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Table of Contents AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
percentage of current salary, which varies with age, and interest credits. The Company uses its fiscal year end as the measurement date for
determining pension expense and benefit obligations for each fiscal year. The disclosures below do not include the pension plans of certain non-
U.S. subsidiaries and other defined benefit plans, which are not considered material.
The following table outlines changes in benefit obligations, plan assets and the funded status of the Plan as of the end of fiscal 2014
and
2013 :
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 was
recognized as a prior service cost and amortization began in fiscal year 2013.
Included in accumulated other comprehensive income at June 28, 2014 is pre-tax expense of $158.1 million
of net actuarial losses which
have not yet been recognized in net periodic pension cost, of which $13.0 million
is expected to be recognized as a component of net periodic
pension cost during fiscal 2015 . Also included is a pre-tax benefit of $6.1 million
of prior service credits which have not yet been recognized in
net periodic pension costs, of which $1.6 million is expected to be recognized as a component of net periodic pension costs during fiscal 2015 .
Weighted average assumptions used to calculate actuarial present values of benefit obligations are as follows:
61
June 28,
2014
June 29,
2013
(Thousands)
Changes in benefit obligations:
Benefit obligations at beginning of year
$
391,880
$
375,156
Service cost
36,733
36,920
Interest cost
17,155
14,653
Actuarial loss (gain)
34,726
(13,545
)
Benefits paid
(23,327
)
(21,304
)
Benefit obligations at end of year
$
457,167
$
391,880
Changes in plan assets:
Fair value of plan assets at beginning of year
$
365,373
$
301,449
Actual return on plan assets
67,914
45,228
Benefits paid
(23,327
)
(21,304
)
Contributions
40,000
40,000
Fair value of plan assets at end of year
$
449,960
$
365,373
Funded status of the plan recognized as a non-current liability
$
(7,207
)
$
(26,507
)
Amounts recognized in accumulated other comprehensive income:
Unrecognized net actuarial losses
$
158,103
$
173,069
Unamortized prior service credits
(6,050
)
(7,623
)
$
152,053
$
165,446
Other changes in plan assets and benefit obligations recognized in other comprehensive income:
Net actuarial gain
$
(2,280
)
$
(30,870
)
Amortization of net actuarial losses
(12,686
)
(14,898
)
Amortization of prior service credits
1,573
1,573
$
(13,393
)
$
(44,195
)
2014
2013
Discount rate 4.00%
4.50%