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Employee Benefit Plans
6 Months Ended
Jul. 01, 2012
Employee Benefit Plans  
Employee Benefit Plans

11. Employee Benefit Plans

 

The Company sponsors funded and unfunded non-contributing defined benefit pension plans that together cover substantially all of its U.S. employees. Benefits are based primarily on years of service and employees’ compensation. The funding policy of the Company for these plans is to contribute an annual amount that does not exceed the maximum amount that can be deducted for federal income tax purposes.

 

On October 31, 2011, the Company’s Board of Directors voted to cease accruals of additional benefits effective December 31, 2011 under both the Company’s Pension Plan and Supplemental Employees Retirement Plan.  In 2011, the Company recorded a curtailment charge of approximately $1.5 million to write-off previously unrecognized prior service costs and reduced the projected benefit obligation by $12.5 million.

 

The components of net periodic benefit cost are as follows:

 

 

 

Second Quarter Ended

 

Six Months Ended

 

 

 

July 1,
2012

 

July 3,
2011

 

July 1,
2012

 

July 3,
2011

 

 

 

(in millions)

 

Service cost—benefits earned and administrative costs

 

$

0.2

 

$

1.3

 

$

0.4

 

$

2.6

 

Interest costs on benefits obligation

 

1.4

 

1.5

 

2.8

 

3.0

 

Expected return on assets

 

(1.7

)

(1.8

)

(3.5

)

(3.6

)

Prior service costs and net actuarial loss amortization

 

0.1

 

0.8

 

0.3

 

1.6

 

Net periodic benefit cost

 

$

 

$

1.8

 

$

 

$

3.6

 

 

The information related to the Company’s pension funds cash flow is as follows:

 

 

 

Six Months Ended

 

 

 

July 1,
2012

 

July 3,
2011

 

 

 

(in millions)

 

Employer contributions

 

$

0.4

 

$

5.1

 

 

The Company expects to contribute approximately $0.3 million to its pension plans for the remainder of 2012.