Retirement Plans

12 Months Ended

Dec. 29, 2012

Pension and Other Postretirement Benefit Expense [Abstract]

Retirement Plans

(8) Retirement Plans

Most of the Company's domestic employees are participants in defined benefit pension plans and/or defined contribution plans. The defined benefit pension plans were closed to new employees as of January 1, 2006, and benefits under those plans were frozen for existing employees as of December 31, 2008. Most foreign employees are covered by government sponsored plans in the countries in which they are employed. The domestic employee plans include defined contribution plans and defined benefit pension plans. The defined contribution plans provide for Company contributions based, depending on the plan, upon one or more of participant contributions, service and profits. Company contributions to domestic defined contribution plans totaled $9.8 million, $5.8 million, and $4.3 million in 2012, 2011 and 2010, respectively. The Company also contributes to foreign defined contribution plans.

Benefits provided under defined benefit pension plans are based, depending on the plan, on employees' average earnings and years of credited service, or a benefit multiplier times years of service. Funding of these qualified defined benefit pension plans is in accordance with federal laws and regulations. The actuarial valuation measurement date for pension plans is as of fiscal year end for all periods.

The Company's target allocation, target return and actual weighted-average asset allocation by asset category are as follows:

	Target				Actual Allocation
	Allocation		Return		2012		2011
Equity investments	73	%	8 - 11 %		69	%	70	%
Fixed income	17	%	3.5 - 4.5%		23	%	22	%
Other	10	%	6 - 8%		8	%	8	%
Total	100	%	8.0	%	100	%	100	%

The Company's investment strategy for its defined benefit pension plans is to achieve moderately aggressive growth, earning a long-term rate of return sufficient to allow the plans to reach fully funded status. Accordingly, allocation targets have been established to fit this strategy, with a heavier long-term weighting of investments in equity securities. The long-term rate of return assumptions consider historic returns and volatilities adjusted for changes in overall economic conditions that may affect future returns and a weighting of each investment class.

The following table presents a reconciliation of the funded status of the defined benefit pension plans (in millions):

	2012			2011
Change in projected benefit obligation:
Obligation at beginning of period	$	158.6		$	147.2
Service cost	2.5			2.5
Interest cost	7.9			7.9
Actuarial loss	19.1			7.3
Plan amendments	0.1			0.1
Benefits paid	(7.3		)	(5.6		)
Curtailment gain	—			(1.7		)
Foreign currency translation	0.3			(0.6		)
Acquisitions/other	—			1.5
Obligation at end of period:	$	181.2		$	158.6
Change in fair value of plan assets:
Fair value of plan assets at beginning of period	94.4			94.5
Actual return on plan assets	10.5			(0.6		)
Employer contributions	11.7			6.5
Benefits paid	(7.3		)	(5.6		)
Foreign currency translation	0.2			(0.4		)
Fair value of plan assets at end of period	$	109.5		$	94.4
Funded status	$	(71.7	)	$	(64.2	)

Pension Assets

The valuation methodologies used for the Company's pension plans' investments measured at fair value are as follows:

Common stock and traded mutual funds - valued at the closing price reported on the active market on which the individual securities are traded.

Common collective trusts and other mutual funds - valued at the net asset value (“NAV”) as determined by the custodian of the fund. The NAV is based on the fair value of the underlying assets owned by the fund, minus its liabilities, divided by the number of units outstanding.

The Company did not change its valuation techniques during fiscal 2012. The fair value of plan assets is as follows (in millions):

	December 29, 2012
	Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	2.1	$	2.1	$	—	$	—
Common stocks
Domestic equities	16.5		16.5		—		—
International equities	6.8		—		6.8		—
Common collective trust funds
Fixed income funds	18.4		—		18.4		—
U.S. equity funds	23.1		—		23.1		—
International equity funds	6.9		—		6.9		—
Mutual funds
U.S. equity funds	11.9		11.9		—		—
Balanced funds	9.6		9.6		—		—
International equity funds	5.0		5.0		—		—
Other	9.2		—		—		9.2
Total	$	109.5	$	45.1	$	55.2	$	9.2

	December 31, 2011
	Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	1.7	$	1.7	$	—	$	—
Common stocks
Domestic equities	14.3		14.3		—		—
International equities	5.3		—		5.3		—
Common collective trust funds
Fixed income funds	18.8		—		18.8		—
U.S. equity funds	19.4		—		19.4		—
International equity funds	6.5		6.5		—		—
Mutual funds
U.S. equity funds	9.6		9.6		—		—
Balanced funds	4.2		4.2		—
International equity funds	7.2		7.2		—
Other	7.4		—		—		7.4
Total	$	94.4	$	43.5	43.5		$	7.4

The Level 3 assets noted below represent investments in a real estate fund managed by a major U.S. insurance company and a global emerging markets fund limited partnership. Estimated values provided by fund management approximate cost of the investments. Management regularly reviews fund performance for Level 3 plan assets and performs qualitative analysis to corroborate the reasonableness of the reported fair market values.

The table below sets forth a summary of changes in the Company's Level 3 assets in its plan investments as of December 29, 2012 and December 31, 2011 (in millions).

	December 29, 2012		December 31, 2011
Beginning balance	$	7.4	$	—
Net purchases and sales	0.9		7.5
Net gains and losses	0.9		(0.1		)
Ending balance	$	9.2	$	7.4

The Company recognized the funded status of its defined benefit pension plans on the balance sheet as follows (in millions):

	2012			2011
Accrued compensation and employee benefits	$	(2.5	)	$	(3.6	)
Pension and other post retirement benefits	(69.2		)	(60.6		)
	$	(71.7	)	$	(64.2	)
Amounts recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$	64.9		51.1
Prior service cost	1.8			1.9
	$	66.7		$	53.0

The accumulated benefit obligation for all defined benefit pension plans was $169.1 million and $150.0 million at December 29, 2012 and December 31, 2011, respectively.

The accumulated benefit obligation exceeds assets for all plans.

The following assumptions were used to determine the projected benefit obligation at December 29, 2012 and December 31, 2011, respectively.

	2012	2011
Discount rate	3.5% to 4.5%	4.4% to 5.3%
Expected long-term rate of return on assets	8.0%	8.25%

The objective of the discount rate assumption is to reflect the rate at which the pension benefits could be effectively settled. In making the determination, the Company takes into account the timing and amount of benefits that would be available under the plans. The methodology for selecting the discount rate was to match the plan's cash flows to that of a theoretical bond portfolio yield curve.

Certain of the Company's defined benefit pension plan obligations are based on years of service rather than on projected compensation percentage increases. For those plans that use compensation increases in the calculation of benefit obligations and net periodic pension cost, the Company used an assumed rate of compensation increase of 3.0% for the years ended December 29, 2012 and December 31, 2011.

Net periodic pension benefit costs and the net actuarial loss and prior service cost recognized in other comprehensive income (“OCI”) for the defined benefit pension plans were as follows (in millions):

	2012			2011			2010
Service cost	$	2.5		$	2.5		$	2.1
Interest cost	7.9			7.9			6.9
Expected return on plan assets	(8.0		)	(7.3		)	(6.4		)
Amortization of net actuarial loss	3.6			3.2			2.4
Amortization of prior service cost	0.2			0.2			0.4
Curtailment gain	—			(1.7		)	—
Net periodic benefit cost	$	6.2		$	4.8		$	5.4
Change in benefit obligations recognized in OCI, net of tax
Prior service credit	$	(0.3	)	$	0.2		$	0.1
Net gain	3.6			3.7			2.2
Total recognized in OCI	$	3.3		$	3.9		$	2.3

The estimated prior service cost and net actuarial loss for the defined benefit pension plans that will be amortized from AOCI into net periodic benefit cost during the 2013 fiscal year are $4.0 million and $0.2 million, respectively.

As permitted under relevant accounting guidance, the amortization of any prior service cost is determined using a straight-line amortization of the cost over the average remaining service period of employees expected to receive benefits under the plans.

The following assumptions were used to determine net periodic pension cost for fiscal years 2012, 2011 and 2010, respectively.

	2012		2011		2010
Discount rate	4.4% to 5.3%		5.2% to 5.9%		5.7% to 6.3%
Expected long-term rate of return on assets	8.25	%	8.25	%	8.25	%

For those plans that use compensation increases in the calculation of net periodic pension cost, the Company used an assumed rate of compensation increase of 3.0% for fiscal years 2012, 2011 and 2010.

The Company made contributions to its defined benefit plan of $11.7 million and $6.5 million for the fiscal years ended December 29, 2012 and December 31, 2011, respectively.

The Company estimates that in 2013 it will make contributions in the amount of $3.0 million to fund its defined benefit pension plans.

The following pension benefit payments, which reflect expected future service, as appropriate, are expected to be paid (in millions):

	Expected Payments
Year
2013	$	7.9
2014	8.2
2015	8.9
2016	9.3
2017	9.8
2018 - 2022	58.0