CarMax 2009 Annual Report Download - page 63

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BENEFIT PLAN INFORMATION
Years Ended February 28 or 29
Pension Plan Restoration Plan Total
(In thousands) 2009 2008 2009 2008 2009 2008
Change in projected benefit
obligation:
Obligation at beginning of year............. $103,342 $ 94,653 $12,244 $ 7,195 $ 115,586 $ 101,848
Service cost ........................................... 10,548 15,670 832 688 11,380 16,358
Interest cost ........................................... 6,343 5,996 739 468 7,082 6,464
Plan amendments .................................. — — — 1,046 — 1,046
Actuarial (gain) loss.............................. (2,691) (12,358) 2,809 3,020 118 (9,338)
Curtailment gain.................................... (32,857) — (7,521) — (40,378) —
Benefits paid ......................................... (919) (619) (173) (173) (1,092) (792)
Obligation at end of year....................... 83,766 103,342 8,930 12,244 92,696 115,586
Change in fair value of plan assets:
Plan assets at beginning of year ............ 54,769 45,892 — — 54,769 45,892
Actual return on plan assets .................. (26,667) (1,904) — — (26,667) (1,904)
Employer contributions......................... 15,606 11,400 173 173 15,779 11,573
Benefits paid ......................................... (919) (619) (173) (173) (1,092) (792)
Plan assets at end of year ...................... 42,789 54,769 — — 42,789 54,769
Funded status recognized....................... $ (40,977) $ (48,573) $(8,930) $ (12,244) $ (49,907) $ (60,817)
Amounts recognized in the
consolidated balance sheets:
Current liability..................................... $ — $ — $ (336) $ (283) $ (336) $ (283)
Noncurrent liability............................... (40,977) (48,573) (8,594) (11,961) (49,571) (60,534)
Net amount recognized .........................
$ (40,977) $ (48,573) $(8,930) $ (12,244) $ (49,907) $ (60,817)
Accumulated benefit obligation............. $ 83,766 $ 67,094 $ 8,930 $ 6,398 $ 92,696 $ 73,492
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. As a result of the freeze of plan benefits under our
pension and restoration plans as of December 31, 2008, the ABO and PBO balances are equal to one another at all
subsequent dates.
ASSUMPTIONS USED TO DETERMINE BENEFIT OBLIGATIONS
As of February 28 or 29
Pension Plan Restoration Plan
2009 2008 2009 2008
Discount rate...................................................... 6.85% 6.85% 6.85% 6.85%
Rate of compensation increase (1) ...................... —% 5.00% —% 7.00%
(1) The rate of compensation increase assumption is no longer applicable due to the freeze of plan benefits effective
December 31, 2008.
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, 2010.
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 $31.0 million to the pension plan in fiscal 2010. For the non-funded
restoration plan, we contribute an amount equal to the expected benefit payments.