Employee Defined Benefit Plans

6 Months Ended

Dec. 29, 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 post-retirement 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 and the first quarter of fiscal 2013 in connection with acquisitions. Benefits are generally based upon years of service and compensation or stated amounts for each year of service.

On November 30, 2012, the Company terminated the defined benefit pension plan in South Korea and settled the vested benefit obligation of $1.3 million by subsequently funding a defined contribution retirement plan. The Company accounted for the termination of Korean pension plan as a combination of curtailment and settlement pursuant to the authoritative guidance, and recorded a gain of $0.2 million in its Consolidated Statements of Operations.

As of December 29, 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 post-retirement benefits when due. During the six months ended December 29, 2012, the Company contributed $0.7 million to the U.K. plan. 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						Six Months Ended
	December 29,			December 31,			December 29,			December 31,
	2012			2011			2012			2011
Service cost	$	0.1		$	0.1		$	0.2		$	0.2
Interest cost	1.1			1.3			2.2			2.7
Expected return on plan assets	(0.3		)	(0.3		)	(0.6		)	(0.7		)
Recognized net actuarial (gains)/losses				(0.1		)	—			(0.2		)
Curtailment/Settlement (gains)/losses	(0.2		)				(0.2		)
Net periodic benefit cost	$	0.7		$	1.0		$	1.6		$	2.0

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, pension 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 $6.4 million related to its defined benefit pension plans during fiscal 2013 to make current benefit payments and fund future obligations. As of December 29, 2012, approximately $3.5 million had been incurred. These payments have been estimated based on the same assumptions used to measure the Company’s projected benefit obligation at June 30, 2012.