Dillard's 2009 Annual Report Download - page 69

Download and view the complete annual report

Please find page 69 of the 2009 Dillard's annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 82

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
10. Benefit Plans (Continued)
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 determined on this basis had decreased to 5.7% as of January 30, 2010 from
6.6% as of January 31, 2009. Weighted average assumptions are as follows:
Fiscal 2009 Fiscal 2008 Fiscal 2007
Discount rate-net periodic pension cost ........ 6.6% 6.3% 5.9%
Discount rate-benefit obligations ............. 5.7% 6.6% 6.3%
Rate of compensation increases .............. 4.0% 4.0% 4.0%
The components of net periodic benefit costs are as follows:
(in thousands of dollars) Fiscal 2009 Fiscal 2008 Fiscal 2007
Components of net periodic benefit costs:
Service cost ........................... $ 3,084 $ 2,502 $ 2,069
Interest cost .......................... 7,303 7,056 6,002
Net actuarial gain (loss) .................. 1,474 2,054 2,070
Amortization of prior service cost ........... 626 627 626
Net periodic benefit costs ................ $12,487 $12,239 $10,767
The estimated future benefits payments for the nonqualified benefit plan are as follows:
(in thousands of dollars)
Fiscal Year
2010 .................................................... $ 5,681
2011 .................................................... 5,403
2012 .................................................... 6,023
2013 .................................................... 5,921
2014 .................................................... 5,743
2015 - 2019 ............................................... 39,927
Total payments for next ten fiscal years ........................... $68,698
11. Stockholders’ Equity
Capital stock is comprised of the following:
Par Shares
Type Value Authorized
Preferred (5% cumulative) ......................... $100.00 5,000
Additional preferred .............................. $ 0.01 10,000,000
Class A, common ................................ $ 0.01 289,000,000
Class B, common ................................ $ 0.01 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
F-24