OfficeMax 2007 Annual Report Download - page 81

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The following table shows the amounts recognized in the Consolidated Balance Sheets related
to the Company’s defined benefit pension and other postretirement benefit plans at year end:
Pension Benefits Other Benefits
2007 2006 2007 2006
(thousands)
Prepaid benefit cost ....................... $ 10,069 $ — $ — $ —
Deferred income tax assets .................. 98,777 130,488 (12,658) (10,690)
Accrued benefit liability—current .............. (5,628) (11,100) (2,039) (2,100)
Accrued benefit liability—non-current ........... (112,017) (187,180) (22,242) (29,689)
Accumulated other comprehensive income (loss) . . 155,146 204,956 (19,934) (15,988)
Net amount recognized ..................... $ 146,347 $ 137,164 $(56,873) $(58,467)
The Company adopted the recognition provisions of SFAS No. 158, ‘‘Employer’s Accounting for
Defined Benefit Pension and Other Postretirement Plans—an amendment of FASB Statements
No. 87, 88, 106 and 132(R),’’ as of December 30, 2006, which requires the recognition of the
funded status of all defined benefit plans in the statement of financial position, and that changes in
the funded status be recognized through other comprehensive income, net of tax, in the year in
which the changes occur. The initial recognition of the funded status of the Company’s pension and
other postretirement plans resulted in an increase in shareholders’ equity of $11.9 million, which
was net of income taxes of $7.6 million.
Components of Net Periodic Benefit Cost (Income)
The components of net periodic benefit cost (income) are as follows:
Pension Benefits Other Benefits
2007 2006 2005 2007 2006 2005
(thousands)
Service cost .................. $ 1,676 $ 1,600 $ 959 $ 341 $ 870 $ 643
Interest cost .................. 77,084 74,679 75,266 1,353 1,583 3,668
Expected return on plan assets .... (89,018) (87,353) (84,135) — — —
Recognized actuarial loss ........ 20,220 23,159 29,628 512 692 675
Plan settlement/curtailment/closures
expense ................... — 1,580 — — —
Amortization of prior service costs
and other ..................———(4,009) (3,571) (826)
Company-sponsored plans ....... 9,962 13,665 21,718 (1,803) (426) 4,160
Multiemployer pension plans ......——————
Net periodic benefit cost (income) . . $ 9,962 $ 13,665 $ 21,718 $(1,803) $ (426) $4,160
The estimated net actuarial loss for the defined benefit pension plans that will be amortized
from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year
is $11.8 million. The estimated net actuarial loss 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 the next fiscal year are $0.3 million and ($4.0) million, respectively.
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