Dillard's 2005 Annual Report Download - page 58

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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 28, 2006 January 29, 2005
Change in projected benefit obligation:
PBO at beginning of year ....................................... $88,262 $ 77,983
Service cost .............................................. 1,993 1,770
Interest cost .............................................. 4,756 4,578
Actuarial loss ............................................ 7,364 7,300
Benefits paid ............................................. (3,491) (3,369)
PBO at end of year ............................................ $98,884 $ 88,262
ABO at end of year ............................................ $92,450 $ 85,682
January 28, 2006 January 29, 2005
Change in plan assets:
Fair value of plan assets at beginning of year ....................... $ — $ —
Employer contribution ..................................... 3,491 3,369
Benefits paid ............................................. (3,491) (3,369)
Fair value of plan assets at end of year ................................ $ — $ —
Funded status (PBO less plan assets) .............................. $98,884 $ 88,262
Unamortized prior service costs .............................. (4,481) (5,108)
Unrecognized net actuarial loss .............................. (29,206) (23,413)
Intangible asset ........................................... 4,481 5,108
Unrecognized net loss ...................................... 22,772 20,833
Accrued benefit cost ............................................... $92,450 $ 85,682
ABO in excess of plan assets ........................................ $92,450 $ 85,682
Amounts recognized in the balance sheets:
Accrued benefit liability ........................................ $65,197 $ 59,741
Intangible asset ............................................... 4,481 5,108
Accumulated other comprehensive loss ............................ 22,772 20,833
Net amount recognized ............................................. $92,450 $ 85,682
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
Citigroup High Grade Corporate Yield Curve on its annual measurement date and is matched to the future
expected cash flows of the benefit plans by annual periods. The discount rate determined on this basis had
increased to 5.6% as of January 28, 2006 from 5.5% as of January 29, 2005. Weighted average assumptions are
as follows:
Fiscal
2005
Fiscal
2004
Fiscal
2003
Discount rate-net periodic pension cost ................................... 5.50% 6.00% 6.75%
Discount rate-benefit obligations ........................................ 5.60% 5.50% 6.00%
Rate of compensation increases ......................................... 4.00% 2.50% 2.50%
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