Employee Benefit Plans

We maintain several defined benefit plans which cover a substantial number of employees. Benefits are based upon each employee’s years of service and average salary. Our funding policy is based on the minimum amount required under the Employee Retirement Income Security Act of 1974. Our pension plan was closed to new participants as of December 31, 1999. Benefits ceased to accrue for pension plan participants as of December 31, 2004. We also maintain defined contribution plans.

Defined Benefit Plans

The obligations and funded status for our pension plan and other defined benefit plans were as follows:



	Pension Plan						Other Defined Benefit Plans
	December 25, 2013			December 26, 2012			December 25, 2013			December 26, 2012
	(In thousands)
Change in Benefit Obligation:
Benefit obligation at beginning of year	$	73,926		$	70,468		$	2,837		$	2,689
Service cost	400			380			—			—
Interest cost	2,977			3,200			111			116
Actuarial (gains) losses	(7,836		)	4,575			(37		)	227
Benefits paid	(5,076		)	(4,697		)	(195		)	(195		)
Benefit obligation at end of year	$	64,391		$	73,926		$	2,716		$	2,837
Accumulated benefit obligation	$	64,391		$	73,926		$	2,716		$	2,837

Change in Plan Assets:
Fair value of plan assets at beginning of year	$	58,006		$	53,270		$	—		$	—
Actual return on plan assets	5,364			6,666			—			—
Employer contributions	2,800			2,767			195			195
Benefits paid	(5,076		)	(4,697		)	(195		)	(195		)
Fair value of plan assets at end of year	$	61,094		$	58,006		$	—		$	—
Funded status	$	(3,297	)	$	(15,920	)	$	(2,716	)	$	(2,837	)

The amounts recognized in the Consolidated Balance Sheets were as follows:



	Pension Plan						Other Defined Benefit Plans
	December 25, 2013			December 26, 2012			December 25, 2013			December 26, 2012
	(In thousands)
Other current liabilities	$	—		$	—		$	(451	)	$	(341	)
Other noncurrent liabilities and deferred credits	(3,297		)	(15,920		)	(2,265		)	(2,496		)
Net amount recognized	$	(3,297	)	$	(15,920	)	$	(2,716	)	$	(2,837	)

The amounts recognized in accumulated other comprehensive income, that have not yet been recognized as a component of net periodic benefit cost, were as follows:



	Pension Plan					Other Defined Benefit Plans
	December 25, 2013			December 26, 2012		December 25, 2013		December 26, 2012
	(In thousands)
Unamortized actuarial losses, net	$	(17,433	)	(27,798	)	(899	)	(1,007	)

During fiscal 2014, $0.9 million and less than $0.1 million of accumulated other comprehensive income will be recognized related to the pension plan and other defined benefit plans, respectively.

The components of the change in unamortized actuarial losses, net, included in accumulated other comprehensive loss were as follows:



	Fiscal Year Ended
	December 25, 2013			December 26, 2012
	(In thousands)
Pension Plan:
Balance, beginning of year	$	(27,798	)	$	(27,596	)
Benefit obligation actuarial gain (loss)	7,836			(4,575		)
Net gain	876			2,610
Amortization of net loss	1,653			1,763
Balance, end of year	$	(17,433	)	$	(27,798	)

Other Defined Benefit Plans:
Balance, beginning of year	$	(1,007	)	$	(832	)
Benefit obligation actuarial gain (loss)	37			(227		)
Amortization of net loss	71			52
Balance, end of year	$	(899	)	$	(1,007	)

Minimum pension liability adjustments, net of tax for 2013, 2012 and 2011 were a reduction of $6.3 million and additions of $0.2 million and $5.6 million, respectively.

Total minimum pension liability adjustments of $18.7 million (including tax expense of $0.4 million) and $25.0 million (net of tax benefit of $3.8 million) are included as a component of accumulated other comprehensive loss, net in our Consolidated Statements of Shareholders' Equity for the years ended December 25, 2013 and December 26, 2012, respectively.

The components of net periodic benefit cost were as follows:



	Fiscal Year Ended
	December 25, 2013			December 26, 2012			December 28, 2011
	(In thousands)
Pension Plan:
Service cost	$	400		$	380		$	335
Interest cost	2,977			3,200			3,364
Expected return on plan assets	(4,488		)	(4,057		)	(4,182		)
Amortization of net loss	1,653			1,763			1,004
Net periodic benefit cost	$	542		$	1,286		$	521
Other comprehensive (income) loss	$	(10,364	)	$	202		$	8,997

Other Defined Benefit Plans:
Interest cost	$	111		$	116		$	127
Amortization of net loss	71			52			32
Net periodic benefit cost	$	182		$	168		$	159
Other comprehensive (income) loss	$	(109	)	$	175		$	232

Net pension and other defined benefit plan costs (including premiums paid to the Pension Benefit Guaranty Corporation) for 2013, 2012 and 2011 were $0.7 million, $1.5 million and $0.7 million, respectively.

Assumptions

Because our pension plan was closed to new participants as of December 31, 1999 and benefits ceased to accrue for Pension Plan participants as of December 31, 2004, an assumed rate of increase in compensation levels was not applicable for 2013, 2012 or 2011. Weighted average assumptions used to determine benefit obligations were as follows:



	December 25, 2013		December 26, 2012
Discount rate	4.98	%	4.18	%
Measurement date	12/25/2013		12/26/2012

Weighted average assumptions used to determine net periodic pension cost were as follows:



	December 25, 2013		December 26, 2012		December 28, 2011
Discount rate	4.18	%	4.59	%	5.42	%
Rate of increase in compensation levels	N/A		N/A		N/A
Expected long-term rate of return on assets	7.75	%	7.75	%	8.00	%
Measurement date	12/25/2013		12/26/2012		12/28/2011

In determining the expected long-term rate of return on assets, we evaluated our asset class return expectations, as well as long-term historical asset class returns. Projected returns are based on broad equity and bond indices. Additionally, we considered our historical compounded returns, which have been in excess of our forward-looking return expectations. In determining the discount rate, we have considered long-term bond indices of bonds having similar timing and amounts of cash flows as our estimated defined benefit payments. We use a yield curve based on high quality, long-term corporate bonds to calculate the single equivalent discount rate that results in the same present value as the sum of each of the plan's estimated benefit payments discounted at their respective spot rates.

Plan Assets

The investment policy of our pension plan is based on an evaluation of our ability and willingness to assume investment risk in light of the financial and benefit-related goals objectives deemed to be prudent by the fiduciaries of our pension plan assets. These objectives include, but are not limited to, earning a rate of return over time to satisfy the benefit obligation, managing funded status volatility and maintaining sufficient liquidity. As of December 25, 2013, the strategic target asset allocation is 65% fixed income securities (diversified between corporate and government holdings and generally long duration) and 35% equity securities (diversified between domestic and international holdings).

We review the strategic asset allocation periodically to determine the appropriate balance between cost and risk, taking into account the regulatory funding requirements and the nature of our pension plan's liabilities. We monitor the competitive performance versus market benchmarks and rebalance to target allocations if necessary on a quarterly basis.

The fair values of our pension plan assets were as follows:



	Fair Value Measurements as of December 25, 2013
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Cash equivalents	$	1,785	$	1,785	$	—	$	—
Equity securities:
U.S. large-cap (a)	9,880		9,880		—		—
U.S. mid-cap (b)	2,467		2,467		—		—
U.S. small-cap (c)	615		615		—		—
International large-cap	6,200		6,200		—		—
Fixed income securities:
U.S. Treasuries	4,245		4,245		—		—
Corporate bonds (d)	33,310		33,310		—		—
Other types of investments:
Commingled funds (e)	2,592		—		2,592		—
Total	$	61,094	$	58,502	$	2,592	$	—


(a)	The majority of this category represents a fund with the objective of approximating the return of the S&P 500 Index. The remaining securities include both a large-value fund and a large-growth fund investing in diverse industries.


(b)	This category includes both a mid-growth fund with the objective of outperforming the Russell Mid Cap Growth Index and a mid-value fund investing in diverse industries.


(c)	This category includes both a small-value fund and a small-growth fund investing in diverse industries.


(d)	This category includes intermediate and long-term investment grade bonds from diverse industries.


(e)	This category represents a fund of well diversified mutual funds with the objective of providing a low-volatility means to access equity-like returns.



	Fair Value Measurements as of December 26, 2012
Asset Category	Total		Quoted Prices in Active Markets for Identical Assets/Liabilities (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Cash equivalents	$	873	$	873	$	—	$	—
Equity securities:
U.S. large-cap (a)	15,569		15,569		—		—
U.S. mid-cap (b)	4,702		4,702		—		—
U.S. small-cap (c)	1,157		1,157		—		—
International large-cap	9,292		9,292		—		—
Fixed income securities:
U.S. Treasuries	2,582		2,582		—		—
Corporate bonds (d)	20,179		20,179		—		—
Other types of investments:
Commingled funds (e)	3,652		—		3,652		—
Total	$	58,006	$	54,354	$	3,652	$	—


(a)	The majority of this category represents a fund with the objective of approximating the return of the S&P 500 Index. The remaining securities include both a large-value fund and a large-growth fund investing in diverse industries.


(b)	This category includes both a mid-growth fund with the objective of outperforming the Russell Mid Cap Growth Index and a mid-value fund investing in diverse industries.


(c)	This category includes both a small-value fund and a small-growth fund investing in diverse industries.


(d)	This category includes intermediate and long-term investment grade bonds from diverse industries.


(e)	This category represents a fund of well diversified mutual funds with the objective of providing a low-volatility means to access equity-like returns.

Following is a description of the valuation methodologies used for assets measured at fair value.


•	Equity Securities and Fixed Income Securities: Valued at the net asset value (“NAV”) of shares held by the pension plan at year-end. The NAV is a quoted price in an active market.


•	Cash Equivalents and Commingled Funds: Valuation determined by the trustee of the money market funds and commingled funds based on the fair value of the underlying securities within the fund, which represent the NAV, a practical expedient to fair value, of the units held by the pension plan at year-end.

Contributions and Expected Future Benefit Payments

We made contributions of $2.8 million to our qualified pension plan during both the years ended December 25, 2013 and December 26, 2012, respectively. We made contributions of $0.2 million to our other defined benefit plans during both the years ended December 25, 2013 and December 26, 2012. We expect to contribute $2.5 million and $0.5 million to our qualified pension plan and other defined benefit plans, respectively, during 2014. Benefits expected to be paid for each of the next five years and in the aggregate for the five fiscal years from 2019 through 2023 are as follows:



	Pension Plan		Other Defined Benefit Plans
	(In thousands)
2014	$	3,609	$	451
2015	3,550		233
2016	3,487		203
2017	3,466		256
2018	3,518		214
2019 through 2023	19,682		1,186

Defined Contribution Plans

Eligible employees can elect to contribute up to 25% of their compensation to our 401(k) plan. As a result of certain IRS limitations, participation in a non-qualified deferred compensation plan is offered to certain employees. Under this deferred compensation plan, participants are allowed to defer up to 50% of their annual salary and up to 100% of their incentive compensation. Under both plans, we make matching contributions of up to 3% of compensation. Participants in the deferred compensation plan are eligible to participate in the 401(k) plan; however, due to the above referenced IRS limitations, they are not eligible to receive the matching contributions under the 401(k) plan. Under these plans, we made contributions of $1.4 million, $1.3 million and $1.3 million for 2013, 2012 and 2011, respectively.