Employee Benefit Plans

12 Months Ended

Oct. 30, 2011

Employee Benefit Plans [Abstract]

EMPLOYEE BENEFIT PLANS

22. EMPLOYEE BENEFIT PLANS

Defined Contribution Plan — We have a 401(k) profit sharing plan (the “Savings Plan”) that allows participation for all eligible employees. The Savings Plan allows us to match employee contributions up to 6% of a participant’s pre-tax deferral of eligible compensation into the plan. On February 27, 2009, the Savings Plan was amended, effective January 1, 2009, to make the matching contributions fully discretionary, and matching contributions were temporarily suspended. Effective July 1, 2011, the matching contributions to the Savings Plan were resumed and allowed us the discretion to match between 50% and 100% of the participant’s contributions up to 6% of a participant’s pre-tax deferrals, based on a calculation of the Company’s annual return-on-assets. Contributions expense for the fiscal years ended October 30, 2011 and November 1, 2009 were $0.7 million and $0.8 million, respectively, for matching contributions to the Savings Plan. No matching contributions were made to the Savings Plan during fiscal 2010.

As a result of the economic downturn and restructuring, we have determined our Savings Plan has experienced a partial plan termination which, as defined by the IRS, is a significant reduction in the workforce. As a result, the affected employee participants of the Savings Plan become fully vested in company-matching contributions upon termination. As of October 30, 2011 and October 31, 2010, the impact of this partial plan termination was immaterial, excluding the impact of the employer contributions.

Deferred Compensation Plan — On October 23, 2006, the board of directors approved an Amended and Restated Deferred Compensation Plan for NCI (as amended and restated, the “Deferred Compensation Plan”) effective for compensation beginning in calendar 2007. The Deferred Compensation Plan allows our officers and key employees to defer up to 80% of their annual salary and up to 90% of their bonus on a pre-tax basis until a specified date in the future, including at or after retirement. Additionally, the Deferred Compensation Plan allows our directors to defer up to 100% of their annual fees and meeting attendance fees until a specified date in the future, including at or after retirement. The Deferred Compensation Plan also permits us to make contributions on behalf of our key employees who are impacted by the federal tax compensation limits under the NCI 401(k) plan, and to receive a restoration matching amount which, under the current NCI 401(k) terms, mirrors our 401(k) profit sharing plan matching levels based on our Company’s performance. On February 27, 2009, restoration matching contributions were indefinitely suspended, effective January 1, 2009. Effective July 1, 2011, the restoration match for the deferred compensation plan resumed. In addition, the Deferred Compensation Plan provides for us to make discretionary contributions to employees who have elected to defer compensation under the plan. Deferred Compensation Plan participants will vest in our discretionary contributions ratably over three years from the date of each of our discretionary contributions. Any unvested matching contributions in a participant’s Deferred Compensation Plan account became vested upon consummation of the Equity Investment on October 20, 2009. In addition, the Deferred Compensation Plan also permitted participants to have their account balances paid out upon a change of control which reduced the rabbi trust assets and corresponding liability by $2.6 million on October 28, 2009. As of October 30, 2011 and October 31, 2010, the liability balance of the Deferred Compensation Plan is $4.1 million and $3.9 million, respectively, and is included in accrued compensation and benefits in the Consolidated Balance Sheet. We have not made any discretionary contributions to the Deferred Compensation Plan.

With the Deferred Compensation Plan, the Board also approved the establishment of a rabbi trust to fund the Deferred Compensation Plan and the formation of an administrative committee to manage the Deferred Compensation Plan and its assets. The investments in the rabbi trust are $4.0 million and $3.7 million at October 30, 2011 and October 31, 2010, respectively. The rabbi trust investments include debt and equity securities, along with cash equivalents and are accounted for as trading securities.

Defined Benefit Plan — As a result of the closing of the RCC acquisition on April 7, 2006, we assumed a defined benefit plan (the “RCC Pension Plan”). Benefits under the RCC Pension Plan are primarily based on years of service and the employee’s compensation. The RCC Pension Plan is frozen and, therefore, employees do not accrue additional service benefits. Plan assets of the RCC Pension Plan are invested in broadly diversified portfolios of government obligations, hedge funds, mutual funds, stocks, bonds and fixed income securities. In accordance with ASC 805, we quantified the projected benefit obligation and fair value of the plan assets of the RCC Pension Plan and recorded the difference between these two amounts as an assumed liability.

As a result of the economic downturn and restructuring, we have determined our RCC Pension Plan has experienced a partial plan termination, defined by the IRS as a significant reduction in force. As a result, the affected employee participants become fully vested upon termination. However, the RCC Pension Plan is frozen, therefore, accrued benefits are already fully vested. As of October 30, 2011 and October 31, 2010, the impact of this partial plan termination was immaterial.

Defined Benefit Plans Adoption. On October 31, 2010, we adopted ASC Subtopic 715-20, Defined Benefit Plans — General (“ASC 715-20”). This statement provides guidance on an employer’s disclosures about plan assets of a defined benefit pension or other postretirement plan. We adopted the disclosure provisions required by ASC 715-20 in fiscal 2010 but are not required to implement the disclosures for earlier periods presented for comparative purposes.

The following table reconciles the change in the benefit obligation for the RCC Pension Plan from the beginning of the fiscal year to the end of the fiscal year (in thousands):

	October 30, 2011			October 31, 2010
Accumulated benefit obligation	$	48,207		$	44,697
Projected benefit obligation — beginning of fiscal year	$	44,697		$	46,091
Interest cost		2,020			2,534
Benefit payments		(3,413	)		(4,165	)
Actuarial losses		4,903			237
Projected benefit obligation — end of fiscal year	$	48,207		$	44,697

Actuarial assumptions used to determine benefit obligations were as follows:

	October 30, 2011			October 31, 2010
Assumed discount rate		4.35	%		4.75	%

The following table reconciles the change in plan assets of the RCC Pension Plan from the beginning of the fiscal year to the end of the fiscal year (in thousands):

	October 30, 2011			October 31, 2010
Fair value of assets — beginning of fiscal year	$	39,981		$	39,474
Actual return on plan assets		1,544			4,672
Company contributions		93			—
Benefit payments		(3,413	)		(4,165	)
Fair value of assets — end of fiscal year	$	38,205		$	39,981

The following table sets forth the funded status of the RCC Pension Plan and the amounts recognized in the Consolidated Balance Sheet (in thousands):

	October 30, 2011			October 31, 2010
Fair value of assets	$	38,205		$	39,981
Benefit obligation		48,207			44,697
Funded status	$	(10,002	)	$	(4,716	)
Unrecognized actuarial loss		9,912			4,186
Unrecognized prior service cost		(78	)		(87	)
Accrued benefit cost	$	(168	)	$	(617	)

The amounts in accumulated other comprehensive income that have not yet been recognized as components of net periodic benefit income (in thousands):

	October 30, 2011			October 31, 2010
Unrecognized actuarial loss		9,912			4,186
Unrecognized prior service cost		(78	)		(87	)
Total	$	9,834		$	4,099

The following table sets forth the components of the net periodic benefit income (in thousands):

	October 30, 2011			October 31, 2010
Interest cost	$	2,020		$	2,534
Expected return on assets		(2,368	)		(2,363	)
Amortization of prior service cost		(9	)		(9	)
Amortization of loss		—			171
Net periodic benefit cost (income)	$	(357	)	$	333

The following table sets forth the changes in plan assets and benefit obligation recognized in other comprehensive income (in thousands):

	October 30, 2011		October 31, 2010
Net actuarial loss (gain)	$	5,727	$	(2,071	)
Amortization of net actuarial loss		—		(171	)
Amortization of prior service credit		9		9
Total recognized in other comprehensive income (loss)	$	5,736	$	(2,233	)

The estimated amortization payments for the next fiscal year for amounts reclassified from accumulated other comprehensive income into the consolidated income statement (in thousands):

	October 30, 2011
Amortization of prior service cost		(9	)
Amortization of loss		641
Total estimated amortized payments	$	632

Actuarial assumptions used to determine net periodic benefit income were as follows:

	Fiscal 2011			Fiscal 2010
Assumed discount rate		4.75	%		5.75	%
Expected rate of return on plan assets		7.0	%		7.0	%

The basis used to determine the overall expected long-term asset return assumption was a ten year forecast of expected return based on the target asset allocation for the plan. The expected return for this portfolio over the forecast period is 7.0%, net of investment related expenses. In determining the expected return over the forecast period, we used a 10-year median expected return, taking into consideration historical experience, anticipated asset allocations, investment strategies and the views of various investment professionals.

The weighted-average asset allocations by asset category are as follows:

Investment Type	October 30, 2011			October 31, 2010
Equity securities		28	%		28	%
Debt securities		47			42
Hedge funds		8			13
Cash and cash equivalents		5			1
Real estate		4			5
Other		8			11
Total		100	%		100	%

The investment policy is to maximize the expected return for an acceptable level of risk. Our expected long-term rate of return on plan assets is based on a target allocation of assets, which is based on our goal of earning the highest rate of return while maintaining risk at acceptable levels. The RCC Pension Plan strives to have assets sufficiently diversified so that adverse or unexpected results from one security class will not have an unduly detrimental impact on the entire portfolio. We regularly review our actual asset allocation and the RCC Pension Plan’s investments are periodically rebalanced to our target allocation when considered appropriate. We have set the target asset allocation for the plan as follows: 44% US bonds, 13% alpha strategies (hedge funds), 16% large cap US equities, 5% small cap US equities, 4% real estate investment trusts, 8% foreign equity, 4% emerging markets and 6% commodity futures.

The table below presents the fair values of the assets in our RCC Pension Plan at October 30, 2011 and October 31, 2010, by asset category and by levels of fair value as further defined in Note 16 — Fair Value of Financial Instruments and Fair Value Measurements.

	October 30, 2011
	Level 1		Level 2		Level 3		Total
Asset category:
Cash	$	1,829		—		—		1,829
Mutual funds:
Growth funds(1)		1,337		—		—		1,337
Real estate funds(2)		1,619		—		—		1,619
Commodity linked funds(3)		2,036		—		—		2,036
Government securities(4)		—		10,694		—		10,694
Corporate bonds(5)		—		6,736		—		6,736
Common/collective trusts(6)		—		10,915		—		10,915
Partnerships/Joint venture interest(7)		—		—		3,039		3,039
Total as of October 30, 2011	$	6,821		28,345		3,039		38,205

	October 31, 2010
	Level 1		Level 2		Level 3		Total
Asset category:
Cash	$	602		—		—		602
Mutual funds:
Growth funds(1)		1,848		—		—		1,848
Real estate funds(2)		1,863		—		—		1,863
Commodity linked funds(3)		2,452		—		—		2,452
Government securities(4)		—		9,827		—		9,827
Corporate bonds(5)		—		6,584		—		6,584
Common/collective trusts(6)		—		11,584		—		11,584
Partnerships/Joint venture interest(7)		—		—		5,221		5,221
Total as of October 31, 2010	$	6,765		27,995		5,221		39,981

(1) The strategy seeks long-term growth of capital. The fund currently invests in common stocks and other securities of companies in countries with developing economies and/or markets.

(2) The portfolio is constructed of Real Estate Investment Trusts (“REITs”) with the potential to provide strong and consistent earnings growth. Eligible investments for the portfolio include publicly traded equity REITs, Real Estate Operating Companies, homebuilders and commercial REITs. The portfolio invests across various sectors and is geographically diverse to manage potential risk.

(3) The strategy seeks to replicate a diversified basket of commodity futures consistent with the composition of the Dow Jones UBS Commodity index. The strategy is defined to be a hedge against risking inflation and from time to time will allocate a portion of the portfolio to inflation-protected securities and other fixed income securities.

(4) These holdings represent fixed-income securities issued and backed by the full faith of the United States government. The strategy is designed to lengthen duration to match the duration of the pension plan liabilities.

(5) These holdings represent fixed-income securities with varying maturities diversified by issuer, sector and industry. At the time of purchase, the securities must be rated investment grade. This strategy is also taken into consideration with the government bond holdings when matching duration of the liabilities.

(6) The collective trusts seek long-term growth of capital through index replication strategies designed to match the holdings of the S&P 500, Russell 2000 and MSCI EAFE.

(7) The strategy seeks long-term growth of capital through a diversified hedge fund of fund offering. The hedge fund of fund will be diversified by strategy and firm seeking bond-like volatility over a full market cycle. When observable prices are not available for these securities, the value is based on a market approach, as defined in the authoritative guidance on fair value measurements, to evaluate the fair value of such Level 3 instruments.

The following table summarizes the fair value activity of partnerships/joint venture interest in the RCC Pension Plan in Level 3 during fiscal 2011:

	October 30, 2011
Beginning balance	$	5,221
Purchases, sales and settlements, net		(2,250	)
Actual return on plan assets		68
Ending balance	$	3,039

We expect to contribute $1,607,000 to the RCC Pension Plan in fiscal 2012.

We expect the following benefit payments to be made (in thousands):

Fiscal Years Ended	Pension Benefits
2012	$	4,015
2013		3,831
2014		3,860
2015		3,632
2016		3,524
2017-2020		16,975