Bridgford's Investor
 

2010 Annual Report Page 35

Postretirement Healthcare Benefits for Selected Executive Employees

We provide postretirement health care benefits for selected executive employees.   Net periodic postretirement healthcare cost is determined using assumptions as of the beginning of each fiscal year, except for the total actual benefit payments and the discount rate used to develop the net periodic postretirement benefit expense, which is determined at the end of the fiscal year.

Net periodic postretirement healthcare cost consisted of the following:
 
   
Years Ended
 
   
2011
   
2010
 
Service cost
 
$
22
   
$
18
 
Interest cost
   
59
     
82
 
Amortization of prior service cost
   
75
     
75
 
Amortization of actuarial loss
   
(18
)
   
(20
)
Net periodic postretirement healthcare cost
 
$
138
   
$
155
 
 
Weighted average assumptions for the fiscal years ended October 28, 2011 and October 29, 2010 are as follows:
 
   
2011
   
2010
 
Discount rate
   
4.45
%
   
5.45
%
Medical trend rate next year
   
9.50
%
   
9.50
%
Ultimate trend rate
   
5.00
%
   
5.00
%
Year ultimate trend rate is achieved
   
2020
     
2020
 
 
The table below shows the estimated effect of a 1% increase in healthcare cost trend rate on the following:
 
   
2011
   
2010
 
Interest cost plus service cost
 
$
9
   
$
8
 
Accumulated postretirement healthcare obligation
 
$
133
   
$
91
 
 
The table below shows the estimated effect of a 1% decrease in healthcare cost trend rate on the following:
 
   
2011
   
2010
 
Interest cost plus service cost
 
$
(8
 
$
(6
Accumulated postretirement healthcare obligation
 
$
(109
 
$
(76
 
The healthcare obligation and funded status of this plan as of the fiscal years ended are as follows:
 
   
2011
   
2010
 
Change in accumulated postretirement healthcare obligation:
           
Healthcare obligations - beginning of year
 
$
945
   
$
1,066
 
Service cost
   
21
     
18
 
Interest cost
   
59
     
82
 
Actuarial loss (gain)
   
136
     
(201
)
Benefits paid
   
(37
)
   
(20
)
Healthcare obligations - end of year
 
$
1,124
   
$
945
 
Funded status of the plans
   
1,124
     
945
 
Unrecognized prior service costs
      -      
75
 
Unrecognized net actuarial (gain) loss
   
(112
)
   
(265
Unrecognized amounts recorded in other comprehensive income
   
112
     
190
 
Postretirement healthcare liability
 
$
1,124
   
$
945
 

 
 
 
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