Saks Fifth Avenue 2008 Annual Report Download - page 83

SAKS INCORPORATED & SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
(In thousands, except per share amounts)
2008 2007
Change in benefit obligation:
Benefit obligation at beginning of period .................................. $156,109 $ 163,915
Service cost ..................................................... 846 1,323
Interest cost ..................................................... 10,613 8,199
Actuarial loss ................................................... (3,818) (3,148)
Benefits paid .................................................... (15,079) (14,180)(1)
Benefit obligation at end of period ....................................... $148,671 $ 156,109
Change in plan assets:
Fair value of plan assets at beginning of period ............................. $165,878 $ 151,159
Actual return on plan assets ........................................ (55,071) 27,850
Employer contributions ........................................... 1,309 1,038
Benefits paid .................................................... (15,079) (12,835)
Administrative expenses ........................................... (1,764) (1,334)
Fair value of plan assets at end of period .................................. $ 95,273 $ 165,878
Pension plans’ funding status:
Accumulated benefit obligation ......................................... $(148,658) $(156,101)
Effect of projected salary increases ...................................... (13) (8)
Projected benefit obligation ................................................ (148,671) (156,109)
Fair value of plan assets ................................................... 95,273 165,878
Funded status ........................................................... (53,398) 9,769
Unrecognized actuarial loss ................................................ — —
Unrecognized prior service cost ............................................. — —
Contributions subsequent to measurement date ................................. — 258
Prepaid (accrued) pension cost classified in other assets (liabilities) at balance sheet
date ................................................................. $ (53,398) $ 10,027
Amounts recognized in the consolidated balance sheet:
Noncurrent asset ..................................................... $ — $ 25,309
Current liabilities .................................................... (1,179) (1,056)
Noncurrent liabilities ................................................. (52,219) (14,226)
Net amount recognized at balance sheet date ................................... $ (53,398) $ 10,027
Assumptions:
Discount rate, at end of period .............................................. 6.50% 6.00%
Expected long-term rate of return on assets, for periods ended January 31, 2009 and
February 2, 2008 ....................................................... 8.00% 8.00%
Average assumed rate of compensation increase ................................ 4.00% 4.00%
Measurement date ........................................................ 1/31/09 11/1/07
(1) The benefits paid in 2007 include the final payment of $1,345 from the Carson Supplemental Executive
Retirement Plan which was retained by the Company in conjuction with the sale of NDSG.
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