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41’04฀Annual฀Report
The฀following฀table฀sets฀forth฀the฀plans’฀funded฀status฀and฀amounts฀recognized฀in฀the฀Company’s฀financial฀statements:
(in฀thousands)
August฀28,฀
2004 ฀
August฀30,฀
2003
Change฀in฀benefit฀obligation:
Benefit฀obligation฀at฀beginning฀of฀year $฀136,077 $฀117,005
Service฀cost —4,823
Interest฀cost 8,114 6,214
Actuarial฀(gains)฀losses (13,070) 39,518
Plan฀amendments —(29,813)
Benefits฀paid (2,738)
฀
(1,670)
Benefit฀obligation฀at฀end฀of฀year 128,383 136,077
Change฀in฀plan฀assets:
Fair฀value฀of฀plan฀assets฀at฀beginning฀of฀year 86,737 83,306
Actual฀return฀(loss)฀on฀plan฀assets 19,157 (603)
Company฀contributions —6,293
Benefits฀paid (2,738) (1,670)
Administrative฀expenses (795)
฀
(589)
Fair฀value฀of฀plan฀assets฀at฀end฀of฀year 102,361 86,737
Reconciliation฀of฀funded฀status:
Underfunded฀status฀of฀the฀plans (26,022) (49,340)
Unrecognized฀net฀actuarial฀losses 20,690 49,622
Unamortized฀prior฀service฀cost (1,166)
฀
(1,811)
Accrued฀benefit฀cost $฀ ฀(6,498)
฀
$฀฀(1,529)
Recognized฀defined฀benefit฀pension฀liability:
Accrued฀benefit฀liability $฀(26,022) $(49,340)
Accumulated฀other฀comprehensive฀income 19,524
฀
47,811
Net฀liability฀recognized $฀ ฀(6,498)
฀
$฀฀(1,529)
฀ Year฀Ended
(in฀thousands)
August฀28,฀
2004 ฀
August฀30,฀
2003 ฀
August฀31,฀
2002
Components฀of฀net฀periodic฀benefit฀cost:
Service฀cost $฀ ฀ ฀฀— $฀4,823 $13,500
Interest฀cost 8,114 6,214 6,861
Expected฀return฀on฀plan฀assets (6,871) (6,609) (6,255)
Amortization฀of฀prior฀service฀cost (645) (575) (568)
Recognized฀net฀actuarial฀losses 4,371 — 1,030
Curtailment฀gain —
฀
(107)
฀
—
Net฀periodic฀benefit฀cost $฀4,969
฀
$฀3,746
฀
$14,568
The฀actuarial฀assumptions฀were฀as฀follows:
฀ ฀ 2004 ฀ 2003 ฀ 2002
Weighted฀average฀discount฀rate 6.50% ฀ 6.00% ฀ 7.25%
Expected฀long-term฀rate฀of฀return฀on฀assets 8.00% ฀ 8.00% ฀ 8.00%
As฀the฀plan฀benefits฀were฀frozen฀as฀of฀December฀31,฀2002,฀increases฀in฀future฀compensation฀levels฀no฀longer฀impact฀the฀calculation.฀In฀
fiscal฀years฀2003฀and฀2002,฀the฀assumed฀increases฀in฀future฀compensation฀levels฀were฀generally฀age฀weighted฀rates฀from฀5–10%฀after฀the฀
first฀two฀years฀of฀service฀using฀15%฀for฀year฀one฀and฀12%฀for฀year฀two.฀The฀expected฀long-term฀rate฀of฀return฀on฀plan฀assets฀is฀based฀on฀
the฀historical฀relationships฀between฀the฀investment฀classes฀and฀the฀economical฀capital฀market฀environments,฀ updated฀for฀current฀condi-
tions.฀ Prior฀ service฀ cost฀ is฀ amortized฀ over฀ the฀ estimated฀ average฀ remaining฀ service฀ lives฀ of฀ the฀ plan฀ participants฀ and฀ the฀ unrecognized฀
actuarial฀loss฀is฀amortized฀over฀the฀remaining฀service฀period฀of฀7.96฀years฀at฀August฀28,฀2004.
Actual฀benefit฀payments฀may฀vary฀significantly฀from฀the฀following฀estimates.฀Based฀on฀current฀assumptions฀about฀future฀events,฀benefit฀
payments฀are฀expected฀to฀be฀paid฀as฀follows฀for฀each฀of฀the฀following฀plan฀years:
Plan฀Year฀Ending฀December฀31 ฀
Amount
(in฀thousands)
2004 $฀ 2,143
2005 2,524
2006 2,945
2007 3,467
2008 4,046
2009–2013 28,294