Deferred Compensation Plans

9 Months Ended

Sep. 28, 2018

Deferred Compensation Arrangements [Abstract]

Note 7: Deferred Compensation Plans

The Company maintains nonqualified deferred compensation plans for the benefit of a select group of highly compensated employees. Under these plans, participants may elect to defer up to 100% of their compensation. Company assets that are earmarked to pay benefits under the plans are held in a rabbi trust and are subject to the claims of the Company’s creditors. As of September 28, 2018 and December 29, 2017, the invested amounts under the plans totaled $63,270,000 and $53,350,000, respectively, and are recorded in prepaid expenses and other assets and deferred compensation plan assets on the Company’s unaudited condensed consolidated balance sheet. These assets are classified as trading securities and are recorded at fair value with changes recorded as adjustments to miscellaneous income, net.

As of September 28, 2018 and December 29, 2017, vested amounts due under the plans totaled $65,036,000 and $59,050,000, respectively, and are recorded within accrued payroll and employee benefits and deferred compensation on the Company’s unaudited condensed consolidated balance sheet. Changes in the liability are recorded as adjustments to compensation expense. During the three months ended September 28, 2018 and September 29, 2017, the Company recognized compensation expense of $1,840,000 and $1,699,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as income in miscellaneous income, net. During the nine months ended September 28, 2018 and September 29, 2017, the Company recognized compensation expense of $2,577,000 and $4,617,000, respectively, as a result of changes in the market value of the trust assets with the same amount being recorded as income in miscellaneous income, net.