Red Lobster 2003 Annual Report Download - page 44

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42 DARDEN RESTAURANTS
The following provides a reconciliation of the changes in the plan benefit obligation, fair value of plan assets, and the funded status of
the plans as of February 28, 2003 and 2002:
Defined Benefit Plans
(1)
Post-Retirement Benefit Plan
2003 2002 2003 2002
Change in Benefit Obligation:
Benefit obligation at beginning of period $111,155 $ 97,339 $ 9,356 $ 6,739
Service cost 3,732 3,586 388 291
Interest cost 7,088 7,145 648 500
Participant contributions – –112 91
Benefits paid (4,558) (4,412) (252) (214)
Actuarial loss 12,219 7,497 4,557 1,949
Benefit obligation at end of period $129,636 $111,155 $ 14,809 $ 9,356
Change in Plan Assets:
Fair value at beginning of period $109,574 $120,042 $ – $ –
Actual return on plan assets (9,117) (6,097) ––
Employer contributions 20,063 41 140 123
Participant contributions – –112 91
Benefits paid (4,558) (4,412) (252) (214)
Fair value at end of period $115,962 $109,574 $ – $ –
Reconciliation of the Plan’s Funded Status:
Funded status at end of period $ (13,675) $ (1,581) $(14,809) $ (9,356)
Unrecognized prior service cost (936) (1,392) 29 47
Unrecognized actuarial loss 79,805 47,762 6,089 1,579
Contributions for March to May 19 10 35 44
Prepaid (accrued) benefit costs $ 65,213 $ 44,799 $ (8,656) $ (7,686)
Components of the Consolidated Balance Sheets:
Prepaid benefit costs $ 68,873 $ 48,262 $ – $ –
Accrued benefit costs (4,496) (3,929) (8,656) (7,686)
Accumulated other comprehensive income 836 466 ––
Net asset (liability) recognized $ 65,213 $ 44,799 $ (8,656) $ (7,686)
(1) For plans with accumulated benefit obligations in excess of plan assets, the accumulated benefit obligation and fair value of plan assets were $4,515 and $0, respectively, as of
February 28, 2003, and $3,939 and $0, respectively, as of February 28, 2002.
The following table presents the weighted-average assumptions used to determine the actuarial present value of the defined benefit
plans and the post-retirement benefit plan obligations:
Defined Benefit Plans Post-Retirement Benefit Plan
2003 2002 2003 2002
Discount rate 6.25% 7.00% 6.25% 7.00%
Expected long-term rate of return on plan assets 10.40% 10.40% N/A N/A
Rate of future compensation increases 3.75% 3.75% N/A N/A
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Notes to Consolidated Financial Statements