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Table of Contents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following tables outline changes in benefit obligations, plan assets and the funded status of the Plan as of the end of fiscal 2012 and
2011:
The Plan was amended effective June 1, 2012 to improve pre-retirement death benefits so that the pre-
retirement death benefits will be
payable without regard to marital status, and will be based on 100%
of the participant's vested cash account. The increase in liability is
recognized as a prior service cost and will be amortized staring in fiscal year 2013.
Included in “accumulated other comprehensive income” at June 30, 2012 is a pre-tax charge of $218,837,000
of net actuarial losses which
have not yet been recognized in net periodic pension cost, of which $14,899,000
is expected to be recognized as a component of net periodic
benefit cost during fiscal 2013 . Also included is a pre-tax credit of $9,196,000
of prior service credit which has not yet been recognized in net
periodic pension costs, of which $1,573,000 is expected to be recognized as a component of net periodic benefit costs during fiscal 2013 .
Weighted average assumptions used to calculate actuarial present values of benefit obligations are as follows:
57
June 30,
2012
July 2,
2011
(Thousands)
Changes in benefit obligations:
Benefit obligations at beginning of year
$
297,527
$
276,938
Service cost
28,380
23,874
Interest cost
14,925
13,918
Plan amendments
3,360
—
Actuarial loss
48,620
5,168
Benefits paid
(17,656
)
(22,371
)
Benefit obligations at end of year
$
375,156
$
297,527
Change in plan assets:
Fair value of plan assets at beginning of year
$
324,752
$
278,964
Actual return on plan assets
(5,647
)
67,659
Benefits paid
(17,656
)
(22,371
)
Contributions
—
500
Fair value of plan assets at end of year
$
301,449
$
324,752
Funded status of the plan recognized as a non-current asset (liability)
$
(73,707
)
$
27,225
Amounts recognized in accumulated other comprehensive income:
Unrecognized net actuarial loss
$
218,837
$
147,311
Unamortized prior service credit
(9,196
)
(14,431
)
$
209,641
$
132,880
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial (gain) loss
$
81,206
$
(34,931
)
Prior service cost
3,360
—
Amortization of net actuarial loss
(9,680
)
(8,938
)
Amortization of prior service credit
1,875
1,875
$
76,761
$
(41,994
)
2012
2011
Discount rate 4.00%
5.25%