RETIREMENT PLANS

Defined Contribution Plans

We have a Savings Plus Plan that is a 401(k) plan that allows our U.S. employees to accumulate savings on a pre-tax basis. In addition, matching contributions are made to the Plan based upon pre-established rates. Our matching contributions amounted to approximately $4.0 million in 2012, $3.3 million in 2011, and $3.0 million in 2010. Upon Board approval, additional discretionary contributions can also be made. No discretionary contributions were made for the Savings Plan in fiscal 2012, 2011, or 2010.

Some of our subsidiaries also have defined contribution plans, to which plan both the employee and the employer make contributions. The employer contributions to these plans totaled $0.8 million, $1.8 million, and $1.7 million in fiscal 2012, 2011, and 2010, respectively, of which $1.5 million, and $1.4 million in fiscal 2011, and 2010, respectively, were contributed for our employees in Switzerland.

During fiscal 2012, it was determined that the plan for our employees in Switzerland was a defined benefit plan rather than a defined contribution plan. For fiscal 2012, this plan has been accounted for as a defined benefit plan as described below.

Defined Benefit Plans

ASC Topic 715, Compensation — Retirement Benefits, requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s over-funded status or a liability for a plan’s under-funded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize changes in the funded status of a defined benefit postretirement plan in the year in which the changes occur. Accordingly, the Company is required to report changes in its funded status in comprehensive income on its Statement of Stockholders’ Equity and Comprehensive Income.

Benefits under these plans are generally based on either career average or final average salaries and creditable years of service as defined in the plans. The annual cost for these plans is determined using the projected unit credit actuarial cost method that includes actuarial assumptions and estimates which are subject to change.

Some of the Company’s foreign subsidiaries have defined benefit pension plans covering substantially all full time employees at those subsidiaries. Net periodic benefit costs for the plans in the aggregate include the following components:



(In thousands)	March 31, 2012			April 2, 2011			April 3, 2010
Service cost	$	2,545		$	667		$	512
Interest cost on benefit obligation	601			283			242
Expected (return)/loss on plan assets	2			(467		)	(289		)
Actuarial (gain)/loss	(385		)	(48		)	223
Amortization of unrecognized prior service cost	(31		)	381			(68		)
Amortization of unrecognized transition obligation	221			30			27
Totals	$	2,953		$	846		$	647

The net periodic benefit costs shown above for fiscal 2012 include the associated costs for the Switzerland defined benefit plan. The net periodic benefit costs for fiscal 2011 and 2010 shown above have not been updated to reflect the Switzerland plan costs. These costs were approximately $1.5 million and $1.4 million for fiscal 2011 and 2010, respectively. During those periods, the Switzerland plan was accounted for as a defined contribution plan and Company contributions to the plan were expensed.

The activity under those defined benefit plans are as follows:



(In thousands)	March 31, 2012			April 2, 2011
Change in Benefit Obligation:
Benefit Obligation, beginning of year	$	(8,628	)	$	(7,949	)
Switzerland Benefit Obligation, beginning of year	(14,079		)	n/a
Service cost	(2,545		)	(667		)
Interest cost	(601		)	(283		)
Benefits paid	1,952			843
Actuarial (loss)/gain	(1,244		)	102
Employee and plan participants contribution	(1,728		)
Plan Amendments	(193		)	—
Currency translation	(84		)	(674		)
Benefit obligation, end of year	$	(27,150	)	$	(8,628	)
Change in Plan Assets:
Fair value of plan assets, beginning of year	$	4,449		$	3,833
Fair value of Switzerland plan assets, beginning of year	11,349			n/a
Company contributions	2,156			478
Benefits paid	(1,873		)	(783		)
Gain/(Loss) on plan assets	124			467
Employee and plan participants contributions	1,728			n/a
Currency translation	252			454
Fair value of Plan Assets, end of year	$	18,185		$	4,449
Funded Status	$	(8,965	)	$	(4,179	)
Unrecognized net actuarial loss/(gain)	4,513			341
Unrecognized initial obligation	141			(83		)
Unrecognized prior service cost	254			171
Net amount recognized	$	(4,057	)	$	(3,750	)

The fiscal 2012 amounts shown above include the Switzerland plan amounts. The fiscal 2011 amounts shown above have not been updated to reflect the Switzerland amounts. The benefit obligation for the Switzerland plan was approximately $14.1 million as of April 2, 2011. The fair value of the Switzerland plan assets as of April 2, 2011 was approximately $11.3 million.

One of the benefit plans is funded by benefit payments made by the Company. Accordingly that plan has no assets included in the information presented above. The total liability for this plan was $4.9 million and $4.1 million as of March 31, 2012 and April 2, 2011, respectively.

The accumulated benefit obligation for all plans was $22.5 million and $3.9 million for the fiscal year ended March 31, 2012 and April 2, 2011, respectively. The increase in the current fiscal year is due to the change in accounting for the Switzerland plan. The accumulated benefit obligation for fiscal 2011 has not been updated to reflect the Switzerland plan.

Amounts recognized as a component of other accrued liabilities on the balance sheet as of March 31, 2012 and April 2, 2011, under ASC Topic 715 totaled $9.0 million and $4.2 million, respectively.

The components of the change recorded in our accumulated other comprehensive income related to our defined benefit plans, net of tax, are as follows (in thousands):



Balance as of April 3, 2010	$	(820	)
Obligation at transition	574
Actuarial loss	(50		)
Prior service cost	31
Balance as of April 2, 2011	$	(265	)
Obligation at transition	30
Actuarial loss	(3,701		)
Prior service cost	(317		)
Balance as of March 31, 2012	$	(4,253	)

The weighted average rates used to determine the net periodic benefit costs were as follows:



	March 31, 2012		April 2, 2011		April 3, 2010
Discount rate	2.40	%	5.30	%	5.20	%
Rate of increased salary levels	1.50	%	2.60	%	2.00	%
Expected long-term rate of return on assets	2.10	%	1.60	%	1.60	%

Assumptions for expected long-term rate of return on plan assets are based upon actual historical returns, future expectations of returns for each asset class and the effect of periodic target asset allocation rebalancing. The results are adjusted for the payment of reasonable expenses of the plan from plan assets.

We have no other material obligation for post-retirement or post-employment benefits.

The Company’s investment policy for its pension plans is to balance risk and return through a diversified portfolio to reduce interest rate and market risk. Maturities are managed so that sufficient liquidity exists to meet immediate and future benefit payment requirements. For the Company's plans with assets, the majority of the investments are in fixed-income instruments such as bonds and time-deposits.

ASC Topic 820, Fair Value Measurements and Disclosures, provides guidance for reporting and measuring the plan assets of our defined benefit pension plan at fair value as of March 31, 2012. Using the same three- level valuation hierarchy for disclosure of fair value measurements as described in Note 7, all of the assets of the Company’s plan are classified within Level 1 of the fair value hierarchy because the plan assets are primarily local market and global fixed- income securities that are valued using prices quoted on the active market.

Expected benefit payments for both plans are estimated using the same assumptions used in determining the company’s benefit obligation at March 31, 2012. Benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments.

Estimated future benefit payments during the next five years and in the aggregate for the five fiscal years thereafter, are as follows (in thousands):



Expected Benefit Payments
Fiscal Year 2013	$	1,199
Fiscal Year 2014	$	1,428
Fiscal Year 2015	$	1,073
Fiscal Year 2016	$	1,429
Fiscal Year 2017	$	1,878
Fiscal Year 2018-2021	$	4,545

The Company contributions for fiscal 2013 are expected to be consistent with our recent historical experience.