Note 3 - Retirement and Other Benefit Plans

12 Months Ended

Nov. 02, 2012

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE 3- Retirement and Other Benefit Plans:

Noncontributory-Trusteed Defined Benefit Retirement Plans for Sales, Administrative, Supervisory and Certain Other Employees

We have noncontributory-trusteed defined benefit retirement plans for sales, administrative, supervisory and certain other employees. In the third quarter of fiscal 2006, we froze future benefit accruals under this plan for employees classified within the administrative, sales or supervisory job classifications or within any non-bargaining class. The benefits under these plans are primarily based on years of service and compensation levels. The funding policy of the plan is to make contributions which are at least equal to the minimum required contributions needed to avoid a funding deficiency. The measurement date for the plan is our fiscal year end.

Net pension cost consisted of the following:

	Years Ended
	2012 (53 Weeks)			2011 (52 Weeks)
Service cost	$	148		$	141
Interest cost		2,103			1,998
Expected return on plan assets		(2,457	)		(2,321	)
Amortization of unrecognized loss		1,037			437
Amortization of unrecognized prior service costs		1			1
Net pension cost	$	832		$	256

Net pension costs and benefit obligations are determined using assumptions as of the beginning of each fiscal year. Weighted average assumptions for each fiscal year are as follows:

	2012			2011
Discount rate		3.70	%		4.65	%
Rate of increase in salary levels		N/A			N/A
Expected return on plan assets		8.00	%		8.00	%

The benefit obligation, plan assets, and funded status of these plans as of the fiscal years ended are as follows:

	2012 (53 Weeks)			2011 (52 Weeks)
Change in plan assets:
Fair value of plan assets - beginning of year	$	30,307		$	29,237
Employer contributions		2,442			1,175
Actual return on plan assets		1,744			951
Benefits paid		(1,227	)		(1,056	)
Fair value of plan assets - end of year	$	33,266		$	30,307
Change in benefit obligations:
Benefit obligations - beginning of year	$	45,748		$	37,289
Service cost		148			141
Interest cost		2,103			1,998
Actuarial loss		7,695			7,376
Benefits paid		(1,226	)		(1,056	)
Benefit obligations - end of year		54,468			45,748
Funded status of the plans		(21,202	)		(15,441	)
Unrecognized prior service costs		3			4
Unrecognized net actuarial loss		25,322			17,951
Net amount recognized	$	4,123		$	2,514

The Company performs an internal rate of return analysis when making the discount rate selection.  The discount rates were based on Citigroup Pension Liability Index as of November 2, 2012 and October 28, 2011, respectively.

Plan assets are primarily invested in marketable equity securities, corporate and government debt securities and are administered by an investment management company. The plans’ long-term return on assets is based on the weighted-average of the plans’ investment allocation as of the measurement date and the published historical returns for those types of asset categories, taking into consideration inflation rate forecasts. Our expected employer contribution to the plan in fiscal year 2013 is $2,386.

The actual and target allocation for plan assets are as follows:

Asset Class	2012			Target Asset Allocation			2011			Target Asset Allocation
Large Cap Equities		36.6	%		35.0	%		33.4	%		35.0	%
Mid Cap Equities		0.0	%		0.0	%		0.0	%		0.0	%
Small Cap Equities		9.8	%		10.0	%		11.7	%		10.0	%
International (including Non-U.S. Fixed Income)		17.0	%		20.0	%		22.0	%		25.0	%
Fixed Income		32.6	%		31.0	%		28.4	%		26.0	%
Other (Government/Corporate, Bonds)		2.1	%		2.0	%		1.9	%		2.0	%
Cash		1.9	%		2.0	%		2.6	%		2.0	%
Total		100.0			100			100.0			100.0

The fair value of our pension plan assets and the level under which fair values were determined, using the hierarchy described in Note 1, is as follows:

	Year Ended 2012
	Level 1		Level 2	Level 3	Total
Total plan assets		33,266	-	-		33,266

Expected payments for the pension benefits are as follows:

Fiscal Years	Pension Benefits
2013	$	1,497
2014	$	1,565
2015	$	1,650
2016	$	1,724
2017	$	1,899
2018-2022	$	11,624

Executive Retirement Plans

Non-Qualified Deferred Compensation

Effective January 1, 1991 we adopted a deferred compensation savings plan for certain key employees. Under this arrangement, selected employees contribute a portion of their annual compensation to the plan. We contribute an amount to each participant’s account by computing an investment return equal to Moody’s Average Seasoned Bond Rate plus 2%. Employees receive vested amounts upon death, termination or attainment of retirement age. No benefit expense was recorded under these plans for fiscal years 2012 and 2011.

Supplemental Executive Retirement Plan

In fiscal year 1991, we adopted a non-qualified supplemental retirement plan for certain key employees.  Benefits provided under the plan are equal to 60% of the employee’s final average earnings, less amounts provided by our defined benefit pension plan and amounts available through Social Security.

Benefits payable related to these plans and included in the accompanying consolidated financial statements were $4,997 and $4,166 at November 2, 2012 and October 28, 2011, respectively. In connection with this arrangement we are the beneficiary of life insurance policies on the lives of certain key employees and retirees. The aggregate cash surrender value of these policies, included in non-current assets, was $12,315 and $11,615 at November 2, 2012 and October 28, 2011, respectively.

Expected payments for executive postretirement benefits are as follows:

Fiscal Years	Executive Postretirement Benefits
2013	$	503
2014	$	512
2015	$	469
2016	$	279
2017	$	64
2018-2022	$	1,898

Incentive Compensation Plan for Certain Key Executives

We provide an incentive compensation plan for certain key executives, which is based upon our pretax income. The payment of these amounts is generally deferred over three or five-year periods. The total amount payable related to this arrangement was $1,658 and $1,561 at November 2, 2012 and October 28, 2011, respectively. Future payments are approximately $776, $418, $371, $60 and $33 for fiscal years 2013 through 2017, respectively.

Postretirement Healthcare Benefits for Selected Executive Employees

We provide postretirement health care benefits for selected executive employees.   Net periodic postretirement healthcare cost is determined using assumptions as of the beginning of each fiscal year, except for the total actual benefit payments and the discount rate used to develop the net periodic postretirement benefit expense, which is determined at the end of the fiscal year.

Net periodic postretirement healthcare cost consisted of the following:

	Years Ended
	2012 (53 Weeks)			2011 (52 Weeks)
Service cost	$	17		$	22
Interest cost		35			59
Amortization of prior service cost		-			75
Amortization of actuarial gain		(30	)		(18	)
Net periodic postretirement healthcare cost	$	22		$	138

Weighted average assumptions for the fiscal years ended November 2, 2012 and October 28, 2011 are as follows:

	2012			2011
Discount rate		3.50	%		4.45	%
Medical trend rate next year		9.00	%		9.50	%
Ultimate trend rate		5.00	%		5.00	%
Year ultimate trend rate is achieved		2020			2020

The table below shows the estimated effect of a 1% increase in healthcare cost trend rate on the following:

	2012		2011
Interest cost plus service cost	$	5	$	9
Accumulated postretirement healthcare obligation	$	80	$	133

The table below shows the estimated effect of a 1% decrease in healthcare cost trend rate on the following:

	2012			2011
Interest cost plus service cost	$	(4	)	$	(8	)
Accumulated postretirement healthcare obligation	$	(65	)	$	(109	)

The healthcare obligation and funded status of this plan as of the fiscal years ended are as follows:

	2012			2011
Change in accumulated postretirement healthcare obligation:
Healthcare obligations - beginning of year	$	1,124		$	945
Service cost		17			21
Interest cost		35			59
Actuarial loss (gain)		(248	)		136
Benefits paid		(19	)		(37	)
Healthcare obligations - end of year	$	909		$	1,124
Funded status of the plans		909			1,124
Unrecognized net actuarial (gain) loss		(330	)		(112	)
Unrecognized amounts recorded in other comprehensive income		330			112
Postretirement healthcare liability	$	909		$	1,124

Expected payments for the postretirement benefits are as follows:

Fiscal Years	Postretirement Heathcare Benefits
2013	$	41
2014	$	41
2015	$	41
2016	$	41
2017	$	40
2018-2022	$	351

401(K) Plan for Sales, Administrative, Supervisory and Certain Other Employees

During the fiscal year ended November 3, 2006, we implemented a qualified 401(K) retirement plan (the “Plan”) for our sales, administrative, supervisory and certain other employees. During fiscal years 2012 and 2011, we made total employer contributions to the Plan in the amounts of $442 and $408, respectively.