Baskin Robbins 2015 Annual Report Download - page 99

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-89-
(18) Retirement plans
401(k) Plan
Employees of the Company, excluding employees of certain international subsidiaries and certain employees of company-
operated stores, are eligible to participate in a defined contribution retirement plan, the Dunkin’ Brands 401(k) Retirement Plan
(“401(k) Plan”), under Section 401(k) of the Internal Revenue Code. Under the 401(k) Plan, employees may contribute up to
80% of their pre-tax eligible compensation, not to exceed the annual limits set by the IRS. The 401(k) Plan allows the
Company to match participants’ contributions in an amount determined at the sole discretion of the Company. The Company
matched participants’ contributions during fiscal years 2015, 2014, and 2013, up to a maximum of 4% of the employee’s
eligible compensation. Employer contributions totaled $3.2 million for each of the fiscal years 2015 and 2014 and $3.1 million
for fiscal year 2013. The 401(k) Plan also provides for a discretionary contribution in addition to matching contributions. No
such discretionary contributions were made during fiscal years 2015, 2014, and 2013.
NQDC Plans
The Company, excluding employees of certain international subsidiaries, also offers certain qualifying individuals, as defined
by the Employee Retirement Income Security Act (“ERISA”), the ability to participate in the NQDC Plans. The NQDC Plans
allow for pre-tax contributions of up to 50% of a participant’s base annual salary and other forms of compensation, as defined.
The Company credits the amounts deferred with earnings and holds investments in company-owned life insurance to partially
offset the Company’s liabilities under the NQDC Plans. The NQDC Plans liability, included in other long-term liabilities in the
consolidated balance sheets, was $9.1 million and $8.5 million at December 26, 2015 and December 27, 2014, respectively. As
of December 26, 2015 and December 27, 2014, total investments held for the NQDC Plan were $5.8 million and $3.0 million,
respectively, and are included in other assets in the consolidated balance sheets.
Canadian Pension Plan
The Company sponsored a contributory defined benefit pension plan in Canada, The Baskin-Robbins Employees’ Pension Plan
(“Canadian Pension Plan”), which provided retirement benefits for the majority of its Canadian employees.
During fiscal year 2012, the Company’s board of directors approved a plan to close the Peterborough, Ontario, Canada
manufacturing plant, where the majority of the Canadian Pension Plan participants were employed. As a result of the closure,
the Company terminated the Canadian Pension Plan in fiscal year 2012, and the Financial Services Commission of Ontario
approved the termination of the plan in fiscal year 2014. During fiscal year 2015, the Company completed the final settlement
of the plan by funding the plan deficit and distributing substantially all plan assets through lump-sum distributions to
participants and the purchase of annuities. The settlement of the Canadian Pension Plan resulted in the recognition of a loss of
$4.1 million, which was reclassified from accumulated other comprehensive loss to general and administrative expenses, net
during fiscal year 2015.
(19) Related-party transactions
The Company recognized royalty income from its equity method investees as follows (in thousands):
Fiscal year ended
December 26,
2015
December 27,
2014
December 28,
2013
Japan JV $ 1,378 1,790 2,097
South Korea JV 4,288 4,602 4,156
Spain JV 68 123 130
$ 5,734 6,515 6,383
At December 26, 2015 and December 27, 2014, the Company had $1.1 million and $1.4 million, respectively, of royalties
receivable from its equity method investees, which were recorded in accounts receivable, net of allowance for doubtful
accounts, in the consolidated balance sheets.
The Company made net payments to its equity method investees totaling approximately $3.2 million, $2.6 million, and $3.8
million, in fiscal years 2015, 2014, and 2013, respectively, primarily for the purchase of ice cream products.
In prior fiscal years, the Company made loans of $2.7 million to the Spain JV, which were subsequently reserved (see note 6).
As of December 26, 2015 and December 27, 2014, the Company had $2.1 million and $2.5 million, respectively, of notes