Harris Teeter 2012 Annual Report Download - page 49

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Managers are expected to generate a total return consistent with their philosophy, offer protection in down markets and
achieve a rate of return which ranks in the top 40% of a universe of similarly managed portfolios and outperform a target index,
net of expenses, over rolling three year periods.
The Investment Policy Statement contains the following guidelines:
- Categorical restrictions such as limiting the average weighted duration of fixed income investments, limiting
the aggregate amount of American Depository Receipts (ADRs), no direct foreign currency speculation,
limited foreign exchange contracts, and limiting the use of derivatives;
- Portfolio restrictions that address such things as investment restrictions, proxy voting, and brokerage
arrangements; and
- Asset class restrictions that address such things as single security or sector concentration, capitalization
limits and minimum quality standards.
The Company plans to contribute $20.0 million to the Pension Plan and approximately $1.3 million to the SERP during
fiscal 2013. The Company’s contribution to the SERP represents the benefit payments made during the fiscal year.
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid by the
Company’s defined benefit pension plans (in thousands):
Pension Plan SERP
2013 $27,986 $ 1,303
2014 29,126 2,441
2015 13,026 2,413
2016 13,944 2,520
2017 14,877 2,725
Years 2018-2022 89,680 19,586
The Savings Plan is a defined contribution retirement plan pursuant to Section 401(k) of the Internal Revenue Code, and
was authorized for the purpose of providing retirement benefits for employees of the Company. The Company provides a
matching contribution based on the amount of eligible compensation contributed by the associate and an automatic retirement
contribution based on age and years of service.
The Company has certain deferred compensation arrangements which allow, or allowed in prior years, its directors, officers
and selected key management personnel to forego the receipt of earned compensation for specified periods of time. These
arrangements include (1) a directors’ compensation deferral plan, funded in a rabbi trust, the benefit and payment under such
plan being made in the Company’s common stock that has historically been purchased on the open market, (2) a key management
deferral plan, unfunded, the benefit liability under such plan determined on the basis of the performance of selected market
investment indices, and (3) other compensation deferral arrangements, unfunded and only available to directors and select key
management in prior years, the benefit liability for which is determined based on fixed rates of interest.
Expense associated with the Savings Plan, deferred compensation arrangements and other plans for fiscal 2012, 2011 and
2010 were as follows (in thousands):
2012 2011 2010
Savings Plan $21,778 $20,584 $20,166
Deferred Compensation and other 1,256 945 1,416
HARRIS TEETER SUPERMARKETS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (CONTINUED)
45