Avnet 2009 Annual Report Download - page 65

Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Pension Plan
The Company’s noncontributory defined benefit pension plan (the “Plan”) covers substantially all domestic
employees. Employees are eligible to participate in the Plan following the first year of service during which they
worked at least 1,000 hours. The Plan provides defined benefits pursuant to a cash balance feature whereby a
participant accumulates a benefit based upon a percentage of current salary, which varies with age, and interest
credits. The Company uses June 30 as the measurement date for determining pension expense and benefit obligations
for each fiscal year. Not included in the tabulations and discussions that follow are pension plans of certain
non-U.S. subsidiaries, which are not material.
The following tables outline changes in benefit obligations, plan assets and the funded status of the Plan as of
the end of fiscal 2009 and 2008:
During fiscal 2009, the Plan was amended effective July 1, 2009 to freeze future benefit accruals for
compensation paid by the Company on or after July 1, 2009. The Plan was also amended to change the interest credit
applied to participants’ cash balances to comply with applicable regulations resulting in an unamortized prior service
credit of $55,190,000 which reduced benefit obligations outstanding at the end of fiscal 2009.
Included in “accumulated other comprehensive income” at June 27, 2009 is a pre-tax charge of $181,147,000 of
net actuarial losses which have not yet been recognized in net periodic pension cost, of which $5,772,000 is expected
to be recognized as a component of net periodic benefit cost during fiscal 2010. Also included is a pre-tax credit of
$55,190,000 of prior service credit which has not yet been recognized in net periodic pension costs, of which
$4,884,000 is expected to be recognized as a component of net periodic benefit costs during fiscal 2010.
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10. Pension and retirement plans
June 27, June 28,
2009 2008
(Thousands)
Changes in benefit obligations:
Benefit obligations at beginning of year
$
279,141
$
276,836
Service cost
16,205
14,737
Interest cost
18,175
16,769
Plan amendments
(55,190
)
—
Actuarial loss (gain)
24,506
(14,216
)
Benefits paid
(19,513
)
(14,985
)
Benefit obligations at end of year
$
263,324
$
279,141
Change in plan assets:
Fair value of plan assets at beginning of year
$
252,547
$
255,815
Actual return on plan assets
(49,402
)
(23,764
)
Benefits paid
(19,513
)
(14,985
)
Contributions
75,299
35,481
Fair value of plan assets at end of year
$
258,931
$
252,547
Information on funded status of plan and the amount recognized:
Funded status of the plan
$
(4,393
)
$
(26,594
)
Unrecognized net actuarial loss
181,147
83,026
Unamortized prior service credit
(55,190
)
—
Prepaid pension cost recognized in the consolidated balance sheets
$
121,564
$
56,432