(5)

Postretirement Benefits

The Company provides postretirement life insurance benefits for certain salaried and hourly full-time employees who meet the eligibility requirements. Effective January 1, 2002, the Company amended the retiree life insurance benefit under its Group Life Insurance Plan. To receive the retiree life insurance benefit after the amendment, an employee must have had at least five years of full-time service and the employee's age plus years of credited service must have equaled 65 or greater as of October 1, 2001. At retirement, such employees also must be at least age 55 with at least 10 years of full-time service to be eligible to receive postretirement life insurance benefits.

Actuarial losses were recognized in other comprehensive earnings of $9,459,000, less tax effect of $3,655,000, in 2011, $4,951,000, less tax effect of $1,913,000, in 2010 and $3,225,000, less tax effect of $1,246,000, in 2009.

The Company made benefit payments to beneficiaries of retirees of $3,146,000, $2,626,000 and $4,483,000 during 2011, 2010 and 2009, respectively.

The following tables provide a reconciliation of the changes in the benefit obligation and fair value of plan assets and the unfunded status of the plan measured as of December 31, 2011 and December 25, 2010:

		0000000			0000000
	2011			2010

	(Amounts are in thousands)

Change in benefit obligation:
Benefit obligation as of beginning of year	$	94,776			86,890
Service cost		163			175
Interest cost		5,301			5,291
Actuarial loss		10,530			5,046
Benefit payments		(3,146	)		(2,626	)


Benefit obligation as of end of year		107,624			94,776


Change in fair value of plan assets:
Fair value of plan assets as of beginning of year		---			---
Employer contributions		3,146			2,626
Benefit payments		(3,146	)		(2,626	)


Fair value of plan assets as of end of year		---			---


Unfunded status of the plan as of end of year	$	107,624			94,776


Current liability	$	4,029			3,841
Noncurrent liability		103,595			90,935


Total recognized liability	$	107,624			94,776

The estimated future benefit payments are expected to be paid as follows:


Year
(Amounts are in thousands)

2012	$	4,029
2013		4,291
2014		4,539
2015		4,776
2016		5,002
2017 through 2021		28,663
Thereafter		56,324


	$	107,624

Net periodic postretirement benefit cost consists of the following components:

		00000		00000		00000
	2011		2010		2009

	(Amounts are in thousands)

Service cost	$	163		175		194
Interest cost		5,301		5,291		5,204
Amortization of actuarial losses		1,071		95		---


Net periodic postretirement benefit cost	$	6,535		5,561		5,398

Actuarial losses are amortized from accumulated other comprehensive earnings into net periodic postretirement benefit cost over future years when the accumulation of such losses exceeds 10% of the year end benefit obligation.

The measurement date is the Company's fiscal year end. The net periodic postretirement benefit cost is based on assumptions determined at the prior year end measurement date.

Following are the actuarial assumptions that were used in the calculation of the year end benefit obligation:


	2011		2010		2009

Discount rate		4.6%		5.7%		6.2%
Rate of compensation increase		4.0%		4.0%		4.0%

Following are the actuarial assumptions that were used in the calculation of the net periodic postretirement benefit cost:


	2011		2010		2009

Discount rate		5.7%		6.2%		6.4%
Rate of compensation increase		4.0%		4.0%		4.0%

The Company determined the discount rate using a yield curve methodology based on high quality corporate bonds with a rating of AA or better.