TJ Maxx 2004 Annual Report Download - page 79

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Postretirement Medical
Fiscal Year Ended
January 29, January 31,
Dollars In Thousands 2005 2004
(53 Weeks)
Reconciliation of funded status:
Benefit obligation at end of year $47,053 $40,035
Fair value of plan assets at end of year --
Funded status - excess obligations 47,053 40,035
Unrecognized prior service cost (382) (49)
Employer contributions after measurement date and on or before fiscal year end 119 121
Unrecognized actuarial losses 7,691 5,748
Net accrued liability recognized $39,625 $34,215
Weighted average assumptions for measurement purposes:
Discount rate 5.50% 6.00%
Rate of compensation increase 4.00% 4.00%
For purposes of measuring TJX’s obligations under the postretirement medical plan, a gross annual rate of increase in the per
capita cost of covered health care benefits of 9% was assumed in 2005 and is reduced by 1% each year to 5% in 2009 and thereafter.
However due to the plans’ $3,000 per capita annual limit on medical benefits, the effect of the changes in trend is limited. An
increase in the assumed health care cost trend rate of one percentage point for all future years would increase the accumulated
postretirement benefit obligation at January 29, 2005 by approximately $1.8 million and the total of the service cost and interest cost
components of net periodic postretirement cost for fiscal 2005 by approximately $250,000. Similarly, decreasing the trend rate by
one percentage point for all future years would decrease the accumulated postretirement benefit obligation at January 29, 2005 by
approximately $1.8 million as well as the total of the service cost and interest cost components of net periodic postretirement cost for
fiscal 2005 by approximately $250,000.
Following are components of net periodic benefit cost related to our Postretirement Medical plan:
Postretirement Medical
January 29, January 31, January 25,
Dollars In Thousands 2005 2004 2003
(53 Weeks)
Service cost $3,920 $3,259 $2,477
Interest cost 2,332 2,171 2,022
Amortization of prior service cost 332 332 332
Recognized actuarial losses 130 68 -
Net periodic benefit cost $6,714 $5,830 $4,831
Weighted average assumptions for expense purposes:
Discount rate 6.00% 6.50% 7.00%
Rate of compensation increase 4.00% 4.00% 4.00%
F-25