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Long-Term Compensation Plans
12 Months Ended
Dec. 29, 2012
Compensation Related Costs, General [Text Block]

(16)      Long-Term Compensation Plans


We have a profit sharing plan which includes a 401(k) feature, covering substantially all employees meeting specified requirements.  Profit sharing contributions consist of an annual matching contribution to each participant’s plan account, which became discretionary based on Company profitability during fiscal 2010.  For fiscal 2010 through 2012, the annual matching contribution provided that upon meeting the annual profitability target, we would match 100% of the participant’s contributions up to 3% of the participant’s eligible compensation for the year.  In the event the participant’s contributions exceeded 3% of their eligible compensation for the year, we would match 50% of the next 2% of the participant’s eligible compensation for the year.  The total expense recognized related to these matching contributions was zero, $3.8 million and $2.5 million for fiscal 2012, 2011 and 2010, respectively.


On January 1, 2000, we adopted a Supplemental Executive Retirement Plan (“SERP”) for key employees and executive officers.  On the last day of the calendar year, each participant’s SERP account is credited with an amount equal to 20% of the participant’s base salary for the year.  Benefits payable under the SERP typically vest based on years of participation in the SERP, ranging from 0% vested for less than five years of participation to 100% vested at 10 years’ participation (or age 65 if that occurs sooner).  Amounts credited to a SERP account, plus earnings, are distributed following the executive’s termination of employment.  Earnings are based on the quarterly equivalent of the average of the annual yield set forth for each month during the quarter in the Moody’s Corporate Bond Yield Averages.  Compensation expense related to the plan was $0.9 million in fiscal 2012, $0.9 million in fiscal 2011 and $0.9 million in fiscal 2010.


We also have deferred compensation plans for a select group of management or highly compensated employees and for non-employee directors.  The plans are unfunded and permit participants to defer receipt of a portion of their base salary, annual bonus or long-term incentive compensation in the case of employees, or cash compensation in the case of non-employee directors, which would otherwise be paid to them.  The deferred amounts, plus earnings, are distributed following the executive’s termination of employment or the director’s termination of service on the Board.  Earnings are based on the performance of phantom investments elected by the participant from a portfolio of investment options.  Under the plans available to non-employee directors, the investment options include share units that correspond to shares of our common stock.


During fiscal 2004, we created and funded a benefits protection grantor trust to invest amounts deferred under these plans.  A benefits protection or rabbi trust holds assets that would be available to pay benefits under a deferred compensation plan if the settler of the trust, such as us, is unwilling to pay benefits for any reason other than bankruptcy or insolvency.  The rabbi trust now holds corporate-owned life insurance which is intended to fund potential future obligations.  Assets in the trust remain subject to the claims of our general creditors, and the investment in the rabbi trust is classified in “other assets” on our Consolidated Balance Sheets.