Employee Benefit Plans

9 Months Ended

Oct. 02, 2011

General Discussion of Pension and Other Postretirement Benefits [Abstract]

Employee Benefit Plans

Employee Benefit Plans

Employee bonus plans

We currently sponsor an executive incentive bonus plan that distributes employee awards based on the achievement of predetermined targets. We recorded a charge of $0.8 million and $2.6 million under this bonus plan for the three month and nine month periods ended October 1, 2011, respectively, as compared to $0.8 million and $2.6 million for the corresponding periods of 2010.

Employee savings and retirement plans

We sponsor a 401(k) employee salary deferral plan that allows voluntary contributions by all full-time employees of from 1% to 20% of their pretax earnings. We may also make matching contributions to this plan at our discretion. Employees are eligible for the matching plan if they contribute at least 2% of their compensation. Our contributions, when made, are limited to a maximum of 6% of the employee’s compensation if the company exceeds certain income levels. We contributed $0.2 million and $0.5 million to this plan for the three month and nine month periods ended October 1, 2011, respectively, and had no contributions for the corresponding periods of 2010.

We also sponsor an executive non-qualified deferred compensation plan (the “Plan”) that allows qualifying executives to defer current cash compensation. As of October 1, 2011, Plan assets of $0.7 million, representing the cash surrender value of life insurance policies held by us, and liabilities of $1.0 million were included in our Consolidated Balance Sheets under the captions “Other assets” and “Other liabilities”, respectively. The related Plan expenses for each of the three month periods ended October 1, 2011 and October 2, 2010 were immaterial.

Postretirement benefits

We have committed to providing and fully paying for lifetime postretirement medical and dental benefits to our Chief Executive Officer and Chief Financial Officer and their spouses, commencing after retirement. We recorded net periodic benefit costs of an immaterial amount for the three month and nine month periods ended October 1, 2011 and October 2, 2010.