CarMax 2015 Annual Report Download - page 64

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60
BENEFIT PLAN INFORMATION
As of February 28
Pension Plan Restoration Plan Total
(In thousands) 2015 2014 2015 2014 2015 2014
Change in projected benefit
obligation:
Obligation at beginning of year $ 177,674 $ 177,531 $ 10,187 $ 9,408 $ 187,861 $ 186,939
Interest cost 8,032 7,583 453 433
8,485 8,016
Actuarial loss (gain) 34,989 (4,980) 840 803
35,829 (4,177)
Benefits paid (2,506) (2,460) (428) (457)
(2,934) (2,917)
Obligation at end of year 218,189 177,674 11,052 10,187
229,241
187,861
Change in fair value of plan assets:
Plan assets at beginning of year 124,712 107,968 ― ― 124,712 107,968
Actual return on plan assets 10,732 19,204 ― ― 10,732 19,204
Employer contributions 2,311 ― 428 457
2,739 457
Benefits paid (2,506) (2,460) (428) (457)
(2,934) (2,917)
Plan assets at end of year 135,249 124,712 ― ― 135,249
124,712
Funded status recognized $ (82,940) $ (52,962) $ (11,052) $ (10,187) $ (93,992) $ (63,149)
Amounts recognized in the
consolidated balance sheets:
Current liability $ ―$ ―$ (462)
$ (451) $ (462)
$ (451)
Noncurrent liability (82,940) (52,962) (10,590) (9,736)
(93,530) (62,698)
Net amount recognized $ (82,940) $ (52,962) $ (11,052) $ (10,187) $ (93,992) $ (63,149)
Accumulated benefit obligation $ 218,189 $ 177,674 $ 11,052 $ 10,187 $ 229,241 $ 187,861
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
Pension Plan Restoration Plan
2015 2014 2015 2014
Discount rate (1) 4.00 % 4.55 % 4.00 % 4.55 %
(1) For the restoration plan, the discount rate presented is applied to the pre-2004 annuity amounts. A rate of 4.50% is assumed
for the post-2004 lump sum amounts paid from the plan for fiscal 2015 and fiscal 2014.