7. Employee Benefit Plans

The Company has a qualified profit-sharing savings plan (401(k) plan) covering eligible employees. The 401(k) plan provides for a contribution of a minimum of 1% of defined compensation for all plan participants and matching of 25% of employee contributions up to 6% of defined compensation. In addition, the Company may make additional discretionary contributions. During fiscal 2013, 2012, and 2011, the 1% and the discretionary contributions were made with the Company’s common stock. The Company also sponsors unfunded, nonqualified, defined-benefit and deferred compensation plans. The Company’s unfunded, nonqualified defined-benefit plan was amended effective January 1, 2009 to include two components. The first component applies to certain participants and continues to provide the same nonqualified pension benefits as were provided prior to the amendment. The second component applies to all other participants and provides an account-based supplemental retirement benefit. Pension and profit-sharing expense for all plans was $3,369,000, $3,078,000, and $2,988,000 for fiscal 2013, 2012, and 2011, respectively.

The Company recognizes actuarial losses and prior service costs related to its defined benefit plan in the statement of financial position and recognizes changes in these amounts in the year in which changes occur through comprehensive income. Additionally, the Company is required to measure the funded status of its plan as of the date of its year-end statement of financial position.

The status of the Company’s unfunded nonqualified, defined-benefit and account-based retirement plan based on the respective May 30, 2013 and May 31, 2012 measurement dates is as follows:

	May 30, 2013		May 31, 2012
	(in thousands)

Change in benefit obligation:
Net benefit obligation at beginning of year	$	25,595	$	22,010
Service cost		712		627
Interest cost		1,099		1,178
Actuarial (gain)/loss		(119)		2,674
Benefits paid		(848)		(894)
Net benefit obligation at end of year	$	26,439	$	25,595

Amounts recognized in the statement of financial position consist of:
Current accrued benefit liability	$	(962)	$	(906)
Noncurrent accrued benefit liability		(25,477)		(24,689)
Total		(26,439)		(25,595)

Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss		7,273	$	7,756
Prior service credit		(912)		(990)
Total	$	6,361	$	6,766

	Year Ended
	May 30, 2013		May 31, 2012		May 26, 2011
	(in thousands)
Net periodic pension cost:
Service cost	$	712	$	627	$	598
Interest cost		1,099		1,178		1,195
Net amortization of prior service cost, transition obligation and actuarial loss		286		121		108
	$	2,097	$	1,926	$	1,901

The $3,836,000 loss, net of tax, included in accumulated other comprehensive loss at May 30, 2013, consists of the $4,386,000 net actuarial loss, net of tax, and the $550,000 unrecognized prior service credit, net of tax, which have not yet been recognized in the net periodic benefit cost. The $4,073,000 loss, net of tax, included in accumulated other comprehensive loss at May 31, 2012, consists of the $4,669,000 net actuarial loss, net of tax, and the $596,000 unrecognized prior service credit, net of tax.

The accumulated benefit obligation was $21,936,000 and $21,382,000 as of May 30, 2013 and May 31, 2012, respectively.

The pre-tax change in the benefit obligation recognized in other comprehensive loss during fiscal 2013 consisted of the current year net actuarial gain of $119,000, the amortization of the net actuarial loss of $364,000 and the amortization of the prior service credit of $78,000. The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal 2014 is $268,000 and relates to the actuarial loss and the prior service credit.

The benefit obligations were determined using an assumed weighted-average discount rate of 4.40% in fiscal 2013 and 4.25% in fiscal 2012, and an annual salary rate increase of 4.0% in fiscal 2013 and 2012.

The net periodic benefit cost was determined using an assumed discount rate of 4.25% in fiscal 2013, 5.3% in fiscal 2012, and 5.7% in fiscal 2011, and an annual salary rate increase of 4.0% in fiscal 2013 and 5.0% for fiscal 2012 and 2011.

Benefit payments expected to be paid subsequent to May 30, 2013, are:

Fiscal Year	(in thousands)
2014	$	962
2015		1,145
2016		1,153
2017		1,183
2018		1,243
Years 2019 – 2023		6,783