Postretirement Plans (Tables)

12 Months Ended

Dec. 29, 2012

Summary Of Company's Balance Sheet Related Pension And Other Postretirement Benefit Plan

The following summarizes the company’s balance sheet related pension and other postretirement benefit plan accounts at December 29, 2012 and December 31, 2011:


	As of
	December 29, 2012		December 31, 2011
	(Amounts in thousands)
Current benefit liability	$	1,288	$	1,335
Noncurrent benefit liability	$	159,158	$	155,263
Accumulated other comprehensive loss, net of tax	$	110,568	$	97,139

Fair Value Of Plan Assets By Asset Class

The fair values of all of the company pension plan assets at December 31, 2012 and December 31, 2011, by asset class are as follows (amounts in thousands):


	Fair value of Pension Plan Assets as of December 31, 2012
Asset Class	Quoted prices in active markets for identical assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total
Short term investments and cash	$	—	$	18,614	$	—		$	18,614
Equity securities:
U.S. companies		72,414		—		—			72,414
International companies		1,532		—		—			1,532
Domestic equity funds(h)		71,589		—		—			71,589
International equity funds(a)(h)		—		57,428		—			57,428
Fixed income securities:
Domestic mutual funds(b)(h)		22,564		—		—			22,564
Private equity funds(c)		—		24,288		—			24,288
Real estate(d)		—		—		11,564			11,564
Other types of investments:
Guaranteed insurance contracts(e)		—		—		9,534			9,534
Hedged equity funds(f)		—		—		34,646			34,646
Absolute return funds(c)		—		—		41,936			41,936
Other assets and (liabilities)(g)		—		—		(534	)		(534	)
Accrued income(g)		—		—		96			96

Total	$	168,099	$	100,330	$	97,242		$	365,671

	Fair value of Pension Plan Assets as of December 31, 2011
Asset Class	Quoted prices in active markets for identical assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)			Total
Short term investments and cash	$	21,755	$	—	$	—		$	21,755
Equity securities:
U.S. companies		94,155		—		—			94,155
International companies		1,489		—		—			1,489
		22,557		—		—			22,557
International equity funds(a)		9,631		29,539		—			39,170
Fixed income securities:
Domestic mutual funds(b)		39,473		—		—			39,473
Private equity funds(c)		—		12,721		—			12,721
Real estate(d)		—		—		10,381			10,381
Other types of investments:
Guaranteed insurance contracts(e)		—		—		9,413			9,413
Hedged equity funds(f)		—		—		39,099			39,099
Absolute return funds(c)		—		—		39,997			39,997
Other assets and liabilities(g)		—		—		(322	)		(322	)
Accrued income(g)		—		—		197			197

Total	$	189,060	$	42,260	$	98,765		$	330,085

(a)	This class includes funds with the principal strategy to invest primarily in long positions in international equity securities.

(b)	This class invests primarily in U.S. government issued securities.

(c)	This class invests primarily in absolute return strategy funds.

(d)	This class includes funds that invest primarily in U.S. commercial real estate.

(e)	This class invests primarily guaranteed insurance contracts through various U.S. insurance companies.

(f)	This class invests primarily in hedged equity funds.

(g)	This class includes accrued interest, dividends, and amounts receivable from asset sales and amounts payable for asset purchases.

(h)	There is a pending sale for an asset in this classification.

Plan Asset And Target Allocation

The plan asset allocation as of the measurement dates December 31, 2012 and December 31, 2011, and target asset allocations for fiscal 2013 are as follows:


				Percentage of Plan Assets at the Measurement Date
Asset Category	Target Allocation 2013
Asset Category	Target Allocation 2013			2012			2011
Equity securities		40-60	%		55.5			47.7
Fixed income securities		10-40	%		12.8			15.8
Real estate		0-25	%		3.2			3.1
Other diversifying strategies(1)		0-40	%		23.6			26.8
Short term investments and cash		0-25	%		4.9			6.6

Total					100.0	%		100.0	%

(1)	Includes absolute return funds, hedged equity funds, and guaranteed insurance contracts.

Summary Of Effect Of One Percent Change In Assumed Health Care Cost

A one-percentage-point change in assumed health care cost trend rates would have the following effects for fiscal years 2012, 2011 and 2010:


	One-Percentage-Point Decrease									One-Percentage-Point Increase
	For the Year Ended									For the Year Ended
	Fiscal 2012			Fiscal 2011			Fiscal 2010			Fiscal 2012		Fiscal 2011		Fiscal 2010
	(Amounts in thousands)
Effect on total of service and interest cost	$	(100	)	$	(98	)	$	(150	)	$	115	$	124	$	171
Effect on postretirement benefit obligation	$	(667	)	$	(915	)	$	(867	)	$	744	$	1,022	$	955

Multi Employer Plans

Pension Fund

EIN

Pension
Protection Act
Zone Status

FIP/RP Status
Pending/Implemented

Contributions
(Amounts in
thousands)

Surcharge
Imposed

Expiration Date of
Collective Bargaining
Agreement

Pension
Plan No.

2012

2011

2012
($)

2011
($)

2010
($)

IAM National Pension Fund

51-6031295

002

Green

101

100

104

5/1/2016

Retail, Wholesale and Department Store International Union and Industry Pension Fund

63-0708442

001

Green

115

121

123

8/10/2017

Western Conference of Teamsters Pension Trust

91-6145047

001

Green

283

291

318

2/4/2017

BC&T International Pension Fund

52-6118572

001

Red

Green

Yes

797

673

713

Yes

10/31/2015

Net Periodic Pension Cost

Components Of Net Periodic Benefit Cost

The net periodic pension cost (income) for the company’s pension plans includes the following components for fiscal years 2012, 2011 and 2010:


	Fiscal 2012			Fiscal 2011			Fiscal 2010
	(Amounts in thousands)
Service cost	$	610		$	478		$	388
Interest cost		21,670			20,923			18,666
Expected return on plan assets		(26,301	)		(24,712	)		(20,663	)
Settlement loss		—			172			—
Amortization of actuarial loss		5,085			2,725			2,177

Net periodic pension cost (income)		1,064			(414	)		568

Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial loss		28,857			67,015			11,924
Settlement loss		—			(172	)		—
Amortization of actuarial loss		(5,085	)		(2,725	)		(2,177	)

Total recognized in other comprehensive loss		23,772			64,118			9,747

Total recognized in net periodic benefit cost and other comprehensive loss	$	24,836		$	63,704		$	10,315

Funded Status And Amounts Recognized In Consolidated Balance Sheets

The funded status and the amounts recognized in the Consolidated Balance Sheets for the company’s pension plans are as follows:


	December 29, 2012			December 31, 2011
	(Amounts in thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	472,793		$	341,073
Service cost		610			478
Interest cost		21,670			20,923
Actuarial loss		44,447			42,370
Acquisitions		—			89,638
Settlements		—			(768	)
Benefits paid		(24,884	)		(20,921	)

Benefit obligation at end of year	$	514,636		$	472,793

Change in plan assets:
Fair value of plan assets at beginning of year	$	330,085		$	277,800
Actual return on plan assets		41,891			67
Employer contribution		18,579			13,314
Acquisitions		—			60,593
Settlements		—			(768	)
Benefits paid		(24,884	)		(20,921	)

Fair value of plan assets at end of year	$	365,671		$	330,085

Funded status, end of year:
Fair value of plan assets	$	365,671		$	330,085
Benefit obligations		514,636			472,793

Funded status and amount recognized at end of year	$	(148,965	)	$	(142,708	)

Amounts recognized in the balance sheet:
Current liability		(421	)		(428	)
Noncurrent liability		(148,544	)		(142,280	)

Amount recognized at end of year	$	(148,965	)	$	(142,708	)

Amounts recognized in accumulated other comprehensive income:
Net actuarial loss before taxes	$	184,528		$	160,756

Accumulated benefit obligation at end of year	$	513,396		$	471,673

Weighted Average Assumptions Used

Assumptions used in accounting for the company’s pension plans at each of the respective fiscal years ending are as follows:


	Fiscal 2012			Fiscal 2011			Fiscal 2010
Weighted average assumptions used to determine benefit obligations:
Measurement date		12/31/2012			12/31/2011			12/31/2010
Discount rate		4.00	%		4.70	%		5.48	%
Rate of compensation increase		4.00	%		4.00	%		3.50	%
Weighted average assumptions used to determine net (income) cost:
Measurement date		1/1/2012			1/1/2011			1/1/2010
Discount rate		4.70	%		5.38	%(1)		5.98	%
Expected return on plan assets		8.00	%		8.00	%		8.00	%
Rate of compensation increase		4.00	%		3.50	%		3.50	%

(1)	The Tasty pension plans were acquired May 20, 2011. The weighted average discount rate used to determine net (income) cost for these plans was 4.98%.

Significant Unobservable Inputs In Estimation Of Fair Value

The following table provides information on the pension plan assets that are reported using significant unobservable inputs in the estimation of fair value (amounts in thousands):


	2012 Changes in Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
	Real Estate Funds			Guaranteed Insurance Contracts			Hedged Equity Funds			Absolute Return Funds			Other assets and liabilities and accrued income			Totals
Balance at December 31, 2011	$	10,381		$	9,413		$	39,099		$	39,997		$	(125	)	$	98,765
Actual return on plan assets:
Total gains or losses (realized and unrealized)		834			—			1,559			2,336			—			4,722
Purchases		—			468			0			14,000			—			14,468
Issues		461			—			—			11			—			472
Sales		(112	)		(347	)		(6,012	)		(14,408	)		—			(20,872	)
Settlements		—			—			—			—			(313	)		(313	)
Transfers out of Level 3		—			—			—			—			—			—

Ending balance at December 31, 2012	$	11,564		$	9,534		$	34,646		$	41,936		$	(438	)	$	97,242

Company Contributions

Company contributions are as follows:


Year	Required		Discretionary
	(Amounts in thousands)
2010	$	461	$	448
2011	$	7,983	$	5,331
2012	$	9,430	$	9,149

Benefits Expected To Be Paid From Plans Assets

The following are benefits paid under the plans during fiscal years 2012, 2011 and 2010 and expected to be paid from fiscal 2013 through fiscal 2022. Estimated future payments include qualified pension benefits that will be paid from the plans’ assets and nonqualified pension benefits that will be paid from corporate assets.


	Pension Benefits
	(Amounts in thousands)
2010	$	16,294
2011	$	20,921
2012	$	24,884
Estimated Future Payments:
2013	$	25,359
2014	$	25,713
2015	$	26,064
2016	$	26,616
2017	$	27,013
2018 – 2022	$	142,855

Net Periodic Postretirement Benefit Cost

Components Of Net Periodic Benefit Cost

The net periodic benefit cost for the company’s postretirement benefit plans includes the following components for fiscal years 2012, 2011 and 2010:


	Fiscal 2012			Fiscal 2011			Fiscal 2010
	(Amounts in thousands)
Service cost	$	458		$	426		$	632
Interest cost		605			687			875
Amortization:
Prior service cost		(257	)		(257	)		(174	)
Actuarial gain		(299	)		(48	)		(59	)

Total net periodic benefit cost		507			808			1,274

Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Current year actuarial (gain) loss*		(2,492	)		(158	)		(2,055	)
Mid-year accounting adjustment prior service (credit)		—			—			(109	)
Amortization of actuarial gain		299			48			59
Amortization of prior service (cost) credit		257			257			174

Total recognized in other comprehensive (loss) income		(1,936	)		147			(1,931	)

Total recognized in net periodic benefit cost and other comprehensive (income) loss	$	(1,429	)	$	955		$	(657	)

*	Includes (gain) loss related to (higher) lower than expected Medicare Part D subsidy receipts.

Weighted Average Assumptions Used

Assumptions used in accounting for the company’s postretirement benefit plans at each of the respective fiscal years ending are as follows:


	Fiscal 2012			Fiscal 2011			Fiscal 2010
Weighted average assumptions used to determine benefit obligations:
Measurement date		12/31/2012			12/31/2011			12/31/2010
Discount rate		3.34	%		4.35	%		5.00	%
Health care cost trend rate used to determine benefit obligations:
Initial rate		8.00	%		8.50	%		8.00	%
Ultimate rate		5.00	%		5.00	%		5.00	%
Year trend reaches the ultimate rate		2019			2019			2017
Weighted average assumptions used to determine net periodic cost:
Measurement date		1/1/2012			1/1/2011			1/1/2010
Discount rate		4.35	%		5.00	%		5.75	%
Health care cost trend rate used to determine net periodic cost:
Initial rate		8.50	%		8.00	%		8.00	%
Ultimate rate		5.00	%		5.00	%		5.00	%
Year trend reaches the ultimate rate		2019			2017			2016

Company Contributions

Company contributions to postretirement plans are as follows (amounts in thousands):


Year	Employer Net Contribution
2010	$	635
2011	$	853
2012	$	958
2013 (Expected)	$	867

Benefits Expected To Be Paid From Plans Assets

The following are benefits paid by the company during fiscal years 2012, 2011 and 2010 and expected to be paid from fiscal 2013 through fiscal 2022. All benefits are expected to be paid from the company’s assets. The expected benefits show the company’s cost without regard to income from federal subsidy payments received pursuant to the MMA. Expected MMA subsidy payments, which reduce the company’s cost for the plans, are shown separately.


	Postretirement Benefits
	(Amounts in thousands)
	Employer Gross Contribution		MMA Subsidy (Income)
2010	$	693	$	(58	)
2011	$	919	$	(66	)
2012	$	1,010	$	(52	)
Estimated Future Payments:
2013	$	919	$	(52	)
2014	$	988	$	(54	)
2015	$	1,018	$	(56	)
2016	$	1,031	$	(59	)
2017	$	1,048	$	(60	)
2018 – 2022	$	4,684	$	(264	)

Changes In Projected Benefit Obligations

The unfunded status and the amounts recognized in the Consolidated Balance Sheets for the company’s postretirement benefit plans are as follows:


	December 29, 2012			December 31, 2011
	(Amounts in thousands)
Change in benefit obligation:
Benefit obligation at beginning of year	$	13,889		$	13,824
Service cost		458			426
Interest cost		605			687
Participant contributions		356			402
Actuarial loss (gain)		(2,513	)		(195	)
Benefits paid		(1,366	)		(1,321	)
Less federal subsidy on benefits paid		52			66

Benefit obligation at end of year	$	11,481		$	13,889

Change in plan assets:
Fair value of plan assets at beginning of year	$	—		$	—
Employer contributions		1,010			919
Participant contributions		356			402
Benefits paid		(1,366	)		(1,321	)

Fair value of plan assets at end of year	$	—		$	—

Funded status, end of year:
Fair value of plan assets	$	—		$	—
Benefit obligations		11,481			13,889

Funded status and amount recognized at end of year	$	(11,481	)	$	(13,889	)

Amounts recognized in the balance sheet:
Current liability	$	(867	)	$	(907	)
Noncurrent liability		(10,614	)		(12,982	)

Amount recognized at end of year	$	(11,481	)	$	(13,889	)

Amounts recognized in accumulated other comprehensive (loss) income:
Net actuarial (gain) loss before taxes	$	(4,173	)	$	(1,980	)
Prior service (credit) cost before taxes		(570	)		(828	)

Amounts recognized in accumulated other comprehensive (loss) income	$	(4,743	)	$	(2,808	)