Dillard's 2004 Annual Report Download - page 51

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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 5.5% as of January 29, 2005 from 6.00% as of January 31, 2004.
Weighted average assumptions are as follows:
Fiscal 2004 Fiscal 2003 Fiscal 2002
Discount rate-net periodic pension cost 6.00% 6.75% 7.25%
Discount rate-benefit obligations 5.50% 6.00% 6.75%
Rate of compensation increases 2.50% 2.50% 2.50%
The components of net periodic benefit costs are as follows:
(in thousands of dollars) Fiscal 2004 Fiscal 2003 Fiscal 2002
Components of net periodic benefit costs:
Service cost $1,770 $ 993 $1,416
Interest cost 4,578 4,235 3,592
Net actuarial gain (loss) 1,146 130 (156)
Amortization of prior service cost 627 627 -
Net periodic benefit costs $8,121 $5,985 $4,852
The estimated future benefits payments for the nonqualified benefit plan are as follows:
(in thousands of dollars)
Fiscal Year
2005 $ 3,604
2006 4,731
2007 4,841
2008 4,804
2009 5,363
2010-2014 32,314
Total payments for next ten fiscal years $55,657
10. Stockholders’ Equity
Capital stock is comprised of the following:
Par Shares
Type Value Authorized
Preferred (5% cumulative) $100 5,000
Additional preferred $ .01 10,000,000
Class A, common $ .01 289,000,000
Class B, common $ .01 11,000,000
Holders of Class A are empowered as a class to elect one-third of the members of the Board of Directors and the holders
of Class B are empowered as a class to elect two-thirds of the members of the Board of Directors. Shares of Class B are
convertible at the option of any holder thereof into shares of Class A at the rate of one share of Class B for one share of
Class A.
On March 2, 2002, the Company adopted a shareholder rights plan under which the Board of Directors declared a
dividend of one preferred share purchase right for each outstanding share of the Company’s Common Stock, which
includes both the Company’s Class A and Class B Common Stock, payable on March 18, 2002 to the shareholders of
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