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Deferred Compensation Plan
9 Months Ended
Sep. 28, 2012
Deferred Compensation Plan

Note 6: Deferred Compensation Plan

 

The Company maintains a nonqualified deferred compensation plan for the benefit of a select group of highly compensated employees. Under this plan participants may elect to defer up to 100% of their compensation. Company assets that are earmarked to pay benefits under the plan are held in a rabbi trust and are subject to the claims of the Company’s creditors. As of September 28, 2012 and December 30, 2011, the invested amounts under the plan totaled $26,585,000 and $20,082,000, respectively. These assets are classified as trading securities and are recorded at fair market value with changes recorded as adjustments to other income and expense.

 

As of September 28, 2012 and December 30, 2011, vested amounts due under the plan totaled $26,468,000 and $19,927,000, respectively. Changes in the liability are recorded as adjustments to compensation expense. During the three months and nine months ended September 28, 2012, the Company recognized an increase to compensation expense of $1,094,000 and $2,027,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as other income (expense), net. During the three months and nine months ended September 30, 2011, the Company recognized a decrease to compensation expense of $2,511,000 and $1,656,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as other income (expense), net.