CarMax 2007 Annual Report Download - page 61

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51
BENEFIT PLAN INFORMATION
Years Ended February 28
Pension Plan Restoration Plan Total
(In thousands) 2007 2006 2007 2006 2007 2006
Change in projected benefit obligation:
Obligation at beginning of year............. $ 71,352 $ 48,674 $ 6,864 $ 4,508 $ 78,216 $ 53,182
Service cost ........................................... 12,048 8,780 411 480 12,459 9,260
Interest cost ........................................... 4,096 2,794 393 259 4,489 3,053
Actuarial loss (gain).............................. 7,624 11,317 (459) 1,617 7,165 12,934
Benefits paid ......................................... (467) (213) (14) — (481) (213)
Obligation at end of year....................... 94,653 71,352 7,195 6,864 101,848 78,216
Change in fair value of plan assets:
Plan assets at beginning of year ............ 31,960 25,316 — — 31,960 25,316
Actual return on plan assets .................. 3,670 2,357 — — 3,670 2,357
Employer contributions......................... 10,729 4,500 14 — 10,743 4,500
Benefits paid ......................................... (467) (213) (14) — (481) (213)
Plan assets at end of year ...................... 45,892 31,960 — — 45,892 31,960
Funded status:
Benefit obligation in excess of plan
assets................................................ (48,761) (39,392) (7,195) (6,864) (55,956) (46,256)
Unrecognized actuarial loss .................. — 23,947 — 3,427 — 27,374
Unrecognized prior service cost............ — 220 — 217 — 437
Net amount recognized .........................
$ (48,761) $ (15,225) $ (7,195) $ (3,220) $(55,956) $ (18,445)
Amounts recognized in the
consolidated balance sheets:
Deferred income tax asset ..................... $ 10,785 $ — $ 1,073 $ — $ 11,858 $ —
Current liability (funded status) ............ — — (262) — (262) —
Noncurrent liability (funded status) ...... (48,761) (15,225) (6,933) (3,220) (55,694) (18,445)
Shareholders’ equity (accumulated
other comprehensive loss):
Unrecognized actuarial losses..........
29,095 — 2,719 — 3 1,814 —
Unrecognized prior service cost ...... 183 — 193 — 376 —
Related deferred tax benefit............. (10,785) — (1,073) — (11,858) —
Net shareholders’ equity .......................
18,493 — 1,839 — 20,332 —
Net amount recognized ......................... $ (19,483) $ (15,225) $ (4,283) $ (3,220) $ (23,766) $ (18,445)
Accumulated benefit obligation............. $ 60,560 $ 45,151 $ 4,832 $ 3,805 $ 65,392 $ 48,956
Benefit Obligations. Accumulated and projected benefit obligations (“ABO” and “PBO”) represent the obligations
of the benefit plans for past service as of the measurement date. ABO is the present value of benefits earned to date
with benefits computed based on current service and compensation levels. PBO is ABO increased to reflect
expected future service and increased compensation levels.
ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATIONS
As of February 28
Pension Plan Restoration Plan
2007 2006 2007 2006
Discount rate...................................................... 5.75% 5.75% 5.75% 5.75%
Rate of compensation increase .......................... 5.00% 5.00% 7.00% 7.00%