Pension and Other Postretirement Benefits Disclosure [Text Block] | (1 1 ) Employee Benefit Plans Retirement plans . During the second quarter of 2016, we notified plan participants of our intent to terminate the Delaware Plan effective May 1, 2016. During September 2016, the Delaware Plan settled plan liabilities through either lump sum distributions to plan participants or annuity contracts purchased from a third-party insurance company that provided for the payment of vested benefits to those participants that did not elect the lump sum option. As of October 1, 2016, there were no remaining plan assets. We made contributions totaling $1.9 million, $234,000 and $240,000 to the Delaware Plan during 2016, 2015 and 2014, respectively. As a result of the pension termination, unrecognized losses, which previously were recorded in accumulated other comprehensive loss on our consolidated balance sheets, were recognized as expense and the pension plan settlement loss of $2.5 million was recorded on our consolidated statements of operations for the year ended October 1, 2016. The reconciliation of the projected benefit obligation, plan assets, funded status and amounts recognized in our consolidated balance sheets for the Delaware Plan is as follows: Year Ended October 1, October 3, September 27, (In thousands) 2016 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 3,463 $ 3,078 $ 2,973 Interest cost 147 130 137 Actuarial loss 324 514 174 Plan settlement 290 - - Distributions (4,224 ) (259 ) (206 ) Benefit obligation at end of year $ - $ 3,463 $ 3,078 Change in plan assets: Fair value of plan assets at beginning of year $ 2,201 $ 2,253 $ 2,045 Actual return on plan assets 104 (27 ) 178 Employer contributions 1,919 234 240 Plan settlement (4,003 ) - - Distributions (221 ) (259 ) (210 ) Fair value of plan assets at end of year $ - $ 2,201 $ 2,253 Reconciliation of funded status to net amount recognized: Funded status $ - $ (1,263 ) $ (825 ) Net amount recognized $ - $ (1,263 ) $ (825 ) Amounts recognized on the consolidated balance sheet: Accrued benefit liability $ - $ (1,263 ) $ (825 ) Accumulated other comprehensive loss (net of tax) - 1,197 782 Net amount recognized $ - $ (66 ) $ (43 ) Amounts recognized in accumulated other Unrecognized net loss $ - $ 1,930 $ 1,261 Net amount recognized $ - $ 1,930 $ 1,261 Other changes in plan assets and benefit obligations Net loss $ 685 $ 723 $ 165 Amortization of net loss (76 ) (53 ) (43 ) Settlement loss (2,539 ) - - Total recognized in other comprehensive income (loss) $ (1,930 ) $ 670 $ 122 Net periodic pension cost for the Delaware Plan includes the following components: Year Ended October 1, October 3, September 27, (In thousands) 2016 2015 2014 Interest cost $ 147 $ 130 $ 137 Expected return on plan assets (175 ) (181 ) (165 ) Settlement loss recognized 2,539 - - Amortization of net loss 76 53 43 Net periodic pension cost $ 2,587 $ 2 $ 15 The assumptions used in the valuation of the Delaware Plan are as follows: Measurement Date October 1, 2016 October 3, 2015 September 27, 2014 Assumptions at year-end: Discount rate 3.75 % 4.25 % 4.25 % Expected long-term rate of return on assets N/A 8.00 % 8.00 % The assumed discount rate is established as of our fiscal year-end measurement date. In establishing the discount rate, we reviewed published market indices of high-quality debt securities, adjusted as appropriate for duration, and high-quality bond yield curves applicable to the expected benefit payments of the Delaware Plan. To develop the expected long-term rate of return on assets assumption, we considered the historical returns and future expectations of returns for each asset class, as well as the target asset allocation of the Delaware Plan portfolio. Prior to the termination and settlement of the Delaware Plan the fundamental goal underlying the investment policy was to ensure that its assets were invested in a prudent manner to meet its obligations as such obligations became due. The primary investment objectives included providing a total return that would promote the goal of benefit security by attaining an appropriate ratio of plan assets to plan obligations, diversifying investments across and within asset classes, minimizing the impact of losses in single investments and adhering to investment practices that complied with applicable laws and regulations. The investment strategy for equities emphasized U.S. large cap equities with the portfolio’s performance measured against the S&P 500 index or other applicable indices. The investment strategy for fixed income investments was focused on maintaining an overall portfolio with a minimum credit rating of A-1 as well as a minimum rating of any security at the time of purchase of Baa/BBB by Moody’s or Standard & Poor’s, if rated. The Delaware Plan had a long-term target asset mix of 60% equities and 40% fixed income. The asset allocations for the Delaware Plan in 2015 and 2014 were as follows: Percentage of Plan Assets at Measurement Date October 3, September 27, 2015 2014 Large-cap equities 37.6 % 36.6 % Mid-cap equities 7.7 % 7.4 % Small-cap equities 8.2 % 8.3 % International equities 8.8 % 8.8 % Fixed income securities 37.3 % 38.0 % Cash and cash equivalents 0.4 % 0.9 % As of October 3, 2015, the Delaware Plan’s assets included equity securities, fixed income securities and cash and cash equivalents, and were required to be measured at fair value. We used a three-tier hierarchy, which prioritizes the inputs used in measuring fair value, defined as follows: Level 1 - observable inputs such as quoted prices in active markets for identical assets and liabilities; Level 2 - inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3 - unobservable inputs in which little or no market data exists, thereby requiring the development of valuation assumptions. The fair values of the Delaware Plan’s assets as of October 3, 2015 were as follows: (In thousands) Total Quoted Prices in Active Markets (Level 1) Observable Inputs (Level 2) Unobservable Inputs (Level 3) Large-cap equities $ 828 $ 828 $ - $ - Mid-cap equities 169 169 - - Small-cap equities 181 181 - - International equities 195 195 - - Fixed income securities 820 820 - - Cash and cash equivalents 8 - 8 - Total $ 2,201 $ 2,193 $ 8 $ - Equity securities are primarily direct investments in the stock of publicly-traded companies that are valued based on the closing price reported in an active market on which the individual securities are traded. Fixed income securities are government and corporate debt securities that are valued based on the closing price reported in an active market on which the individual securities are traded. Cash and cash equivalents are money market funds that are valued based on the net asset value as determined by the fund each business day. Supplemental employee retirement plan. The reconciliation of the projected benefit obligation, plan assets, funded status and amounts recognized for the SERPs in our consolidated balance sheets is as follows: Year Ended (In thousands) October 1, 2016 October 3, 2015 September 27, 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 7,821 $ 7,480 $ 6,938 Service cost 263 287 219 Interest cost 326 323 315 Actuarial loss 1,039 21 298 Distributions (290 ) (290 ) (290 ) Benefit obligation at end of year $ 9,159 $ 7,821 $ 7,480 Change in plan assets: Actual employer contributions $ 290 $ 290 $ 290 Actual distributions (290 ) (290 ) (290 ) Plan assets at fair value at end of year $ - $ - $ - Reconciliation of funded status to net amount recognized: Funded status $ (9,159 ) $ (7,821 ) $ (7,480 ) Net amount recognized $ (9,159 ) $ (7,821 ) $ (7,480 ) Amounts recognized in accumulated other Unrecognized net loss $ 2,485 $ 1,531 $ 1,627 Net amount recognized $ 2,485 $ 1,531 $ 1,627 Other changes in plan assets and benefit obligations Net loss $ 1,039 $ 21 $ 298 Amortization of net loss (85 ) (117 ) (52 ) Total recognized in other comprehensive income (loss) $ 954 $ (96 ) $ 246 Net periodic pension cost for the SERPs includes the following components: Year Ended (In thousands) October 1, 2016 October 3, 2015 September 27, 2014 Service cost $ 263 $ 287 $ 219 Interest cost 326 323 315 Amortization of net loss 85 117 52 Net periodic pension cost $ 674 $ 727 $ 586 The estimated net loss that will be amortized from accumulated other comprehensive loss into net periodic pension cost during 2017 is $174,000. The assumptions used in the valuation of the SERPs are as follows: Measurement Date October 1, 2016 October 3, 2015 September 27, 2014 Assumptions at year-end: Discount rate 3.75 % 4.25 % 4.25 % Rate of increase in compensation levels 3.00 % 3.00 % 3.00 % The assumed discount rate is established as of our fiscal year-end measurement date. In establishing the discount rate, we review published market indices of high-quality debt securities, adjusted as appropriate for duration, and high-quality bond yield curves applicable to the expected benefit payments of the plan. The SERPs expected rate of increase in compensation levels is based on the anticipated increases in annual compensation. The projected benefit payments under the SERPs are as follows: Fiscal year(s) In thousands 2017 $ 290 2018 359 2019 321 2020 241 2021 241 2022- 2026 3,403 As noted above, the SERPs were revised in 2005 to add Participants and increase benefits to certain existing Participants. However, for certain Participants we still maintain the benefits of the respective SERPs that were in effect prior to the 2005 changes, which entitle them to fixed cash benefits upon retirement at age 65, payable annually for 15 years. These SERPs are supported by life insurance policies on the Participants that are purchased and owned by us. The cash benefits paid under these SERPs were $25,000 in 2016, 2015 and 2014. The expense attributable to these SERPs was $26,000 in 2016, $23,000 in 2015 and $16,000 in 2014. Retirement savings plan. The Plan allows for discretionary contributions to be made by us as determined by the Board of Directors, which are allocated among eligible participants based on their compensation relative to the total compensation of all participants . Voluntary Employee Beneficiary Associations (“VEBA”) |