Retirement Plans

12 Months Ended

Jul. 31, 2012

Retirement Plans

15. Retirement Plans:

401(k) Plan

The Company has a qualified retirement plan called the Analogic 401(k) Plan (the “Plan”) to provide retirement income for eligible employees through employee contributions and contributions from the Company. Employer contributions are discretionary and may be in the form of a direct profit sharing contribution or a discretionary matching contribution as determined and approved by the Board. The Company contribution each year shall in no event exceed the maximum allowable under applicable provisions of the Internal Revenue Code. All contributions vest immediately.

The Plan, as allowed under Section 401(k) of the Internal Revenue Code, permits tax-deferred salary/wage deductions for eligible employees. Employees may contribute from 1% to 80% of their eligible compensation to the Plan, limited to a maximum annual amount as determined by the Internal Revenue Service.

In fiscal years 2012, 2011, and 2010 the Company matched employee contributions up to 4% of eligible compensation. The Company’s contributions to the Plan totaled $2,900, $2,729, and $2,632, in fiscal years 2012, 2011, and 2010, respectively.

Defined Benefit Retirement Plan

The Company’s Canadian subsidiary, Analogic Canada Corporation, formerly known as ANRAD Corporation, sponsors a defined benefit retirement plan called the Anrad Retirement Plan (the “Anrad Plan”). The Anrad Plan provides benefits to employees based on a formula recognizing length of service and final average earnings. The measurement date used for the plan is July 31. The Company recognizes the periodic pension expense in its Consolidated Statement of Operations and the associated assets or liabilities on its Consolidated Balance Sheet.

The estimated net prior service cost, net transition asset, and net actuarial loss for the Anrad Plan that are expected to be amortized from stockholders’ equity into pension cost in fiscal year 2013 are $10, $27, and $359, respectively. Comparable amortized amounts of net prior service cost, net transition asset, and net actuarial loss in fiscal year 2012 were $10, $26, and $210, respectively.

Amounts Recognized in Accumulated Other Comprehensive Loss

	Year Ended July 31,
	2012			2011
Net actuarial loss	$	(1,632	)	$	(793	)
Net amount recognized	$	(1,632	)	$	(793	)

Net Periodic Benefit Cost

	Year Ended July 31,
	2012			2011			2010
Service cost	$	1,077		$	1,064		$	982
Interest cost		576			523			392
Expected return on plan assets		(651	)		(568	)		(429	)
Amortization of transition asset obligations		(26	)		(28	)		(25	)
Amortization of prior service costs		10			10			9
Amortization of net actuarial loss recognized		210			184			174
Total cost	$	1,196		$	1,185		$	1,103

Actuarial Assumptions

Actuarial assumptions for the Anrad Plan are described below. The discount rates at July 31 were used to measure the year-end benefit obligations and the earnings effects for the subsequent year. The discount rate is based on high quality corporate bond spot rates with cash flows that match the timing and amount of expected benefit payments.

	July 31,
	2012			2011			2010
Discount rate		4.20	%		4.90	%		5.50	%
Expected return on assets		6.00	%		6.25	%		6.25	%
Salary increase		3.50	%		3.75	%		4.00	%

To determine the expected long-term rate of return on the Anrad Plan assets, the Company considers the current and expected asset allocations, as well as historical and expected returns on various categories of plan assets. The Company amortizes experienced gains and losses, as well as the effects of changes in actuarial assumptions and plan provisions over a period no longer than the average future service of employees.

Funding Policy

The funding policy for the Anrad Plan is to contribute amounts sufficient to meet minimum funding requirements as set forth in employee benefit and tax laws plus such additional amounts as the Company may determine to be appropriate. During fiscal years 2012, 2011, and 2010, the Company made contributions to the Anrad Plan of $1,068, $1,168, and $1,256, respectively, and made payments for benefits and administrative expenses of $107, $209, and $169, respectively. In fiscal year 2013, the Company expects to make contributions and payments for benefits and administrative expenses of $1,265 and $408, respectively.

Projected Benefit Obligation

	2012			2011
Balance at August 1	$	12,546		$	8,965
Current service cost		1,077			1,064
Foreign currency exchange (gain) loss		(535	)		692
Interest cost		575			523
Net actuarial loss		2,147			1,266
Plan participant contributions		241			192
Benefit payments		(508	)		(156	)
Balance at July 31	$	15,543		$	12,546

Accumulated Benefit Obligation

ABO balances for the Anrad Plan were $7,743 and $5,952 at July 31, 2012 and 2011, respectively.

Fair Value of Plan Assets

	2012			2011
Balance at August 1	$	10,536		$	7,965
Actual return on plan assets		11			754
Employer contributions		1,068			1,168
Plan participant contributions		241			192
Benefits paid		(508	)		(156	)
Foreign currency exchange (gain) loss		(493	)		613
Balance at July 31	$	10,855		$	10,536

Plan Assets

The Anrad Plan assets are held in trust, as follows:

	July 31, 2012						July 31, 2011
	Target allocation			Actual allocation			Actual allocation
Equity securities		65.0	%		65.6	%		63.0	%
Debt securities		35.0	%		34.4	%		37.0	%
Total		100.0	%		100.0	%		100.0	%

The Pension Committee of the Anrad Plan sets investment policies and strategies for the Anrad Plan. Long-term strategic investment objectives include preserving the funded status of the Anrad Plan and balancing risk and return. The Pension Committee oversees the investment allocation process, which includes selecting investment managers, commissioning periodic asset-liability studies, setting long-term strategic targets and monitoring asset allocations.

Target allocation ranges are guidelines, not limitations, and occasionally the Pension Committee will approve allocations above or below a target range.

The fair value of the Anrad pension assets by asset category at July 31, 2012 and 2011 were as follows:

	Fair Value Measurements at July 31, 2012
Assets	Quoted Prices in Active Markets for Indentical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Assets at Fair Value
Mutual funds (a)	$	—	$	—	$	10,855	$	10,855
Total	$	—	$	—	$	10,855	$	10,855
	Fair Value Measurements at July 31, 2011
Assets	Quoted Prices in Active Markets for Indentical Assets Level 1		Significant Other Observable Inputs Level 2		Significant Unobservable Inputs Level 3		Assets at Fair Value
Mutual funds (a)	$	—	$	—	$	10,536		10,536
Total	$	—	$	—	$	10,536	$	10,536

(a) - This comprises units of segregated pooled funds with an insurance company. These funds have underlying values primarily derived from mutual funds that have debt and equity securities, which are traded on an active market based on the closing price of each trading day.

	Fair Value Measurements Using Signficant Unobservable Inputs (Level 3)
	July 31, 2012			July 31, 2011
Balance at beginning of fiscal year	$	10,536		$	7,965
Actual return on plan assets
Relating to assets still held at end of fiscal year		112			812
Relating to assets sold during the period		—			—
Purchases, sales, and settlements		700			1,146
Transfers in and/or out of Level 3		—			—
Foreign currency exchange gain/(loss)		(493	)		613
Balance at end of fiscal year	$	10,855		$	10,536

Estimated Future Benefit Payments

Estimated future benefit payments under the Anrad Plan are as follows:

2013	2014	2015	2016	2017	2018-22
$ 302	$305	$324	$352	$362	$2,424

Funded Status

The amounted recognized on Company’s balance sheet for the Anrad Plan were as follows:

	July 31,
	2012			2011
Noncurrent liabilities	$	(4,653	)	$	(2,010	)
Net balance sheet asset (liability)	$	(4,653	)	$	(2,010	)