Benefit Plans

12 Months Ended

Jan. 01, 2012

Benefit Plans [Abstract]

Benefit Plans

17.    Benefit Plans

Pension Plans

Retirement benefits under the two Company-sponsored pension plans are based on the employee’s length of service, average compensation over the five consecutive years which gives the highest average compensation and the average of the Social Security taxable wage base during the 35-year period before a participant reaches Social Security retirement age. Contributions to the plans are based on the projected unit credit actuarial funding method and are limited to the amounts currently deductible for income tax purposes. On February 22, 2006, the Board of Directors of the Company approved an amendment to the principal Company-sponsored pension plan covering nonunion employees to cease further benefit accruals under the plan effective June 30, 2006.

The following tables set forth pertinent information for the two Company-sponsored pension plans:

Changes in Projected Benefit Obligation

	Fiscal Year
In thousands	2011			2010
Projected benefit obligation at beginning of year	$	227,784		$	193,583
Service cost		96			79
Interest cost		12,340			11,441
Actuarial loss		11,570			29,105
Benefits paid		(6,819	)		(6,449	)
Change in plan provisions		19			25
Projected benefit obligation at end of year	$	244,990		$	227,784

The Company recognized an actuarial loss of $18.4 million in 2010 primarily due to a change in the discount rate from 6.0% in 2009 to 5.5% in 2010 and a change in the mortality assumption tables. The actuarial loss, net of tax, was also recorded in other comprehensive loss. The Company recognized an actuarial loss of $21.4 million in 2011 primarily due to a change in the discount rate from 5.5% in 2010 to 5.18% in 2011 and lower than expected investment return on plan assets. The actuarial loss, net of tax, was recorded in other comprehensive loss.

The projected benefit obligations and accumulated benefit obligations for both of the Company’s pension plans were in excess of plan assets at January 1, 2012 and January 2, 2011. The accumulated benefit obligation was $245.0 million and $227.8 million at January 1, 2012 and January 2, 2011, respectively.

Change in Plan Assets

In thousands	2011			2010
Fair value of plan assets at beginning of year	$	166,130		$	146,564
Actual return on plan assets		(262	)		16,485
Employer contributions		9,453			9,530
Benefits paid		(6,819	)		(6,449	)
Fair value of plan assets at end of year	$	168,502		$	166,130

Funded Status

In thousands	Jan. 1, 2012			Jan. 2, 2011
Projected benefit obligation	$	(244,990	)	$	(227,784	)
Plan assets at fair value		168,502			166,130
Net funded status	$	(76,488	)	$	(61,654	)

Amounts Recognized in the Consolidated Balance Sheets

In thousands	Jan. 1, 2012			Jan. 2, 2011
Current liabilities	$	—		$	—
Noncurrent liabilities		(76,488	)		(61,654	)
Net amount recognized	$	(76,488	)	$	(61,654	)

Net Periodic Pension Cost

	Fiscal Year
In thousands	2011			2010			2009
Service cost	$	96		$	79		$	71
Interest cost		12,340			11,441			11,136
Expected return on plan assets		(11,684	)		(11,525	)		(9,342	)
Amortization of prior service cost		18			14			13
Recognized net actuarial loss		2,130			5,723			9,327
Net periodic pension cost	$	2,900		$	5,732		$	11,205

Significant Assumptions Used	2011			2010			2009
Projected benefit obligation at the measurement date:
Discount rate		5.18	%		5.50	%		6.00	%
Weighted average rate of compensation increase		N/A			N/A			N/A
Net periodic pension cost for the fiscal year:
Discount rate		5.50	%		6.00	%		6.00	%
Weighted average expected long-term rate of return on plan assets		7.00	%		8.00	%		8.00	%
Weighted average rate of compensation increase		N/A			N/A			N/A

Cash Flows

In thousands
Anticipated future pension benefit payments for the fiscal years:
2012	$	7,489
2013		7,921
2014		8,343
2015		8,797
2016		9,342
2017 – 2021		57,212

Anticipated contributions for the two Company-sponsored pension plans will be in the range of $18 million to $21 million in 2012.

Plan Assets

The Company’s pension plans target asset allocation for 2012, actual asset allocation at January 1, 2012 and January 2, 2011 and the expected weighted average long-term rate of return by asset category were as follows:

	Target Allocation 2012			Percentage of Plan Assets at Fiscal Year- End						Weighted Average Expected Long-Term Rate of Return - 2011
				2011			2010
U.S. large capitalization equity securities		40	%		41	%		42	%		3.5	%
U.S. small/mid-capitalization equity securities		5	%		4	%		4	%		0.4	%
International equity securities		15	%		11	%		12	%		1.4	%
Debt securities		40	%		44	%		42	%		1.7	%
Total		100	%		100	%		100	%		7.0	%

All of the assets in the Company’s pension plans include investments in institutional investment funds managed by professional investment advisors which hold U.S. equities, international equities and debt securities. The objective of the Company’s investment philosophy is to earn the plans’ targeted rate of return over longer periods without assuming excess investment risk. The general guidelines for plan investments include 30% — 50% in large capitalization equity securities, 0% — 20% in U.S. small and mid-capitalization equity securities, 0% — 20% in international equity securities and 10% — 50% in debt securities. The Company currently has 56% of its plan investments in equity securities and 44% in debt securities.

U.S. large capitalization equity securities include domestic based companies that are generally included in common market indices such as the S&P 500™ and the Russell 1000™. U.S. small and mid-capitalization equity securities include small domestic equities as represented by the Russell 2000™ index. International equity securities include companies from developed markets outside of the United States. Debt securities at January 1, 2012 are comprised of investments in two institutional bond funds with a weighted average duration of approximately three years.

The weighted average expected long-term rate of return of plan assets of 7% and 8% was used in determining net periodic pension cost in 2011 and 2010, respectively. This rate reflects an estimate of long-term future returns for the pension plan assets. This estimate is primarily a function of the asset classes (equities versus fixed income) in which the pension plan assets are invested and the analysis of past performance of these asset classes over a long period of time. This analysis includes expected long-term inflation and the risk premiums associated with equity investments and fixed income investments.

The following table summarizes the Company’s pension plan assets measured at fair value on a recurring basis (at least annually) at January 1, 2012:

In thousands	Quoted Prices in Active  Market for Identical Assets (Level 1)		Significant Other Observable Input (Level 2)		Total
Cash equivalents(1)
Common/collective trust funds	$	—	$	453	$	453
Equity securities(2)
U.S. large capitalization		10,620		—		10,620
U.S. mid-capitalization		2,007		—		2,007
International		1,181		—		1,181
Common/collective trust funds(3)		—		79,041		79,041
Other		584		—		584
Fixed income
Common/collective trust funds(3)		—		74,616		74,616
Total	$	14,392	$	154,110	$	168,502

(1) Cash equivalents are valued at $100/unit which approximates fair value.

(2) Equity securities other than common/collective trust funds consist primarily of common stock. Investments in common stocks are valued using quoted market prices multiplied by the number of shares owned.

(3) The underlying investments held in common/collective trust funds are actively managed equity securities and fixed income investment vehicles that are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.

The following table summarizes the Company’s pension plan assets measured at fair value on a recurring basis (at least annually) at January 2, 2011:

In thousands	Quoted Prices in Active  Market for Identical Assets (Level 1)		Significant Other Observable Input (Level 2)		Total
Cash equivalents(1)
Common/collective trust funds	$	—	$	871	$	871
Equity securities(2)
U.S. large capitalization		19,395		—		19,395
U.S. mid-capitalization		4,186		—		4,186
International		2,123		—		2,123
Common/collective trust funds(3)		—		69,916		69,916
Other		1,053		—		1,053
Fixed income
Common/collective trust funds(3)		—		68,586		68,586
Total	$	26,757	$	139,373	$	166,130

(1) Cash equivalents are valued at $100/unit which approximates fair value.

(2) Equity securities other than common/collective trust funds consist primarily of common stock. Investments in common stocks are valued using quoted market prices multiplied by the number of shares owned.

(3) The underlying investments held in common/collective trust funds are actively managed equity securities and fixed income investment vehicles that are valued at the net asset value per share multiplied by the number of shares held as of the measurement date.

The Company does not have any unobservable inputs (Level 3) pension plan assets.

401(k) Savings Plan

The Company provides a 401(k) Savings Plan for substantially all of its employees who are not part of collective bargaining agreements. The Company suspended matching contributions to its 401(k) Savings Plan effective April 1, 2009, while maintaining the option to match participants’ 401(k) Savings Plan contributions based on the financial results for 2009. The Company subsequently decided to match the first 5% of participants’ contributions (consistent with the first quarter of 2009 matching contribution percentage) for the entire year of 2009.

The Company matched the first 3% of participants’ contributions for 2010, while maintaining the option to increase the matching contributions an additional 2%, for a total of 5%, for the Company’s employees based on the financial results for 2010. Based on the Company’s financial results, the Company decided to increase the matching contributions for the additional 2% for the entire year of 2010. The Company made these additional contribution payments for each quarter in 2010 in the following quarter concluding with the fourth quarter of 2010 payment being made in the first quarter of 2011. The Company had accrued $.7 million in the fourth quarter for the payment in the first quarter of 2011.

The Company matched the first 3% of participants’ contributions for 2011, while maintaining the option to increase the matching contributions an additional 2%, for a total of 5%, for the Company’s employees based on the financial results for 2011. The 2% matching contributions were accrued during 2011 for a total accrual of $2.8 million. Based on the Company’s financial results, the Company decided to increase the matching contributions for the additional 2% for the entire year of 2011. The Company made this additional contribution payment for 2011 in the first quarter of 2012.

The total expense for this benefit was $8.5 million, $8.7 million and $8.6 million in 2011, 2010 and 2009, respectively.

During the first quarter of 2012, the Company decided to change the Company’s matching from fixed to discretionary and no longer match the first 3% of participants’ contributions. The Company maintains the option to make matching contributions for eligible participants of up to 5% based on the Company’s financial results in the future.

Postretirement Benefits

The Company provides postretirement benefits for a portion of its current employees. The Company recognizes the cost of postretirement benefits, which consist principally of medical benefits, during employees’ periods of active service. The Company does not pre-fund these benefits and has the right to modify or terminate certain of these benefits in the future.

The following tables set forth a reconciliation of the beginning and ending balances of the benefit obligation, a reconciliation of the beginning and ending balances of the fair value of plan assets and funded status of the Company’s postretirement benefit plan:

	Fiscal Year
In thousands	2011			2010
Benefit obligation at beginning of year	$	55,311		$	44,811
Service cost		961			752
Interest cost		2,926			2,521
Plan participants’ contributions		568			548
Actuarial loss		7,901			9,539
Benefits paid		(3,095	)		(2,963	)
Medicare Part D subsidy reimbursement		124			103
Benefit obligation at end of year	$	64,696		$	55,311
Fair value of plan assets at beginning of year	$	—		$	—
Employer contributions		2,403			2,312
Plan participants’ contributions		568			548
Benefits paid		(3,095	)		(2,963	)
Medicare Part D subsidy reimbursement		124			103
Fair value of plan assets at end of year	$	—		$	—

In thousands	Jan. 1, 2012			Jan. 2, 2011
Current liabilities	$	(3,028	)	$	(2,802	)
Noncurrent liabilities		(61,668	)		(52,509	)
Accrued liability at end of year	$	(64,696	)	$	(55,311	)

The components of net periodic postretirement benefit cost were as follows:

	Fiscal Year
In thousands	2011			2010			2009
Service cost	$	961		$	752		$	617
Interest cost		2,926			2,521			2,295
Amortization of unrecognized transitional assets		(18	)		(25	)		(25	)
Recognized net actuarial loss		2,345			1,502			1,043
Amortization of prior service cost		(1,717	)		(1,784	)		(1,784	)
Net periodic postretirement benefit cost	$	4,497		$	2,966		$	2,146

Significant Assumptions Used	2011			2010			2009
Benefit obligation at the measurement date:
Discount rate		4.94	%		5.25	%		5.75	%
Net periodic postretirement benefit cost for the fiscal year:
Discount rate		5.25	%		5.75	%		6.25	%

The weighted average health care cost trend used in measuring the postretirement benefit expense in 2011 was 10% graded down to an ultimate rate of 5% by 2015. The weighted average health care cost trend used in measuring the postretirement benefit expense in 2010 was 9% graded down to an ultimate rate of 5% by 2014. The weighted average health care cost trend used in measuring the postretirement benefit expense in 2009 was 9% graded down to an ultimate rate of 5% by 2013.

A 1% increase or decrease in this annual health care cost trend would have impacted the postretirement benefit obligation and service cost and interest cost of the Company’s postretirement benefit plan as follows:

In thousands	1% Increase		1% Decrease
Increase (decrease) in:
Postretirement benefit obligation at January 1, 2012	$	7,671	$	(6,880	)
Service cost and interest cost in 2011		481		(477	)

Cash Flows

In thousands
Anticipated future postretirement benefit payments reflecting expected future service for the fiscal years:
2012	$	3,028
2013		3,090
2014		3,323
2015		3,552
2016		3,824
2017 — 2021		22,966

Anticipated future postretirement benefit payments are shown net of Medicare Part D subsidy reimbursements, which are not material.

The amounts in accumulated other comprehensive loss that have not yet been recognized as components of net periodic benefit cost at January 2, 2011, the activity during 2011, and the balances at January 1, 2012 are as follows:

In thousands	Jan. 2, 2011			Actuarial Gain  (Loss)			Reclassification Adjustments			Jan. 1, 2012
Pension Plans:
Actuarial loss	$	(85,622	)	$	(23,516	)	$	2,130		$	(107,008	)
Prior service cost (credit)		(71	)		(20	)		18			(73	)
Postretirement Medical:
Actuarial loss		(30,268	)		(7,900	)		2,345			(35,823	)
Prior service cost (credit)		10,417			—			(1,717	)		8,700
Transition asset		18			—			(18	)		—
	$	(105,526	)	$	(31,436	)	$	2,758		$	(134,204	)

The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic cost during 2012 are as follows:

In thousands	Pension Plans		Postretirement Medical			Total
Actuarial loss	$	2,771	$	2,448		$	5,219
Prior service cost (credit)		17		(1,513	)		(1,496	)
	$	2,788	$	935		$	3,723

Multi-Employer Benefits

The Company currently participates in one multi-employer defined benefit pension plan covering certain employees whose employment is covered under collective bargaining agreements. The risks of participating in this multi-employer plan are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. If the Company chooses to stop participating in the multi-employer plan, the Company could be required to pay the plan a withdrawal liability based on the underfunded status of the plan. The Company stopped participation in one multi-employer defined pension plan in 2008. See below for additional information.

The Company’s participation in the plan is outlined in the table below. The most recent Pension Protection Act (“PPA”) zone status available in 2011 and 2010 is for the plan’s years ending at December 31, 2010 and 2009, respectively. The plan is in the green zone which represents at least 80% funded and does not require a financial improvement plan (“FIP”) or a rehabilitation plan (“RP”).

	Pension Protection Act Zone Status				FIP/RP Status Pending/ Implemented		Contribution						Surcharge Imposed
							(In thousands)
Pension Fund	2011		2010				2011		2010		2009
Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund (EIN/Pension Plan No. 55-6021850)		Green		Green		No	$	555	$	481	$	516		No
Other multi-employer plans								264		247		273
							$	819	$	728	$	789

For the plan years ended December 31, 2010 and December 31, 2009, respectively, the Company was not listed in Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund Forms 5500 as providing more than 5% of the total contributions for the plan. At the date these financial statements were issued, Forms 5500 were not available for the plan year ending December 31, 2011.

The collective bargaining agreements covering the Employer-Teamsters Local Nos. 175 & 505 Pension Trust Fund will expire on July 22, 2012 and April 27, 2014, respectively.

The Company entered into a new agreement in the third quarter of 2008 after one of its collective bargaining contracts expired in July 2008. The new agreement allowed the Company to freeze its liability to Southeast and Southwest Areas Pension Plan (“Central States”), a multi-employer defined benefit pension fund, while preserving the pension benefits previously earned by the employees. As a result of freezing the Company’s liability to Central States, the Company recorded a charge of $13.6 million in 2008. The Company paid $3.0 million in 2008 to the Southern States Savings and Retirement Plan (“Southern States”) under the agreement to freeze Central States liability. The remaining $10.6 million is the present value amount, using a discount rate of 7%, that will be paid to Central States and had been recorded in other liabilities. The Company will pay approximately $1 million annually through 2028. Including the $3.0 million paid to Southern States in 2008, the Company has paid $5.9 million from the fourth quarter of 2008 through the end of 2011 and will pay approximately $1 million annually over the next 17 years.