CarMax 2011 Annual Report Download - page 75

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65
ESTIMATED FUTURE BENEFIT PAYMENTS
(In thousands)
Fiscal 2012 1,365$ 381$
Fiscal 2013 1,649$ 429$
Fiscal 2014 1,972$ 465$
Fiscal 2015 2,297$ 473$
2,638$ 482$
18,936$ 2,628$
Plan
Plan
Pension
Restoration
Fiscal 2016
Fiscal 2017 to 2021
COMPONENTS OF NET PENSION EXPENSE
(In thousands)
2011 2010 2009 2011 2010 2009 2011 2010 2009
Service cost ―$ ―$ 10,548$ ―$ ―$ 832$ ―$ ―$ 11,380$
Interest cost 6,541 5,710 6,343 520 605 739 7,061 6,315 7,082
Expected return on plan
assets (6,580) (6,487) (5,572) ― ― ― (6,580) (6,487) (5,572)
Amortization of prior
service cost ― ― 23 ― ― 74 ― ― 97
Recognized actuarial
loss (gain) 280 ― (1,244) ― ― 247 280 ― (997)
Pension expense
(benefit) 241 (777) 10,098 520 605 1,892 761 (172) 11,990
Curtailment (gain) loss ― ― (8,229) ― ― 800 ― ― (7,429)
Net pension expense
(benefit) 241$ (777)$ 1,869$ 520$ 605$ 2,692$ 761$ (172)$ 4,561$
Years Ended February 28
Pension Plan
Restoration Plan
Total
CHANGES NOT RECOGNIZED IN NET PENSION EXPENSE BUT
RECOGNIZED IN OTHER COMPREHENSIVE INCOME
(In thousands)
Net actuarial (gain) loss (3,020)$ 4,914$ 68$ (671)$ (2,952)$ 4,243$
Years Ended February 28
Pension Plan
Restoration Plan
Total
2011
2010
2011
2010
2011
2010
In fiscal 2012, we anticipate that $0.5 million in estimated actuarial losses of the pension plan will be amortized
from accumulated other comprehensive loss. We do not anticipate that any estimated actuarial losses will be
amortized from accumulated other comprehensive loss for the restoration plan.
ASSUMPTIONS USED TO DETERMINE NET PENSION EXPENSE
2011 2010 2009 2011 2010 2009
Discount rate (1) 6.10% 6.85% 6.85% 6.10% 6.85% 6.85%
Expected rate of return on plan assets 7.75% 7.75% 8.00% ― ― ―
Rate of compensation increase ― ― 5.00% ― ― 7.00%
Years Ended February 28 or 29
Pension Plan
Restoration Plan
(1) For fiscal 2009, a discount rate of 7.70% was used to determine the effects of the curtailment at October 21, 2008.
Assumptions. Underlying both the calculation of the PBO and the net pension expense are actuarial calculations of
each plan's liability. These calculations use participant-specific information such as salary, age and years of service,
as well as certain assumptions, the most significant being the discount rate, rate of return on plan assets and
mortality rate. We evaluate these assumptions at least once a year and make changes as necessary.