Pension and Other Postretirement Benefits Disclosure [Text Block] | EMPLOYEE BENEFIT PLANS Defined Contribution and Deferred Compensation Plans The Company has a 401(k) retirement investment plan (“401(k) Plan”), which is open to all otherwise eligible U.S. employees with at least six months of service. The 401(k) Plan calls for Company matching contributions on a sliding scale based on the level of the employee’s contribution. The Company may, at its discretion, make additional contributions to the 401(k) Plan based on the attainment of certain performance targets by its subsidiaries. The Company’s matching contributions are funded bi-monthly and totaled approximately $2.9 million, $2.7 million and $2.6 million for the years 2015, 2014 and 2013, respectively. No discretionary contributions were made in 2015, 2014 or 2013. Under the Company’s nonqualified savings plans (“NSPs”), the Company provides eligible employees the opportunity to enter into agreements for the deferral of a specified percentage of their compensation, as defined in the NSPs. The NSPs call for Company matching contributions on a sliding scale based on the level of the employee’s contribution. The obligations of the Company under such agreements to pay the deferred compensation in the future in accordance with the terms of the NSPs are unsecured general obligations of the Company. Participants have no right, interest or claim in the assets of the Company, except as unsecured general creditors. The Company has established a rabbi trust to hold, invest and reinvest deferrals and contributions under the NSPs. If a change in control of the Company occurs, as defined in the NSPs, the Company will contribute an amount to the rabbi trust sufficient to pay the obligation owed to each participant. Deferred compensation in connection with the NSPs totaled $24.3 million at January 3, 2016. The Company invests the deferrals in insurance instruments with readily determinable cash surrender values. Foreign Defined Benefit Plans The Company has trusteed defined benefit retirement plans which cover many of its European employees. The benefits are generally based on years of service and the employee’s average monthly compensation. Pension expense was $2.1 million, $0.1 million and $1.0 million for the years 2015, 2014 and 2013, respectively. Plan assets are primarily invested in equity and fixed income securities. The Company uses a year-end measurement date for the plans. As of January 3, 2016, for the European plans, the Company had a net liability recorded of $4.4 million, an amount equal to their underfunded status, and has recorded in Other Comprehensive Income an amount equal to $39.1 million (net of taxes) related to the future amounts to be recorded in net post-retirement benefit costs. The tables presented below set forth the funded status of the Company’s significant foreign defined benefit plans and required disclosures in accordance with applicable accounting standards FISCAL YEAR 2015 2014 (in thousands) Change in benefit obligation Benefit obligation, beginning of year $ 275,762 $ 251,181 Service cost 1,061 705 Interest cost 8,384 10,563 Benefits and expenses paid (10,004 ) (9,542 ) Actuarial loss (gain) (13,591 ) 41,631 Member contributions 239 294 Currency translation adjustment (18,134 ) (19,070 ) Benefit obligation, end of year $ 243,717 $ 275,762 FISCAL YEAR 2015 2014 (in thousands) Change in plan assets Plan assets, beginning of year $ 261,026 $ 253,761 Actual return on assets 753 29,280 Company contributions 5,001 5,815 Benefits paid (10,004 ) (9,542 ) Currency translation adjustment (17,496 ) (18,288 ) Plan assets, end of year $ 239,280 $ 261,026 Reconciliation to balance sheet Funded status benefit asset/(liability) $ (4,437 ) $ (14,736 ) Net amount recognized $ (4,437 ) $ (14,736 ) Amounts recognized in accumulated other comprehensive income (after tax) Unrecognized actuarial loss $ 39,411 $ 45,836 Unamortized prior service costs (347 ) (423 ) Total amount recognized $ 39,064 $ 45,413 The above disclosure represents the aggregation of information related to the Company’s two defined benefit plans which cover many of its European employees. As of January 3, 2016 and December 28, 2014, one of these plans, which primarily covers certain employees in the United Kingdom (the “UK Plan”), had an accumulated benefit obligation in excess of the plan assets. The other plan, which covers certain employees in Europe (the “Europe Plan”), had assets in excess of the accumulated benefit obligation. The following table summarizes this information as of January 3, 2016 and December 28, 2014. 2015 2014 (in thousands) UK Plan Projected Benefit Obligation $ 168,178 $ 190,303 Accumulated Benefit Obligation 168,178 190,303 Plan Assets 167,360 179,205 Europe Plan Projected Benefit Obligation $ 75,539 $ 85,459 Accumulated Benefit Obligation 71,005 81,353 Plan Assets 71,920 81,821 FISCAL YEAR 2015 2014 2013 (in thousands) Components of net periodic benefit cost Service cost $ 1,061 $ 705 $ 804 Interest cost 8,384 10,563 9,610 Expected return on plan assets (8,764 ) (11,904 ) (10,150 ) Amortization of prior service cost 33 19 89 Recognized net actuarial (gains)/losses 1,359 648 684 Net periodic benefit cost $ 2,073 $ 31 $ 1,037 For 2016, it is estimated that approximately $1.1 million of expenses related to the amortization of unrecognized items will be included in the net periodic benefit cost. During 2015, other comprehensive income was impacted by approximately $6.4 million comprised of actuarial gain of approximately $5.5 million and amortization of $0.9 million. FISCAL YEAR 2015 2014 20 13 Weighted average assumptions used to determine net periodic benefit cost Discount rate 3.0 % 4.0 % 4.0 % Expected return on plan assets 4.0 % 4.2 % 4.7 % Rate of compensation 2.0 % 2.0 % 2.0 % Weighted average assumptions used to determine benefit obligations Discount rate 3.4 % 3.2 % 4.25 % Rate of compensation 2.0 % 2.0 % 2.0 % The expected long-term rate of return on plan assets assumption is based on weighted average expected returns for each asset class. Expected returns reflect a combination of historical performance analysis and the forward-looking views of the financial markets, and include input from actuaries, investment service firms and investment managers. The Company’s foreign defined benefit plans’ fair value of plan assets were in excess of the accumulated benefit obligations. The projected benefit obligations, accumulated benefit obligations and fair value of these plans are as follows: FISCAL YEAR 2015 2014 (in thousands) Projected benefit obligation $ 243,717 $ 275,762 Accumulated benefit obligations 239,183 271,656 Fair value of plan assets 239,280 261,026 The investment objectives of the foreign defined benefit plans are to maximize the return on the investments without exceeding the limits of the prudent pension fund investment, to ensure that the assets would be sufficient to exceed minimum funding requirements, and to achieve a favorable return against the performance expectation based on historic and projected rates of return over the short term. The goal is to optimize the long-term return on plan assets at a moderate level of risk, by balancing higher-returning assets, such as equity securities, with less volatile assets, such as fixed income securities. The assets are managed by professional investment firms and performance is evaluated periodically against specific benchmarks. The plans’ net assets did not include the Company’s own stock at January 3, 2016 or December 28, 2014. The Company’s actual weighted average asset allocations for 2015 and 2014, and the targeted asset allocation for 2016, of the foreign defined benefit plans by asset category, are as follows: FISCAL YEAR 2016 2015 2014 Target Allocation Percentage of Plan Assets at Year End Asset Category: Equity Securities 45% - 55% 49 % 63 % Debt and Debt Securities 35% - 45% 41 % 34 % Other 0% - 10% 10 % 3 % 100% 100 % 100 % Fair Value Measurements of Plan Assets Accounting standards establish a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure estimated fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under applicable accounting standards are described below: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Inputs to the valuation methodology include: ● quoted prices for similar assets in active markets; ● quoted prices for identical or similar assets in inactive markets; ● inputs other than quoted prices that are observable for the asset; and ● inputs that are derived principally or corroborated by observable data by correlation or other means. Level 3 Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. The following table sets forth by level within the fair value hierarchy the foreign defined benefit plans’ assets at fair value, as of January 3, 2016 and December 28, 2014. As required by accounting standards, assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Pension Plan Assets by Category as of January 3, 2016 Europe Plan UK Plan Total (in thousands) Level 1 $ 71,920 $ 93,846 $ 165,766 Level 2 0 59,228 59,228 Level 3 0 14,286 14,286 Total $ 71,920 $ 167,360 $ 239,280 Pension Plan Assets by Category as of December 28, 2014 Europe Plan UK Plan Total (in thousands) Level 1 $ 81,821 $ 173,271 $ 255,092 Level 2 0 0 0 Level 3 0 5,934 5,934 Total $ 81,821 $ 179,205 $ 261,026 The tables below detail the foreign defined benefit plans’ assets by asset allocation and fair value hierarchy: 2015 Level 1 Level 2 Level 3 (in thousands) Asset Class Equity Securities $ 117,889 $ 0 $ 0 Debt and Debt Securities 45,953 41,725 9,576 Other (including cash) 1,924 17,503 4,710 $ 165,766 $ 59,228 $ 14,286 2014 Level 1 Level 2 Level 3 (in t housands) Asset Class Equity Securities $ 171,224 $ 0 $ 0 Debt and Debt Securities 81,821 0 0 Other (including cash) 2,047 0 5,934 $ 255,092 $ 0 $ 5,934 The assets identified as level 3 above in 2015 relate to insured annuities and direct lending assets held by the UK Plan. The fair value of these assets was calculated using the present value of the future cash flows due under the insurance annuities and for the direct lending assets the value is based on the asset value from the latest available valuation with adjustments for any drawdowns and distribution payments made between the valuation date and the reporting date. The table below indicates the change in value related to these level 3 assets during 2015: 2015 (in thousands) Balance of level 3 assets, beginning of year $ 5,934 Interest cost 199 Benefits paid (776 ) Assets transferred in to Level 3 9,877 Actuarial loss (367 ) Translation adjustment (581 ) Ending Balance of level 3 assets $ 14,286 During 2016, the Company expects to contribute $5.0 million to the plan trust. It is anticipated that future benefit payments for the foreign defined benefit plans will be as follows: FISCAL YEAR EXPECTED PAYMENTS (in thousands) 2016 $ 8,726 2017 8,936 2018 9,268 2019 9,518 2020 9,797 2021 - 2025 44,925 Domestic Defined Benefit Plan The Company maintains a domestic nonqualified salary continuation plan (“SCP”), which is designed to induce selected officers of the Company to remain in the employ of the Company by providing them with retirement, disability and death benefits in addition to those which they may receive under the Company’s other retirement plans and benefit programs. The SCP entitles participants to: (i) retirement benefits upon normal retirement at age 65 (or early retirement as early as age 55) after completing at least 15 years of service with the Company (unless otherwise provided in the SCP), payable for the remainder of their lives (or, if elected by a participant, a reduced benefit is payable for the remainder of the participant’s life and any surviving spouse’s life) and in no event less than 10 years under the death benefit feature; (ii) disability benefits payable for the period of any total disability; and (iii) death benefits payable to the designated beneficiary of the participant for a period of up to 10 years. Benefits are determined according to one of three formulas contained in the SCP, and the SCP is administered by the Compensation Committee of the Company’s Board of Directors, which has full discretion in choosing participants and the benefit formula applicable to each. The Company’s obligations under the SCP are currently unfunded (although the Company uses insurance instruments to hedge its exposure thereunder). The Company is required to contribute the present value of its obligations thereunder to an irrevocable grantor trust in the event of a change in control as defined in the SCP. The Company uses a year-end measurement date for the domestic SCP. The tables presented below set forth the required disclosures in accordance with applicable accounting standards, and amounts recognized in the consolidated financial statements related to the domestic SCP. FISCAL YEAR 2015 2014 (in thousands) Change in benefit obligation Benefit obligation, beginning of year $ 24,016 $ 20,947 Service cost 594 500 Interest cost 1,113 1,071 Benefits paid (847 ) (847 ) Actuarial loss (gain) 984 2,345 Benefit obligation, end of year $ 25,860 $ 24,016 The amounts recognized in the consolidated balance sheets are as follows: 2015 2014 (in thousands) Current liabilities $ 1,009 $ 847 Non-current liabilities 24,850 23,169 $ 25,859 $ 24,016 The components of the amounts in accumulated other comprehensive income, after tax, are as follows: 2015 2014 (in thousands) Unrecognized actuarial loss $ 4,226 $ 3,949 The accumulated benefit obligation related to the SCP was $23.6 million and $20.3 million as of January 3, 2016 and December 28, 2014, respectively. The SCP is currently unfunded; as such, the benefit obligations disclosed are also the benefit obligations in excess of the plan assets. The Company uses insurance instruments to help limit its exposure under the SCP. 2015 2014 2013 (in thousands, except for assumptions) Assumptions used to determine net periodic benefit cost Discount rate 4.0 % 4.5 % 4.0 % Rate of compensation 4.0 % 4.0 % 4.0 % Assumptions used to determine benefit obligations Discount rate 4.25 % 4.0 % 4.5 % Rate of compensation 4.0 % 4.0 % 4.0 % Components of net periodic benefit cost Service cost $ 594 $ 500 $ 534 Interest cost 1,113 1,072 997 Amortizations 522 291 489 Net periodic benefit cost $ 2,229 $ 1,863 $ 2,020 The changes in other comprehensive income during 2015 related to this Plan were approximately $0.3 million, after tax, primarily comprised of a net loss during the period of $0.6 million and amortization of loss of $0.3 million. For 2016, the Company estimates that approximately $0.8 million of expenses related to the amortization of unrecognized items will be included in net periodic benefit cost for the SCP. During 2015, the Company contributed $0.8 million in the form of direct benefit payments for its domestic SCP. It is anticipated that future benefit payments for the SCP will be as follows: FISCAL YEAR EXPECTED PAYMENTS (in thousands) 2016 $ 1,009 2017 1,124 2018 1,124 2019 1,124 2020 2,108 2021-2025 11,409 |