Baskin Robbins 2013 Annual Report Download - page 102

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-92-
The components of net pension expense were as follows (in thousands):
Fiscal year ended
December 28,
2013
December 29,
2012
December 31,
2011
Service cost $ — 262 222
Interest cost 216 333 340
Expected return on plan assets (263)(317)(306)
Amortization of net actuarial loss 74 76 54
Net pension expense $ 27 354 310
The amortization of net actuarial loss included in net pension expense above represents the amount reclassified from
accumulated other comprehensive income during the respective fiscal year. The table below summarizes other balances for
fiscal years 2013, 2012, and 2011 (in thousands):
Fiscal year ended
December 28,
2013
December 29,
2012
December 31,
2011
Change in benefit obligation:
Benefit obligation, beginning of year $ 8,349 6,050 6,042
Service cost — 262 222
Interest cost 216 333 340
Employee contributions —8881
Benefits paid (230)(275)(479)
Curtailment gain —(1,084)—
Actuarial loss (gain) 395 2,854 (95)
Foreign currency loss (gain), net (530) 121 (61)
Benefit obligation, end of year $ 8,200 8,349 6,050
Change in plan assets:
Fair value of plan assets, beginning of year $ 5,809 4,945 4,797
Expected return on plan assets 263 317 306
Employer contributions 626 662 798
Employee contributions —8881
Benefits paid (230)(275)(479)
Actuarial loss (371)(27)(505)
Foreign currency gain (loss), net (307)99(53)
Fair value of plan assets, end of year $ 5,790 5,809 4,945
Reconciliation of funded status:
Funded status $(2,410)(2,540)(1,105)
Net amount recognized at end of period $(2,410)(2,540)(1,105)
Amounts recognized in the balance sheet consist of:
Accrued benefit cost $(2,410)(2,540)(1,105)
Net amount recognized at end of period $(2,410)(2,540)(1,105)
The investments of the Canadian Pension Plan consisted of a long-term bond fund and a short-term investment fund at
December 28, 2013, and a pooled investment fund at December 29, 2012. These funds are comprised of numerous underlying
investments and are valued at the unit fair value supplied by the funds' administrators, which represent the funds' proportionate
share of underlying net assets at market value determined using closing market prices. The funds are 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 Canadian Pension Plan's investment strategy is to mitigate fluctuations in the wind-up deficit of the plan by holding assets
whose fluctuation in fair value will approximate that of the benefit obligation. The Canadian Pension Plan assumes a