Employee Benefit Plans

9 Months Ended

Jul. 02, 2011

Employee Benefit Plans [Abstract]

Employee Benefit Plans

(9) Employee Benefit Plans

     Retirement plans. The Company has one defined benefit pension plan, the Insteel Wire Products Company Retirement Income Plan for Hourly Employees, Wilmington, Delaware (the “Delaware Plan”). The Delaware Plan provides benefits for eligible employees based primarily upon years of service and compensation levels. The Delaware Plan was frozen effective September 30, 2008 whereby participants will no longer earn additional service benefits. The Company’s funding policy is to contribute amounts at least equal to those required by law. The Company made contributions totaling $33,000 and $444,000 to the Delaware Plan during the three- and nine-month periods ended July 2, 2011, respectively, and expects to contribute an additional $34,000 during the remainder of the current fiscal year.

     In February 2011, as part of the planned closure of the Wilmington, Delaware facility, the Company amended the Delaware Plan granting certain participants additional service credit. The amendment resulted in a one-time charge of $306,000 that was recorded in the second quarter of this fiscal year and is included within the restructuring charges for the nine-month period ended July 2, 2011.

     Net periodic pension costs and related components for the Delaware Plan for the three- and nine-month periods ended July 2, 2011 and July 3, 2010 are as follows:

	Three Months Ended						Nine Months Ended
	July 2,			July 3,			July 2,			July 3,
(In thousands)	2011			2010			2011			2010
Interest cost	$	48		$	52		$	144		$	156
Expected return on plan assets		(52	)		(50	)		(156	)		(150	)
Recognized net actuarial loss		58			49			174			147
Net periodic pension cost	$	54		$	51		$	162		$	153

     Supplemental employee retirement plan. The Company maintains supplemental employee retirement plans (each, a “SERP”) with certain of its employees (each, a “Participant”). Under the SERPs, if the Participant remains in continuous service with the Company for a period of at least 30 years, the Company will pay to the Participant a supplemental retirement benefit for the 15-year period following the Participant’s retirement equal to 50% of the Participant’s highest average annual base salary for five consecutive years in the 10-year period preceding the Participant’s retirement. If the Participant retires prior to the later of age 65 or the completion of 30 years of continuous service with the Company, but has completed at least 10 years of continuous service with the Company, the amount of the supplemental retirement benefit will be reduced by 1/360th for each month short of 30 years that the Participant was employed by the Company.

     Net periodic benefit costs and related components for the SERPs for the three- and nine-month periods ended July 2, 2011 and July 3, 2010 are as follows:

	Three Months Ended				Nine Months Ended
	July 2,		July 3,		July 2,		July 3,
(In thousands)	2011		2010		2011		2010
Service cost	$	44	$	41	$	132	$	123
Interest cost		71		70		213		210
Amortization of prior service cost		65		64		195		192
Net periodic benefit cost	$	180	$	175	$	540	$	525