Dillard's 2008 Annual Report Download - page 70

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:
January 31,
2009
February 2,
2008
(in thousands of dollars)
Change in benefit obligation:
Benefit obligation at beginning of year ..................... $113,715 $ 105,025
Service cost ....................................... 2,502 2,069
Interest cost ....................................... 7,056 6,002
Actuarial loss/(gain) ................................ (5,740) 4,246
Benefits paid ...................................... (4,020) (3,627)
Benefit obligation at end of year .......................... $113,513 $ 113,715
Change in plan assets:
Fair value of plan assets at beginning of year ................ $ — $ —
Employer contribution .............................. 4,020 3,627
Benefits paid ...................................... (4,020) (3,627)
Fair value of plan assets at end of year ...................... $ — $ —
Funded status (benefit obligation less plan assets) ............. $(113,513) $(113,715)
Unamortized prior service costs ....................... — —
Unrecognized net actuarial loss ....................... — —
Intangible asset .................................... — —
Unrecognized net loss ............................... — —
Accrued benefit cost .................................... $(113,513) $(113,715)
Benefit obligation in excess of plan assets ................... $(113,513) $(113,715)
Amounts recognized in the balance sheets:
Accrued benefit liability ............................. $(113,513) $(113,715)
Net amount recognized .................................. $(113,513) $(113,715)
Accumulated benefit obligation at end of year ................ $(106,461) $(103,948)
Pretax amounts recognized in accumulated other comprehensive loss for fiscal 2008 consisted of net
actuarial losses and prior service cost of $23.8 million and $2.6 million, respectively. The pretax amounts
recognized in accumulated other comprehensive loss for fiscal 2007 consisted of net actuarial losses and prior
service cost of $31.6 million and $3.2 million, respectively. The pretax amounts recognized in accumulated other
comprehensive loss for fiscal 2006 consisted of net actuarial losses and prior service cost of $29.4 million and
$3.9 million, respectively.
Accrued benefit liability is included in other liabilities. Accumulated other comprehensive loss, net of tax
benefit, is included in stockholders’ equity.
The estimated actuarial loss and prior service cost for the nonqualified defined benefit plans that will be
amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year
approximate $1.5 million and $600 thousand, respectively.
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 as of the end of each fiscal year
and is matched to the future expected cash flows of the benefit plans by annual periods. The discount rate
F-22