Employee Benefit Plans

12 Months Ended

Dec. 31, 2020

Employee Benefit Plans

Employee Benefit Plans

10.  Employee Benefit Plans

The Company has a qualified profit-sharing retirement savings plan (401(k) plan) covering eligible employees. The 401(k) plan provides a matching contribution equal to 100% of the first 3% of compensation and 50% of the next 2% of compensation deposited by an employee into the 401(k) plan. During fiscal 2020, fiscal 2019 and fiscal 2018, the first 2% of the matching contribution was made with the Company’s common stock. Retirement savings plan expense was $1,718,000, $2,311,000 and $2,206,000 for fiscal 2020, fiscal 2019 and fiscal 2018, respectively.

The Company also sponsors unfunded, nonqualified, defined-benefit and deferred compensation plans. The Company’s unfunded, nonqualified retirement plan includes two components. The first component is a defined-benefit plan that applies to certain participants. The second component applies to all other participants and provides an account-based supplemental retirement benefit.

The Company recognizes actuarial losses and prior service costs related to its defined benefit plan in the consolidated balance sheets and recognizes changes in these amounts in the year in which changes occur through comprehensive income.

The status of the Company’s unfunded nonqualified, defined-benefit and account-based retirement plan based on the respective December 31, 2020 and December 26, 2019 measurement dates is as follows:

	December 31,		December 26,
	2020		2019
	(in thousands)
Change in benefit obligation:
Benefit obligation at beginning of period	$	43,824	$	35,640
Service cost		1,095		833
Interest cost		1,371		1,485
Actuarial loss		3,806		7,317
Benefits paid		(1,492)		(1,451)
Benefit obligation at end of year	$	48,604	$	43,824
Amounts recognized in the statement of financial position consist of:
Current accrued benefit liability (included in Other accrued liabilities)	$	(1,401)	$	(1,400)
Noncurrent accrued benefit liability (included in Other long-term obligations)		(47,203)		(42,424)
Total	$	(48,604)	$	(43,824)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	$	19,125	$	16,373
Prior service credit		(387)		(451)
Total	$	18,738	$	15,922

10.  Employee Benefit Plans (continued)

	Year Ended
	December 31,		December 26,		December 27,
	2020		2019		2018
	(in thousands)
Net periodic pension cost:
Service cost	$	1,095	$	833	$	926
Interest cost		1,371		1,485		1,364
Net amortization of prior service cost and actuarial loss		990		436		621
	$	3,456	$	2,754	$	2,911

The $13,847,000 loss, net of tax, included in accumulated other comprehensive loss at December 31, 2020, consists of the $14,133,000 net actuarial loss, net of tax, and the $286,000 unrecognized prior service credit, net of tax, which have not yet been recognized in the net periodic benefit cost. The $11,766,000 loss, net of tax, included in accumulated other comprehensive loss at December 26, 2019, consists of the $12,100,000 net actuarial loss, net of tax, and the $334,000 unrecognized prior service credit, net of tax, which have not yet been recognized in the net periodic benefit cost.

The accumulated benefit obligation was $43,548,000 and $37,474,000 as of December 31, 2020 and December 26, 2019, respectively.

The pre-tax change in the benefit obligation recognized in other comprehensive loss was as follows:

	Year Ended
	December 31, 2020		December 26, 2019
	(in thousands)
Net actuarial loss	$	3,806		7,317
Amortization of the net actuarial loss		(1,055)		(499)
Amortization of the prior year service credit		64		63
Total	$	2,815		6,881

The weighted-average assumptions used to determine the benefit obligations as of the measurement dates were as follows:

	December 31, 2020		December 26, 2019
Discount rate	2.45	%	3.10	%
Rate of compensation increase	4.00	%	4.00	%

The weighted-average assumptions used to determine net periodic benefit cost were as follows:

	Year Ended
	December 31,		December 26,		December 27,
	2020		2019		2018
Discount rate	3.10	%	4.15	%	3.60	%
Rate of compensation increase	4.00	%	4.00	%	4.00	%

Benefit payments expected to be paid subsequent to December 31, 2020, are:

Fiscal Year	(in thousands)
2021	$	1,401
2022		1,716
2023		1,519
2024		1,777
2025		2,177
Years 2026 – 2030		12,273