Retirement Plans

12 Months Ended

Dec. 28, 2013

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 covering a majority of the Company's domestic employees have been closed to new employees and frozen for existing employees. 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 $9.1 million, $9.8 million, and $5.8 million in 2013, 2012 and 2011, respectively. Company contributions to foreign defined contribution plans were $12.4 million, $12.0 million and $11.7 million for the same periods.

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		2013		2012
Equity investments	73	%	8 - 11 %		69	%	69	%
Fixed income	17	%	3.5 - 4.5%		22	%	23	%
Other	10	%	6 - 8%		9	%	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):

	2013			2012
Change in projected benefit obligation:
Obligation at beginning of period	$	181.2		$	158.6
Service cost	2.9			2.5
Interest cost	7.6			7.9
Actuarial (gain) loss	(13.5		)	19.1
Plan amendments	—			0.1
Less: Benefits paid	7.4			7.3
Foreign currency translation	—			0.3
Obligation at end of period:	$	170.8		$	181.2
Change in fair value of plan assets:
Fair value of plan assets at beginning of period	109.5			94.4
Actual return on plan assets	21.0			10.5
Employer contributions	5.5			11.7
Less: Benefits paid	7.4			7.3
Foreign currency translation	—			0.2
Fair value of plan assets at end of period	$	128.6		$	109.5
Funded status	$	(42.2	)	$	(71.7	)

Pension Assets

The Company classifies the pension plan investments into Level 1, which refers to securities valued using quoted prices from active markets for identical assets, Level 2, which refers to securities not traded on an active market but for which observable market inputs are readily available, and Level 3, which refers to securities valued based on significant unobservable inputs. Common stocks and mutual funds are valued at the unadjusted quoted market prices for the securities. Real estate fund values are determined using model-based techniques that include relative value analysis and discounted cash flow techniques. Common collective trust funds and limited partnership interests are valued based on the net asset value ("NAV") provided by the administrator of the fund.  The NAV is based on the value of the underlying assets owned by the fund, minus its liabilities, and then divided by the number of shares outstanding.  Investments in units of collective trust funds and short-term investment funds, comprised of cash and money market funds, are valued at their respective NAVs as reported by the funds daily.

	December 28, 2013
	Total		Level 1		Level 2		Level 3
Cash and cash equivalents	$	2.0	$	2.0	$	—	$	—
Common stocks:
Domestic equities	22.1		22.1		—		—
International equities	7.6		—		7.6		—
Common collective trust funds:
Fixed income funds	12.0		—		12.0		—
U.S. equity funds	28.0		—		28.0		—
International equity funds	3.5		—		3.5		—
Other	1.6		—		1.6		—
Mutual funds:
U.S. equity funds	15.5		15.5		—		—
Balanced funds	12.0		12.0		—		—
International equity funds	14.2		14.2		—		—
Real estate fund	5.5		—		—		5.5
Global emerging markets fund limited partnership	4.6		—		—		4.6
Total	$	128.6	$	65.8	$	52.7	$	10.1

	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		—
Real estate fund	4.9		—		—		4.9
Global emerging markets fund limited partnership	4.3		—		—		4.3
Total	$	109.5	$	45.1	55.2		$	9.2

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 the cost of the investments. In determining the reasonableness of the methodology used to value the Level 3 investments, the Company evaluates a variety of factors including reviews of economic conditions, industry and market developments, and overall credit ratings.

The real estate fund can be redeemed on a quarterly basis and paid within two weeks of the request for redemption. The limited partnership interest can be redeemed on a monthly basis with immediate payment.

The table below sets forth a summary of changes in the Company's Level 3 assets in its pension plan investments as of December 28, 2013 and December 29, 2012 (in millions).

	December 28, 2013		December 29, 2012
Beginning balance	$	9.2	$	7.4
Net purchases	0.7		0.9
Net gains	0.2		0.9
Ending balance	$	10.1	$	9.2

The following table sets forth a summary of quantitative information about the significant unobservable inputs used in the fair value measurement of the Level 3 real estate fund for the year ended December 28, 2013 (in millions).

Fair Value		Significant Unobservable Inputs
$	5.5	Exit Capitalization Rate	5.4% to 7.6%
		Discount Rate	6.9% to 9.7%

The following table sets forth a summary of quantitative information about the significant unobservable inputs used in the fair value measurement of the Level 3 real estate fund for the year ended December 29, 2012 (in millions).

Fair Value		Significant Unobservable Inputs
$	4.9	Exit Capitalization Rate	4.8% to 9.8%
		Discount Rate	6.3% to 10.5%

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

	2013		2012
Accrued compensation and employee benefits	$	2.5	$	2.5
Pension and other post retirement benefits	39.7		69.2
	$	42.2	$	71.7
Amounts recognized in Accumulated Other Comprehensive Loss
Net actuarial loss	$	36.0	64.9
Prior service cost	1.6		1.8
	$	37.6	$	66.7

The accumulated benefit obligation for all defined benefit pension plans was $160.1 million and $169.1 million at December 28, 2013 and December 29, 2012, respectively.

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Company's pension plans in which the accumulated benefit obligation exceeded the value of plan assets as of December 28, 2013 were $50.4 million, $43.0 million and $9.1 million, respectively. The accumulated plan benefit obligation exceeded plan assets for all pension plans as of December 29, 2012.

The following assumptions were used to determine the projected benefit obligation at December 28, 2013 and December 29, 2012, respectively.

	2013	2012
Discount rate	4.3% to 5.3%	3.5% to 4.5%
Expected long-term rate of return on assets	8.0%	8.0%

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 28, 2013 and December 29, 2012.

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):

	2013			2012			2011
Service cost	$	2.9		$	2.5		$	2.5
Interest cost	7.6			7.9			7.9
Expected return on plan assets	(8.7		)	(8.0		)	(7.3		)
Amortization of net actuarial loss	4.1			3.6			3.2
Amortization of prior service cost	0.2			0.2			0.2
Curtailment gain	—			—			(1.7		)
Net periodic benefit cost	$	6.1		$	6.2		$	4.8
Change in benefit obligations recognized in OCI, net of tax
Prior service cost	$	0.1		$	(0.3	)	$	0.2
Net actuarial loss	2.5			3.6			3.7
Total recognized in OCI	$	2.6		$	3.3		$	3.9

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 2014 fiscal year are $0.2 million and $2.0 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 2013, 2012 and 2011, respectively.

	2013	2012	2011
Discount rate	3.5% to 4.5%	4.4% to 5.3%	5.2% to 5.9%
Expected long-term rate of return on assets	8.0%	8.3%	8.3%

The Company made contributions to its defined benefit plan of $5.5 million and $11.7 million for the fiscal years ended December 28, 2013 and December 29, 2012, respectively.

The Company estimates that in 2014 it will make contributions in the amount of $7.9 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
2014	$	8.5
2015	9.0
2016	9.4
2017	9.9
2018	10.7
2019 - 2023	60.2