Harris Teeter 2007 Annual Report Download - page 54

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50
RUDDICK CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (continued)
in discount rates from September 30, 2006 to September 30, 2007 and actual returns for pension assets exceeding
the expected rate of return, the actual increase in pension liabilities and reduction in equity was $13.4 million
and $8.0 million, respectively.
The Company uses September 30th as the measurement date for its Company-sponsored defined benefit
pension plan. The following table sets forth the change in benefit obligation and plan assets, as well as the
defined benefit plans’ funded status and amounts recognized in the Company’s consolidated balance sheets at
September 30, 2007 and October 1, 2006 for the Company-sponsored defined benefit pension plans (both funded
pension and unfunded supplemental plan) (in thousands):
Pension Plan Supplemental Plan
2007 2006 2007 2006
Change in benefit obligation:
Benefit obligation at the beginning of year . . . . . . . . . . $ 285,400 $ 282,356 $ 30,919 $ 29,814
Service cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,040 1,562 800 880
Interest cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,157 15,514 1,741 1,604
Plan change .................................. — 317 1,125 (348 )
Actuarial (Gain) loss . . . . . . . . . . . . . . . . . . . . . . . . . . . (13,504 ) (5,783 ) (2,487 ) 244
Curtailment (gain)/loss . . . . . . . . . . . . . . . . . . . . . . . . . — — — —
Special Termination Benefits . . . . . . . . . . . . . . . . . . . . — 514 — —
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,942 ) (9,080 ) (1,235 ) (1,275 )
Pension benefit obligation at end of year . . . . . . . . $ 280,151 $ 285,400 $ 30,863 $ 30,919
Change in plan assets:
Fair value of assets at the beginning of year . . . . . . . . . $ 221,205 $ 202,601 $ — $ —
Actual return on plan assets . . . . . . . . . . . . . . . . . . . . . 31,229 14,541 — —
Employer contribution . . . . . . . . . . . . . . . . . . . . . . . . . . 7,500 15,000 1,235 1,275
Benefits paid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (9,942 ) (9,080 ) (1,235 ) (1,275 )
Non—investment expenses . . . . . . . . . . . . . . . . . . . . . . (1,799 ) (1,857 ) — —
Fair value of assets at end of year . . . . . . . . . . . . . . 248,193 221,205 — —
Funded status . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (31,958 ) (64,195 ) (30,863 ) (30,919 )
Unrecognized net actuarial loss . . . . . . . . . . . . . . . . . . . 62,856 95,427 6,831 10,085
Unrecognized prior service cost . . . . . . . . . . . . . . . . . . 728 947 2,540 1,524
Prepaid (accrued) benefit cost . . . . . . . . . . . . . . . . . . . . . . $ 31,626 $ 32,179 $ (21,492 ) $ (19,310 )
Amounts recognized in the Consolidated Balance
Sheets consist of:
Accrued benefit liability . . . . . . . . . . . . . . . . . . . . . . . . $ (31,958 ) $ (28,145 ) $ (30,863 ) $ (21,169 )
Intangible pension asset . . . . . . . . . . . . . . . . . . . . . . . . — 947 — 1,525
Accumulated other comprehensive income . . . . . . . . . 63,584 59,377 9,370 334
Net amount recognized . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 31,626 $ 32,179 $ (21,492 ) $ (19,310 )