Retirement Plans

9 Months Ended

Jul. 08, 2012

Pension and Other Postretirement Benefit Expense [Abstract]

Retirement Plans

RETIREMENT PLANS

Defined benefit pension plans — We sponsor a defined benefit pension plan (our “Primary Plan”) covering substantially all full-time employees, which will no longer accrue benefits effective December 31, 2015 and was closed to new participants effective January 1, 2011. We also sponsor an unfunded supplemental executive retirement plan, which provides certain employees additional pension benefits and was closed to new participants effective January 1, 2007. Benefits under both plans are based on the employees’ years of service and compensation over defined periods of employment.

In April 2012, we announced a voluntary early retirement program to eligible employees. The offering period for participation in the VERP had ended as of July 8, 2012. As a result, we incurred a charge in the quarter and an increase to our pension benefit obligation (“PBO”) of $6.2 million for enhanced retirement benefits under our Primary Plan. Additionally, we were required to re-measure the liability for our Primary Plan as of June 30, 2012.  The discount rate and long-term rate of return on plan assets used for the June 30th  re-measurement were 4.78% and 7.25% compared to 5.60% and 7.75%, respectively, at the end of fiscal 2011.  In connection with the re-measurement, the PBO of our Primary Plan increased $42.4 million due to actuarial losses arising during the period with a corresponding increase to accumulated other comprehensive loss, net. Refer to Note 9, Stockholders’ Equity, for additional information.  

Postretirement healthcare plans — We sponsor healthcare plans that provide postretirement medical benefits to certain employees who meet minimum age and service requirements. The plans are contributory, with retiree contributions adjusted annually, and contain other cost-sharing features such as deductibles and coinsurance.

Net periodic benefit cost — The components of net periodic benefit cost were as follows in each period (in thousands):

	Quarter						Year-to-Date
	July 8, 2012			July 10, 2011			July 8, 2012			July 10, 2011
Defined benefit pension plans:
Service cost	$	2,229		$	2,489		$	7,304		$	8,298
Interest cost	5,347			4,980			17,538			16,600
Expected return on plan assets	(4,743		)	(4,785		)	(15,504		)	(15,948		)
Actuarial loss	2,974			2,268			9,657			7,557
Amortization of unrecognized prior service cost	99			113			332			376
Net periodic benefit cost	$	5,906		$	5,065		$	19,327		$	16,883
Postretirement healthcare plans:
Service cost	$	14		$	19		$	47		$	61
Interest cost	374			366			1,244			1,220
Actuarial loss	21			46			69			155
Amortization of unrecognized prior service cost	—			7			—			24
Net periodic benefit cost	$	409		$	438		$	1,360		$	1,460

Future cash flows — Our policy is to fund our plans at or above the minimum required by law. As of the date of our last actuarial funding valuation, there was a $14.9 million minimum requirement that will be satisfied by September 15, 2013. Details regarding 2012 contributions are as follows (in thousands):

	Defined Benefit Pension Plans		Postretirement Healthcare Plans
Net year-to-date contributions	$	11,148	$	1,058
Remaining estimated net contributions during fiscal 2012	$	6,000	$	300

We will continue to evaluate contributions to our funded defined benefit pension plan based on changes in pension assets as a result of asset performance in the current market and economic environment.