Employee Benefit Plans

12 Months Ended

Dec. 27, 2018

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Employee Benefit Plans

8. Employee Benefit Plans

The Company has a qualified profit-sharing savings plan (401(k) plan) covering eligible employees. The 401(k) plan provides a matching contribution equal to 100% of the first 3% of compensation and 50% of the next 2% of compensation deposited by an employee into the 401(k) plan. Prior to fiscal 2017, the plan provided for a contribution of a minimum of 1% of defined compensation for all plan participants and matching of 25% of employee contributions up to 6% of defined compensation. In addition, the Company made additional discretionary contributions. During fiscal 2018, the first 2% of the matching contribution was made with the Company’s common stock. During fiscal 2017 and fiscal 2016, the 1% and the discretionary contributions were made with the Company’s common stock.

The Company also sponsors unfunded, nonqualified, defined-benefit and deferred compensation plans. The Company’s unfunded, nonqualified retirement plan includes two components. The first component is a defined-benefit plan that applies to certain participants. The second component applies to all other participants and provides an account-based supplemental retirement benefit. During fiscal 2016, the plan was amended with an effective date of January 1, 2017, which curtailed benefits to certain participants included in the account-based supplemental plan. The curtailment resulted in a pre-tax gain of $251,000 during fiscal 2016. Pension and profit-sharing expense for all plans was $5,117,000, $4,415,000 and $3,960,000 for fiscal 2018, fiscal 2017 and fiscal 2016, respectively.

The Company recognizes actuarial losses and prior service costs related to its defined benefit plan in the consolidated balance sheets and recognizes changes in these amounts in the year in which changes occur through comprehensive income.

The status of the Company’s unfunded nonqualified, defined-benefit and account-based retirement plan based on the respective December 27, 2018 and December 28, 2017 measurement dates is as follows:

	December 27, 2018			December 28, 2017
	(in thousands)
Change in benefit obligation:
Benefit obligation at beginning of period	$	37,639		$	32,523
Service cost		926			765
Interest cost		1,364			1,356
Actuarial (gain) loss		(2,633	)		4,244
Benefits paid		(1,656	)		(1,249	)
Benefit obligation at end of year	$	35,640		$	37,639
Amounts recognized in the statement of financial position consist of:
Current accrued benefit liability (included in Other accrued liabilities)	$	(1,378	)	$	(1,347	)
Noncurrent accrued benefit liability (included in Deferred compensation and other)		(34,262	)		(36,292	)
Total	$	(35,640	)	$	(37,639	)
Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss	$	9,556		$	12,874
Prior service credit		(515	)		(579	)
Total	$	9,041		$	12,295

	Year Ended
	December 27, 2018		December 28, 2017		December 29, 2016
	(in thousands)
Net periodic pension cost:
Service cost	$	926	$	765	$	865
Interest cost		1,364		1,356		1,406
Net amortization of prior service cost and actuarial loss		621		356		364
Curtailment gain		–		–		(251	)
	$	2,911	$	2,477	$	2,384

The $6,609,000 loss, net of tax, included in accumulated other comprehensive loss at December 27, 2018, consists of the $6,985,000 net actuarial loss, net of tax, and the $376,000 unrecognized prior service credit, net of tax, which have not yet been recognized in the net periodic benefit cost. The $7,414,000 loss, net of tax, included in accumulated other comprehensive loss at December 28, 2017, consists of the $7,763,000 net actuarial loss, net of tax, and the $349,000 unrecognized prior service credit, net of tax, which have not yet been recognized in the net periodic benefit cost.

The accumulated benefit obligation was $30,576,000 and $31,769,000 as of December 27, 2018 and December 28, 2017, respectively.

The pre-tax change in the benefit obligation recognized in other comprehensive loss during fiscal 2018 consisted of the net actuarial gain of $2,633,000, the amortization of the net actuarial loss of $685,000, and the amortization of the prior service credit of $64,000. The pre-tax change in the benefit obligation recognized in other comprehensive loss during fiscal 2017 consisted of the current year net actuarial loss of $4,244,000, the amortization of the net actuarial loss of $420,000, and the amortization of the prior service credit of $64,000. The estimated amount that will be amortized from accumulated other comprehensive loss into net periodic benefit cost in fiscal 2019 is $435,000, of which $499,000 relates to the actuarial loss and $64,000 relates to the prior service credit.

The weighted-average assumptions used to determine the benefit obligations as of the measurement dates were as follows:

	December 27, 2018			December 28, 2017
Discount rate		4.15	%		3.60	%
Rate of compensation increase		4.00	%		4.00	%

The weighted-average assumptions used to determine net periodic benefit cost were as follows:

	Year Ended
	December 27, 2018			December 28, 2017			December 29, 2016
Discount rate		3.60	%		4.15	%		4.40	%
Rate of compensation increase		4.00	%		4.00	%		4.00	%

Benefit payments expected to be paid subsequent to December 27, 2018, are:

Fiscal Year	(in thousands)
2019	$	1,378
2020		1,605
2021		1,475
2022		1,503
2023		1,479
Years 2024 – 2028		11,564