U-Haul 2008 Annual Report Download - page 86

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AMERCO AND CONSOLIDATED ENTITIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The components of net periodic post retirement benefit cost were as follows:
2008 2007 2006
Service cost for benefits earned during the period $ 672 $ 572 $ 373
Interest cost on accumulated postretirement benefit 609 464 306
Other components - (63) (299)
Net periodic postretirement benefit cos
t
$ 1,281 $ 973 $ 380
Year Ended March 31,
(In thousands)
The fiscal 2008 and fiscal 2007 post retirement benefit liability included the following components:
2008 2007
$ 10,784 $ 8,183
672 715
609 580
(485) (429)
(2,367) 1,735
9,213 10,784
Current liabilities 530 387
8,683 10,397
9,213 10,784
2,116 (251)
$ 11,329 $ 10,533
Year Ended March 31,
(In thousands)
Service cost for benefits earned during the period
Interest cost on accumulated post retirement benefit
Net benefit payments and expense
Components included in accumulated other comprehensive income:
Unrecognized net gain (loss)
Cumulative net periodic benefit cost (in excess of employer contribution)
Beginning of year
Actuarial (gain) loss
Accumulated postretirement benefit obligation
Non-current liabilities
Total post retirement benefit liability recognized in statement of financial position
The discount rate assumptions in computing the information above were as follows:
2008 2007 2006
Accumulated postretirement benefit obligation 6.00% 5.75% 5.75%
Year Ended March 31,
(In percentages)
In December 2003, the Medicare Prescription Drug Improvement and Modernization Act of 2003 became law. Amounts
shown above include the effect of the subsidy. The discount rate represents the expected yield on a portfolio of high grade
(AA to AAA rated or equivalent) fixed income investments with cash flow streams sufficient to satisfy benefit obligations
under the plan when due. Fluctuations in the discount rate assumptions primarily reflect changes in U.S. interest rates. The
assumed health care cost trend rate used to measure the accumulated postretirement benefit obligation as of the end of fiscal
2008 was 10.0% in the initial year and was projected to decline annually to an ultimate rate of 5.0% in fiscal 2014. The
assumed health care cost trend rate used to measure the accumulated postretirement benefit obligation as of the end of fiscal
2007 (and used to measure the fiscal 2008 net periodic benefit cost) was 6.5% in the initial year and was projected to
decline annually to an ultimate rate of 4.5% in fiscal 2014.
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