True Value 2010 Annual Report Download - page 51

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands)
30 True Value Company
True Value also contributes to the True Value Company Employee
Savings and Compensation Deferral Plan (the “401k Plan”) in
accordance with IRS regulations. Under the 401k Plan, each
participant may elect to contribute an amount up to 50% of the
participant’s annual compensation, not to exceed $16.5 for both
2010 and 2009, and $15.5 for 2008. Also, plan participants who are
50 years of age or older may elect to make additional catch-up
contributions not to exceed $5.5 for both 2010 and 2009 and $5.0
for 2008. The total participants’ deferred compensation including
True Value’s contributions to the participants’ balances may not
exceed $49 for both 2010 and 2009, and $46 in 2008, respectively.
True Value’s 401k Plan included a 100% guaranteed match up
to a total of 5% of the participant’s annual compensation. Also,
based on True Value achieving certain financial goals and at the
discretion of the board of directors, an additional 1% of most
participants’ annual compensation could be earned. For certain
other plan participants covered by certain collective bargaining
agreements in 2008, True Value’s 401k Plan included a guaranteed
match of one-third of a participant’s contribution up to a total of
2% of the participant’s annual compensation. Also, based on True
Value achieving certain financial goals, a match of greater than
one-third of a participant’s contribution could be earned. The
plans for certain other participants covered by certain collective
bargaining agreements were similarly amended by True Value
at later dates between year-end 2006 and September 30, 2008.
Therefore, a portion of the 401k Plan for these certain other plan
participants was funded in accordance with the amended plan
and a portion with the plan in effect prior to amendment. True
Value recognized costs of $4,989, $5,041 and $5,754 for 2010,
2009 and 2008, respectively, for the 401k Plan.
12. segment infOrmatiOn
True Value is principally engaged as a wholesaler of hardware
and related products and is a manufacturer of paint products.
True Value identifies segments based on management
responsibility and the nature of the business activities of each
component of its business. True Value measures segment
earnings as operating earnings including an allocation for
interest expense and income taxes.