Arrow Electronics 2011 Annual Report Download - page 75

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ARROW ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share data)
73
The company uses a December 31 measurement date for the Arrow SERP and the Wyle SERP. Pension information for the years
ended December 31 is as follows:
Accumulated benefit obligation
Changes in projected benefit obligation:
Projected benefit obligation at beginning of year
Service cost (Arrow SERP)
Interest cost
Actuarial loss
Benefits paid
Projected benefit obligation at end of year
Funded status
Components of net periodic pension cost:
Service cost (Arrow SERP)
Interest cost
Amortization of net loss
Amortization of prior service cost (Arrow SERP)
Amortization of transition obligation (Arrow SERP)
Net periodic pension cost
Weighted average assumptions used to determine benefit obligation:
Discount rate
Rate of compensation increase (Arrow SERP)
Weighted average assumptions used to determine net periodic pension cost:
Discount rate
Rate of compensation increase (Arrow SERP)
2011
$ 62,891
$ 61,559
1,525
3,308
5,602
(3,521)
$ 68,473
$(68,473)
$ 1,525
3,308
787
41
—
$ 5,661
4.75%
5.00%
5.50%
5.00%
2010
$ 53,980
$ 57,052
1,642
3,202
2,961
(3,298)
$ 61,559
$(61,559)
$ 1,642
3,202
744
80
29
$ 5,697
5.50%
5.00%
5.50%
5.00%
The amounts reported for net periodic pension cost and the respective benefit obligation amounts are dependent upon the actuarial
assumptions used. The company reviews historical trends, future expectations, current market conditions, and external data to
determine the assumptions. The discount rate represents the market rate for a high-quality corporate bond. The rate of compensation
increase is determined by the company, based upon its long-term plans for such increases. The actuarial assumptions used to
determine the net periodic pension cost are based upon the prior year's assumptions used to determine the benefit obligation.
Benefit payments are expected to be paid as follows:
2012
2013
2014
2015
2016
2017-2021
$ 3,869
4,089
4,050
4,004
4,206
25,209