OfficeMax 2006 Annual Report Download - page 81

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77
post-retirement benefit obligationwas reduced by approximately $44 million. The plan changes were
considered to be a negative plan amendment, as defined in SFAS No. 106, “Employers’ Accounting
for Postretirement Benefits Other than Pensions.” Accordingly, there was no gain related to the plan
changes recognized in the Consolidated Statement of Income (Loss) for 2005. The reduction inthe
accumulated post-retirement benefit obligation will be recognized ratably over the remaining life
expectancy ofthe participants in theplans, whichis currently estimated to be approximately 12 years.
Obligations and Funded Status
The changes in pension and other postretirement benefit obligations and plan assets during2006
and 2005, as well as the funded status of the Company’s plans at December 30,2006 and
December 31,2005, were as follows:
Pension Benefits Other Benefits
2006 2005 2006 2005
(thousands)
Change in benefit obligation:
Benefit obligation at beginning of year........ $1,382,760 $1,394,125 $31,523 $78,871
Service cost ............................... 1,600959 870 643
Interest cost ............................... 74,679 75,266 1,583 3,668
Amendments .............................. — —— (44,240)
Actuarial (gain) loss........................ 20,007 8,138(180) (963)
Changes due to exchangerates ............. ——35 490
Transfers and immediaterecognition ......... 6,158—— —
Benefits paid .............................. (103,649) (95,728)(2,042) (6,946)
Benefit obligation at end of year.............. $ 1 ,381,555 $ 1 ,382,760 $ 31,789 $ 31,523
Change in plan assets:
Fair value of planassets at beginning of year .. $ 1,146,596$ 1,161,894 $ — $ —
Actual returnon plan assets ................. 130,690 77,654 — —
Employer contributions..................... 9,638 2,7762,042 6,946
Benefits paid .............................. (103,649) (95 ,728)(2,042) (6,946)
Fair value of planassets at end ofyear. ....... $ 1 ,183,275 $ 1 ,146,596 $ — $ —
Funded status ............................. $ (198,280) $ (236,165) $(31,789) $(31,523)
Unrecognized actuarialloss................. 335,444 383,431 10,220 11,086
Unrecognized transition obligation........... ——4,947 5,317
Unrecognized prior service cost (benefit). ..... ——(41,845) (45,797)
Net amount recognized ..................... $ 137,164 $ 147,266 $ (58,467) $(60,917)
The following table shows the amounts recognized in the Consolidated Balance Sheets related to
theCompany’s defined benefit pension and other postretirement benefit plans at year end:
Pension Benefits Other Benefits
2006 2005 20062005
(thousands)
Prepaidbenefit cost ........................... $— $182,088 $— $ —
Deferred income taxassets. .................... 130,488 144,848 (10,690 ) —
Accrued benefitliability—current................(11,100) (2,600) (2,100) (6,900)
Accrued benefitliability—non-current ............(187,180) (404,578) (29,689 ) (54,017)
Accumulatedother comprehensive loss. .........204,956 227,508 (15,988 ) —
Net amount recognized........................ $ 137,164 $147,266 $(58,467 ) $(60,917)