OfficeMax 2006 Annual Report Download - page 82

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78
The Company adopted the recognitionprovisions of SFAS No. 158, “Employer’s Accounting for
Defined Pension and Other Postretirement Plans—an amendment of FASB Statements No.87, 88,
106 and 132(R),”asofDecember 30, 2006, whichrequires the recognition of the funded status of all
defined benefit plans inthe statement offinancial position, and that changes in the funded status be
recognized through other comprehensive income (OCI), net of tax, in the year in which the changes
occur. Theinitial recognition of thefunded status of the Company’s pension and other postretirement
plans resulted inan increase in shareholders’ equityof $11.9 million, which was net of incometaxes
of $7.6 million. The incremental effect of applying SFAS No. 158 on the Consolidated Balance Sheet
at December 30, 2006, was as follows:
Before SFAS
No. 158
Incremental
Effect of
SFAS No.158
After SFAS
No. 158
(thousands)
Otherassets.................................. $ 173,824 $ (173,824) $ —
Accrued benefit liability - current and long-term....423,388 (193,319 ) 230,069
Accumulatedother comprehensive loss. .......... 200,879 (11,911) 188,968
Deferred incometax assets...................... 127,382 (7,584) 119,798
Components of Net Periodic Benefit Cost (Income)
The components of net periodic benefit cost (income) are as follows:
Pension Benefits Other Benefits
2006 2005 2004 2006 2005 2004
(thousands)
Servicecost ...................... $1,600 $ 959 $25,370 $ 870$643 $ 1,743
Interest cost ...................... 74,679 75,26610 0,675 1,583 3,668 6,176
Expected return on planassets ..... (87,353) (84,135)(99,165)—— —
Recognized actuarialloss .......... 23,159 29,628 38,071 692675 1,075
Plan settlement/curtailment/closures
expense (benefit)............... 1,580 —94,885—— (24,002)
Amortization of prior service costs
and other ...................... ——9,386 (3,571) (826) (530)
Company-sponsored plans. ........ 13,665 21,718 169,222 (426) 4,160 (15,538)
Multiemployer pension plans ....... ——460—— —
Net periodic benefit cost (income)... $ 13,665 $ 21,718 $169,682 $ (426) $ 4,160 $(15,538)
The estimated net actuarial loss for the defined benefit pension plans thatwill be amortized from
accumulated other comprehensive loss into net periodic benefit cost over the nextfiscal year is
$20.2 million. Theestimated net actuarial loss, transition obligation and prior service benefit for the
retiree medical plans that will be amortized from accumulated other comprehensive loss into net
periodic benefit cost (income) over thenextfiscal year are $0.5 million, $0.4 million and ($4.0) million,
respectively.