Dunkin' Donuts 2012 Annual Report Download - page 98

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The table below summarizes other balances for fiscal years 2012, 2011, and 2010 (in thousands):
Fiscal year ended
December 29,
2012
December 31,
2011
December 25,
2010
Change in benefit obligation:
Benefit obligation, beginning of year $ 6,050 6,042 5,087
Service cost 262 222 155
Interest cost 333 340 316
Employee contributions 88 81 69
Benefits paid (275)(479)(218)
Curtailment gain (1,084)— —
Actuarial loss (gain) 2,854 (95) 417
Foreign currency loss (gain), net 121 (61) 216
Benefit obligation, end of year $ 8,349 6,050 6,042
Change in plan assets:
Fair value of plan assets, beginning of year $ 4,945 4,797 4,247
Expected return on plan assets 317 306 287
Employer contributions 662 798 310
Employee contributions 88 81 69
Benefits paid (275)(479)(218)
Actuarial loss (27)(505)(74)
Foreign currency gain (loss), net 99 (53) 176
Fair value of plan assets, end of year $ 5,809 4,945 4,797
Reconciliation of funded status:
Funded status $(2,540)(1,105)(1,245)
Net amount recognized at end of period $(2,540)(1,105)(1,245)
Amounts recognized in the balance sheet consist of:
Accrued benefit cost $(2,540)(1,105)(1,245)
Net amount recognized at end of period $(2,540)(1,105)(1,245)
The investments of the Canadian Pension Plan consisted of one pooled investment fund (“pooled fund”) at December 29, 2012
and December 31, 2011. The pooled fund is comprised of numerous underlying investments and is valued at the unit fair values
supplied by the fund’s administrator, which represents the fund’s proportionate share of underlying net assets at market value
determined using closing market prices. The pooled fund is considered Level 2, as defined by U.S. GAAP, because the inputs
used to calculate the fair value are derived principally from observable market data. The objective of the pooled fund is to
generate both capital growth and income, while maintaining a relatively low level of risk. To achieve its objectives, the pooled
fund invests in a number of underlying funds that have holdings in a number of different asset classes while also investing
directly in equities and fixed instruments issued from around the world. The Canadian Pension Plan assumes a concentration of
risk as it is invested in only one investment. The risk is mitigated as the pooled fund consists of a diverse range of underlying
investments. The allocation of the assets within the pooled fund consisted of the following:
December 29,
2012
December 31,
2011
Equity securities 60% 58%
Debt securities 39 39
Other 13