v2.3.0.11
Pension and Other Post-Retirement Benefit Plans
 6 Months Ended
Jul. 30, 2011
Pension and Other Post Retirement Benefit Plans Disclosure [Abstract]  
Pension and Other Post-Retirement Benefit Plans
Pension and Other Post-Retirement Benefit Plans
 
In connection with the acquisition of Corporate Express, Staples assumed the obligations under the defined benefit pension plans Corporate Express sponsored.  The pension plans cover certain employees in Europe and the United States.   The benefits due to U.S. plan participants are frozen.  A number of the defined benefit plans outside the U.S. are funded with plan assets that have been segregated in trusts.  Contributions are made to these trusts, as necessary, to meet legal and other requirements.
 
In August 2010, the Company began sponsoring an unfunded post-retirement life insurance benefit plan, which provides benefits to eligible U.S. executives based on earnings, years of service and age at termination of employment.
 
The total net cost recognized for the second quarter and first half of 2011 and 2010 associated with the pension and other post-retirement benefit plans is based upon preliminary estimates pending the final actuarial determination of such costs for fiscal 2011 and 2010.   The following table presents a summary of the total net periodic cost recorded in the condensed consolidated statement of income for the second quarter and first half of 2011 and 2010 related to the plans (in thousands):
 
 
 13 Weeks Ended July 30, 2011
 
Pension Plans
 
Post-Retirement Benefit Plan Total
 
U.S. Plans
 
International Plans
 
Total
 
Service cost
$
—


 
$
2,404


 
$
2,404


 
$
443


Interest cost
466


 
10,179


 
10,645


 
372


Expected return on plan assets
(422
)
 
(13,923
)
 
(14,345
)
 
—


Amortization of unrecognized losses and prior service costs
—


 
352


 
352


 
431


Total cost (benefit)
$
44


 
$
(988
)
 
$
(944
)
 
$
1,246


 
13 Weeks Ended July 31, 2010
 
Pension Plans
 
U.S. Plans
 
International Plans
 
Total
Service cost
$
—


 
$
2,172


 
$
2,172


Interest cost
463


 
9,045


 
9,508


Expected return on plan assets
(435
)
 
(15,174
)
 
(15,609
)
Amortization of unrecognized losses and prior service costs
—


 
967


 
967


Total cost (benefit)
$
28


 
$
(2,990
)
 
$
(2,962
)
 
26 Weeks Ended July 30, 2011
 
Pension Plans
 
Post-Retirement Benefit Plan Total
 
U.S. Plans
 
International Plans
 
Total
 
Service cost
$
—


 
$
4,807


 
$
4,807


 
$
897


Interest cost
932


 
20,358


 
21,290


 
752


Expected return on plan assets
(844
)
 
(27,846
)
 
(28,690
)
 
—


Amortization of unrecognized losses and prior service costs
—


 
704


 
704


 
872


Total cost (benefit)
$
88


 
$
(1,977
)
 
$
(1,889
)
 
$
2,521






 
26 Weeks Ended July 31, 2010
 
Pension Plans
 
U.S. Plans
 
International Plans
 
Total
Service cost
$
—


 
$
4,344


 
$
4,344


Interest cost
926


 
18,090


 
19,016


Expected return on plan assets
(870
)
 
(30,348
)
 
(31,218
)
Amortization of unrecognized losses and prior service costs
—


 
1,934


 
1,934


Total cost (benefit)
$
56


 
$
(5,980
)
 
$
(5,924
)






Cash contributions made to the pension plans during the second quarter and first half of 2011 and 2010 are as follows (in thousands):
 
 
13 Weeks Ended
26 Weeks Ended
 
July 30, 2011
 
July 31, 2010
 
July 30, 2011
 
July 31, 2010
U.S. Pension Plans
$
194


 
$
224


 
$
388


 
$
524


International Pension Plans
2,065


 
3,225


 
3,970


 
5,179


Total
$
2,259


 
$
3,449


 
$
4,358


 
$
5,703




 
The Company expects to make additional cash contributions of $0.4 million and $8.9 million to the U.S. Pension Plans and International Pension Plans, respectively, during the remainder of fiscal 2011.  No cash contributions are expected to be made during 2011 to the Company’s other post-retirement benefit plans.