Employee Defined Benefit Plans

9 Months Ended

Mar. 31, 2012

Employee Defined Benefit Plans

Employee Defined Benefit Plans

Note 14. Employee Defined Benefit Plans

The Company sponsors qualified and non-qualified pension plans for certain past and present employees in the U.K. and Germany. The Company is also responsible for the non-pension postretirement benefit obligation of a previously acquired subsidiary. Most of the plans have been closed to new participants and no additional service costs are being accrued, except for the plans assumed during fiscal 2010 in connection with an acquisition. Benefits are generally based upon years of service and compensation or stated amounts for each year of service. As of March 31, 2012 the U.K. plan was partially funded while the other plans were unfunded. The Company’s policy for funded plans is to make contributions equal to or greater than the requirements prescribed by law or regulation. For unfunded plans, the Company pays the postretirement benefits when due. Future estimated benefit payments are summarized below. No other required contributions to defined benefit plans are expected in fiscal 2012, but the Company, at its discretion, can make contributions to one or more of the defined benefit plans. The funded plan assets consist primarily of managed investments.

The following table presents the components of the net periodic cost for the pension plans (in millions):

Pension Benefits

	Three Months Ended						Nine Months Ended
	March 31,			April 2,			March 31,			April 2,
	2012			2011			2012			2011
Service cost	$	—		$	0.1		$	0.2		$	0.3
Interest cost	1.3			1.4			4.0			3.9
Expected return on plan assets	(0.3		)	(0.3		)	(1.0		)	(0.9		)
Recognized net actuarial (gains)/losses	(0.1		)	—			(0.3		)	—
Net periodic benefit cost	$	0.9		$	1.2		$	2.9		$	3.3

Both the calculation of the projected benefit obligation and net periodic cost are based upon actuarial valuations. These valuations use participant-specific information such as salary, age, years of service, and assumptions about interest rates, compensation increases and other factors. At a minimum, the Company evaluates these assumptions annually and makes changes as necessary.

The Company expects to incur cash outlays of approximately $5.7 million related to its defined benefit pension plans during fiscal 2012 to make current benefit payments and fund future obligations. As of March 31, 2012, approximately $3.6 million had been incurred. These payments have been estimated based on the same assumptions used to measure the Company’s projected benefit obligation at July 2, 2011.