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Employee Retirement Plan and Deferred Compensation Plan
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3 Months Ended |
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Mar. 30, 2013
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| Employee Retirement Plan and Deferred Compensation Plan [Abstract] | |
| Employee Retirement Plan and Deferred Compensation Plan |
Note 11 – Employee Retirement Plan and Deferred Compensation Plan Effective February 17, 2006, the Company adopted a 401(k) defined contribution retirement plan covering all full time employees who have completed one month of service. The Company may, at its sole discretion, match fifty cents per dollar up to 6% of each participating employee’s salary. The Company’s contributions vest in annual installments over three years. Discretionary contributions made by the Company totaled $78,000 and $79,000 for thirteen weeks ended March 30, 2013 and March 31, 2012, respectively. In January 2010, the Company adopted the U.S. Auto Parts Network, Inc. Management Deferred Compensation Plan (the “Deferred Compensation Plan”), for the purpose of providing highly compensated employees a program to meet their financial planning needs. The Deferred Compensation Plan provides participants with the opportunity to defer up to 90% of their base salary and up to 100% of their annual earned bonus, all of which, together with the associated investment returns, are 100% vested from the outset. The Deferred Compensation Plan, which is designed to be exempt from most provisions of the Employee Retirement Security Act of 1974, is informally funded by the Company through the purchase of Company-owned life insurance policies with the Company (employer) as the owner and beneficiary, in order to preserve the tax-deferred savings advantages of a non-qualified plan. The plan assets are the cash surrender value of the Company-owned life insurance policies and not associated with the deferred compensation liability. The deferred compensation liabilities (consisting of employer contributions, employee deferrals and associated earnings and losses) are general unsecured obligations of the Company. Liabilities under the Deferred Compensation Plan are recorded at amounts due to participants, based on the fair value of participants’ selected investments. The Company may at its discretion contribute certain amounts to eligible employee accounts. In January 2010, the Company began to contribute 50% of the first 2% of participants’ eligible contributions into their Deferred Compensation Plan accounts. In September 2010, the Company established and transferred its ownership to a rabbi trust to hold the Company-owned life insurance policies. As of March 30, 2013, the assets and associated liabilities of the Deferred Compensation Plan were $0.8 million and $0.7 million, respectively, and are included in other non-current assets and other non-current liabilities, respectively, in our consolidated balance sheets. As of December 29, 2012, the assets and associated liabilities of the Deferred Compensation Plan were $0.7 million each and are included in other non-current assets and other non-current liabilities, respectively, in our consolidated balance sheets. For the thirteen weeks ended March 30, 2013, the associated liabilities mainly include the employee contributions of $544,000 and the Company contributions of $117,000. For the thirteen weeks ended March 31, 2012, the associated liabilities mainly include the employee contributions of $0.4 million and the Company contributions of $81,000. For the thirteen weeks ended March 30, 2013 and March 31, 2012, included in other income, the Company recorded a net gain of $31,000 and $35,000, respectively, for the change in the cash surrender value of the Company-owned life insurance policies. |