Retirement Benefits

12 Months Ended

Jan. 03, 2016

Compensation and Retirement Disclosure [Abstract]

Retirement Benefits

Retirement Benefits

The Company provides a qualified defined contribution plan covering substantially all U.S.-based full-time employees, except officers and certain other employees. The plan offers a savings feature with Company matching contributions. Assets of this plan are held by an independent trustee for the sole benefit of participating employees. 

A nonqualified plan is provided for officers and certain other employees. This plan includes provisions for salary deferrals and Company matching contributions. 

Effective January 1, 2015, the Board of Directors approved amendments to the qualified and unqualified defined contribution plans to increase Company matching contributions and eliminate the discretionary contributions.

In addition to the plans above, the Company also provides a qualified plan and a nonqualified plan to certain U.S.-based temporary employees. 

The liability for the nonqualified plans was $150.3 million and $147.3 million as of year-end 2015 and 2014, respectively, and is included in current accrued payroll and related taxes and noncurrent accrued retirement benefits. The cost of participants’ earnings or loss on this liability, which were included in SG&A expenses, were a loss of $1.6 million in 2015, earnings of $7.6 million in 2014 and earnings of $15.7 million in 2013. In connection with the administration of these plans, the Company has purchased company-owned variable universal life insurance policies insuring the lives of certain officers and key employees. The cash surrender value of these policies, which is based primarily on investments in mutual funds and can only be used for payment of the Company’s obligations related to the non-qualified deferred compensation plan noted above, was $148.2 million and $149.0 million at year-end 2015 and 2014, respectively. The cash surrender value of these insurance policies is included in other assets. Tax-free earnings on these assets, which were included in SG&A expenses, were $0.3 million in 2015, $7.3 million in 2014 and $17.4 million in 2013. 

The net expense for retirement benefits for the qualified and nonqualified plans, including Company matching and discretionary contributions for full-time employees, totaled $5.7 million in 2015, $6.1 million in 2014 and $6.2 million in 2013. The expense related to retirement plan contributions for temporary employees, which is included in cost of services, is reimbursed by our customers. 

In addition, the Company also has several defined benefit pension plans in locations outside of the United States. The total projected benefit obligation, assets and unfunded liability for these plans as of year-end 2015 were $11.5 million, $7.3 million and $4.2 million, respectively. The total projected benefit obligation, assets and unfunded liability for these plans as of year-end 2014 were $14.8 million, $9.5 million and $5.3 million, respectively. Total pension expense for these plans was $0.3 million, $0.9 million and $0.7 million in 2015, 2014 and 2013, respectively. Pension contributions and the amount of accumulated other comprehensive income expected to be recognized in 2016 are not significant.