Retirement Plans

12 Months Ended

Oct. 29, 2011

Retirement Plans [Abstract]

Retirement Plans

13.   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 $21.9 million in fiscal 2011, $20.5 million in fiscal 2010 and $21.5 million in fiscal 2009. 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 $21.4 million in fiscal 2011, $11.7 million in fiscal 2010 and $10.9 million in fiscal 2009.

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 October 29, 2011 and October 30, 2010.

Components of Net Periodic Benefit Cost

Net annual periodic pension cost of non-U.S. plans is presented in the following table:

	2011			2010			2009
Service cost	$	9,175		$	5,933		$	6,368
Interest cost		11,395			9,594			9,525
Expected return on plan assets		(10,938	)		(11,079	)		(10,703	)
Amortization of prior service cost		—			1			5
Amortization of transition obligation (asset)		15			(27	)		(40	)
Recognized actuarial loss (gain)		1,630			(133	)		(519	)
Subtotal	$	11,277		$	4,289		$	4,636
Settlement impact		—			(39	)		207
Special termination benefits		—			—			281
Net periodic pension cost	$	11,277		$	4,250		$	5,124

The special termination benefits presented relate to certain early retirement benefits provided in certain jurisdictions.

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:

	2011			2010
Change in Benefit Obligation
Benefit obligation at beginning of year	$	215,012		$	165,047
Service cost		9,175			5,933
Interest cost		11,395			9,594
Participant contributions		2,301			2,378
Premiums paid		(192	)		(81	)
Actuarial (gain) loss		(27,544	)		40,227
Benefits paid		(2,625	)		(3,170	)
Exchange rate adjustment		3,391			(4,916	)
Benefit obligation at end of year	$	210,913		$	215,012
Change in Plan Assets
Fair value of plan assets at beginning of year	$	176,220		$	135,643
Actual return on plan assets		(2,938	)		17,480
Employer contributions		9,233			28,433
Participant contributions		2,301			2,378
Premiums paid		(192	)		(81	)
Benefits paid		(2,625	)		(3,170	)
Exchange rate adjustment		2,755			(4,463	)
Fair value of plan assets at end of year	$	184,754		$	176,220
Reconciliation of Funded Status
Funded status	$	(26,159	)	$	(38,792	)
Amounts Recognized in the Balance Sheet
Non-current assets	$	2,741		$	4,160
Current liabilities		(573	)		(520	)
Non-current liabilities		(28,327	)		(42,432	)
Net amount recognized	$	(26,159	)	$	(38,792	)
Reconciliation of Amounts Recognized in the Statement of Financial Position
Initial net obligation	$	(125	)	$	(138	)
Net loss		(30,613	)		(45,467	)
Accumulated other comprehensive loss		(30,738	)		(45,605	)
Accumulated contributions in excess of net periodic benefit cost		4,579			6,813
Net amount recognized	$	(26,159	)	$	(38,792	)
Changes Recognized in Other Comprehensive Income
Changes in plan assets and benefit obligations recognized in other comprehensive income
Net (gain) loss arising during the year (includes curtailment gains not recognized as a component of net periodic cost)	$	(13,667	)	$	33,828
Effect of exchange rates on amounts included in accumulated other comprehensive income		445			765
Amounts recognized as a component of net periodic benefit cost
Amortization, settlement or curtailment recognition of net transition (obligation) asset		(15	)		27
Amortization or curtailment recognition of prior service cost		—			(1	)
Amortization or settlement recognition of net (loss) gain		(1,630	)		172
Total recognized in other comprehensive (income) loss	$	(14,867	)	$	34,791
Total recognized in net periodic cost and other comprehensive (income) loss	$	(3,590	)	$	39,041
Estimated amounts that will be amortized from accumulated other comprehensive (loss) income over the next fiscal year
Initial net obligation	$	(20	)	$	(15	)
Net loss		(366	)		(1,625	)
Total	$	(386	)	$	(1,640	)

The accumulated benefit obligation for non-U.S. pension plans was $169.0 million and $168.9 million at October 29, 2011 and October 30, 2010, 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:

	2011		2010
Plans with projected benefit obligations in excess of plan assets:
Projected benefit obligation	$	180,182	$	188,741
Fair value of plan assets	$	151,281	$	145,789
Plans with accumulated benefit obligations in excess of plan assets:
Projected benefit obligation	$	25,236	$	23,278
Accumulated benefit obligation	$	21,022	$	19,360
Fair value of plan assets	$	635	$	602

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:

	2011			2010
Discount rate		5.60	%		5.33	%
Rate of increase in compensation levels		3.07	%		3.40	%

Net annual periodic pension cost was determined using the following weighted average assumptions:

	2011			2010
Discount rate		5.33	%		6.32	%
Expected long-term return on plan assets		6.15	%		6.73	%
Rate of increase in compensation levels		3.40	%		3.72	%

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 October 29, 2011 and October 30, 2010 using the same three-level hierarchy described in Note 2j:

	October 29, 2011								October 30, 2010
	Fair Value Measurement at Reporting Date Using:								Fair Value Measurement at Reporting Date Using:
	Quoted								Quoted
	Prices in								Prices in
	Active		Significant						Active		Significant
	Markets for		Other						Markets for		Other
	Identical		Observable		Unobservable				Identical		Observable		Unobservable
	Assets		Inputs		Inputs				Assets		Inputs		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)		Total
Unit trust funds(1)	$	—	$	100,161	$	—	$	100,161	$	—	$	131,650	$	—	$	131,650
Equities(1)		2,003		56,163		614		58,780		1,589		19,356		607		21,552
Fixed income securities(2)		—		21,984		—		21,984		—		19,214		—		19,214
Property(3)		—		—		3,166		3,166		—		—		3,186		3,186
Cash and cash equivalents		663		—		—		663		618		—		—		618
Total assets measured at fair value	$	2,666	$	178,308	$	3,780	$	184,754	$	2,207	$	170,220	$	3,793	$	176,220

(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 established international markets. Investments in properties are stated at estimated fair values based upon valuations by external independent property values.

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 2010 and 2011.

	Properties			Equities
Balance as of October 31, 2009	$	2,340		$	550
Purchases, sales, and settlements, net		899			—
Realized and unrealized return on plan assets		(53	)		—
Effect on conversion to United States dollar		—			57
Balance as of October 30, 2010	$	3,186		$	607
Purchases, sales, and settlements, net		64			—
Realized and unrealized return on plan assets		(141	)		—
Effect on conversion to United States dollar		57			7
Balance as of October 29, 2011	$	3,166		$	614

Estimated future cash flows

Expected fiscal 2012 Company contributions and estimated future benefit payments are as follows:

Expected Company Contributions
2012	$	10,342
Expected Benefit Payments
2012	$	3,673
2013	$	4,251
2014	$	4,372
2015	$	4,280
2016	$	4,673
2017 through 2021	$	33,722