Advance Auto Parts 2007 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 of the 2007 Advance Auto Parts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 109

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109

ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 29, 2007, December 30, 2006 and December 31, 2005
(in thousands, except per share data)
2007 2006
Change in benefit obligation:
Benefit obligation at beginning of the year 10,517$ 13,711$
Interest cost 550 726
Benefits paid (673) (794)
Actuarial gain (1,631) (3,126)
Benefit obligation at end of the year 8,763 10,517
Change in plan assets:
Fair value of plan assets at beginning of the year - -
Employer contributions 673 794
Participant contributions 995 1,088
Benefits paid (1,668) (1,882)
Fair value of plan assets at end of year - -
Funded Status 8,763$ 10,517$
Net periodic postretirement benefit cost is as follows:
2007 2006 2005
Service cos
t
-$ -$ -$
Interest cos
t
550 726 802
Amortization of the prior service cos
t
(581) (581) (581)
Amortization of recognized net losses - 210 239
(31)$ 355$ 460$
The health care cost trend rate was assumed to be 10.0% for 2008, 9.5% for 2009, 8.5% for 2010, 8.0% for
2011, 7.0% for 2012, 6.0% for 2013 and 5.0% to 5.5% for 2014 and thereafter. If the health care cost were increased
1% for all future years the accumulated postretirement benefit obligation would have increased by $214 as of
December 29, 2007. The effect of this change on the combined service and interest cost would have been an increase
of $16 for 2007. If the health care cost were decreased 1% for all future years the accumulated postretirement
benefit obligation would have decreased by $195 as of December 29, 2007. The effect of this change on the
combined service and interest cost would have been a decrease of $14 for 2007.
The postretirement benefit obligation and net periodic postretirement benefit cost was computed using the
following weighted average discount rates as determined by the Company’s actuaries for each applicable year:
2007 2006
Postretirement benefit obligation 5.50% 5.50%
Net periodic postretirement benefit cost 6.00% 5.50%
The Company expects plan contributions to completely offset benefits paid. The following table summarizes the
Company's expected benefit payments (net of retiree contributions) to be paid for each of the following fiscal years:
F-29