BENEFIT PLANS

9 Months Ended

Oct. 27, 2012

BENEFIT PLANS

BENEFIT PLANS

NOTE 12—BENEFIT PLANS

The Company has a qualified 401(k) savings plan and a separate plan for employees residing in Puerto Rico, which cover all full-time employees who are at least 21 years of age with one or more years of service. The Company also maintains a non-qualified defined contribution supplemental executive retirement plan (the “Account Plan”) for key employees designated by the Board of Directors. The Company’s contributions to these plans for fiscal 2012 are contingent upon meeting certain performance metrics. The Company did not record any contribution expense for these plans in the first nine months of 2012 or 2011.

The Company also has a frozen defined benefit pension plan (the “Plan”) covering the Company’s full-time employees hired on or before February 1, 1992. The Company’s expense for the Plan follows:

	Thirteen Weeks Ended						Thirty-nine Weeks Ended
(dollar amounts in thousands)	October 27, 2012			October 29, 2011			October 27, 2012			October 29, 2011
Interest cost	619			640			1,857			1,918
Expected return on plan assets	(704		)	(686		)	(2,112		)	(2,058		)
Amortization of net loss	566			378			1,699			1,134
Net periodic benefit cost	$	481		$	332		$	1,444		$	994

The Plan is subject to minimum funding requirements of the Employee Retirement Income Security Act of 1974 as amended. While the Company had no minimum funding requirement during fiscal 2011, it made a $3.0 million discretionary contribution to the Plan on April 28, 2011. There were no discretionary contributions made during the thirty-nine weeks ended October 27, 2012.

During the third quarter of fiscal 2011, the Company began the process of terminating the Plan. The termination of the Plan is expected to be completed by the end of fiscal 2012. In order to terminate the Plan, in accordance with Internal Revenue Service and Pension Benefit Guaranty Corporation requirements, the Company is required to fully fund the Plan on a termination basis and will commit to contribute the additional assets necessary to do so. The Company expects to contribute approximately $14.0 million to fully fund the Plan. On November 29, 2012, the Plan transferred $22.7 million to the Plan administrator to pay participants who elected the temporary lump sum benefit. The Company will purchase annuities to satisfy all remaining obligations under the Plan during the fourth quarter of fiscal 2012. Plan participants will not be adversely affected by the Plan termination, but rather will have their benefits either converted into a lump sum cash payment or an annuity contract placed with an insurance carrier.