TJ Maxx 2006 Annual Report Download - page 86

Dollars in Thousands
January 27,
2007
January 28,
2006
January 27,
2007
January 28,
2006
Funded Plan
Fiscal Year Ended
Unfunded Plan
Fiscal Year Ended
Change in plan assets:
Fair value of plan assets at beginning of year $373,047 $323,375 $-$-
Actual return on plan assets 48,773 18,194 --
Employer contribution -40,000 7,388 1,978
Benefits paid (9,565) (7,321) (7,388) (1,978)
Expenses paid (1,937) (1,201) --
Fair value of plan assets at end of year $410,318 $373,047 $-$-
Reconciliation of funded status:
Projected benefit obligation at end of year $417,436 $407,235 $53,109 $ 55,870
Fair value of plan assets at end of year 410,318 373,047 --
Funded status — excess obligation 7,118 34,188 53,109 55,870
Employer contributions after measurement date, and on or
before fiscal year end --(175) (213)
Unrecognized prior service (cost) -(178) -(602)
Unrecognized actuarial (losses) -(98,075) -(14,989)
Net liability (asset) recognized on consolidated balance sheets $ 7,118 $ (64,065) $52,934 $ 40,066
Amounts not yet reflected in net periodic benefit cost and
included in accumulated other comprehensive income (loss):
Prior service cost $ 121 $ 477
Accumulated actuarial losses 34,570 12,290
Amounts included in accumulated other comprehensive
income (loss) due to initial adoption of SFAS No. 158 $ 34,691 $12,767
The consolidated balance sheet as of January 27, 2007 reflects the funded status of the plans after initial adoption
of SFAS No. 158 whereby unrecognized prior service cost and actuarial gains and losses are recorded in accumulated
other comprehensive income (loss). The combined net accrued liability of $60.1 million at January 27, 2007 is reflected
on the balance sheet as a current liability of $3.4 million and a long term liability of $56.7 million.
As of January 28, 2006, the net asset attributable to the funded plan is reflected on the balance sheet as a non-
current asset of $25.6 million and a current asset of $38.5 million and the net accrued liability attributable to TJX’s
unfunded supplemental retirement plan of $55.9 million is included in other long-term liabilities.
The estimated prior service cost and net actuarial loss that will be amortized from accumulated other compre-
hensive income (loss) into net periodic benefit cost in fiscal 2008 is $57,000 for the funded plan and $1.2 million for the
unfunded plan.
Weighted average assumptions for measurement purposes for determining the obligation at December 31, 2006
(measurement date):
January 27,
2007
January 28,
2006
January 27,
2007
January 28,
2006
Funded Plan
Fiscal Year Ended
Unfunded Plan
Fiscal Year Ended
Discount rate 6.00% 5.50% 5.75% 5.50%
Expected return on plan assets 8.00% 8.00% N/A N/A
Rate of compensation increase 4.00% 4.00% 6.00% 6.00%
We select the assumed discount rate using the Citigroup Pension Liability Index.
We made aggregate cash contributions of $7.4 million, $42.0 million and $27.2 million for fiscal 2007, 2006 and
2005, respectively, to the defined benefit retirement plan and to fund current benefit and expense payments under the
unfunded supplemental retirement plan. The cash contribution in fiscal 2007 was solely to fund current benefit and
expense payments under the unfunded supplemental retirement plan. Our funding policy for our funded plan is to
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