RETIREMENT PLANS

12 Months Ended

Jan. 01, 2012

RETIREMENT PLANS

RETIREMENT PLANS

NOTE 16. RETIREMENT PLANS

        The Company sponsors or participates in various retirement and pension plans, including defined benefit and defined contribution plans. Most international employees are covered by government-sponsored programs where the costs to the Company are not significant. The costs and liabilities associated with the various plans are not material to the Company as of January 1, 2012 and January 2, 2011.

        In accordance with Italian law, the Company has an unfunded severance plan under which all employees in Italy are entitled to receive severance indemnities (Trattamento di Fine Rapporto or "TFR") upon termination of their employment. The amounts payable are based on salary paid and increases in cost of living, and are included in other long-term liabilities in the consolidated balance sheets. The liability is recorded in accordance with ASC 715, "Compensation—Retirement Benefits." The severance indemnities accrue approximately at the rate of ¹/12 of the gross salaries paid during the year, and are revalued applying a cost of living factor established by the Italian Government. The amounts accrued become payable upon termination of employment for any reason, e.g., retirement, dismissal or reduction in work force. Employees are fully vested in TFR benefits after two months of service. Prior to July 2007, the Company was required to accrue for these liabilities and pay the respective amounts to employees upon termination. Beginning July 2007, the Company is required to remit these severance indemnities to the government at the time in which the funds are accrued. At January 1, 2012 and January 2, 2011, the Company had recorded in other long-term liabilities in its consolidated balance sheets approximately $7.8 million and $8.1 million, respectively, related to these severance indemnities. The Company recorded expense related to the severance indemnities of approximately $1.9 million, $1.6 million and $1.4 million for the years ended January 1, 2012, January 2, 2011 and January 3, 2010, respectively.

        The Company has a 401(k) retirement savings plan covering all U.S. employees, subject to certain participation, age and vesting requirements. The plan provides for a partial Company match at either a discretionary amount or up to specified percentages. Total Company contributions were $0.8 million, $0.5 million and $0.4 million, for the years ended January 1, 2012, January 2, 2011 and January 3, 2010, respectively.