Napa Auto Parts 2005 Annual Report Download - page 37

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The Company also sponsors unfunded supplemental retirement plans covering employees in the U.S. and Canada and other postre-
tirement benefit plans in the U.S. The Company uses a measurement date of December 31 for its pension and other postretirement
benefit plans.
35
The benefit obligation for the Company’s U.S. pension plans
included in the above were $1,130,210,000 and $946,406,000 at
December 31, 2005 and 2004, respectively. The total accumulated
benefit obligation for the Company’s defined benefit pension
plans was approximately $996,100,000 and $841,392,000 at
December 31, 2005 and 2004, respectively.
The assumptions used to measure the pension and other
postretirement plan obligations for the plans at December 31,
2005 and 2004 were:
A9% annual rate of increase in the per capita cost of covered
health care benefits was assumed for 2006. The rate was
assumed to decrease ratably to 5% in 2010 and thereafter.
The fair values of plan assets for the Company’s U.S. pension
plans included in the above were $1,005,525,000 and
$875,236,000 at December 31, 2005 and 2004, respectively.
Pension Benefits Other Postretirement Benefits
(in thousands) 2005 2004 2005 2004
Changes in benefit obligation
Benefit obligation at beginning of year $ 1,035,858 $ 943,023 $22,705 $24,408
Service cost 41,910 35,740 453 460
Interest cost 64,102 60,039 1,310 1,256
Plan participants’ contributions 2,446 2,338 3,867 3,297
Plan amendments 902 ———
Actuarial loss/(gain) 123,140 21,255 2,821 (483)
Exchange rate loss 3,031 6,496 ——
Gross benefits paid (35,010) (33,033) (6,889) (6,233)
Benefit obligation at end of year $ 1,236,379 $1,035,858 $24,267 $22,705
Other
Pension Postretirement
Benefits Benefits
2005 2004 2005 2004
Weighted-average discount rate 5.75% 6.00% 5.75% 6.00%
Rate of increase in future
compensation levels 3.75% 3.50% ——
Other
Pension Postretirement
Benefits Benefits
(In thousands) 2005 2004 2005 2004
Changes in plan assets
Fair value of plan assets at
beginning of year $ 962,871 $ 834,015 $ — $ —
Actual return on plan assets 47,621 90,385 ——
Exchange rate gain 3,518 6,429 ——
Employer contributions 133,534 62,737 3,022 2,936
Plan participants’
contribution 2,446 2,338 3,867 3,297
Gross benefits paid (35,010) (33,033) (6,889) (6,233)
Fair value of plan assets
at end of year $ 1,114,980 $ 962,871 $ — $ —