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Retirement Plans
 12 Months Ended
Nov. 03, 2012
Compensation and Retirement Disclosure [Abstract]  
Retirement Plans
Retirement Plans
The Company and its subsidiaries have various savings and retirement plans covering substantially all employees. The Company maintains a defined contribution plan for the benefit of its eligible U.S. employees. This plan provides for Company contributions of up to 5% of each participant’s total eligible compensation. In addition, the Company contributes an amount equal to each participant’s pre-tax contribution, if any, up to a maximum of 3% of each participant’s total eligible compensation. The total expense related to the defined contribution plan for U.S. employees was $22.8 million in fiscal 2012, $21.9 million in fiscal 2011 and $20.5 million in fiscal 2010. The Company also has various defined benefit pension and other retirement plans for certain non-U.S. employees that are consistent with local statutory requirements and practices. The total expense related to the various defined benefit pension and other retirement plans for certain non-U.S. employees was $18.9 million in fiscal 2012, $21.4 million in fiscal 2011 and $11.7 million in fiscal 2010.
Non-U.S. Plan Disclosures
The Company’s funding policy for its foreign defined benefit pension plans is consistent with the local requirements of each country. The plans’ assets consist primarily of U.S. and non-U.S. equity securities, bonds, property and cash. The benefit obligations and related assets under these plans have been measured at November 3, 2012 and October 29, 2011.
Components of Net Periodic Benefit Cost
Net annual periodic pension cost of non-U.S. plans is presented in the following table:
 
2012
 
2011
 
2010
Service cost
$
7,909

 
$
9,175

 
$
5,933

Interest cost
10,901

 
11,395

 
9,594

Expected return on plan assets
(10,469
)
 
(10,938
)
 
(11,079
)
Amortization of prior service cost
—

 
—

 
1

Amortization of transition obligation (asset)
19

 
15

 
(27
)
Recognized actuarial loss (gain)
361

 
1,630

 
(133
)
Subtotal
$
8,721

 
$
11,277

 
$
4,289

Settlement impact
—

 
—

 
(39
)
Net periodic pension cost
$
8,721

 
$
11,277

 
$
4,250


Benefit Obligations and Plan Assets
Obligation and asset data of the Company’s non-U.S. plans at each fiscal year end is presented in the following table:

 
2012
 
2011
Change in Benefit Obligation
 

 
 

Benefit obligation at beginning of year
$
210,913

 
$
215,012

Service cost
7,909

 
9,175

Interest cost
10,901

 
11,395

Participant contributions
2,523

 
2,301

Plan Amendments
(4,663
)
 
—

Premiums paid
(191
)
 
(192
)
Actuarial loss (gain)
63,127

 
(27,544
)
Benefits paid
(3,411
)
 
(2,625
)
Exchange rate adjustment
(14,852
)
 
3,391

Benefit obligation at end of year
$
272,256

 
$
210,913

Change in Plan Assets
 

 
 

Fair value of plan assets at beginning of year
$
184,754

 
$
176,220

Actual return on plan assets
18,391

 
(2,938
)
Employer contributions
10,611

 
9,233

Participant contributions
2,523

 
2,301

Premiums paid
(191
)
 
(192
)
Benefits paid
(3,411
)
 
(2,625
)
Exchange rate adjustment
(12,516
)
 
2,755

Fair value of plan assets at end of year
$
200,161

 
$
184,754

Reconciliation of Funded Status
 

 
 

Funded status
$
(72,095
)
 
$
(26,159
)
Amounts Recognized in the Balance Sheet
 

 
 

Non-current assets
$
2,596

 
$
2,741

Current liabilities
(657
)
 
(573
)
Non-current liabilities
(74,034
)
 
(28,327
)
Net amount recognized
$
(72,095
)
 
$
(26,159
)

 
2012
 
2011
Reconciliation of Amounts Recognized in the Statement of Financial Position
 

 
 

Initial net obligation
$
(109
)
 
$
(125
)
Prior Service credit
4,663

 
—

Net loss
(82,640
)
 
(30,613
)
Accumulated other comprehensive loss
(78,086
)
 
(30,738
)
Accumulated contributions in excess of net periodic benefit cost
5,991

 
4,579

Net amount recognized
$
(72,095
)
 
$
(26,159
)
Changes Recognized in Other Comprehensive Income
 

 
 

Changes in plan assets and benefit obligations recognized in other comprehensive income
 

 
 

Prior Service cost
$
(4,663
)
 
$
—

Net loss (gain) arising during the year (includes curtailment gains not recognized as a component of net periodic cost)
$
55,205

 
$
(13,667
)
Effect of exchange rates on amounts included in accumulated other comprehensive (loss) income
(2,202
)
 
445

Amounts recognized as a component of net periodic benefit cost
 

 
 

Amortization, settlement or curtailment recognition of net transition obligation
(19
)
 
(15
)
Amortization or settlement recognition of net loss
(361
)
 
(1,630
)
Total recognized in other comprehensive loss (income)
$
47,960

 
$
(14,867
)
Total recognized in net periodic cost and other comprehensive loss (income)
$
56,681

 
$
(3,590
)
Estimated amounts that will be amortized from accumulated other comprehensive (loss) income over the next fiscal year
 

 
 

Initial net obligation
$
(20
)
 
$
(20
)
Prior Service credit
228


—

Net loss
(2,939
)
 
(366
)
Total
$
(2,731
)
 
$
(386
)

The accumulated benefit obligation for non-U.S. pension plans was $214.5 million and $169.0 million at November 3, 2012 and October 29, 2011, respectively.
Information relating to the Company’s non-U.S. plans with projected benefit obligations in excess of plan assets and accumulated benefit obligations in excess of plan assets at each fiscal year end is presented in the following table:
 
2012
 
2011
Plans with projected benefit obligations in excess of plan assets:
 

 
 

Projected benefit obligation
$
237,422

 
$
180,182

Fair value of plan assets
$
162,731

 
$
151,281

Plans with accumulated benefit obligations in excess of plan assets:
 

 
 

Projected benefit obligation
$
219,248

 
$
25,236

Accumulated benefit obligation
$
175,243

 
$
21,022

Fair value of plan assets
$
146,155

 
$
635


Assumptions
The range of assumptions used for the non-U.S. defined benefit plans reflects the different economic environments within the various countries. The projected benefit obligation was determined using the following weighted-average assumptions:
 
2012
 
2011
Discount rate
4.55
%
 
5.60
%
Rate of increase in compensation levels
2.85
%
 
3.07
%
Net annual periodic pension cost was determined using the following weighted average assumptions:
 
2012
 
2011
Discount rate
5.60
%
 
5.33
%
Expected long-term return on plan assets
5.71
%
 
6.15
%
Rate of increase in compensation levels
3.07
%
 
3.40
%

The expected long-term rate of return on assets is a weighted-average of the long-term rates of return selected for the various countries where the Company has funded pension plans. The expected long-term rate of return on assets assumption is selected based on the facts and circumstances that exist as of the measurement date and the specific portfolio mix of plan assets. Management, in conjunction with its actuaries, reviewed anticipated future long-term performance of individual asset categories and considered the asset allocation strategy adopted by the Company and/or the trustees of the plans. While the review considered recent fund performance and historical returns, the assumption is primarily a long-term prospective rate.
The Company’s investment strategy is based on an expectation that equity securities will outperform debt securities over the long term. Accordingly, in order to maximize the return on assets, a majority of assets are invested in equities. Investments within each asset class are diversified to reduce the impact of losses in single investments. The use of derivative instruments is permitted where appropriate and necessary to achieve overall investment policy objectives and asset class targets.
The Company establishes strategic asset allocation percentage targets and appropriate benchmarks for each significant asset class to obtain a prudent balance between return and risk. The interaction between plan assets and benefit obligations is periodically studied by the Company and its actuaries to assist in the establishment of strategic asset allocation targets.
Fair value of plan assets
The following table presents plan assets measured at fair value on a recurring basis by investment categories as of November 3, 2012 and October 29, 2011 using the same three-level hierarchy described in Note 2j:
 
November 3, 2012
 
 
 
October 29, 2011
 
 
 
Fair Value Measurement at Reporting Date Using:
 
 
 
Fair Value Measurement at Reporting Date Using:
 
 
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
 
Quoted
Prices in
Active
Markets for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Unobservable
Inputs
(Level 3)
 
Total
Unit trust funds(1)
$
—

 
$
142,556

 
$
—

 
$
142,556

 
$
—

 
$
100,161

 
$
—

 
$
100,161

Equities(1)
2,892

 
24,176

 
635

 
27,703

 
2,003

 
56,163

 
614

 
58,780

Fixed income securities(2)
—

 
26,340

 
—

 
26,340

 
—

 
21,984

 
—

 
21,984

Property(3)
—

 
—

 
2,881

 
2,881

 
—

 
—

 
3,166

 
3,166

Cash and cash equivalents
681

 
—

 
—

 
681

 
663

 
—

 
—

 
663

Total assets measured at fair value
$
3,573

 
$
193,072

 
$
3,516

 
$
200,161

 
$
2,666

 
$
178,308

 
$
3,780

 
$
184,754

_______________________________________
(1)
The majority of the assets in these categories are invested in a mix of equities, including those from North America, Europe and Asia. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund. Due to the nature of the underlying assets of these funds, changes in market conditions and the economic environment may significantly impact the net asset value of these investments and, consequently, the fair value of the investments. These investments are redeemable at net asset value to the extent provided in the documentation governing the investments. However, these redemption rights may be restricted in accordance with governing documents. Publicly traded securities are valued at the last trade or closing price reported in the active market in which the individual securities are traded. Level 3 securities are valued at book value per share based upon the financial statements of the investment.
(2)
The majority of the assets in this category are invested in funds primarily concentrated in non-U.S. debt instruments. The funds are valued using the net asset value method in which an average of the market prices for underlying investments is used to value the fund.
(3)
The majority of the assets in this category are invested in properties in Ireland, the UK, Europe and other established international markets. Investments in properties are stated at estimated fair values based upon valuations by external independent property valuers.
The table below presents a reconciliation of the plan assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for fiscal years 2011 and 2012.
 
Properties
 
Equities
Balance as of October 30, 2010
$
3,186

 
$
607

Purchases, sales, and settlements, net
64

 
—

Realized and unrealized return on plan assets
(141
)
 
—

Exchange rate adjustment
57

 
7

Balance as of October 29, 2011
$
3,166

 
$
614

Purchases, sales, and settlements, net
—

 
—

Realized and unrealized return on plan assets
12

 
—

Exchange rate adjustment
(297
)
 
21

Balance as of November 3, 2012
$
2,881

 
$
635


Estimated future cash flows
Expected fiscal 2013 Company contributions and estimated future benefit payments are as follows:
Expected Company Contributions
 

2013
$
15,975

Expected Benefit Payments
 

2013
$
2,488

2014
$
3,430

2015
$
3,015

2016
$
3,168

2017
$
4,290

2018 through 2022
$
28,867