AutoZone 2011 Annual Report Download - page 123

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61
(in thousands)
Au
g
ust 27,
2011
Au
g
ust 28,
2010
Amount Reco
g
nized in the Statement of Financial Position:
Current liabilities ................................................................................................
.
$ (27) $ (12)
Long-term liabilities ...........................................................................................
.
(84,736) (94,281)
Net amount recognized .......................................................................................
.
$ (84,763) $ (94,293)
Amount Reco
g
nized in Accumulated Other Comprehensive Loss and
not
y
et reflected in Net Periodic Benefit Cost:
Net actuarial loss ................................................................................................
.
$ (106,972) $ (94,293)
Accumulated other comprehensive loss .............................................................
.
$ (106,972) $ (94,293)
Amount
R
eco
g
nized in Accumulated Other Comprehensive Loss and
not yet reflected in Net Periodic Benefit Cost and expected to be
amortized in next
y
ear’s Net Periodic Benefit Cost:
Net actuarial loss ................................................................................................
.
$ (9,795) $ (10,252)
Amount recognized .............................................................................................
.
$ (9,795) $ (10,252)
Net periodic benefit expense (income) consisted of the following:
Year Ended
(in thousands)
August 27,
2011
August 28,
2010
August 29,
2009
Interest cost ............................................................................. $ 11,135 $ 11,315 $ 10,647
Expected return on plan assets ................................................ (9,326) (9,045) (12,683)
Amortization of prior service cost .......................................... – – 60
Recognized net actuarial losses .............................................. 9,405 8,135 73
Net periodic benefit expense (income) ................................... $ 11,214 $ 10,405 $ (1,903)
The actuarial assumptions used in determining the projected benefit obligation include the following:
Year Ended
August 27,
2011
August 28,
2010
August 29,
2009
Weighted average discount rate .............................................. 5.13% 5.25% 6.24%
Expected long-term rate of return on plan assets .................... 8.00% 8.00% 8.00%
As the plan benefits are frozen, increases in future compensation levels no longer impact the calculation and there
is no service cost. The discount rate is determined as of the measurement date and is based on the calculated yield
of a portfolio of high-grade corporate bonds with cash flows that generally match the Company’s expected benefit
payments in future years. The expected long-term rate of return on plan assets is based on the historical
relationships between the investment classes and the capital markets, updated for current conditions.
The Company makes annual contributions in amounts at least equal to the minimum funding requirements of the
Employee Retirement Income Security Act of 1974. The Company contributed $34.1 million to the plans in fiscal
2011, $12 thousand to the plans in fiscal 2010 and $18 thousand to the plans in fiscal 2009. The Company
expects to contribute approximately $7 million to the plan in fiscal 2012; however, a change to the expected cash
funding may be impacted by a change in interest rates or a change in the actual or expected return on plan assets.
10-K