We and certain of our operating subsidiaries have sponsored multiple defined benefit pension plans covering union workers at certain locations. As a result of restructuring activities in recent years, we no longer have any active employees continuing to accrue service cost or otherwise eligible to receive plan benefits. Benefits being paid under the plans are primarily based on negotiated rates and years of service. We contribute to these plans at least the minimum amount required by regulation.

At the end of the year, we discount our plan liabilities using an assumed discount rate. In estimating this rate, we, along with our third-party actuaries, review bond indices, consider yield curve analysis results and the past history of discount rates.

The actuarial present value of benefit obligations summarized below was based on the following assumption:


	2012	2011
Weighted-average assumption as of June 30
Discount rate.................................................................................................	3.78%	5.29%

The net periodic benefit costs were determined utilizing the following beginning-of-the-year assumptions:


	2012	2011	2010
Discount rate......................................................................... .................................................................................................	5.29%	5.21%	6.34%
Expected long-term return on plan assets........................	7.00%	7.00%	8.00%

In determining the long-term expected return on plan assets, we consider our related investment guidelines, our expectations of long-term rates of return by asset category, our target asset allocation weighting and historical rates of return and volatility for equity and fixed income investments. The investment strategy for plan assets is to control and manage investment risk through diversification among asset classes, investment managers/funds and investment styles. The plans’ investment guidelines have been designed to meet the intended objective that plan assets earn at least nominal returns equal to or in excess of the plans’ liability growth rate. In consideration of the current average age of the plans’ participants, the investment guidelines are based upon an investment horizon of at least 10 years.

The target and actual asset allocations for our plans at June 30 by asset category were as follows:


	Target Percentage of Plan Assets at June 30	Actual Percentage of Plan Assets
	2012	2012	2011
Cash and equivalents.................................................................... ...........................................................................................................	0-10%	2%	1%
Equity securities.............................................................................	30-70%	50%	50%
Fixed income..................................................................................	30-70%	48%	49%
Total............................................................................................		100%	100%

Our target asset allocations are maintained through ongoing review and periodic rebalancing of equity and fixed income investments with assistance from an independent outside investment consultant. Also, the plan assets are diversified among asset classes, asset managers or funds and investment styles to avoid concentrations of risk. We expect that a modest allocation to cash will exist within the plans because each investment manager is likely to hold limited cash in a portfolio.

There were no plan asset investments in shares of our common stock at June 30, 2012 and 2011.

We categorize our plan assets within a three-level fair value hierarchy as follows:

Level 1 – Quoted market prices in active markets for identical assets.

Level 2 – Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3 – Unobservable inputs that are not corroborated by market data.

The following table summarizes the fair values and levels, within the fair value hierarchy, for our plan assets at June 30, 2012 and 2011:


	June 30, 2012
Asset Category	Level 1	Level 2	Level 3	Total
Cash and equivalents..........................................................................	$ 168	$ –	$ –	$ 168
Money market funds...........................................................................	488	–	–	488
U.S. government obligations .............................................................	–	4,707	–	4,707
Corporate obligations..........................................................................	–	2,196	–	2,196
Mortgage obligations...........................................................................	–	1,958	–	1,958
Mutual funds fixed income................................................................	8,054	–	–	8,054
Mutual funds equity............................................................................	17,564	–	–	17,564
Total.......................................................................................................	$ 26,274	$ 8,861	$ –	$ 35,135


	June 30, 2011
Asset Category	Level 1	Level 2	Level 3	Total
Cash and equivalents..........................................................................	$ 264	$ –	$ –	$ 264
Money market funds...........................................................................	97	–	–	97
U.S. government obligations .............................................................	–	3,825	–	3,825
Corporate obligations..........................................................................	–	1,918	–	1,918
Mortgage obligations...........................................................................	–	2,562	–	2,562
Mutual funds fixed income................................................................	9,088	–	–	9,088
Mutual funds equity............................................................................	17,592	–	–	17,592
Total.......................................................................................................	$ 27,041	$ 8,305	$ –	$ 35,346

The plan assets classified at Level 1 include money market funds, common stock and mutual funds. Quoted market prices in active markets for identical assets are available for investments in this category.

The plan assets classified at Level 2 include fixed income securities consisting of government securities, corporate obligations, mortgage obligations and other asset backed securities. For these types of securities, market prices are observable for identical or similar investment securities but not readily accessible for each of those investments individually at the measurement date. For these assets, we obtain pricing information from an independent pricing service. The pricing service uses various pricing models for each asset class that are consistent with what other market participants would use. The inputs and assumptions to the model of the pricing service are derived from market observable sources including as applicable: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, prepayment speed assumptions, attributes of the collateral, yield or price of bonds of comparable structure and quality, and other market-related data.

Relevant information with respect to our pension benefits as of June 30 can be summarized as follows:


	2012	2011
Change in benefit obligation
Benefit obligation at beginning of year............................................................	$ 37,639	$38,464
Interest cost............................................................................................................	1,933	1,947
Actuarial loss (gain)..............................................................................................	6,966	(481)
Benefits paid..........................................................................................................	(2,220)	(2,291)
Benefit obligation at end of year..................................................................	$ 44,318	$ 37,639


	2012	2011
Change in plan assets
Fair value of plan assets at beginning of year.................................................	$ 35,346	$ 30,043
Actual return on plan assets................................................................................	997	5,802
Employer contributions.......................................................................................	1,012	1,792
Benefits paid..........................................................................................................	(2,220)	(2,291)
Fair value of plan assets at end of year.......................................................	$ 35,135	$ 35,346


	2012	2011
Reconciliation of funded status
Net accrued benefit cost.................................................................................	$ (9,183)	$ (2,293)


	2012	2011
Amounts recognized in the consolidated balance sheets consist of
Prepaid benefit cost (noncurrent assets)...........................................................	$ –	$ 117
Accrued benefit liability (noncurrent liabilities)...............................................	(9,183)	(2,410)
Net amount recognized...................................................................................	$ (9,183)	$ (2,293)


	2012	2011
Accumulated benefit obligation.......................................................................	$ 44,318	$ 37,639

The following table discloses, in the aggregate, those plans with benefit obligations in excess of the fair value of plan assets at the June 30 measurement date:


	2012	2011
Benefit obligations................................................................................................	$ 44,318	$33,990
Fair value of plan assets at end of year............................................................	$ 35,135	$31,580

Amounts recognized in accumulated other comprehensive loss at June 30 were as follows:


	2012	2011
Net actuarial loss.........................................................................................................	$ 19,957	$ 11,945
Net transition asset......................................................................................................	(1)	(2)
Income taxes................................................................................................................	(7,374)	(4,413)
Total..........................................................................................................................	$ 12,582	$7,530

Amounts in accumulated other comprehensive loss expected to be recognized as components of net periodic benefit cost during the next fiscal year are as follows:


			2013
	Net actuarial loss.................................................................................................................................		$ 687
	Net transition asset..............................................................................................................................		(1)
	Total..................................................................................................................................................		$ 686

The following table summarizes the components of net periodic benefit (income) cost at June 30:


	2012	2011	2010
Components of net periodic benefit (income) cost
Service cost.................................................................................	$ –	$ –	$ 45
Interest cost................................................................................	1,933	1,947	2,118
Expected return on plan assets...............................................	(2,397)	(2,027)	(2,150)
Curtailment charges..................................................................	–	–	349
Amortization of unrecognized net loss..................................	355	546	496
Amortization of prior service cost..........................................	–	–	5
Amortization of unrecognized net asset existing at transition..............................................................	(1)	(1)	(1)
Net periodic benefit (income) cost......................................	$ (110)	$ 465	$ 862

In 2010, one of our plans became subject to curtailment accounting. This resulted in the immediate recognition of all of the outstanding prior service cost of the plan, which was approximately $0.3 million. This charge was included in our Specialty Foods segment.

We have not yet finalized our anticipated funding level for 2013, but, based on initial estimates, we anticipate funding approximately $1.0 million.

Benefit payments estimated for future years are as follows:


	2013.............................................................................................................................................		$ 2,258
	2014.............................................................................................................................................		$ 2,238
	2015.............................................................................................................................................		$ 2,209
	2016.............................................................................................................................................		$ 2,220
	2017.............................................................................................................................................		$ 2,261
	2018 – 2022................................................................................................................................		$12,618