Pension and Other Postretirement Benefits

9 Months Ended

Apr. 01, 2012

Pension and Other Postretirement Benefits [Abstract]

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

We have a qualified, noncontributory defined benefit pension plan covering substantially all U.S. associates. Benefits are based on years of service and final average compensation. Our policy is to fund at least the minimum actuarially computed annual contribution required under the Employee Retirement Income Security Act of 1974 (ERISA). Plan assets consist primarily of listed equity and fixed income securities. Effective January 1, 2010, an amendment to the qualified defined benefit pension plan discontinued the benefit accruals for salary increases and credited service rendered after December 31, 2009.

We have a noncontributory supplemental executive retirement plan (“SERP”), which is a nonqualified defined benefit plan that essentially mirrors the qualified plan, but provides benefits in excess of certain limits placed on our qualified retirement plan by the Internal Revenue Code. The SERP will pay supplemental pension benefits to certain key employees upon retirement based upon the employees’ years of service and compensation. The SERP is being funded through a Rabbi trust with M&I Trust Company. We also sponsor a postretirement health care plan for all of our U.S. associates hired prior to June 2, 2001. The expected cost of retiree health care benefits is recognized during the years that the associates who are covered under the plan render service. Effective January 1, 2010, an amendment to the postretirement health care plan limited the benefit for future eligible retirees to $4,000 per plan year and is subject to a maximum coverage period based on the associate’s retirement date and age. The postretirement health care plan is unfunded.

The following tables summarize the net periodic benefit cost recognized for each of the periods indicated under these two plans (in thousands):

	Pension Benefits						Postretirement Benefits
	Three Months Ended						Three Months Ended
	April 1, 2012			March 27, 2011			April 1, 2012			March 27, 2011
Service cost	$	37		$	17		$	3		$	2
Interest cost		1,196			1,151			56			67
Expected return on plan assets		(1,603	)		(1,580	)		—			—
Amortization of prior service cost		3			3			(191	)		(187	)
Amortization of unrecognized net loss		604			615			168			159
Net periodic benefit cost	$	237		$	206		$	36		$	41
	Pension Benefits						Postretirement Benefits
	Nine Months Ended						Nine Months Ended
	April 1, 2012			March 27, 2011			April 1, 2012			March 27, 2011
Service cost	$	112		$	51		$	8		$	7
Interest cost		3,588			3,453			170			202
Expected return on plan assets		(4,808	)		(4,742	)		—			—
Amortization of prior service cost		9			9			(573	)		(562	)
Amortization of unrecognized net loss		1,811			1,843			505			475
Net periodic benefit cost	$	712		$	614		$	110		$	122

Voluntary contributions made to the qualified pension plan totaled $1.5 million during each of the nine month periods ending April 1, 2012 and March 27, 2011. Voluntary contributions made to date during the fourth quarter of fiscal 2012 totaled $500,000. No additional voluntary contributions are anticipated to be made during the remainder of fiscal 2012.