CarMax 2008 Annual Report Download - page 63

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51
BENEFIT PLAN INFORMATION
Years Ended February 29 or 28
Pension Plan Restoration Plan Total
(In thousands) 2008 2007 2008 2007 2008 2007
Change in projected benefit
obligation:
Obligation at beginning of year............. $ 94,653 $ 71,352 $ 7,195 $ 6,864 $ 101,848 $ 78,216
Service cost ........................................... 15,670 12,048 688 411 16,358 12,459
Interest cost ........................................... 5,996 4,096 468 393 6,464 4,489
Plan amendments .................................. — — 1,046 — 1,046 —
Actuarial (gain) loss.............................. (12,358) 7,624 3,020 (459) (9,338) 7,165
Benefits paid ......................................... (619) (467) (173) (14) (792) (481)
Obligation at end of year....................... 103,342 94,653 12,244 7,195 115,586 101,848
Change in fair value of plan assets:
Plan assets at beginning of year ............ 45,892 31,960 — — 45,892 31,960
Actual return on plan assets .................. (1,904) 3,670 — — (1,904) 3,670
Employer contributions......................... 11,400 10,729 173 14 11,573 10,743
Benefits paid ......................................... (619) (467) (173) (14) (792) (481)
Plan assets at end of year ...................... 54,769 45,892 — — 54,769 45,892
Funded status recognized....................... $ (48,573) $ (48,761) $ (12,244) $ (7,195) $ (60,817) $ (55,956)
Amounts recognized in the
consolidated balance sheets:
Current liability..................................... $ — $ — $ (283) $ (262) $ (283) $ (262)
Noncurrent liability............................... (48,573) (48,761) (11,961) (6,933) (60,534) (55,694)
Net amount recognized .........................
$ (48,573) $ (48,761) $ (12,244) $ (7,195) $ (60,817) $ (55,956)
Accumulated benefit obligation............. $ 67,094 $ 60,560 $ 6,398 $ 4,832 $ 73,492 $ 65,392
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 29 or 28
Pension Plan Restoration Plan
2008 2007 2008 2007
Discount rate...................................................... 6.85% 5.75% 6.85% 5.75%
Rate of compensation increase .......................... 5.00% 5.00% 7.00% 7.00%
Plan Assets. The fair value of plan assets is measured using current market values. No plan assets are expected to
be returned to us during the fiscal year ended February 28, 2009.
Funding Policy. For the pension plan, we contribute amounts sufficient to meet minimum funding requirements as
set forth in the employee benefit and tax laws, plus any additional amounts as we may determine to be appropriate.
We expect to contribute approximately $14.8 million to the pension plan in fiscal 2009. For the non-funded
restoration plan, we contribute an amount equal to the expected benefit payments.