Pension and Other Postretirement Benefits

9 Months Ended

Oct. 06, 2012

Pension and Other Postretirement Benefits Disclosure [Text Block]

Note 11 – Pension and Other Postretirement Benefits

                The following tables present the components of our pension and postretirement net periodic benefit cost:

16 Weeks Ended October 6, 2012 and October 8, 2011:
		Pension Benefits		Other Benefits
(In thousands)		2012	2011	2012	2011
Interest cost	$	629	653	9	11
Expected return on plan assets		(620)	(577)	-	-
Amortization of prior service cost		-	-	-	(7)
Recognized actuarial loss (gain)		262	484	(7)	(5)
Net periodic benefit cost	$	271	560	2	(1)

40 Weeks Ended October 6, 2012, and October 8, 2011:
		Pension Benefits		Other Benefits
(In thousands)		2012	2011	2012	2011
Interest cost	$	1,571	1,632	22	27
Expected return on plan assets		(1,549)	(1,444)	-	-
Amortization of prior service cost		-	-	-	(16)
Recognized actuarial loss (gain)		655	1,212	(17)	(12)
Net periodic benefit cost	$	677	1,400	5	(1)

Weighted-average assumptions used to determine net periodic benefit cost for the third quarter and year-to-date periods of 2012 and 2011 are as follows:

	Pension Benefits		Other Benefits
	2012	2011	2012	2011
Weighted-average assumptions:
Discount rate	4.35%	5.10%	4.35%	5.10%
Expected return on plan assets	6.00%	6.00%	N/A	N/A
Rate of compensation increase	N/A	N/A	N/A	N/A

                Total contributions to our pension plan in fiscal 2012 are expected to be $3.1 million.

Multi-employer pension plan

Certain of our unionized employees are covered by the Central States Southeast and Southwest Areas Pension Funds (“the Plan”), a multi-employer pension plan.  Contributions are determined in accordance with the provisions of negotiated union contracts and are generally based on the number of hours worked.  In fiscal 2011, the Company contributed $3.3 million to the Plan.  Based on the most recent information available, we believe the present value of actuarial accrued liabilities of the Plan substantially exceeds the value of the assets held in trust to pay benefits.  The underfunding is not a direct obligation or liability of the Company.  However, if the Company were to exit certain markets or otherwise cease making contributions to the Plan, the Company could trigger a substantial withdrawal liability.  The amount of any increase in contributions will depend upon several factors, including the number of employers contributing to the Plan, results of the Company’s collective bargaining efforts, investment returns on assets held by the Plan, actions taken by the trustees of the Plan, and actions that the Federal government may take.  The Company does not believe it is likely that events requiring recognition of a withdrawal liability will occur.  Any adjustment for withdrawal liability will be recorded when it is probable that a liability exists and can be reasonably estimated.

A more detailed discussion of the risks associated with the Plan are contained in Part I, Item 1A, “Risk Factors,” of our Annual Report filed with the SEC on Form 10-K for the fiscal year ended December 31, 2011.