Benefit Plans

9 Months Ended

Oct. 02, 2011

Benefit Plans [Abstract]

BENEFIT PLANS

14. BENEFIT PLANS

The Company has two non-contributory defined benefit pension plans covering certain of the Company’s executives. Retirement benefits are based on years of service, employees’ average compensation for the last five years prior to retirement and social security benefits. Currently, the plans are not funded. The Company purchased and is the beneficiary of life insurance policies for certain participants enrolled in the plans. There were no significant transactions between the employer or related parties and the plan during the period.

As of October 2, 2011, the Company had a non-qualified deferred compensation agreement with its Chief Executive Officer (“CEO”). The current agreement provides for a lump sum payment upon retirement, no sooner than age 55. As of October 2, 2011, the CEO had reached age 55 and was eligible to receive the payment upon retirement. If the Company’s CEO had retired as of October 2, 2011, the Company would have had to pay him $5.8 million including a tax gross-up relating to the retirement payment equal to $2.1 million. During the fiscal year ended January 2, 2011, the Company paid a former executive $4.4 million in discounted retirement benefits, including a gross up of $1.6 million for certain taxes, under the executive’s non-qualified deferred compensation agreement. The Company’s liability relative to its pension plans and retirement agreements was $14.7 million and $13.8 million as of October 2, 2011 and January 2, 2011, respectively. The long-term portion of the pension liability as of October 2, 2011 and January 2, 2011 was $14.5 million and $13.6 million, respectively, and is included in Other Non-Current liabilities in the accompanying balance sheets.

The following table summarizes key information related to the Company’s pension plans and retirement agreements. The table illustrates the reconciliation of the beginning and ending balances of the benefit obligation showing the effects during the periods presented attributable to service cost, interest cost, plan amendments, termination benefits, actuarial gains and losses. The assumptions used in the Company’s calculation of accrued pension costs are based on market information and the Company’s historical rates for employment compensation and discount rates, respectively.

	Thirty-nine Weeks  Ended October 2, 2011			Fiscal Year Ended January  2, 2011
	(in thousands)
Change in Projected Benefit Obligation
Projected benefit obligation, beginning of period	$	13,830		$	16,206
Service cost		483			525
Interest cost		501			746
Actuarial gain		—			986
Benefits paid		(137	)		(4,633	)
Projected benefit obligation, end of period	$	14,677		$	13,830
Change in Plan Assets
Plan assets at fair value, beginning of period	$	—		$	—
Company contributions		137			4,633
Benefits paid		(137	)		(4,633	)
Plan assets at fair value, end of period	$	—		$	—
Unfunded Status of the Plan	$	(14,677	)	$	(13,830	)
Amounts Recognized in Accumulated Other Comprehensive Income
Prior service cost		—			—
Net loss		1,628			1,671
Accrued pension cost	$	1,628		$	1,671

	Thirteen Weeks Ended						Thirty-nine Weeks Ended
	October 2, 2011			October 3, 2010			October 2, 2011			October 3, 2010
Components of Net Periodic Benefit Cost
Service cost	$	161		$	131		$	483		$	393
Interest cost		167			187			501			560
Amortization of: Prior service cost		—			10			—			31
Net loss		16			8			48			25
Net periodic pension cost	$	344		$	336		$	1,032		$	1,009
Weighted Average Assumptions for Expense
Discount rate		5.50	%		5.75	%		5.50	%		5.75	%
Expected return on plan assets		N/A			N/A			N/A			N/A
Rate of compensation increase		4.27	%		4.50	%		4.27	%		4.50	%

The Company expects to pay total benefits of $0.2 million during the fiscal year ending January 1, 2012.