Harris Teeter 2007 Annual Report Download - page 53

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RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
Geographic information for the Company’s fiscal years is based on the operating locations where the items
were produced or distributed as follows (in thousands):
2007 2006 2005
Net Revenues – Domestic United States . . . . . . . . . . . . . . . . $ 3,454,198 $ 3,089,776 $ 2,796,321
Net Revenues – Foreign . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 185,010 176,080 168,334
$ 3,639,208 $ 3,265,856 $ 2,964,655
Net Long-Lived Assets – Domestic United States . . . . . . . . $ 860,493 $ 726,128 $ 599,688
Net Long-Lived Assets – Foreign . . . . . . . . . . . . . . . . . . . . . 41,990 42,748 38,866
$ 902,483 $ 768,876 $ 638,554
EMPLOYEE BENEFIT PLANS
The Company maintains certain retirement benefit plans for substantially all domestic full-time employees
and supplemental retirement benefit plans for certain selected officers of the Company and its subsidiaries.
There is a qualified pension plan which is a non-contributory, funded defined benefit plan and a non-qualified
supplemental pension plan for executives which is an unfunded, defined benefit plan. The Company’s Board of
Directors approved changes to the Company’s retirement plans which generally became effective on October
1, 2005. Changes included the freezing of participation and benefit accruals under the Company-sponsored
defined benefit plan effective September 30, 2005 for all participants, with certain transition benefits provided
to those participants that have achieved specified age and service levels on December 31, 2005. Other changes
included the freezing of participation in and the cessation of Company contributions after December 31, 2005,
to the Company’s Employee Stock Ownership Plan (“ESOP”). In addition, enhancements were made to the
Company’s defined contribution plan that includes additional Company contributions to individual employee
accounts. As a result of these changes, participants in the ESOP as of September 30, 2005 became fully vested
in their ESOP account balances. The Company believes that the changes will result in better predictability of
expenses in future years as well as result in expense reductions compared to what is expected to occur under the
plans before the changes.
Substantially all domestic full-time employees of the Company and its subsidiaries participated in a non-
contributory defined benefit pension plan prior to October 1, 2005, depending upon meeting eligibility criteria.
Employees in foreign subsidiaries participate to varying degrees in local pension plans, which, in the aggregate,
are not significant. The Company also has an unfunded, non-qualified supplemental executive retirement plan
for certain officers. Employee retirement benefits under the various plans are a function of both the years of
service and compensation for a specified period of time before retirement. The Company’s current funding
policy for its qualified pension plan is to contribute annually the amount required by regulatory authorities to
meet minimum funding requirements and an amount to increase the funding ratios over future years to a level
determined by its actuaries to be effective in reducing the volatility of contributions.
The Company adopted FASB Statement No. 158, “Employers’ Accounting for Defined Benefit Pension
and Other Postretirement Plans” as of the end of fiscal 2007. SFAS No. 158 required the Company to recognize
the funded status of its defined benefit pension plans based on the projected benefit obligation and measure the
benefit obligation for postretirement benefit plans based on the accumulated benefit obligation. The adoption
of the new standard effectively increased pension and other long-term liabilities by $40.3 million, reduced
shareholders’ equity (increased accumulated other comprehensive income (loss)) by $24.9 million, increased
deferred tax benefits by $16.1 million and reduced intangible assets by $0.7 million. However, due to an increase