Red Lobster 2004 Annual Report Download - page 48
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RETIREMENTPLANS
14Defined Benefit Plans and Postretirement Benefit Plan
Substantially all of our employees are eligible to participate in a retirement plan. We sponsor non-contributory defined
benefit pension plans for our salaried employees, in which benefits are based on various formulas that include years of
service and compensation factors, and for a group of hourly employees, in which a fixed level of benefits are provided.
Pension plan assets are primarily invested in U.S., international, and private equities, long duration fixed income securities, and real assets.
Our policy is to fund, at a minimum, the amount necessary on an actuarial basis to provide for benefits in accordance with the requirements
of the Employee Retirement Income Security Act of 1974, as amended. We also sponsor a contributory postretirement benefit plan that
provides health care benefits to our salaried retirees. During fiscal 2004, 2003, and 2002, we funded the defined benefit pension plans in
the amount of $85, $20,063, and $41, respectively. We expect to contribute approximately $100 to our defined benefit pension plans during
fiscal 2005. During fiscal 2004, 2003, and 2002, we funded the postretirement benefit plan in the amount of $172, $140, and $123, respec-
tively. We expect to contribute approximately $260 to our postretirement benefit plan during fiscal 2005.
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, 2004 and 2003:
DefinedBenefitPlans PostretirementBenefitPlan
2004 2003 2004 2003
ChangeinBenefitObligation:
Benefitobligationatbeginningofperiod $129,636 $ 111,155 $ 14,809 $ 9,356
Servicecost 4,516 3,732 626 388
Interestcost 7,076 7,088 919 648
Participantcontributions – – 128 112
Benefitspaid (5,553) (4,558) (299) (252)
Actuarialloss 8,014 12,219 702 4,557
Benefitobligationatendofperiod $143,689 $129,636 $16,885 $14,809
ChangeinPlanAssets:
Fairvalueatbeginningofperiod $115,962 $109,574 $ – $ –
Actualreturnonplanassets 34,759 (9,117) – –
Employercontributions 85 20,063 172 140
Participantcontributions – – 128 112
Benefitspaid (5,554) (4,558) (300) (252)
Fairvalueatendofperiod $145,252 $115,962 $ – $ –
ReconciliationofthePlan’sFundedStatus:
Fundedstatusatendofperiod $ 1,563 $ (13,675) $(16,885) $(14,809)
Unrecognizedpriorservicecost (479) (936) – 29
Unrecognizedactuarialloss 62,062 79,805 6,458 6,089
ContributionsforMarchtoMay 22 19 77 35
Prepaid(accrued)benefitcosts $ 63,168 $ 65,213 $(10,350) $ (8,656)
ComponentsoftheConsolidatedBalanceSheets:
Prepaidbenefitcosts $ 67,077 $ 68,873 $ – $ –
Accruedbenefitcosts (4,859) (4,496) (10,350) (8,656)
Accumulatedothercomprehensiveloss 950 836 – –
Netasset(liability)recognized $ 63,168 $ 65,213 $(10,350) $ (8,656)
Notesto
Consolidated Financial Statements
Financial Review 2004