Dillard's 2003 Annual Report Download - page 47

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The accumulated benefit obligations (“ABO”), change in projected benefit obligation (“PBO”), change in plan assets, funded status,
and reconciliation to amounts recognized in the consolidated balance sheets are as follows:
(in thousands of dollars) January 31, 2004 February 1, 2003
Change in projected benefit obligation:
PBO at beginning of year $64,360 $45,163
Service cost 993 1,416
Interest cost 4,235 3,592
Plan amendments - 6,360
Actuarial loss (gain) 14,244 10,988
Benefits paid (3,279) (3,159)
PBO at end of year $80,553 $64,360
ABO at end of year $77,856 $64,126
January 31, 2004 February 1, 2003
Change in plan assets:
Fair value of plan assets at beginning of year $ - $ -
Employer contribution 3,279 3,159
Benefits paid (3,279) (3,159)
Fair value of plan assets at end of year $ - $ -
Funded status (PBO less plan assets) $80,553 $64,360
Unamortized prior service costs (5,734) (6,360)
Unrecognized net actuarial loss (19,829) (5,715)
Intangible asset 5,734 6,360
Unrecognized net loss 17,627 7,025
Accrued benefit cost $78,351 $65,670
ABO in excess of plan assets $77,856 $64,126
Amounts recognized in the balance sheets:
Accrued benefit liability $54,990 $52,285
Intangible asset 5,734 6,360
Accumulated other comprehensive loss 17,627 7,025
Net amount recognized $78,351 $65,670
Accrued benefit liability is included in other liabilities. Intangible asset is included in other assets. Accumulated other comprehensive
loss, net of tax benefit, is included in stockholders’ equity.
The discount rate that the Company utilizes for determining future pension obligations is based on the Moody’s AA corporate bond
index. The indices selected reflect the weighted average remaining period of benefit payments. The discount rate determined on this
basis had decreased to 6.0% as of January 31, 2004 from 6.75% as of February 1, 2003. Weighted average assumptions are as
follows:
Fiscal 2003 Fiscal 2002 Fiscal 2001
Discount rate-net periodic pension cost 6.75% 7.25% 7.25%
Discount rate-benefit obligations 6.00% 6.75% 7.25%
Rate of compensation increases 2.50% 2.50% 2.50%
F-15