Barnes and Noble 2002 Annual Report Download - page 38

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A summary of the components of net periodic cost for the Pension Plan and the Postretirement Plan follows:
Pension Plan Postretirement Plan
Fiscal Year 2002 2001 2000 2002 2001 2000
Service cost $ -- -- -- -- -- --
Interest cost 1,951 1,869 1,779 251 175 151
Expected return on plan assets ( 2,726 ) ( 3,030 ) ( 2,887 ) -- -- --
Net amortization and deferral 536 43 -- 6 ( 73 ) ( 104 )
Net periodic expense (income) ( 239 ) ( 1,118 ) ( 1,108 ) 257 102 47
FAS 88 curtailment income -- 831 -- -- -- --
Total income $ ( 239 ) ( 287) ( 1,108 ) 257 102 47
Total Company contributions charged to employee benefit expenses for the Savings Plans were $6,709, $5,929 and
$5,681 during fiscal 2002, 2001 and 2000, respectively.
Weighted-average actuarial assumptions used in determining the net periodic costs of the Pension Plan and the
Postretirement Plan are as follows:
Pension Plan Postretirement Plan
Fiscal Year 2002 2001 2000 2002 2001 2000
Discount rate 6.5% 7.3% 7.8% 7.3% 7.3% 7.8%
Expected return on plan assets 9.0% 9.5% 9.5% -- -- --
Assumed rate of compensation increase* N/A N/A 4.8% -- -- --
* A graded salary scale was used.
9. EMPLOYEES’ RETIREMENT AND DEFINED
CONTRIBUTION PLANS
As of December 31, 1999, substantially all employees of
the Company were covered under a noncontributory
defined benefit pension plan (the Pension Plan). As of
January 1, 2000, the Pension Plan was amended so that
employees no longer earn benefits for subsequent
service. Subsequent service continues to be the basis for
vesting of benefits not yet vested at December 31, 1999
and the Pension Plan will continue to hold assets and pay
benefits. The amendment was treated as a curtailment
in fiscal 1999 resulting in a pre-tax gain of $14,142
which is included as a reduction of selling and
administrative expenses.
The Company maintains defined contribution plans
(the Savings Plans) for the benefit of substantially all
employees. In addition, the Company provides certain
health care and life insurance benefits (the Postretirement
Plan) to retired employees, limited to those receiving
benefits or retired as of April 1, 1993.
[NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS continued ]
37
2002 Annual Report Barnes & Noble, Inc.