Dillard's 2010 Annual Report Download - page 67

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Notes to Consolidated Financial Statements (Continued)
9. Benefit Plans (Continued)
The discount rate that the Company utilizes for determining future pension obligations is based on
the Citigroup Above Median Pension Index 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 had decreased to 5.5% as of January 29, 2011 from 5.7% as of January 30,
2010. Weighted average assumptions are as follows:
Fiscal 2010 Fiscal 2009 Fiscal 2008
Discount rate-net periodic pension cost ........ 5.7% 6.6% 6.3%
Discount rate-benefit obligations ............. 5.5% 5.7% 6.6%
Rate of compensation increases .............. 3.0% 4.0% 4.0%
The components of net periodic benefit costs are as follows:
(in thousands of dollars) Fiscal 2010 Fiscal 2009 Fiscal 2008
Components of net periodic benefit costs:
Service cost ........................... $ 2,886 $ 3,084 $ 2,502
Interest cost .......................... 7,269 7,303 7,056
Net actuarial loss ...................... 2,376 1,474 2,054
Amortization of prior service cost ........... 626 626 627
Net periodic benefit costs ................ $13,157 $12,487 $12,239
The estimated future benefits payments for the nonqualified benefit plan are as follows:
(in thousands of dollars)
Fiscal Year
2011 .................................................... $ 5,700
2012 .................................................... 6,260
2013 .................................................... 6,104
2014 .................................................... 5,868
2015 .................................................... 7,815
2016 - 2020 ............................................... 39,980
Total payments for next ten fiscal years ........................... $71,727
10. 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
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