CarMax 2004 Annual Report Download - page 42

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Funded Status. The funded status represents the difference between the projected benefit obligations and the market value of
the assets. The components of the funded status of the retirement plans were as follows:
As of February 29 or 28
Pension Plan Restoration Plan Total
(In thousands)
2004 2003 2004 2003 2004 2003
Reconciliation of funded status:
Funded status $(19,514) $(18,879) $(3,596) $(2,031) $(23,110) $(20,910)
Unrecognized actuarial loss 10,574 13,339 2,024 870 12,598 14,209
Adjustment for separation — (4,055) — ——(4,055)
Unrecognized prior service
benefit/(cost) 294 331 (1) (2) 293 329
Net amount recognized $(8,646) $(9,264) $(1,573) $(1,163) $(10,219) $(10,427)
Additional Information.
As of February 29 or 28
Pension Plan Restoration Plan Total
(In thousands)
2004 2003 2004 2003 2004 2003
Projected benefit obligation $35,918 $24,555 $3,596 $2,031 $39,514 $26,586
Accumulated benefit obligation $21,991 $12,858 $1,553 $ 815 $23,544 $13,673
Fair value of plan assets $16,404 $ 5,676 ——$16,404 $ 5,676
Expense. The components of net pension expense were as follows:
Years Ended February 29 or 28
Pension Plan Restoration Plan Total
(In thousands)
2004 2003 2002 2004 2003 2002 2004 2003 2002
Service cost $5,529 $4,021 $2,549 $231 $197 $128 $5,760 $4,218 $2,677
Interest cost 1,679 1,104 588 126 99 49 1,805 1,203 637
Expected return on plan assets (892) (617) (424) ——— (892) (617) (424)
Amortization of prior year service cost 37 35 (2) ——31 37 35 29
Amortization of transitional asset ——(3) ——— ——(3)
Recognized actuarial loss 647 194 203 53 32 9 700 226 212
Net pension expense $7,000 $4,737 $2,911 $410 $328 $217 $7,410 $5,065 $3,128
Assumptions. Assumptions used to determine benefit obligations were as follows:
Years Ended February 29 or 28
Pension Plan Restoration Plan
2004 2003 2002 2004 2003 2002
Weighted average discount rate 6.00% 6.50% 7.25% 6.00% 6.50% 7.25%
Rate of increase in compensation levels 5.00% 6.00% 7.00% 7.00% 6.00% 7.00%
Assumptions used to determine net pension expense were as follows:
As of February 29 or 28
Pension Plan Restoration Plan
2004 2003 2002 2004 2003 2002
Weighted average discount rate 6.50% 7.25% 7.50% 6.50% 7.25% 7.50%
Expected rate of return on plan assets 9.00% 9.00% 9.00% ———
Rate of increase in compensation levels 6.00% 7.00% 6.00% 6.00% 7.00% 6.00%
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CARMAX
2004