SR » Topics » NOTE 10 - PENSION PLANS

This excerpt taken from the SR 10-Q filed May 1, 2009.

NOTE 8 – PENSION PLANS

Net periodic benefit cost includes the following components:


 

13 Weeks Ended

 

March 29,

 

March 30,

 

2009

 

2008

    

Service cost of benefits earned

$

32 

$

1,667 

Interest cost on projected benefit obligation

6,478 

 

7,006 

Expected return on plan assets

(6,771)

 

(7,321)

Amortization of prior service costs

148 

 

95 

Amortization of net actuarial losses from prior periods

4,657 

 

5,210 

Settlement losses

19,747 

 

    

Total

$

24,291 

$

6,657 

As a result of associates retiring in 2009 and electing a lump-sum payment of their pension benefits under our qualified, non-qualified and supplemental executive retirement plans, we recognized settlement losses in the first quarter of 2009.  A pension settlement is recorded when the total lump sum payments for a year exceed total service and interest costs to be recognized for that year.   As part of the settlement, we recognized a pro-rata portion of the unrecognized net losses included in accumulated other comprehensive losses equal to the percentage reduction in the pension benefit obligation.   These non-cash charges are included in net periodic benefit cost.

As part of the settlement, we remeasured our pension obligations and plan assets under these plans as of March 1, 2009, the settlement date.  The remeasurement resulted in an actuarial gain of $52,797, primarily for a change in the discount rate used to measure the benefit obligations from 5.75% at December 28, 2008 to 7.0% at March 1, 2009.  Additionally, we updated the fair value of our plan assets and recognized a net actuarial loss of $28,059 due to the actual rate of investment return on the plans being less than the expected rate of return.  As a result, we realized a net actuarial gain of $24,738 which will be amortized into income in future years.  This net gain reduced our pension liabilities by $24,738, reduced accumulated other comprehensive losses by $14,915, and decreased our deferred tax assets by $9,823.

Final regulations under the Pension Protection Act of 2006 regarding the calculations of our minimum funding requirement have not been released, therefore our required mandatory pension funding requirement for 2009 is not known at this time.  Based upon preliminary estimates, we expect to contribute approximately $25 million for 2009, of which $6,000 of contributions were made in the first quarter of 2009.


This excerpt taken from the SR 10-Q filed Oct 30, 2008.

NOTE 8 – PENSION PLANS

Net periodic benefit cost includes the following components:


 

13 Weeks Ended

 

39 Weeks Ended

 

September 28,

 

September 30,

 

September 28,

 

September 30,

 

2008

 

2007

 

2008

 

2007

Service cost of benefits earned

 $              27 

 

 $          1,682 

 

 $      3,361 

 

 $            5,772 

Interest cost on projected benefit obligation

            7,036 

 

             6,834 

 

       21,048 

 

             21,132 

Expected return on plan assets

          (7,385)

 

           (7,538)

 

     (22,027)

 

           (21,771)

Amortization of prior service costs

               148 

 

                  97 

 

            338 

 

                  277 

Amortization of net actuarial loss from prior periods

            4,798 

 

             5,526 

 

       15,217 

 

             19,665 

Curtailment gain

                   - 

 

              (137)

 

           (746)

 

                (137)

Settlement loss

                   - 

 

                     - 

 

                  - 

 

               3,222 

    Total

 $        4,624 

 

 $          6,464 

 

 $   17,191 

 

 $          28,160 

Effective June 30, 2008, the Company modified its qualified and nonqualified defined benefit pension plans for participants still accruing benefits under the plans.  As a result, these participants ceased accruing pension benefits and final pension benefit amounts will be based on pay and service through June 29, 2008.  Additionally, Company match in the 401(k) savings plan was increased for the affected employees from 10% to 75% on the first six percent of eligible compensation deferred.

As a result, we remeasured our pension obligations under these plans as of June 29, 2008.  The plan modification resulted in a reduction of our pension obligations of $23,213 which was recorded as a reduction in the pension liability, a $9,218 reduction in noncurrent deferred tax assets, and a net increase to other comprehensive income of $13,995.  This action also resulted in a one-time curtailment gain of $746 recorded in the second quarter of 2008.

Additionally, as part of the remeasurement, plan asset valuations and actuarial assumptions were also updated, and we recognized a net actuarial loss of $27,189 primarily due to the actual rate of investment return on the qualified plan being less than the expected rate of return.  The actuarial loss increased our pension liability by $27,189, increased noncurrent deferred taxes by $10,797, with a net decrease in other accumulated comprehensive income of $16,392.



11





As a result of associates retiring in 2007 and electing a lump-sum payment of their pension benefit from the nonqualified defined benefit pension plan, we recognized a settlement of $3,222 in the second quarter of 2007.  A pension settlement is recorded when the total lump sum payments exceed total service and interest costs recognized for that year.  As part of the settlement, we recognized a pro-rata portion of the unrecognized actuarial net losses equal to the percentage reduction in the pension benefit obligation.

Restructuring actions undertaken in 2007 resulted in a reduction of associates that participated in our qualified defined benefit pension plan.  The remeasurement of our pension obligation resulted in a curtailment gain of $137.

 

This excerpt taken from the SR 10-Q filed Aug 6, 2008.

NOTE 8 – PENSION PLANS

Net periodic benefit cost includes the following components:

 

13 Weeks Ended

 

26 Weeks Ended

 

June 29,

 

July 1,

 

June 29,

 

July 1,

 

2008

 

2007

 

2008

 

2007

Service cost of benefits earned

$        1,667 

 

$        1,875 

 

$      3,334 

 

$          4,090 

Interest cost on projected benefit obligation

          7,006 

 

         7,088 

 

       14,012 

 

        14,298 

Expected return on plan assets

        (7,321)

 

       (7,117)

 

     (14,642)

 

      (14,233)

Amortization of prior service costs

               95 

 

              90 

 

           190 

 

             180 

Amortization of net actuarial loss from prior periods

          5,209 

 

         7,113 

 

       10,419 

 

        14,139 

Curtailment gain

           (746)

 

              - 

 

        (746)

 

                - 

Settlement loss

                - 

 

         3,222 

 

               - 

 

         3,222 

   Total

$        5,910 

 

$      12,271 

 

$   12,567 

 

$        21,696 


On April 21, 2008, the Company announced it was modifying its qualified and nonqualified defined benefit pension plans for participants still accruing benefits under the plans.  Effective June 30, 2008, these participants ceased accruing pension benefits and final pension benefit amounts will be based on pay and service through June 29, 2008.  Company match in the 401(k) savings plan was increased for the affected employees from the current 10%, to 75% on the first six percent of eligible compensation deferred, effective June 30, 2008.

As a result, we remeasured our pension obligations under these plans as of June 29, 2008.  The plan modification resulted in a reduction of our pension obligations of $23,213 which was recorded as a reduction in the pension liability, a $9,218 reduction in noncurrent deferred tax assets, and a net increase to other comprehensive income of $13,995.    This action also resulted in a one-time curtailment gain of $746 recorded in the second quarter of 2008.

Additionally, as part of the remeasurement, plan asset valuations and actuarial assumptions were also updated, and we recognized a net actuarial loss of $27,189 primarily due to the actual rate of investment return on the qualified plan being less than the expected rate of return.  The actuarial loss increased our pension liability by $27,189, increased noncurrent deferred taxes by $10,797, with a net decrease in other accumulated comprehensive income of $16,392.

As a result of associates retiring and electing a lump-sum payment of their pension benefit from the nonqualified defined benefit pension plan, we recognized a settlement in 2007.  A pension settlement is recorded when the total lump sum payments for a year exceed total service and interest costs recognized for that year.   As part of the settlement, we recognized a pro-rata portion of the unrecognized actuarial net losses equal to the percentage reduction in the pension benefit obligation.  This non-cash charge of $3,222 is included in net periodic benefit cost.


This excerpt taken from the SR 10-Q filed May 2, 2008.

NOTE 8 – PENSION PLANS

Net periodic benefit cost includes the following components:

 

13 Weeks Ended

 

March 30,

 

April 1,

 

2008

 

2007

Service cost of benefits earned

 $        1,667

 

 $          2,215

Interest cost on projected benefit obligation

           7,006

 

             7,210

Expected return on plan assets

          (7,321)

 

           (7,116)

Amortization of prior service costs

                95

 

                  90

Amortization of net actuarial losses from prior periods

           5,210

 

             7,026

    Total

 $        6,657

 

 $          9,425

The Company has a minimum funding requirement of approximately $20,000 in 2008.  We made $5,000 of contributions to the qualified defined benefit pension plan in the first quarter of 2008.

On April 21, 2008, the Company announced it was modifying its qualified defined benefit pension plan for participants still accruing benefits under the plan.  Effective June 30, 2008, these participants will cease accruing pension benefits and the final pension benefit amount will be based on pay and service through June 29, 2008.  This action will result in a reduction to our defined benefit pension obligation.

As a result, we will record a curtailment gain of approximately $700 in the second quarter of 2008.  

Company match in the 401(k) saving plan will be increased for the affected employees from the current 10%, to 75% on the first six percent of eligible compensation deferred, effective June 30, 2008.

This excerpt taken from the SR 10-Q filed Nov 6, 2007.

NOTE 10 – PENSION PLANS

The following table summarizes the components of net periodic benefit cost for the Company’s defined benefit pension plans:

 

13 Weeks Ended

 

39 Weeks Ended

 

September 30,

 

October 1,

 

September 30,

 

October 1,

 

2007

 

2006

 

2007

 

2006

Service cost of benefits earned

 $        1,682 

 

 $          2,022 

 

 $      5,772 

 

 $            6,067 

Interest cost on projected benefit obligation

            6,834 

 

             6,831 

 

       21,132 

 

             20,493 

Expected return on plan assets

          (7,538)

 

           (7,284)

 

     (21,771)

 

           (21,852)

Amortization of prior service cost

                 97 

 

                  90 

 

            277 

 

                  269 

Amortization of actuarial net loss

            5,526 

 

             6,369 

 

       19,665 

 

             19,106 

Curtailment gain (1)

             (137)

 

                     - 

 

           (137)

 

                      - 

Settlement loss (2)

                     - 

 

             1,627 

 

         3,222 

 

               1,627 

Total

 $        6,464 

 

 $          9,655 

 

 $   28,160 

 

 $          25,710 


(1)

In the third quarter of 2007, the Company recorded a curtailment gain of $137 for its qualified defined benefit plan as a result of a reduction of eligible plan participants stemming from the 2007 restructuring actions.

(2)

Settlement losses are the result of associates retiring in 2007 and 2006 and electing a lump-sum payment of their pension benefits under the nonqualified supplementary benefit plan.  The payments represented a reduction in the projected benefit obligation and exceeded the sum of service and interest cost for this plan.  As a result of this settlement, the Company recorded a non-cash charge for a pro-rata portion of unrecognized actuarial net losses.

Restructuring actions undertaken by the Company in 2007 resulted in a reduction of associates that participated in the Company’s qualified defined benefit pension plan.  As a result, the Company remeasured pension obligations under this plan as of August 31, 2007, which included an update to actuarial assumptions made at the end of the prior fiscal year.  The revised actuarial assumptions included a change in the discount rate for the benefit obligation from 5.75% to 6.0% based on prevailing market rates for high-quality, fixed-income instruments with maturities equal to the future cash flows to pay the benefit obligation when due. Year-to-date net periodic benefit cost for 2007 was adjusted in the third quarter to reflect the revised assumptions.  In addition, the pension plan remeasurement resulted in a $16,172 reduction in the pension liability and a $6,422 reduction in noncurrent deferred tax assets, recorded through a net adjustment to other comprehensive income of $9,750.

The Company does not have a minimum funding requirement in 2007.  The Company made $20,000 in voluntary contributions to the qualified pension plan in the first nine months of 2007 and $25,000 in the same period of 2006.




13





This excerpt taken from the SR 10-Q filed Aug 2, 2007.

NOTE 10 – PENSION PLANS

The Company has a qualified defined benefit plan and a nonqualified supplementary benefit plan that provides supplemental pension payments in excess of qualified plan payments.  In addition, the Company has a noncontributory supplemental nonqualified retirement plan for elected officers and a supplemental retirement agreement with its President and Chief Executive Officer under which he is entitled to receive supplemental retirement benefits upon attainment of certain age and employment requirements.  These plans are more fully described in Note 13 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006.  

Net periodic benefit cost includes the following components:

 

13 Weeks Ended

 

26 Weeks Ended

 

July 1,

 

July 2,

 

July 1,

 

July 2,

 

2007

 

2006

 

2007

 

2006

Service cost of benefits earned

 $        1,875 

 

$          1,986 

 

 $      4,090 

 

$          4,045 

Interest cost on projected benefit obligation

            7,088 

 

           6,805 

 

       14,298 

 

       13,662 

Expected return on plan assets

          (7,117)

 

         (7,284)

 

     (14,233)

 

     (14,568)

Amortization of prior service costs

                 90 

 

                90 

 

            180 

 

            179 

Amortization of net loss from prior periods

            7,113 

 

           6,727 

 

       14,139 

 

       12,737 

Settlement loss

            3,222 

 

                   - 

 

         3,222 

 

                - 

Total

 $      12,271 

 

$          8,324 

 

 $   21,696 

 

$        16,055 

The Company does not have a minimum funding requirement in 2007.  The Company made $11,000 of voluntary contributions to the qualified pension plan in the first six months of 2007 and $10,000 in the same period of 2006.

The settlement loss is related to associates retiring in 2007 and electing a lump-sum payment of their pension benefit from the nonqualified supplementary benefit plan.  As a result of the pension obligation settlement, the Company recorded a non-cash charge for a pro-rata portion of unrecognized net losses from prior periods.


This excerpt taken from the SR 10-Q filed May 2, 2007.

NOTE 10 – PENSION PLANS

The Company has a qualified defined benefit plan and a nonqualified supplementary benefit plan that provides supplemental pension payments in excess of qualified plan payments.  In addition, the Company has a noncontributory supplemental nonqualified retirement plan for elected officers and a supplemental retirement agreement with its President and Chief Executive Officer under which he is entitled to receive supplemental retirement benefits upon attainment of certain age and employment requirements.  These plans are more fully described in Note 13 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2006.  

Net periodic benefit cost includes the following components:


 

13 Weeks Ended

 
 

April 1,

 

April 2,

 

 

2007

 

2006

 

Service cost of benefits earned

$        2,215 

 

$       2,059 

 

Interest cost on projected benefit obligation

7,210 

 

6,857 

 

Expected return on plan assets

(7,116)

 

(7,284)

 

Amortization of prior service costs

90 

 

90 

 

Amortization of net loss from prior periods

7,026 

 

6,010 

 

Total

$        9,425 

 

$       7,732 

 

The Company does not have a minimum funding requirement in 2007.  The Company made $5,000 of voluntary contributions to the qualified pension plan in the first quarter of 2007 and $4,000 in the same period of 2006.

This excerpt taken from the SR 10-Q filed Nov 1, 2006.

NOTE 9 – PENSION PLANS

The Company has a qualified defined benefit plan and a nonqualified supplementary benefit plan that provides supplemental pension payments in excess of qualified plan payments.  In addition, the Company has a noncontributory supplemental nonqualified retirement plan for elected officers and a supplemental retirement agreement with its President and Chief Executive Officer under which he is entitled to receive supplemental retirement benefits upon attainment of certain age and employment requirements.  These plans are more fully described in Note 15 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended January 1, 2006.  

Net periodic benefit cost includes the following components:


 

13 Weeks Ended

 

39 Weeks Ended

 

October 1,

 

October 2,

 

October 1,

 

October 2,

 

2006

 

2005

 

2006

 

2005

        

Service cost of benefits earned

$        2,022 

 

$          1,939 

 

$        6,067 

 

$          5,817 

Interest cost on projected benefit obligation

         6,831 

 

         6,653 

 

      20,493 

 

        19,959 

Expected return on plan assets

       (7,284)

 

       (7,670)

 

      (21,852)

 

      (23,011)

Amortization of prior service costs

              90 

 

           280 

 

            269 

 

            840 

Amortization of net loss from prior periods

        6,369 

 

        4,747 

 

      19,106 

 

        14,241 

Settlement loss

         1,627 

 

               - 

 

         1,627 

 

                  - 

Total

$        9,655 

 

$          5,949 

 

$      25,710 

 

$        17,846 


The Company does not have a minimum funding requirement in 2006.  The Company made voluntary contributions of $25,000 to the qualified pension plan in the first nine months of 2006 and $12,800 in the same period of 2005.

The settlement loss is related to associates retiring in 2006 and electing a lump-sum payment of their pension benefit from the nonqualified supplementary benefit plan.  As a result of the pension obligation settlement, the Company recorded a non-cash charge to record a pro-rata portion of unrecognized net losses from prior periods.  

This excerpt taken from the SR 10-Q filed Aug 3, 2006.

NOTE 9 – PENSION PLANS

The Company has a qualified defined benefit plan and a nonqualified supplementary benefit plan that provides supplemental pension payments in excess of qualified plan payments.  In addition, the Company has a noncontributory supplemental nonqualified retirement plan for elected officers and a supplemental retirement agreement with its President and Chief Executive Officer under which he is entitled to receive supplemental retirement benefits upon attainment of certain age and employment requirements.  These plans are more fully described in Note 15 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended January 1, 2006.  


Net periodic benefit cost includes the following components:

 

13 Weeks Ended

 

26 Weeks Ended

 

July 2,

 

July 3,

 

July 2,

 

July 3,

 

2006

 

2005

 

2006

 

2005

Service cost of benefits earned

$        1,986 

 

$          1,455 

 

$        4,045 

 

$          3,878 

Interest cost on projected benefit obligation

          6,805 

 

           6,684 

 

       13,662 

 

         13,306 

Expected return on plan assets

        (7,284)

 

         (7,720)

 

      (14,568)

 

       (15,341)

Amortization of prior service costs

               90 

 

              280 

 

             179 

 

              560 

Amortization of net loss from prior periods

          6,727 

 

           4,389 

 

       12,737 

 

           9,494 

Total

$        8,324 

 

$          5,088 

 

$      16,055 

 

$        11,897 


The Company does not have a minimum funding requirement in 2006.  The Company made voluntary contributions of $10,000 to the qualified pension plan in the first six months of 2006 and $8,000 in the same period of 2005.


This excerpt taken from the SR 10-Q filed May 8, 2006.

NOTE 7 – PENSION PLANS

The Company has a qualified defined benefit plan and a nonqualified supplementary benefit plan that provides supplemental pension payments in excess of qualified plan payments.  In addition, the Company has a noncontributory supplemental nonqualified retirement plan for elected officers and a supplemental retirement agreement with its President and Chief Executive Officer under which he is entitled to receive supplemental retirement benefits upon attainment of certain age and employment requirements.  These plans are more fully described in Note 15 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended January 1, 2006.  

Net periodic benefit cost includes the following components:

 

13 Weeks Ended

 

April 2,

 

April 3,

 

2006

 

2005

    

Service cost of benefits earned

 $        2,059 

 

$          2,423 

Interest cost on projected benefit obligation

            6,857 

 

            6,622 

Expected return on plan assets

          (7,284)

 

           (7,621)

Amortization of prior service costs

                 90 

 

              280 

Amortization of net loss from prior periods

            6,010 

 

           5,105 

    

Total

 $        7,732 

 

$          6,809 

The Company does not have a minimum funding requirement in 2006.  The Company contributed $4,000 to the qualified pension plan in the first quarter of 2006 and $3,500 in the same period of 2005.



14


This excerpt taken from the SR 10-Q filed Nov 2, 2005.

NOTE 12 – PENSION PLANS

The Company has a qualified defined benefit plan and a nonqualified supplementary benefit plan that provides supplemental pension payments in excess of qualified plan payments.  In addition, the Company has a noncontributory supplemental nonqualified retirement plan for elected officers and a supplemental retirement agreement with its President and Chief Executive Officer under which he is entitled to receive supplemental retirement benefits upon attainment of certain age and employment requirements.  These plans are more fully described in Note 16 to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended January 2, 2005.  

Net periodic benefit cost includes the following components:


 

13 Weeks Ended

 

39 Weeks Ended

 

October 2,

 

September 26,

 

October 2,

 

September 26,

 

2005

 

2004

 

2005

 

2004

        

Service cost of benefits earned

 $        1,939 

 

 $          2,847 

 

 $        5,817 

 

 $          8,542 

Interest cost on projected benefit obligation

            6,653 

 

             6,694 

 

         19,959 

 

           20,084 

Expected return on plan assets

          (7,670)

 

           (8,450)

 

        (23,011)

 

         (25,350)

Amortization of prior service costs

               280 

 

                281 

 

               840 

 

                841 

Amortization of net loss from prior periods

            4,747 

 

             4,360 

 

         14,241 

 

           13,080 

Total

 $        5,949 

 

 $          5,732 

 

 $      17,846 

 

 $        17,197 

The Company does not have a minimum funding requirement in 2005.  The Company contributed $12,800 to the qualified pension plan in the first nine months of 2005 and $10,000 in the same period of 2004.


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