EMPLOYEE BENEFITS

12 Months Ended

Dec. 30, 2012

EMPLOYEE BENEFITS

(7) EMPLOYEE BENEFITS

The Company has a retirement savings plan which qualifies under Internal Revenue Code Section 401(k). All employees of the Company who have completed 1,000 hours of service and are at least 21 years of age are eligible to participate in the plan. The plan requires the Company to match 100% of the first 3% of each employee’s elective deferrals and 50% of the next 2% of each employee’s elective deferrals. The Company’s matching contributions during 2010 were in Company common stock. Beginning in 2011, the Company ceased matching in Company common stock and began matching with cash contributions. All contributions made during 2010, 2011 and 2012 vested immediately. The expenses incurred for Company contributions to the plan were approximately $3.6 million in 2010, $3.7 million in 2011 and $3.8 million in 2012. The Company contributed 271,052 shares of common stock to the plan in 2010.

The Company has established a non-qualified deferred compensation plan available for certain key employees. Under this self-funding plan, the participants may defer up to 40% of their annual compensation. The participants direct the investment of their deferred compensation within several investment funds. The Company is not required to contribute and did not contribute to this plan during 2010, 2011 or 2012.

The Company has an employee stock purchase discount plan (the ESPDP). Under the ESPDP, eligible employees may deduct up to 15% of their eligible wages to purchase common stock at 85% of the market price of the stock at the purchase date. The ESPDP requires employees to hold their purchased common stock for at least one year. There are 1,000,000 shares authorized to be issued under the ESPDP. There were 95,720 shares, 40,107 shares and 130 shares issued under the ESPDP in 2010, 2011 and 2012, respectively. During 2011, the Company began to purchase common stock on the open market for the ESPDP at the current market price as soon as practicable under the plan. There were 23,468 shares and 37,769 shares of common stock in 2011 and 2012, respectively, purchased on the open market for participating employees at a weighted-average price of $27.99 in 2011 and $34.60 in 2012. The expenses incurred under the ESPDP were approximately $0.2 million in 2010, $0.1 million in 2011, and $0.2 million in 2012.