Retirement Plans

12 Months Ended

Dec. 31, 2011

Retirement Plans [Abstract]

Retirement Plans

(8) Retirement Plans

Most of our domestic employees are participants in defined benefit pension plans and/or defined contribution plans. The defined benefit pension plans were closed to new employees as of January 1, 2006, and benefits under those plans were frozen for existing employees as of December 31, 2008. Most foreign employees are covered by government sponsored plans in the countries in which they are employed. The domestic employee plans include defined contribution plans and defined benefit pension plans. The defined contribution plans provide for Company contributions based, depending on the plan, upon one or more of participant contributions, service and profits. Company contributions to domestic defined contribution plans totaled $5.8 million, $4.3 million, and $4.9 million in 2011, 2010 and 2009, respectively. The Company also contributes to foreign defined contribution plans.

Benefits provided under defined benefit pension plans are based, depending on the plan, on employees' average earnings and years of credited service, or a benefit multiplier times years of service. Funding of these qualified defined benefit pension plans is in accordance with federal laws and regulations. The actuarial valuation measurement date for pension plans is as of fiscal year end for all periods.

The Company's target allocation, target return and actual weighted-average asset allocation by asset category are as follows:

	Target						Actual Allocation
	Allocation			Return			2011			2010
Equity investments		75	%		8-11	%		70	%		72	%
Fixed income		20	%		3.5-4.5	%		22	%		28	%
Other		5	%		6-8	%		8	%		—
Total		100	%		8.25	%		100	%		100	%

The Company's investment strategy for its defined benefit pension plans is to achieve moderately aggressive growth, earning a long-term rate of return sufficient to allow the plans to reach fully funded status. Accordingly, allocation targets have been established to fit this strategy, with a heavier long-term weighting of investments in equity securities. The long-term rate of return assumptions consider historic returns and volatilities adjusted for changes in overall economic conditions that may affect future returns and a weighting of each investment class.

The following table presents a reconciliation of the funded status of the defined benefit pension plans (in thousands):

	2011			2010
Change in projected benefit obligation:
Obligation at beginning of period	$	147,175		$	116,833
Service cost		2,474			2,164
Interest cost		7,861			6,899
Actuarial loss		7,253			8,527
Plan amendments		124			1,120
Benefits paid		(5,633	)		(4,862	)
Curtailment		(1,728	)		—
Foreign currency translation		(389	)		(38	)
Acquisitions/other		1,492			16,532
Obligation at end of period	$	158,629		$	147,175
Change in fair value of plan assets:
Fair value of plan assets at beginning of period	$	94,484		$	76,460
Actual return on plan assets		(612	)		9,227
Employer contributions		6,532			4,052
Benefits paid		(5,633	)		(4,862	)
Foreign currency translation		(388	)		(368	)
Acquisitions/other		—			9,975
Fair value of plan assets at end of period	$	94,383		$	94,484
Funded status	$	(64,246	)	$	(52,691	)

Pension Assets

The valuation methodologies used for the Company's pensions plans' investments measured at fair value are as follows:

Common stock and traded mutual funds — valued at the closing price reported on the active market on which the individual securities are traded.

Common collective trusts and other mutual funds — valued at the net asset value ("NAV") as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding.

The Company did not change its valuation techniques during fiscal 2011.The fair value of plan assets is as follows (in thousands):

December 31, 2011	Total		Level 1		Level 2		Level 3
Cash and Cash Equivalents	$	1,728	$	1,728	$	—	$	—
Common Stocks
Domestic Equities		14,324		14,324		—		—
International Equities		5,315		—		5,315		—
Common Collective Trust Funds
Fixed Income Funds		18,809		—		18,809		—
U.S. Equity Funds		19,397		—		19,397		—
International Equity Funds		6,464		6,464		—		—
Mutual Funds
U.S. Equity Funds		9,612		9,612		—		—
Balanced Funds		4,162		4,162		—		—
International Equity Funds		7,202		7,202		—		—
Other		7,370		—		—		7,370
Total	$	94,383	$	43,492	$	43,521	$	7,370
January 1, 2011	Total		Level 1		Level 2		Level 3
Cash and Cash Equivalents	$	1,431	$	1,431	$	—	$	—
Money Market Funds		3,881		3,881		—		—
U.S. Government Obligations		1,794		—		1,794		—
Common Stocks
Domestic Equities		15,146		15,146		—		—
International Equities		6,622		—		6,622		—
Common Collective Trust Funds
Fixed Income Funds		18,563		—		18,563		—
U.S. Equity Funds		27,084		—		27,084		—
International Equity Funds		7,494		—		7,494		—
Mutual Funds
Fixed Income Funds		659		—		659		—
U.S. Equity Funds		2,072		2,072		—		—
International Equity Funds		9,738		9,738		—		—
Total	$	94,484	$	32,268	$	62,216	$	—

The December 31, 2011 Level 3 assets noted above represent investments in a real estate fund managed by a major U.S. insurance company and a global emerging markets fund limited partnership. Market values approximate cost of the investments.

The Company recognized the funded status of its defined benefit pension plans on the balance sheet as follows (in thousands):

	2011			2010
Other Accrued Expenses	$	(3,654	)	$	(1,564	)
Pension and Other Post Retirement Benefits		(60,592	)		(51,127	)
	$	(64,246	)	$	(52,691	)
Amounts Recognized in Accumulated Other Comprehensive Income (Loss)
Net actuarial loss	$	51,141		$	36,600
Prior service cost		1,904			2,108
Acquisitions		—			2,398
	$	53,045		$	41,106

The accumulated benefit obligation for all defined benefit pension plans was $150.0 million and $110.7 million at December 31, 2011 and January 1, 2011, respectively.

The following table presents information for defined benefit pension plans with accumulated benefit obligations in excess of plan assets (in thousands):

	2011		2010
Projected benefit obligation	$	158,629	$	147,175
Accumulated benefit obligation		150,002		110,683
Fair value of plan assets		94,383		94,484

The following assumptions were used to determine the projected benefit obligation at year end:

	2011						2010
Discount rate		4.40	%	to	5.30	%		5.15	%	to	5.93	%
Expected long-term rate of return of assets					8.25	%					8.25	%

The objective of the discount rate assumption is to reflect the rate at which the pension benefits could be effectively settled. In making the determination, the Company takes into account the timing and amount of benefits that would be available under the plans. The methodology for selecting the discount rate was to match the plan's cash flows to that of a theoretical bond portfolio yield curve.

Certain of the Company's defined benefit pension plan obligations are based on years of service rather than on projected compensation percentage increases. For those plans that use compensation increases in the calculation of benefit obligations and net periodic pension cost, the Company used an assumed rate of compensation increase of 3.0% for the years ended December 31, 2011 and January 1, 2011.

Net periodic pension benefit costs and the net gain and prior service credit recognized in other comprehensive income ("OCI") for the defined benefit pension plans were as follows (in thousands):

	2011			2010			2009
Service cost	$	2,474		$	2,164		$	2,420
Interest cost		7,861			6,899			5,778
Expected return on plan assets		(7,342	)		(6,448	)		(5,068	)
Amortization of net actuarial loss		3,281			2,401			759
Amortization of prior service cost		200			399			189
Curtailment gain		(1,728	)		—			—
Net periodic benefit cost	$	4,746		$	5,415		$	4,078
Change in benefit obligations recognized in OCI, net of tax
Prior service credit	$	221		$	146		$	188
Net gain		3,729			2,246			752
Total recognized in OCI	$	3,950		$	2,392		$	940

The estimated net actuarial loss and prior service cost for the defined benefit pension plans that will be amortized from AOCI into net periodic benefit cost during the 2012 fiscal year are $3.6 million and $0.2 million, respectively.

As permitted under relevant accounting guidance, the amortization of any prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plans.

The following assumptions were used to determine net periodic pension cost for fiscal years 2011, 2010 and 2009, respectively.

	2011						2010						2009
Discount rate		5.15	%	to	5.93	%		5.67	%	to	6.27	%		6.85	%	to	6.95	%
Expected long-term rate of return on assets					8.25	%					8.25	%					8.25	%

The Company estimates that in 2012, it will make contributions in the amount of $7.7 million to fund its defined benefit pension plans.

The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions):

Year	Expected Payments
2012	$	7.2
2013		8.0
2014		8.4
2015		9.2
2016		9.6
2017-2021		56.5