Bridgford's Investor
 

2008 Annual Report

Page 36


Weighted average assumptions for the fiscal years ended October 31, 2008 and November 2, 2007 are as follows:

     2008      2007
Discount rate  8.00 % 6.25 %
Medical trend rate next year   9.00 %   9.00 %
Ultimate trend rate 5.00 % 5.00 %
Year ultimate trend rate is achieved      2016      2011

     The table below shows the estimated effect of a 1% increase in health care cost trend rate on the following:

     2008      2007
Interest cost plus service cost   $ 10 $ 10
Accumulated postretirement benefit obligation $     67 $     111

     The table below shows the estimated effect of a 1% decrease in health care cost trend rate on the following:

     2008      2007
Interest cost plus service cost $ (8 )   $ (9 )
Accumulated postretirement benefit obligation $     (57 ) $     (94 )

     The benefit obligation and funded status of this plan as of the fiscal year ended October 31, 2008 is as follows:

     2008      2007
Change in accumulated postretirement benefit obligation:  
       Benefit obligations - beginning of year $     1,196 $     1,159
       Service cost   15 15
       Interest cost 72 70
       Actuarial (gain) loss (465 ) (44 )
       Benefits paid (12 )   (4 )
       Plan amendments
       Benefit obligations - end of year $ 806 1,196
Funded status of the plans 806 1,196
Unrecognized prior service costs (224 ) (298 )
Unrecognized net actuarial loss 324 (144 )
Unrecognized net transition asset
Accrued postretirement benefit cost N/A N/A
Unrecognized amounts in other comprehensive income (SFAS 158) (100 ) 442
Postretirement benefit liability $ 806 $ 1,196

     Expected payments for the postretirement benefits are as follows:

Postretirement
Benefits
Fiscal 2009  $ 63
Fiscal 2010  $ 64
Fiscal 2011  $ 65
Fiscal 2012  $ 65
Fiscal 2013  $ 65
Fiscal 2014-2018 $ 304

Stock Incentive Plan

     The Company’s 1999 Stock Incentive Plan (“the Plan”) was approved by the Board of Directors on January 11, 1999 and 275,000 options were granted on April 29, 1999. During fiscal year 2000, 25,000 options were canceled. Under the Plan, the maximum aggregate number of shares which may be optioned and sold is 900,000 shares of common stock, subject to adjustment upon changes in capitalization or merger. Generally, options granted under the plan vest in annual installments over four years following the date of grant (as determined by the Board of Directors) subject to the optionee’s continuous service. Options expire ten years from the date of grant with the exception of an incentive stock option granted to an optionee who owns stock representing more than 10% of the voting power of all classes of stock of the Company, in which case the term of the option is five years. Options generally terminate three months after termination of employment or one year after termination due to permanent disability or death. Options are granted at a fair market value determined by the Board of Directors subject to the following:

 

 
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