Harris Teeter 2009 Annual Report Download - page 57

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53
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
EMPLOYEE BENEFIT PLANS
The Company maintains various retirement benefit plans for substantially all domestic full-time employees of the
Company and its subsidiaries. These plans include the Ruddick Retirement and Savings Plan (“Savings Plan”) which is
a defined contribution retirement plan, the Ruddick Corporation Employees’ Pension Plan (“Pension Plan”) which is a
qualified non-contributory defined benefit plan and the Supplemental Executive Retirement Plan (“SERP”) which is a
non-qualified supplemental defined benefit pension plan for certain executive officers. Effective September 30, 2005,
participation in the Pension Plan was closed to new entrants and frozen for all participants, with certain transition
benefits provided to those participants that have achieved specified age and service levels on December 31, 2005.
Substantially all domestic full-time employees of the Company and its subsidiaries participate in one of the
Company sponsored retirement plans. Employees in foreign subsidiaries participate to varying degrees in local pension
plans, which, in the aggregate, are not significant. Employee retirement benefits or Company contribution amounts
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 the 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’s fiscal year end is used as the measurement date for Company-sponsored defined benefit
plans. The following table sets forth the change in the benefit obligation and plan assets, as well as the funded status
and amounts recognized in the Company’s consolidated balance sheets at September 27, 2009 and September 28,
2008 for the Pension Plan and SERP (in thousands):
Pension Plan SERP
2009 2008 2009 2008
Change in benefit obligation:
Benefit obligation at the beginning of year ............ $ 228,719 $280,151 $ 27,450 $ 30,863
Service cost .................................... 310 1,588 664 822
Interest cost .................................... 18,181 17,010 2,119 1,889
Actuarial loss (Gain) ............................. 91,251 (58,932) 10,931 (4,889)
Special Termination Benefits ....................... 192 — — —
Benefits paid.................................... (11,217) (11,098) (1,235) (1,235)
Pension benefit obligation at end of year................. 327,436 228,719 39,929 27,450
Change in plan assets:
Fair value of assets at the beginning of year ........... 211,863 248,193 — —
Actual return on plan assets ........................ (7,463) (31,402) — —
Employer contribution ............................ 7,500 7,500 1,235 1,235
Benefits paid.................................... (11,217) (11,098) (1,235) (1,235)
Non-investment expenses.......................... (1,378) (1,330) — —
Fair value of assets at end of year ...................... 199,305 211,863 — —
Funded status ...................................... (128,131) (16,856) (39,929) (27,450)
Unrecognized net actuarial loss ....................... 169,477 50,830 12,412 1,481
Unrecognized prior service cost ....................... 353 508 2,044 2,292
Prepaid (accrued) benefit cost ......................... $ 41,699 $ 34,482 $(25,473) $(23,677)
Amounts recognized in the Consolidated Balance Sheets
consist of:
(Prepaid) Accrued benefit liability ................... $ (41,699) $ (34,482) $ 25,473 $ 23,677
Accumulated other comprehensive income ............ 169,830 51,338 14,456 3,773
Net amount recognized .............................. $ 128,131 $ 16,856 $ 39,929 $ 27,450