Employee Pension and Profit Sharing Plans

12 Months Ended

Sep. 28, 2012

Compensation and Retirement Disclosure [Abstract]

Employee Pension and Profit Sharing Plans

EMPLOYEE PENSION AND PROFIT SHARING PLANS:

In the United States, the Company maintains qualified contributory and non-contributory defined contribution retirement plans for eligible employees, with Company contributions to the plans based on earnings performance or salary level. The Company also has a non-qualified retirement savings plan for certain employees. The total expense of the above plans for fiscal2012, fiscal2011 and fiscal2010 was $29.5 million, $31.5 million and $26.1 million, respectively. Additionally, the Company maintains several contributory and non-contributory defined benefit pension plans, primarily in Canada and the United Kingdom.

The following table sets forth the components of net periodic pension cost for the Company’s single-employer defined benefit pension plans for fiscal2012, fiscal2011 and fiscal2010 (in thousands):

	Fiscal Year Ended			Fiscal Year Ended			Fiscal Year Ended
	September 28, 2012			September 30, 2011			October 1, 2010
Service cost	$	9,961		$	10,310		$	8,308
Interest cost	13,001			13,086			11,769
Expected return on plan assets	(12,521		)	(12,738		)	(10,577		)
Settlements	467			704			1,066
Amortization of prior service cost	6			6			6
Recognized net (gain) loss	2,392			1,608			1,234
Net periodic pension cost	$	13,306		$	12,976		$	11,806

The following table set forth changes in the projected benefit obligation and the fair value of plan assets for these plans (in thousands):

Change in benefit obligation:	September 28, 2012			September 30, 2011
Benefit obligation, beginning	$	244,754		$	239,103
Foreign currency translation	14,056			(6,426		)
Service cost	9,961			10,310
Interest cost	13,001			13,086
Employee contributions	3,565			3,619
Actuarial loss (gain)	34,227			(4,532		)
Benefits paid	(11,699		)	(8,151		)
Settlements and curtailments	(1,055		)	(2,255		)
Benefit obligation, end	$	306,810		$	244,754
Change in plan assets:
Fair value of plan assets, beginning	$	178,587		$	175,943
Foreign currency translation	9,866			(4,350		)
Employer contributions	20,558			16,375
Employee contributions	3,565			3,619
Actual return on plan assets	22,601			(2,594		)
Benefits paid	(11,699		)	(8,151		)
Settlements	(1,206		)	(2,255		)
Fair value of plan assets, end	$	222,272		$	178,587
Funded Status at end of year	$	(84,538	)	$	(66,167	)

Amounts recognized in the Consolidated Balance Sheets consist of the following (in thousands):

	September 28, 2012			September 30, 2011
Current benefit liability (included in Accrued expenses and other current liabilities)	$	(484	)	$	(188	)
Noncurrent benefit liability (included in Other Noncurrent Liabilities)	$	(84,054	)	$	(65,979	)
Net actuarial loss (gain) (included in Accumulated other comprehensive (income) loss before taxes)	$	77,391		$	52,526
Prior service cost (included in Accumulated other comprehensive (income) loss before taxes)	$	52		$	63

The settlements in both fiscal years primarily relate to the lump sum payments made to employees in the Company’s Korean pension plan.

The following weighted average assumptions were used to determine pension expense of the respective fiscal years:

	September 28, 2012		September 30, 2011
Discount rate	5.0	%	5.2	%
Rate of compensation increase	3.5	%	3.5	%
Long-term rate of return on assets	6.6	%	6.8	%

The following weighted average assumptions were used to determine the funded status of the respective fiscal years:

	September 28, 2012		September 30, 2011
Discount rate	4.2	%	5.0	%
Rate of compensation increase	3.4	%	3.5	%

Assumptions are adjusted annually, as necessary, based on prevailing market conditions and actual experience.

The accumulated benefit obligation as of September 28, 2012 was $279.4 million. During fiscal2012, actuarial losses of approximately $22.8 million and settlement gains of $0.3 million were recognized in other comprehensive loss (before taxes) and $0.6 million of amortization of actuarial losses was recognized as net periodic pension cost during such period. The estimated portion of net actuarial loss included in accumulated other comprehensive income (loss) as of September 28, 2012 expected to be recognized in net periodic pension cost during fiscal 2013 is approximately $3.6 million (before taxes).

The accumulated benefit obligation as of September 30, 2011 was $205.5 million. During fiscal2011, actuarial losses of approximately $9.8 million and settlement gains of $0.7 million were recognized in other comprehensive loss (before taxes) and $0.9 million of amortization of actuarial losses was recognized as net periodic pension cost during such period. The estimated portion of net actuarial loss included in accumulated other comprehensive income (loss) as of September 30, 2011 expected to be recognized in net periodic pension cost during fiscal 2012 is approximately $2.3 million (before taxes).

The following table sets forth information for the Company’s single-employer pension plans with an accumulated benefit obligation in excess of plan assets as of September 28, 2012 and September 30, 2011 (in thousands):

	September 28, 2012		September 30, 2011
Projected benefit obligation	$	302,072	$	244,754
Accumulated benefit obligation	274,701		205,537
Fair value of plan assets	217,044		178,587

Assets of the plans are invested with the goal of principal preservation and enhancement over the long-term. The primary goal is total return, consistent with prudent investment management. The Company’s investment policies also require an appropriate level of diversification across the asset categories. The current overall capital structure and targeted ranges for asset classes are 50-70% invested in equity securities and 30-50% invested in debt securities. Performance of the plans is monitored on a regular basis and adjustments of the asset allocations are made when deemed necessary.

The weighted-average long-term rate of return on assets has been determined based on an estimated weighted-average of long-term returns of major asset classes, taking into account historical performance of plan assets, the current interest rate environment, plan demographics, acceptable risk levels and the estimated value of active asset management.

The fair value of plan assets for the Company’s defined benefit pension plans as of September 28, 2012 and September 30, 2011 is as follows (see Note 15 for a description of the fair value levels) (in thousands):

	September 28, 2012		Quoted prices in active markets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Cash and cash equivalents and other	$	2,042	$	2,042	$	—	$	—
Investment funds:
Pooled funds—equity	141,784		—		141,784		—
Pooled funds—fixed income	78,446		—		78,446		—
Total	$	222,272	$	2,042	$	220,230	$	—
	September 30, 2011		Quoted prices in active markets Level 1		Significant other observable inputs Level 2		Significant unobservable inputs Level 3
Cash and cash equivalents and other	$	1,610	$	1,610	$	—	$	—
Investment funds:
Pooled funds—equity	104,168		—		104,168		—
Pooled funds—fixed income	72,809		—		72,809		—
Total	$	178,587	$	1,610	$	176,977	$	—

The fair value of the pooled separate accounts is based on the value of the underlying assets, as reported to the Plan by the trustees. The pooled separate account is comprised of a portfolio of underlying securities that can be valued on active markets. Fair value is calculated by applying the Plan’s percentage ownership in the pooled separate account to the total market value of the account’s underlying securities, and is therefore categorized as Level 2 as the Plan does not directly own shares in these underlying investments. Investments in equity securities include publicly-traded domestic (approximately 31%) and international (approximately 69%) companies that are diversified across industry, country and stock market capitalization. Investments in fixed income securities include domestic (approximately 11%) and international (approximately 89%) corporate bonds and government securities. Cash and cash equivalents include direct cash holdings, which are valued based on cost, and short-term deposits and investments in money market funds for which fair value measurements are all based on quoted prices for similar assets or liabilities in markets that are not active.

It is the Company’s policy to fund at least the minimum required contributions as outlined in the required statutory actuarial valuation for each plan. The following table sets forth the benefits expected to be paid in the next five fiscal years and in aggregate for the five fiscal years thereafter by the Company’s defined benefit pension plans (in thousands):

Fiscal 2013	$	11,683
Fiscal 2014	$	11,141
Fiscal 2015	$	10,850
Fiscal 2016	$	11,313
Fiscal 2017	$	11,890
Fiscal 2018 – 2022	$	64,349

The estimated benefit payments above are based on assumptions about future events. Actual benefit payments may vary significantly from these estimates.

The expected contributions to be paid to the Company’s defined benefit pension plans during fiscal 2013 are approximately $20.8 million.

Multiemployer Defined Benefit Pension Plans

The Company contributes to a number of multiemployer defined benefit pension plans under the terms of collective-bargaining agreements ("CBA") that cover its union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following respects:

a.Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.

b.If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers.

c.If the Company chooses to stop participating in some of its multiemployer plans, the Company may be required to pay those plans an amount based on the underfunded status of the plan, referred to as a withdrawal liability.

The Company's participation in these plans for fiscal2012 is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employee Identification Number (EIN) and the three-digit plan number, if applicable. Unless otherwise noted, the most recent Pension Protection Act (PPA) zone status available in 2012 and 2011 is for the plans' two most recent fiscal year-ends. The zone status is based on information that the Company received from the plan and is certified by the plan's actuary. Among other factors, plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. The “FIP/RP Status Pending/Implemented” column indicates plans for which a financial improvement plan (FIP) or a rehabilitation plan (RP) is either pending or has been implemented. The last column lists the expiration date(s) of the CBA(s) to which the plans are subject. There have been no significant changes that affect the comparability of fiscal2012, fiscal2011 and fiscal2010 contributions.

Pension Fund	EIN/Pension Plan Number	Pension Protection Act Zone Status		FIP/RP Status Pending/ Implemented	Contributions by the Company (in thousands)							Range of Expiration Dates of CBAs
		2012	2011		2012		2011		2010		Surcharge Imposed
National Retirement Fund	13-6130178/ 001	Red	Red	Implemented	$	4,868	$	5,367	$	5,672	No	5/31/2010- 11/30/2014
Service Employees Pension Fund of Upstate New York (1)	16-0908576/ 001	Red	Red	Implemented	247		385		277		No	9/30/2014- 6/30/2015
Local 1102 Retirement Trust (2)	13-1847329/ 001	Red	Red	Implemented	201		232		211		No	6/30/2013- 6/30/2015
Central States SE and SW Areas Pension Plan	36-6044243/ 001	Red	Red	Implemented	3,164		2,869		2,758		No	1/31/2007- 11/26/2015
Pension Plan for Hospital & Health Care Employees Philadelphia & Vicinity	23-2627428/ 001	Red	Red	Implemented	154		122		240		No	1/31/2013
Richmond Teamsters and Industry Pension Fund (3)	54-6056180/ 001	Green	Green	N/A	121		109		98		No	1/26/2016
Other funds					13,546		12,785		11,629
Total contributions					$	22,301	$	21,869	$	20,885

(1)	Over 60% of the Company's participants in this fund are covered by a single CBA that expires on 6/30/2015.
(2)	Over 90% of the Company's participants in this fund are covered by a single CBA that expires on 6/30/2015.
(3)	The Company is one of two participants in this fund along with Hostess Brands Inc., which is currently in bankruptcy. Additionally, the fund has informed the Company that the fund exercised an automatic 5-year amortization extension that affected the calculation of the fund's PPA zone status.

The Company provided more than 5 percent of the total contributions for the following plans and plan years:

Pension Fund	Contributions to the plan exceeded more than 5% of total contributions (as of the plan's year-end)
Local 1102 Retirement Trust	12/31/ 2011 and 12/31/2010
Service Employees Pension Fund of Upstate New York	12/31/ 2011 and 12/31/2010
Richmond Teamsters and Industry Pension Fund	2/28/2011 and 2/28/2010

At the date the Company's financial statements were issued, Forms 5500 were not available for the plan years ending in 2012.