Pension and Other Post-Retirement Benefit Matters Pension and Other Postretirement Benefits Disclosure | 12 Months Ended |
Oct. 31, 2013 |
Employee Benefit Plans [Abstract] | ' |
Employee Benefit Plans [Text Block] | ' |
Employee Benefit Plans |
The Company maintains pension plans covering its eligible employees. The Company also provides an unfunded postretirement health care benefit plan for approximately 22 retirees and their dependents. The measurement date for the Company's employee benefit plans coincides with its fiscal year end, October 31. |
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Obligations and Funded Status |
At October 31 |
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| Pension Benefits | | Other Post Retirement Benefits | | | | | | | | | | | |
| 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | | | |
Change in benefit obligation: | | | | | | | | | | | | | | | | | | |
Benefit obligation at beginning of year | $ | (88,665 | ) | | $ | (75,292 | ) | | $ | (940 | ) | | $ | (935 | ) | | | | | | | | | | | |
Interest cost | (3,260 | ) | | (3,683 | ) | | (34 | ) | | (45 | ) | | | | | | | | | | | |
Settlements | 2,271 | | | — | | | — | | | — | | | | | | | | | | | | |
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Actuarial gain (loss) | 835 | | | (13,186 | ) | | 45 | | | 18 | | | | | | | | | | | | |
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Benefits paid | 3,691 | | | 3,496 | | | 35 | | | 22 | | | | | | | | | | | | |
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Benefit obligation at end of year | (85,128 | ) | | (88,665 | ) | | (894 | ) | | (940 | ) | | | | | | | | | | | |
Change in plan assets: | | | | | | | | | | | | | | | | | | |
Fair value of plan assets at beginning of year | 53,230 | | | 46,218 | | | — | | | — | | | | | | | | | | | | |
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Actual return on plan assets | 8,542 | | | 4,601 | | | — | | | — | | | | | | | | | | | | |
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Employer contributions | 5,146 | | | 5,907 | | | 35 | | | 22 | | | | | | | | | | | | |
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Settlement | (2,271 | ) | | — | | | — | | | — | | | | | | | | | | | | |
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Benefits paid | (3,691 | ) | | (3,496 | ) | | (35 | ) | | (22 | ) | | | | | | | | | | | |
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Fair value of plan assets at end of year | 60,956 | | | 53,230 | | | — | | | — | | | | | | | | | | | | |
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Funded status, benefit obligations in excess of plan assets | $ | (24,172 | ) | | $ | (35,435 | ) | | $ | (894 | ) | | $ | (940 | ) | | | | | | | | | | | |
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The above amounts are recorded in the liabilities section of the consolidated balance sheets as follows: |
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| Pension Benefits | | Other Post Retirement Benefits | | | | | | | | | | | |
| 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | | | |
Other accrued expenses | $ | (3,650 | ) | | $ | (3,480 | ) | | $ | (99 | ) | | $ | (92 | ) | | | | | | | | | | | |
Long-term benefit liabilities | (20,522 | ) | | (31,955 | ) | | (795 | ) | | (848 | ) | | | | | | | | | | | |
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Total | $ | (24,172 | ) | | $ | (35,435 | ) | | $ | (894 | ) | | $ | (940 | ) | | | | | | | | | | | |
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Components of Net Periodic Benefit Cost | | | | | | | | | | | | | | | | | | |
| | Pension Benefits | | Other Post Retirement Benefits | | | | | | | | | | |
| | 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | | |
Interest cost | | $ | 3,260 | | | $ | 3,683 | | | $ | 34 | | | $ | 45 | | | | | | | | | | | |
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Expected return on plan assets | | (3,735 | ) | | (3,251 | ) | | — | | | — | | | | | | | | | | | |
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Settlement | | 1,102 | | | — | | | — | | | — | | | | | | | | | | | |
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Amortization of net actuarial loss | | 1,392 | | | 1,040 | | | 48 | | | 54 | | | | | | | | | | | |
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Net periodic benefit cost | | $ | 2,019 | | | $ | 1,472 | | | $ | 82 | | | $ | 99 | | | | | | | | | | | |
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As part of a strategy to remove liability risk and reduce payments to the Pension Benefit Guaranty Corporation, the Company elected to allow lump sum distributions from the defined benefit pension plans, of which approximately 200 former employees elected and received distributions during fiscal 2013, removing $2,271 in liability from the plan. The FASB requires a special accounting charge for settling pension obligations in this manner. During fiscal year 2013, the Company incurred $1,102 in expense for this settlement charge. |
The Company expects to recognize in the consolidated statement of income the following amounts that will be amortized from accumulated other comprehensive income in fiscal 2014. |
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| Pension Benefits | | Other | | | | | | | | | | | | | | | | | | | | | | | |
Post Retirement | | | | | | | | | | | | | | | | | | | | | | | |
Benefits | | | | | | | | | | | | | | | | | | | | | | | |
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Amortization of net actuarial loss | $1,074 | | $41 | | | | | | | | | | | | | | | | | | | | | | | |
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The Company has recognized the following cumulative pre-tax actuarial losses, prior service costs and transition obligations in accumulated other comprehensive income: |
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| Pension Benefits | | Other Post Retirement Benefits | | | | | | | | | | | |
| 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | | | |
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Net actuarial loss | $ | 41,280 | | | $ | 49,415 | | | $ | 679 | | | $ | 772 | | | | | | | | | | | | |
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Accumulated other comprehensive income | $ | 41,280 | | | $ | 49,415 | | | $ | 679 | | | $ | 772 | | | | | | | | | | | | |
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Additional Information |
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| Pension Benefits | | Other Post Retirement Benefits | | | | | | | | | | | |
| 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | | | |
Increase (decrease) in minimum liability included in other comprehensive income | $ | 8,135 | | | $ | (10,796 | ) | | $ | 93 | | | $ | 72 | | | | | | | | | | | | |
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Assumptions |
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Weighted-average assumptions used | | Pension Benefits | | Other Post Retirement Benefits | | | | | | | | | | | | | | |
to determine benefit obligations at October 31 | | 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | | | | | | |
Discount rate | | 4.5 | % | | 3.75 | % | | 4.5 | % | | 3.75 | % | | | | | | | | | | | | | | |
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| | Pension Benefits | | Other Post Retirement Benefits | | | | | | | | | | | | | | |
Weighted-average assumptions used to determine net | | 2013 | | 2012 | | 2013 | | 2012 | | | | | | | | | | | | | | |
periodic benefit costs for years ended October 31 | | | | | | | | | | | | | | |
Discount rate | | 3.75 | % | | 5 | % | | 3.75 | % | | 5 | % | | | | | | | | | | | | | | |
Expected long-term return on plan assets | | 7.5 | % | | 7.5 | % | | — | | | — | | | | | | | | | | | | | | | |
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These assumptions are used to develop the projected obligation at fiscal year end and to develop net periodic benefit cost for the subsequent fiscal year. Therefore, for fiscal 2013, the assumptions used to determine net periodic benefit costs were established at October 31, 2012, while the assumptions used to determine the benefit obligations were established at October 31, 2013. |
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The Company uses the Principal Pension Discount Yield Curve ("Principal Curve") as the basis for determining the discount rate for reporting pension and retiree medical liabilities. The Principal Curve has several advantages to other methods, including: transparency of construction, lower statistical errors, and continuous forward rates for all years. At October 31, 2013 the discount rate from the use of the Principal Curve was 4.50%, an increase of 0.75% from a year ago that resulted in a decrease of the benefit obligation of approximately $4,470. |
The Company determines the annual rate of return on pension assets by first analyzing the composition of its asset portfolio. Historical rates of return are applied to the portfolio. The Company's outside investment advisors and actuaries review the computed rate of return. Industry comparables and other outside guidance are also considered in the annual selection of the expected rates of return on pension assets. The long-term expected rate of return on plan assets takes into account years with exceptional gains and years with exceptional losses. |
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Assumed health care trend rates at October 31 | | 2013 | 2012 | | | | | | | | | | | | | | | | | | | | | | | |
Health care cost trend rate assumed for next year | | 7.00% | 8.00% | | | | | | | | | | | | | | | | | | | | | | | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) | | 6.50% | 7.50% | | | | | | | | | | | | | | | | | | | | | | | |
Year that the rate reaches the ultimate trend rate | | 2015 | 2014 | | | | | | | | | | | | | | | | | | | | | | | |
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Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plan. The Company's trend rate was based on reduced health care claims experienced by a small and declining retiree population. A one-percentage point change in assumed healthcare cost trend rates would have the following effects at October 31, 2013: |
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| One-Percentage | | One-Percentage | | | | | | | | | | | | | | | | | | | |
Point Increase | Point Decrease | | | | | | | | | | | | | | | | | | | |
Effect on total of service and interest cost components | $ | 5 | | | $ | (4 | ) | | | | | | | | | | | | | | | | | | | |
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Effect on post retirement obligation | $ | 45 | | | $ | (40 | ) | | | | | | | | | | | | | | | | | | | |
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Plan Assets |
The Company has established a targeted asset allocation percentage by asset category and rebalances the assets of each plan when pension contributions are funded. The Company's pension plan weighted-average asset allocations at October 31, 2013 and 2012, by asset category and comparison to the target allocation percentage are as follows: |
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| Target | Plan Assets at October 31, | | | | | | | | | | | | | | | | | | | | | | |
Allocation | | | | | | | | | | | | | | | | | | | | | | |
Percentage | 2013 | | 2012 | | | | | | | | | | | | | | | | | | | | | | |
Asset Category | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity securities | 0-70% | 60% | | 56% | | | | | | | | | | | | | | | | | | | | | | |
Debt securities | 0-70% | 34% | | 38% | | | | | | | | | | | | | | | | | | | | | | |
Real estate | 0-10% | 6% | | 6% | | | | | | | | | | | | | | | | | | | | | | |
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Total | | 100% | | 100% | | | | | | | | | | | | | | | | | | | | | | |
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The Company's investment policy for assets of the plans is to obtain a reasonable long-term return consistent with the level of risk assumed. The Company also seeks to control the cost of funding the plans within prudent levels of risk through the investment of plan assets and the Company seeks to provide diversification of assets in an effort to avoid the risk of large losses and to maximize the return to the plans consistent with market and economic risk. |
Fair Value |
The plans' investments are reported at fair value. Purchases and sales of securities are recorded on a trade‑date basis. Dividends are recorded on the ex‑dividend date. |
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Fair value is the price that would be received by the plans for an asset or paid by the plans to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date in the plans' principal or most advantageous market for the asset or liability. Fair value measurements are determined by maximizing the use of observable inputs and minimizing the use of unobservable inputs when measuring fair value. The hierarchy places the highest priority on unadjusted quoted market prices in active markets for identical assets or liabilities (level 1 measurements) and gives the lowest priority to unobservable inputs (level 3 measurements). The three levels of inputs within the fair value hierarchy are defined as follows: |
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Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the plans have the ability to access as of the measurement date. |
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Level 2: Significant other observable inputs other than level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |
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Level 3: Significant unobservable inputs that reflect the plans' own assumptions about the assumptions that market participants would use in pricing an asset or liability. |
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In some cases, a valuation technique used to measure fair value may include inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy. |
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The following descriptions of the valuation methods and assumptions used by the plans to estimate the fair values of investments apply to investments held directly by the plans. |
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Mutual funds: The fair values of mutual fund investments are determined by obtaining quoted prices on nationally recognized securities exchanges (level 1 inputs). |
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Pooled separate accounts: The fair values of participation units held in pooled separate accounts are based on their net asset values, as reported by the managers of the pooled separate accounts as supported by the unit prices of actual purchase and sale transactions occurring as of or close to the financial statement date (level 2 inputs). With the exception of the Principal U.S. Property Separate Account, a fund sponsored by Principal Financial Group, investment and actuarial advisors of the Company, each of the pooled separate accounts invests in multiple securities. With the exception of the Principal U.S. Property Separate Account, each pooled separate account provides for daily redemptions by the plans with no advance notice requirements, and has redemption prices that are determined by the fund's net asset value per unit. Due to illiquidity of the underlying assets of the Principal U.S. Property Separate Account, which is an open-end, commingled real estate account and a separate account of Principal Life Insurance Company (Principal), Principal has imposed a withdrawal limitation which delays the payment of withdrawal requests and provides for payment of such requests on a pro rata basis as cash becomes available for distribution, as determined by Principal. |
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The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. |
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Investments totaling $60,956 at October 31, 2013 and $53,230 at October 31, 2012 measured at fair value on a recurring basis are summarized below: |
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| | | | Fair Value Measurements | | Fair Value Measurements |
| | | | at October 31, 2013 Using | | at October 31, 2012 Using |
| | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | | | Quoted Prices in Active Markets for Identical Assets (Level 1) | | Significant Other Observable Inputs (Level 2) | | |
| | | | | | Significant Unobservable Inputs (Level 3) | | | | Significant Unobservable Inputs (Level 3) |
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Investments | | | | | | | | | | | | |
| Equity | | | | | | | | | | | | |
| | Large U.S. Equity | | $ | 9,289 | | | $ | 12,344 | | | $ | — | | | $ | 7,805 | | | $ | 10,027 | | | $ | — | |
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| | Small/Mid U.S. Equity | | 5,488 | | | 2,437 | | | — | | | 2,632 | | 3,710 | | — | |
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| | International Equity | | 7,316 | | | — | | | — | | | 5,347 | | — | | | — | |
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| Fixed Income | | | | | | | | | | | | |
| | Government | | — | | | 278 | | | — | | | — | | | 281 | | — | |
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| | Corporate | | 13,933 | | | 6,270 | | | — | | | 10,775 | | 9,414 | | — | |
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| Real Estate (Primarily Commercial) | | — | | | 3,600 | | | — | | | — | | | — | | | 3,239 | |
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Total Investments | | $ | 36,026 | | | $ | 24,929 | | | $ | — | | | $ | 26,559 | | | $ | 23,432 | | | $ | 3,239 | |
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The table below presents a reconciliation of all investments measured at fair value on a recurring basis using significant unobservable inputs (level 3) for the years ended October 31, 2013 and 2012, including the reporting classifications for the applicable gains and losses. |
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| | Fair Value Measurements Using Significant Unobservable Inputs | | | | | | | | | | | | | | | | | | | | | |
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| | (Level 3) | | | | | | | | | | | | | | | | | | | | | |
| | Pooled Separate Account-Real Estate | | | | | | | | | | | | | | | | | | | | | |
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1-Nov-11 | | | $2,523 | | | | | | | | | | | | | | | | | | | | | | |
Total unrealized gains or losses included in change in net assets available for benefits of | | | | | | | | | | | | | | | | | | | | | | | | | |
the plans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unrealized appreciation relating to assets held at end of year | | | 716 | | | | | | | | | | | | | | | | | | | | | | | |
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31-Oct-12 | | | 3,239 | | | | | | | | | | | | | | | | | | | | | | | |
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Total unrealized gains or losses included in change in net assets available for benefits of | | | | | | | | | | | | | | | | | | | | | | | | | |
the plans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Transfers out of Level 3 | | | (3,239 | ) | | | | | | | | | | | | | | | | | | | | | | |
31-Oct-13 | | | $0 | | | | | | | | | | | | | | | | | | | | | | |
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Cash Flows |
Contributions |
The Company expects to contribute $4,352 to its pension plans in fiscal 2014, compared to $5,146 funded in fiscal 2013. |
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Estimated Future Benefit Payments |
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the plans: |
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| Pension Benefits | | Other Benefits | | | | | | | | | | | | | | | |
2014 | | $ | 3,650 | | | | | $ | 99 | | | | | | | | | | | | | | | | | |
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2015 | | 3,880 | | | | | 92 | | | | | | | | | | | | | | | | | |
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2016 | | 3,970 | | | | | 88 | | | | | | | | | | | | | | | | | |
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2017 | | 4,240 | | | | | 78 | | | | | | | | | | | | | | | | | |
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2018 | | 4,110 | | | | | 71 | | | | | | | | | | | | | | | | | |
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2019-2023 | | 24,060 | | | | | 303 | | | | | | | | | | | | | | | | | |
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Defined Contribution Plans |
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In addition to the defined benefit plans described above, the Company maintains a number of defined contribution plans. Under the terms of the plans, eligible employees may contribute a selected percentage of their base pay. The Company matches a percentage of the employees' contributions up to a stated percentage, subject to statutory limitations. During fiscal 2007, the Company began automatically enrolling new employees in the defined contribution plan as well as automatically increasing employee contributions by 1% annually, unless the employee opts out of the enrollment or contribution increases. Additionally, the Company increased the match of employee contributions to 100% of the first 3% of employee deferrals, and to contribute an additional 50% of deferrals of 4-5% of employee contributions. The Company recorded an expense related to the matching program of $2,195 during fiscal 2013, compared to an expense of $1,620 during fiscal 2012. |