted Prices in Active Markets for Identical Assets/Liabilities
(Level 1)
 
Significant Other Observable Inputs
(Level 2)
 
Significant Unobservable Inputs
(Level 3)
 
(In thousands)
Cash equivalents 
$
611

 
$
611

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
U.S. large-cap (a)
14,208

 
14,208

 
—

 
—

U.S. mid-cap (b)
4,371

 
4,371

 
—

 
—

U.S. small-cap (c)
1,046

 
1,046

 
—

 
—

International large-cap
8,440

 
8,440

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
U.S. Treasuries
2,375

 
2,375

 
—

 
—

Corporate bonds (d)
18,849

 
18,849

 
—

 
—

Other types of investments:
 
 
 
 
 
 
 
Commingled funds (e)
3,370

 
—

 
3,370

 
—

Total
$
53,270

 
$
49,900

 
$
3,370

 
$
—


(a)
The majority of this category represents a fund with the objective of approximating the return of the S&P 500 Index.  The remaining securities include both a large-value fund and a large-growth fund investing in diverse industries.
(b)
This category includes both a mid-growth fund with the objective of outperforming the Russell Mid Cap Growth Index and a mid-value fund investing in diverse industries.
(c)
This category includes both a small-value fund and a small-growth fund investing in diverse industries.
(d)
This category includes intermediate and long-term investment grade bonds from diverse industries.
(e)
This category represents a fund of well diversified mutual funds with the objective of providing a low-volatility means to access equity-like returns.

Following is a description of the valuation methodologies used for assets measured at fair value.

•
Equity Securities and Fixed Income Securities: Valued at the net asset value (“NAV”) of shares held by the pension plan at year-end. The NAV is a quoted price in an active market.
•
Cash Equivalents and Commingled Funds: Valuation determined by the trustee of the money market funds and commingled funds based on the fair value of the underlying securities within the fund, which represent the NAV, a practical expedient to fair value, of the units held by the pension plan at year-end.
  
Contributions and Expected Future Benefit Payments

We made contributions of $2.8 million and $1.9 million to our qualified pension plan during the years ended December 26, 2012 and December 28, 2011, respectively. We made contributions of $0.2 million and $0.2 million to our other defined benefit plans during the years ended December 26, 2012 and December 28, 2011. We expect to contribute $2.8 million and $0.3 million to our qualified pension plan and other defined benefit plans, respectively, during 2013. Benefits expected to be paid for each of the next five years and in the aggregate for the five fiscal years from 2018 through 2022 are as follows:
 
 
Pension Plan
 
Other Defined
Benefit Plans
 
(In thousands)
2013
$
3,489

 
$
341

2014
3,442

 
296

2015
3,377

 
220

2016
3,357

 
189

2017
3,381

 
238

2018 through 2022
19,162

 
1,073


 
Defined Contribution Plans

Eligible employees can elect to contribute up to 15% of their compensation to our 401(k) plan. As a result of certain IRS limitations, participation in a non-qualified deferred compensation plan is offered to certain employees. Under this deferred compensation plan, participants are allowed to defer up to 50% of their annual salary and up to 100% of their incentive compensation. Under both plans, we make matching contributions of up to 3% of compensation. Participants in the deferred compensation plan are eligible to participate in the 401(k) plan; however, due to the above referenced IRS limitations, they are not eligible to receive the matching contributions under the 401(k) plan. Under these plans, we made contributions of $1.3 million, $1.3 million and $1.4 million for 2012, 2011 and 2010, respectively.