|
Net pension cost consisted of the following:
|
|
2007 |
|
2006 |
|
2005 |
|
Service cost |
|
$ |
170 |
|
$ |
1,160 |
|
$ |
1,680 |
|
Interest cost |
|
1,856 |
|
1,922 |
|
1,803 |
|
Expected return on plan assets |
|
(1,892 |
) |
(1,592 |
) |
(1,406 |
) |
Amortization of unrecognized loss |
|
— |
|
191 |
|
370 |
|
Amortization of transition asset (15.2 years) |
|
0 |
|
— |
|
— |
|
Amortization of unrecognized prior service costs |
|
2 |
|
31 |
|
42 |
|
Net pension cost |
|
$ |
136 |
|
$ |
1,712 |
|
$ |
2,489 |
|
In the third quarter of fiscal 2006, the Company froze the defined benefit pension plan accrued benefits for members employed by the Company within administration, sales or supervisory job classification or within a non-bargaining class . This action is defined as a curtailment under SFAS No. 88 “Employers’ Accounting for Settlements and Curtailments of Defined Benefit Pension Plans and for Termination Benefits” and, therefore, the Company recognized a curtailment loss of approximately $8 in fiscal year 2006.
Net pension cost is determined using assumptions as of the beginning of each fiscal year. Weighted average assumptions for the fiscal years are as follows:
|
|
2007 |
|
2006 |
|
2005 |
|
Discount rate |
|
6.25 |
% |
6.00 |
% |
6.00 |
% |
Rate of increase in salary levels |
|
N/A |
|
N/A |
|
3.75 |
% |
Expected return on plan assets |
|
8.25 |
% |
8.00 |
% |
8.00 |
% |
The benefit obligation, plan assets, and funded status of these plans as of the fiscal years ended are as follows:
|
|
2007 |
|
2006 |
|
Change in benefit obligations: |
|
|
|
|
|
Benefit Obligations - beginning of year |
|
$ |
30,469 |
|
$ |
33,215 |
|
Service Cost |
|
170 |
|
1,160 |
|
Interest Cost |
|
1,856 |
|
1,922 |
|
Actuarial (Gain) Loss |
|
(245 |
) |
348 |
|
Benefits Paid |
|
(879 |
) |
(965 |
) |
Curtailments |
|
0 |
|
(5,211 |
) |
Plan Amendments |
|
0 |
|
0 |
|
Benefit Obligations - end of year |
|
31,371 |
|
30,469 |
|
Change in plan assets: |
|
|
|
|
|
Fair value of plan assets - beginning of year |
|
23,279 |
|
19,440 |
|
Employer Contributions |
|
2,439 |
|
2,757 |
|
Actual return on plan assets |
|
2,967 |
|
2,029 |
|
Benefits Paid |
|
(879 |
) |
(965 |
) |
Fair value of plan assets - end of year |
|
27,806 |
|
23,261 |
|
Funded Status of the plans |
|
(3,565 |
) |
(7,208 |
) |
Unrecognized prior service costs |
|
10 |
|
59 |
|
Unrecognized net actuarial loss |
|
576 |
|
1,867 |
|
Unrecognized net transition asset |
|
— |
|
— |
|
Additional accrued minimum liability |
|
0 |
|
(1,926 |
) |
Accrued pension cost |
|
$ |
(2,979 |
) |
$ |
(7,208 |
) |
The accumulated benefit obligation is $31,371 and $30,469 at November 2, 2007 and November 3, 2006, respectively.
The benefit obligation is determined using assumptions as of the end of each fiscal year. Weighted average assumptions as of the fiscal years ended are as follows:
|
|
2007 |
|
2006 |
|
Discount rate |
|
6.25 |
% |
6.00 |
% |
Rate of increase in salary levels |
|
N/A |
|
N/A |
|
|
