Avnet 2011 Annual Report Download - page 65

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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
10. Pension and retirement plans
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
2011 and 2010:
59
July 2,
July 3,
2011
2010
(Thousands)
Changes in benefit obligations:
Benefit obligations at beginning of year
$
276,938
$
263,324
Service cost
23,874
—
Interest cost
13,918
15,748
Plan amendments
—
34,000
Actuarial loss
5,168
19,591
Benefits paid
(22,371
)
(55,725
)
Benefit obligations at end of year
$
297,527
$
276,938
Change in plan assets:
Fair value of plan assets at beginning of year
$
278,964
$
258,931
Actual return on plan assets
67,659
34,008
Benefits paid
(22,371
)
(55,725
)
Contributions
500
41,750
Fair value of plan assets at end of year
$
324,752
$
278,964
Funded status of the plan recognized as a non
-
current asset
$
27,225
$
2,026
Amounts recognized in accumulated other comprehensive income:
Unrecognized net actuarial loss
$
147,311
$
191,180
Unamortized prior service credit
(14,431
)
(16,306
)
$
132,880
$
174,874
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial (gain) loss
$
(34,931
)
$
15,720
Prior service cost
—
34,000
Amortization of net actuarial loss
(8,938
)
(5,687
)
Amortization of prior service credit
1,875
4,884
$
(41,994
)
$
48,917