Avnet 2015 Annual Report Download - page 68

Download and view the complete annual report

Please find page 68 of the 2015 Avnet annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 97

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97

TableofContents
AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Thefollowingtableoutlineschangesinbenefitobligations,planassetsandthefundedstatusofthePlanasoftheendof
fiscal2016and2015:
 July 2,  June 27,
2016 2015
(Thousands)
Changesinbenefitobligations:  
Benefitobligationsatbeginningofyear $ 513,406  $ 457,167 
Servicecost 39,740  39,492 
Interestcost 21,310  17,797 
Actuarialloss 41,799  21,796 
Benefitspaid  (27,744) (22,846)
Benefitobligationsatendofyear $ 588,511 $ 513,406
Changesinplanassets:   
Fairvalueofplanassetsatbeginningofyear $ 484,408  $ 449,960 
Actualreturnonplanassets 19,425  17,294 
Benefitspaid (27,744)  (22,846)
Contributions 40,000 40,000
Fairvalueofplanassetsatendofyear $ 516,089 $ 484,408
Fundedstatusoftheplanrecognizedasanon-currentliability $ (72,422)$ (28,998)
Amountsrecognizedinaccumulatedothercomprehensiveincome:   
Unrecognizednetactuariallosses $ 235,747  $ 185,819 
Unamortizedpriorservicecredits  (2,903) (4,476)
$ 232,844 $ 181,343
Otherchangesinplanassetsandbenefitobligationsrecognizedinothercomprehensiveincome:   
Netactuarialgain $ 62,659  $ 40,723 
Amortizationofnetactuariallosses (12,731)  (13,007)
Amortizationofpriorservicecredits 1,573 1,573
$ 51,501 $ 29,289
Included in accumulated other comprehensive income at July 2, 2016 is a before tax expense of $235.7 million of net
actuarial losses which have not yet been recognized in net periodic pension cost, of which $15.4 million is expected to be
recognizedasacomponentofnetperiodicpensioncostduringfiscal2017.Alsoincludedisabeforetaxbenefitof$2.9millionof
prior service credits that 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2017.
Assumptionsusedtocalculateactuarialpresentvaluesofbenefitobligationsareasfollows:
 
 2016  2015
Discountrate 3.4 % 4.3 %
ThediscountrateselectedbytheCompanyforthePlanreflectsthecurrentrateatwhichtheunderlyingliabilitycouldbe
settledatthemeasurementdateasofJuly2,2016.Infiscal2016,theCompanychangedthemethodusedtoestimatethediscount
rate for the Plan as described further below. The change does not affect the measurement of our pension obligation andwas
appliedprospectivelyasachangeinestimate.Theestimateddiscountrateinfiscal2016was
67