Employee Benefit Plans

12 Months Ended

Dec. 29, 2012

Employee Benefit Plans [Abstract]

Employee Benefit Plans

NOTE H - EMPLOYEE BENEFIT PLANS

The Company has non-contributory defined benefit pension plans and defined contribution retirement plans (consisting of savings plans and a non-contributory profit sharing plan), which cover substantially all domestic employees.

On March 30, 2006, the Company's Board of Directors voted to freeze the Company's domestic non-contributory defined benefit pension plan effective May 20, 2006.

The Company's matching contributions to its savings plans are made in cash. In fiscal 2012, 2011 and 2010 expenses related to this plan were approximately $0.7  million, $0.8 million and $0.7 million, respectively. There were no profit sharing plan contributions during this three-year period. The Company also maintains a deferred compensation plan that is offered to certain key executives and non-employee directors. Employees of foreign subsidiaries generally receive retirement benefits from Company sponsored defined benefit or defined contribution plans or from statutory plans administered by governmental agencies in their countries. The Company does not provide its employees with any postretirement benefits other than those described above.

The Company's measurement date for these benefits is the Company's fiscal year end.

Benefits under the defined benefit plans are based on the employee's years of service and compensation, as defined. While there is no requirement under any of these plans to invest in the Company's stock, the defined contribution retirement plan offers the Company's stock as an investment option. The Company's funding policy is consistent with applicable local laws and regulations.

The following chart sets forth the defined benefit plans' combined funded status and amounts recognized in the Company's consolidated balance sheet at the end of each fiscal year:

(THOUSANDS OF  DOLLARS)	2012		2011
Change in Projected Benefit Obligation
Benefit obligation at end of prior year	$	59,134	$	50,869
Service cost		255		255
Interest cost		2,454		2,633
Actuarial loss		4,927		7,842
Benefits paid		(2,373)		(2,209)
Administrative expenses paid		(266)		(256)
Benefit Obligation at End of Year	$	64,131	$	59,134

Change in Plan Assets
Fair value of plan assets at end of prior year	$	34,892	$	32,928
Actual return on plan assets		4,413		632
Employer contributions		5,980		3,797
Benefits paid		(2,373)		(2,209)
Administrative expenses paid		(266)		(256)
Fair Value of Plan Assets at End of Year	$	42,646	$	34,892

Funded Status
Deficiency of plan assets over projected benefit obligation	$	(21,485)	$	(24,242)
Unrecognized prior service cost		60		71
Unrecognized net actuarial loss		26,959		25,127
Prepaid Pension Cost (Included in Retirement Plan Obligations)	$	5,534	$	956

Amounts Recognized in the Consolidated Balance Sheets Consist of
Accrued benefit cost - current	$	(2,253)	$	(2,068)
Accrued benefit cost - long-term		(19,232)		(22,174)
Accumulated other comprehensive loss		27,019		25,198
Net Recognized Amount	$	5,534	$	956
Accumulated Benefit Obligation	$	64,131	$	59,134

(THOUSANDS OF  DOLLARS)	2012		2011		2010
Components of Net Periodic Benefit Cost
Service cost	$	255	$	255	$	45
Interest cost		2,454		2,633		2,679
Expected return on plan assets		(2,825)		(2,622)		(2,465)
Amortization of prior service cost		60		27		11
Recognized net actuarial loss		1,490		652		379
Net Periodic Benefit Cost	$	1,434	$	945	$	649

	2012		2011		2010
Assumptions:	DOMESTIC PLANS	FOREIGN PLANS	DOMESTIC PLANS	FOREIGN PLANS	DOMESTIC PLANS	FOREIGN PLANS
Weighted Average Assumptions Used to Determine Benefit Obligation
Discount rate	3.73%	3.30%	4.21%	4.70%	5.36%	5.15%
Rate of compensation increase	N/A	N/A	N/A	N/A	N/A	N/A
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost
Discount rate	4.21%	4.70%	5.36%	5.15%	5.88%	5.90%
Expected return on plan assets	7.80%	2.70%	7.80%	3.80%	7.80%	3.50%
Rate of compensation increase	N/A	N/A	N/A	N/A	N/A	N/A

The Company decreased the discount rate on domestic and foreign plans in 2012 to reflect market interest rate conditions.  In establishing the long-term rate of return on assets assumption of 7.8%, the Company indexed its targeted allocation percentage by asset category against the long-term expected returns on the frozen domestic plan for those asset categories. That weighted-average return approximates  7.8%.  The Company monitors investment results against benchmarks such as the Russell 1000 Growth Index and the Russell 2000 Value Index for the equity portion of the portfolio and the Barclays Capital US Long Credit A+ Index for fixed income investments. Meeting or exceeding those benchmarks over time would provide a reasonable expectation of achieving the 7.8% assumption.

Plan Asset Information:	TARGET	ALLOCATION	ALLOCATION
	ALLOCATION	PERCENTAGE	PERCENTAGE
Asset Category	FYE 2013	FYE 2012	FYE 2011
Domestic Equities	30%	29.7%	32.3%
International Equities	10%	10.5%	7.9%
Fixed Income Securities	40%	40.2%	40.4%
All Asset Fund	20%	19.7%	19.4%
Cash/Other	0%	0.0%	0.0%
	100%	100%	100%

The investment objective of the Plan is to exceed the actuarial long-term rate of return on assets assumption of 7.8%. To that end, it is the Plan's practice to invest the assets in accordance with the targeted allocation established for each asset category. These targeted asset allocation ranges have been established in accordance with the overall risk and return objectives of the portfolio. The Plan employs other risk management practices that stress diversification and liquidity. For equity investments, no more than 10% of the equity portfolio can be invested in one issuer and typically no more than 20% of equity assets can be invested in one industry. Shares must be listed on major stock exchanges to assure liquidity. Debt securities are similarly governed by risk management rules. No more than 5% of the total portfolio may be invested in one issuer (except the United States government), and no one issuer can exceed 5% of the outstanding shares of that issuer. There are also quality ratings associated with debt securities that the Plan managers must adhere to. Certain assets or transactions are prohibited in the management of Plan assets, such as commodities, real estate (except mutual funds or REITS), venture capital, private placements, purchasing securities on margin and short selling.

The Company made cash contributions in 2012 of approximately $5.8  million to its defined benefit pension plans, $2.5 million of which was an additional voluntary contribution.  The Company expects to contribute $2.1 million to its defined benefit pension plans in 2013.

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid:

(THOUSANDS OF DOLLARS)	2013		2014		2015		2016		2017		2018 - 2022
	$	2,398	$	2,466	$	2,573	$	2,700	$	2,862	$	16,467

The fair value framework requires the categorization of pension plan assets into three levels based upon the assumptions (inputs) used to price the pension plan assets. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:

Level 1	Unadjusted quoted prices in active markets for identical assets.
Level 2	Observable inputs other than those included in Level 1.  For example, quoted prices for similar assets in active markets or quoted prices for identical assets in inactive markets.
Level 3	Unobservable inputs reflecting management's own assumptions about the inputs used in pricing the asset.

The fair values of our financial assets are categorized as follows:

(THOUSANDS OF DOLLARS)	DECEMBER 29, 2012								DECEMBER 31, 2011
	LEVEL		LEVEL		LEVEL		TOTAL		LEVEL		LEVEL		LEVEL		TOTAL
Assets:	1		2		3				1		2		3
Domestic Equities (A) (B) (C)	$	11,539	$	-	$	-	$	11,539	$	10,579	$	-	$	-	$	10,579
International Equities (A) (C)		4,014		-		-		4,014		2,264		-		-		2,264
Fixed Income Securities (A) (C)		14,018		-		-		14,018		11,158		-		-		11,158
Foreign Fixed Income Securities (C)		-		5,858		-		5,858		-		2,932		-		2,932
All Asset Fund (A) (C)		5,904		-		-		5,904		4,272		-		-		4,272
Cash and Cash Equivalents		1,313		-		-		1,313		3,687		-		-		3,687
Total Assets at Fair Value	$	36,788	$	5,858	$	-	$	42,646	$	31,960	$	2,932	$	-	$	34,892

(A)	Value based on quoted market prices of identical instruments
(B)	Includes approximately $0.6 million and $0.6 million of A.T. Cross Company Class A common stock in 2012 and 2011, respectively.
(C)	Valued daily by the fund using a market approach with inputs that include quoted market prices of identical instruments to the underlying investments