CarMax 2005 Annual Report Download - page 41

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CARMAX 2005
39
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 28 or 29
Pension Plan Restoration Plan Total
(In thousands) 2005 2004 2005 2004 2005 2004
Reconciliation of funded status:
Funded status $(23,358) $(19,514) $(4,508) $(3,596) $(27,866) $(23,110)
Unrecognized actuarial loss 13,877 10,574 1,945 2,024 15,822 12,598
Unrecognized prior service
benefit/(cost) 257 294 242 (1) 499 293
Net amount recognized $ (9,224) $ (8,646) $(2,321) $(1,573) $(11,545) $(10,219)
Additional Information.
As of February 28 or 29
Pension Plan Restoration Plan Total
(In thousands) 2005 2004 2005 2004 2005 2004
Projected benefit obligation $48,674 $35,918 $4,508 $3,596 $53,182 $39,514
Accumulated benefit obligation $30,646 $21,991 $2,419 $1,553 $33,065 $23,544
Fair value of plan assets $25,316 $16,404 ——$25,316 $16,404
Expense. The components of net pension expense were as follows:
Years Ended February 28 or 29
Pension Plan Restoration Plan Total
(In thousands) 2005 2004 2003 2005 2004 2003 2005 2004 2003
Service cost $ 6,557 $5,529 $4,021 $343 $231 $197 $ 6,900 $5,760 $4,218
Interest cost 2,152 1,679 1,104 232 126 99 2,384 1,805 1,203
Expected return on plan assets (1,523) (892) (617) ——— (1,523) (892) (617)
Amortization of prior year service cost 37 37 35 24 —— 61 37 35
Recognized actuarial loss 736 647 194 149 53 32 885 700 226
Net pension expense $ 7,959 $7,000 $4,737 $748 $410 $328 $ 8,707 $7,410 $5,065
Assumptions. Assumptions used to determine benefit obligations were as follows:
Years Ended February 28 or 29
Pension Plan Restoration Plan
2005 2004 2003 2005 2004 2003
Weighted average discount rate 5.75% 6.00% 6.50% 5.75% 6.00% 6.50%
Rate of increase in compensation levels 5.00% 5.00% 6.00% 7.00% 7.00% 6.00%
Assumptions used to determine net pension expense were as follows:
As of February 28 or 29
Pension Plan Restoration Plan
2005 2004 2003 2005 2004 2003
Weighted average discount rate 6.00% 6.50% 7.25% 6.00% 6.50% 7.25%
Expected rate of return on plan assets 8.00% 9.00% 9.00% ———
Rate of increase in compensation levels 5.00% 6.00% 7.00% 7.00% 6.00% 7.00%